The Super-Rich and Today’s Economy

Wealthy individuals across the world do not appear to be suffering despite the difficulties in today’s economy.

The following excerpts are from Credit crunch: why the Super Rich are , Telegraph.co.uk, June 26, 2008:different

The credit crunch is all around us: food riots, rocketing fuel prices and sinking house values are deepening the gloom. But one group of people are sailing through without a care in their bulging leather wallets: the Super Rich. * * *

The luxury goods market alone is set to see a 10 per cent growth this year.  * * *

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

I do not, however, think that one has to be “super-rich,” “rich,” or even “modestly well-off” to survive in today’s economy.  Survival is based on planning for downturns when things are going very well.  People have a tendency not just to live “at” their means but “above” their means by maxing out credit, buying the most expensive house or car they can afford, etc.  But, a person of whatever income level who elects to live “below” their means, should have an relatively easy time weathering today’s economic downturns.  If you refuse consumer debt, buy a home and car below what you can afford, etc., a rise in gas prices, food prices, and the like merely means you save less than you were saving in the past!  The economic woes will not significantly impact your day-to-day life.