To Each According to His Greed

By: JimLarkinsGhost
Published: May 27th, 2008

These are not care-free times. Recession is in the air. Americans face not only soaring gas prices and foreclosures, but also a generalized sense of economic uncertainty.

And the startling growth in economic inequality in America is alarming. Like, you know, it’s eve-of-the-Great-Depression kind of alarming. Some of the trends:

The top one percent of households received 21.8 percent of all pre-tax income in 2005, more than double what that figure was in the 1970s. (The top one percent’s share of total income bottomed out at 8.9 percent in 1976.) This is the greatest concentration of income since 1928, when 23.9 percent of all income went to the richest one percent.

And:

Between 1979 and 2005, the top five percent of American families saw their real incomes increase 81 percent. Over the same period, the lowest-income fifth saw their real incomes decline 1 percent.

But this is no time to be a gloomy Gus! Why not focus on the good news?

From the Boston Globe:

The recession gripping the country has left a broad swath of Americans agonizing over $60 gas fill-ups, ballooning grocery bills, and homes lost to foreclosure. But for the region’s class of superrich, downtimes have made for a bonanza of deals on luxurious pleasures, from sports cars and yachts to pieds-a-terre and airplanes.

At the Rolls-Royce dealership in Wayland, the Rolls-Royce Phantom Drophead is sold out into next year, and orders are still rolling in. Ferrari Maserati of New England in Foxborough notched more sales in April than in any of the previous 14 months. Boston Yacht Sales of Weymouth last week closed on three boats valued at a total of $1.6 million, helping to push business up by 9 percent over last year. Business has been so brisk at Shoreline Aviation in Marshfield that the wait time to purchase a sleek Cessna Citation jet is two years. Million-dollar condo sales, far from stalling like some other sectors of the real estate market, have continued at a pace about like last year’s.

How long before we actually become Brazil?

This entry was posted on Tuesday, May 27th, 2008 at 2:13 pm and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Comments on “To Each According to His Greed”

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  1. 1. Larry Tate
    May 28th, 2008 at 7:30 am

    Reminds me of this 2006 article from the Globe. I’m pretty sure that I vomited a few times as I read this:

    XXL How Do You Furnish a McMansion?

    It happens all the time. A couple buys an estate-size home with multiple rooms and lavish amenities. Two-story fireplaces. Palatial entryways with formal staircases. Soaring coffered ceilings. Arched floor-to-ceiling windows.

    First they’re thrilled, says Sheri Edsall, a Needham interior designer. Then ”they’re panic-stricken. They can’t deal with that much house.”

    But many Boston-area residents are learning to deal with it. Decorating a big house is a challenge being faced by an increasing number of homeowners, given the proliferation of suburban residences of the sort variously referred to as ”McMansions,” ‘’starter castles,” or ”new construction,” to use the more discreet phrasing of the real estate world.

    Whether they are 5,000-square-foot faux Tudors in suburban developments or 10,000-square-foot showplaces on rural cul-de-sacs befitting the pages of Architectural Digest, supersize homes come with a host of supersized decorating concerns.

    Such as: How do you muffle the echo in a massive two-story foyer? Where do you get knickknacks to fill up a gazillion built-in shelves, let alone furniture that doesn’t seem Lilliputian beneath a 20-foot ceiling? What do you hang on the walls when your living room runs the length of a bowling alley? Not to mention: How do you pay for all this stuff after you’ve broken the bank on the house? ”Big spaces cost big money,” says Sandra Bissell, a North Andover interior decorator who has expertise in ”designing castles.” ”You can’t run out to Penney’s and buy standard-length drapes for those windows.”

    Some of the new homes in suburban Boston are so expansive they have rooms the owners don’t have names for, and they tend to be a tad underused. Carol Mader has one she’s resorted to calling the ”bonus room” in the 13-room, 5,500-square-foot Georgian Colonial where she lives with her husband in a suburb north of Boston. Its main piece of furniture is a mahogany pool table, and other than that the room is basically ”a big empty space,” she says.

    Mary Beth Orfao calls one of the 16 rooms in her elegant 11,000-square-foot custom-designed manse in Concord ”the family library corner.” (There’s also a living room, family room, guest suite, ”husband’s retreat,” ”Costco room” for storing groceries, crafts room, personal gym, and room designated for the family dog, Carmela, with a dog shower, dog wallpaper, and a heated slate floor.) The library corner has custom cherry cabinetry, a reading chair, and a desk. ”My husband uses the room, and the kids get tutored here,” she says.

    It’s fair to say that the average family with a new oversize home doesn’t have what it needs to fill it up. ”It’s hard to stretch the modest furnishings you brought from your 1,500-square-foot Boston brownstone into 10,000 square feet,” says Needham interior decorator Edsall, who has done work for several clients with huge homes. ”What usually happens is they space their furniture out — a piece in this room, a piece in that room — and then they run out of furniture. And they’re cash poor. Almost everyone ends up with one or two rooms that are unfinished. They have tumbleweeds rolling through them. The kids end up riding their bikes in them.”

    Jennifer O’Brien is already anticipating this. Her family is moving from a three-bedroom home in Melrose to a nine-room Colonial in Saugus with nearly 5,000 square feet of living space. ”This house is way over our heads,” says O’Brien, whose husband, Steven, works in sales for their family business, Metropolitan Pipe and Supply in Cambridge. ”We have no money for decorators. The furniture we have now would look ridiculous in this house because it’s worn out from use and this is such a gorgeous house.”

    So despite their best intentions to make do with what they had, they’ve swallowed hard and gone shopping. ”It was, ‘You know, what we really should get is a new desk.’ So the first thing we did is go to Jordan’s Furniture, and then we said, ‘Let’s buy a bedroom set.’ That started it. We got a king bedroom set, and then we had to go to get the mattress. Then we decided we wanted a bigger TV for the great room, so we got a 50-inch TV. So then we got a real nice entertainment center for that. Then we needed a new kitchen table, because we only had a small round one. This kitchen is huge, so I had to get a big kitchen table and six chairs to go with it.”

    Then there was the chandelier. And the lamps for the bedroom set. And ”we’re getting a new rug for the great room. It’s overwhelming,” she says. ”We have cathedral ceilings and a lot of wall space. In terms of pictures and stuff, this is going to take years.”

  2. 2. Ima Faka
    May 29th, 2008 at 8:47 am

    This Onion article fits the bill:

    Nation’s Poorest 1% Now Controls Two-Thirds Of U.S. Soda Can Wealth

    A report on growing disparities in the concentration of U.S. aluminum-can wealth, released Tuesday by the Department of Commerce, revealed that 66 percent of the nation’s recyclable assets are now held by the poorest 1 percent of the population.

    According to the sobering report, the disproportionate distribution of soda-can wealth is greater than ever before, and has become one of the worst instances of economic inequality in the nation’s history. Data showed that over-salvaging of cans by a small and elite group of can-horders has created a steadily growing and possibly unbridgeable gap between the rich and the mega-poor.
    Enlarge Image Can Wealth

    “Although our nation’s upper middle class actually consumes the most beverages, a staggering percentage of these cans wind up in the hands of a very few,” said economist Cynthia Pierce, who worked as a consultant on the three-year, $14 million government study. “It’s a troubling trend. And as a tiny fraction of the population continues to maintain its stranglehold on redeemable can wealth, it’s a trend that shows no sign of slowing.”

    According to Pierce, the study points to a distinct economic advantage for the most can-affluent—those who possess the resources necessary to collect, transport, separate, and accumulate more and more cans than the rest of the population.

    “Members of this exclusive group come from exceedingly poor backgrounds and have access to outrageously low levels of education, which makes them much better prepared to reap the benefits of digging around in garbage,” Pierce added.

  3. 3. Pig Inablanket
    June 3rd, 2008 at 4:56 am

    Mmm…soda.

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