Have you ever sized up an iPad user on the subway and wondered how they were able to afford the trendy executive toy? Envy them not as you silently label them tiresome hipsters, for they are insane.
Bloomberg Businessweek examines consumer spending in our mini-recovery, through the lens of crazy people who walk away from their underwater properties and reward themselves with a vacation or an iPad. There’s much of the “I get a manicure but not a pedicure” non-frugality often seen in these types of articles, though this story quotes quite a few experts who look into the heads of consumers, among them psychologists and David Ariely, a behavioral economist professor at Duke University.
When people fret about market gyrations, they see the advantage of shopping over putting money into a mutual fund that might tank, Ariely says.
“If they lose money by spending it on something, at least they have something to show for it,” he says.
Is it any surprise that Amazon has slashed prices on the Kindle?