COAT4D: Conspicuous Consumption

I've encountered the term “conspicuous consumption” while reading an interview with Andy Rubin (who is employed by Google).

“Mr. Rubin readily acknowledges his obsession with consumer gadgets and even more expensive toys — an obsession that put him at odds with Google’s stated aversion to conspicuous consumption.

“The day before Google went public in 2004, Wayne Rosing, then the vice president for engineering, stood on a stage during a companywide meeting and brandished a baseball bat. He threatened to use it on anyone’s car in the Google parking lot that was anything flashier than a 3 Series BMW.

“As a result, Mr. Rubin had to buy a new car when he came to Google. (A souped-up German sports car that he recently acquired sits at home in his garage.) He acknowledges the discomfort created by the situation. “One of the things that Google’s really good at is not encouraging conspicuous consumption,” he says. “I’m a big fan of well-engineered things, and so I’m wrestling with how those two things can coexist.””

As defined in Wikipedia:
   
”Conspicuous consumption is a term used to describe the lavish spending on goods and services that are acquired mainly for the purpose of displaying income or wealth. In the mind of a conspicuous consumer, such display serves as a means of attaining or maintaining social status. A very similar but more colloquial term is 'keeping up with the Joneses'.”

As much as I love the idea of *not* encouraging conspicuous consumption, it's tricky where to draw the line because what's conspicuous for other people might not be conspicuous to the one who's doing the consumption.

For example, I like to wear brand name jeans not because I want to show them off but because in my experience, I'm more comfortable wearing brand name jeans because they have better fit, they are soft, they don't smudge, and they last longer. I'm willing to switch to greener jeans but they're still mucho pricey for me. That's why I hang out at sale racks at Gap, The Limited and Banana Republic.

And if I can afford it, I'd really like to get a Lexus RX Hybrid (I don't do minivans, so this makes for a good family car too). Again, not for the intention of flaunting wealth, but because the Lexus brand has top notch engineering, lots of high-end features and has excellent customer service. This innocent preference might still be interpreted by others as conspicuous. Good thing I don't have this problem at the moment. I'm planning to ride my old car until it craps out on me.

My point is, it's all relative. However, there are indeed obvious signs when someone is spending lavishly to display their wealth – driving a Ferrari Enzo to work; wearing diamond blings on their teeth; private jet made of gold; spending hundreds of thousands on parties and flowers – and we can smell them from a mile away. I can't think of any justification for those except, “Hey, check out what I can afford!” 

At the extreme end of the spectrum are billionaires. It's hard to be humble when you're a billionaire. The only high profile billionaire I know who is humble enough not to display his worth is Warren Buffett. Check out this article on Forbes.

Homes of the Billionaires

“Things have changed. While today's superrich still like to live in large houses, surrounded with the best that money can buy, they are much more individualistic. Their houses are more likely to reflect their own tastes and interests rather than adhering to a grand, though impersonal, style.”

Very, very, conspicuous. Then again, on second thought, buying mansions is more of an investment than a consumption. These billionaires get a good return on their investments in the long run. Gah, it's easier to make money the more money you have.

Here's to conscious (not conspicuous) consumption.