In Response to Georgianne...

Will American retailers be able to compete with European Retailers, or will they be left behind?

 I do believe that American retailers will be able to compete with European retailers but this will have to consist of a humbling and mindset change by these American industries.  Europe is very accommodating of foreign languages and appreciate tourists trying to blend in by speaking the native language, and if a tourist cannot speak the language of the country they are in, they are bound to find an employee that can speak multiple languages.  I think that is the major reason why America is lagging behind in this "luxury" race.  

America seems to be ignorant to adopting multiple languages and if we don't move forward in accommodating the melting pot of ethnicitys that are country is - then we will keep falling farther and farther behind.

Why is it that the majority of our nation is not multilingual? Does this make us ignorant?

The Overspent American

In the movie we watched last class, The Overspent American, Juliet Schor explored how our nation, over the past few decades, have been spending their time spending their money, and sometimes the money they don't have. This movie was from 2003 so a little outdated but in a recent article, two Economists at the University of Chicago School of Business offered new statistical evidence for the "trickle down spending" theory.

The authors conclude that the middle and lower income households of our nation that are exposed to higher consumption by the richer class, also appear to consume more expensive goods.  They talk about what the big problem with the very concept of 'rich goods' is.  We all think we know what rich people buy, but what they really purchase is whatever they please. This leads to extreme variation - from cars to getaways to decorations. People who aren't 'rich' are susceptible to ignoring these distinctions, filtering expensive goods and services through their own conditioned expectations. Flashier cars, bigger houses are not strictly longed by just the wealthy - it's closer to the truth to say that they're characteristic desires of people who want to be wealthy.

Spending importance has shifted from quality to quantity - how much you have versus the quality of your possessions. Is it really necessary to have three big screen high definition TV's? Americans now, seem to throw out the idea of working hard and saving up for something expensive and meaningful but instead will go into debt and forfeit other aspects of their life in order to have the newest, biggest and best items.

Why is it that just because some wealthy people can afford a lifestyle comfortably that the middle and lower income classes feel they need to live that way too? What are other ways to feel rich that doesn't relate to money?