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Growth in the market of luxury products as global income inequality gap widens

Tuesday, 05 June 2012
A new economic phenomenon we’ll have to accept to live with – which is also probably the brain child of capitalism is to accept that those who have more and those who have little or nothing is a way the human race supposed to be.

This is common in most wealthy countries and the emerging ones are also quickly embracing it. Sweden which used to be the champion of equality is no more as the bourgeoisies government has collapsed any form of equality that existed in the country before.

In the USA, the so called free-world, the Republicans are doing everything to get back to power even though the docile Democrats have the best policies to make the USA great again in the coming years. The policy the Democrats have  will see that education, healthcare and better pay be spread to the low earners and the Obama administration wants to protect the so- called middle class by cutting their taxes and increasing that of the wealthy who make about 1-2 percent.

In American the rule is that “you shall never mess with big businesses.” This is why big business have stopped hiring so that Obama’s job record will push him out of office and the hawks and sharks such as Mitt Romney will come in and give the wealthy and big businesses  and very open field to play.  As the republicans are getting back to power, let’s watch what they’ll do to create the jobs they have criticised.
A country which has been in economic crisis caused by the last Republican administration has but forgotten by the Americans who have been described as having very thin memory. This is why income gap in the USA which is already very wide now will increase.

In the UK and Sweden we see how income gap has exploded. In Sweden our own turf, this is very visible with the Conservatives in power, they have been quietly giving away incentives to their friend in big companies free ride and selling state own companies to their friends in the private sector. Schools and hospital operations as well as social care activities have been sold to private equity firms much of which have used all techniques to avoid paying taxes.

Then the small and new businesses such as Granscole Establishment which owns Scandinavian Companies and market are heaped with huge taxes and regulations. They are forced to run for cover elsewhere.

In all the countries were Conservative leaning politicians are king have seen the explosion of the gap between the rich and poor, Even in China, such phenomenon is seen. This is why the market for luxury goods such as yachts, frocks and safaris is set to hit 1.5trillion dollars this year alone according to the business daily, financial time.

The market is described as so big that it roughly match the entire economic out put of Spain or Australia. The driver of this market is just the widening of the income inequality gap.
The question is why will the rich and wealthy try to share with the poorer part of the population when their friends come to power and direct policies towards them.  In the UK, policies are being design such that the government will force job seeker to work for free to billion dollar worth companies. CEOs of these companies can pocket huge salaried and bonuses but the poorer part of the people will work for them for entirely free.
More money is going to luxury experiences such as spas and safaris rather than tangible goods. According to FT, spending on experience grew 50 percent faster than last year.
If you feel that communism is bad, try capitalism.
By Scancomark.se Team



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