The Wisdom of Wealth
By: Mick, January 21st, 2007
I have written on previous occasions about my hypocritical dislike of the American culture of consumption and about various definitions of wealth, what makes people truly happy and other related righteous ponderings. But today I want to talk about real financial wealth - the truly BIG money – and the world of the people who possess it. The people with the really big money I’m referring to operate on a level so far removed from the world of the working class that it is as if they are another species altogether.
I was flipping through the countless channels on my new Verizon FiOS television package when I came across a network I had never seen before: Wealth TV. I had to check it out for a second and happened upon a program dedicated to profiling a company that built custom private jets for the most affluent people in the world. Unfortunately, I am unable to recall the name of the company (my custom private jet will have to wait), but I remember specifically that modifications made to a standard jet interior can cost in the tens of millions of dollars. I hear “tens of millions of dollars” all the time in reference to deficit spending, war cost estimates and the like, but it struck me in this instance because this company’s clients are almost all individuals, not corporations. The fact that individuals are paying tens of millions on the customization of a personal jet – not the jet itself, the “customization” – is pretty mind-boggling. That’s a level of wealth that is very difficult for a proud thousandaire to comprehend.
That represents an income level that far exceeds most of the highest paid athletes in U.S. sports, with the exception of Tiger Woods and perhaps now David Beckham (others could certainly afford to absorb the cost, but it would likely be a horrendous financial decision to do so). Even the majority of the owners of major sports franchises probably aren’t throwing around the kind of coin that would be necessary to drop about $30 million into customizing their private jet. And of course there are a few celebrities and entertainment moguls that could build those kinds of luxuries into their budget. Tom Hanks, Tom Cruise and Steven Spielberg all come to mind. The corporate giants go without saying, although I’m guessing there are many more of these than the few domestic names we know like Bill Gates, Warren Buffett, etc. But even at the global level, the percentage of the population that has tasted the lifestyle of the truly wealthy is miniscule, at best.
Where am I going with this? Not real sure. I guess Wealth TV was my first real glimpse into the “realities” of the world of the truly wealthy. And Wealth TV certainly did not come off as overly pretentious and its content seemed to be broad enough to target a demographic that would include all of the upper class and perhaps the very high end of middle class America. But the feature on the custom jets and another on a company that completely rehabilitates old Ferraris made me aware that at least some of their programming is intended only for the very top of the wealth pyramid. The tag lines of the channel, which I found on their web site are too sharp not to note here:
Wealth – an abundance of good.
It’s your life – spend it wisely.
Both of those gems struck me because of their clarity and simplicity. And perhaps more so because I think it sends the message that there is no reason to apologize for being wealthy, despite the fact that the vast majority of the non-wealthy world views the wealthy with incredible jealously and disdain.
Perhaps there is a grain of wisdom in knowing and appreciating your place in the world, wherever it may be. If you want to change that place, change it. If not, embrace it. Life should be approached as an opportunity for enjoyment, even if you are truly wealthy.
Tags: achieving wealth, american culture, wealth management, wealthy lifestyles
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January 25th, 2007 at 2:54 pm
It occurs to me that the people who are most appalled by the extravagances of the very wealthy call that spending “wasteful” as if that money is just disappearing somewhere or being destroyed. I mean, sure, no one really NEEDS a custom private jet, but no one really NEEDS an iPod either (and yet I personally own two). And yet, the company that builds the jets does employ more than a few skilled workers, and probably pays them reasonably well for it. That money isn’t being “wasted” in the sense that it’s destroyed and you can’t get it back again- it’s being cycled out to other people who are earning a living from it.
If the purchaser is making a poor financial decision in buying the jet, it may very well be a waste of the purchaser’s resources, but its their resources to waste. And from an economic perspective, it’s actually good for the rest of us- spreads the money around a bit.
But on the other hand, if the purchaser is sitting on such a giant mountain of cash that a custom private jet isn’t a serious financial hit to them, isn’t it MORE wasteful to not find something to do with that money? I mean, that’s what money is FOR, yes? Buying things? Even investing is a form of buying.
Maybe we need to re-think our definitions of what constitutes wastefulness.
January 26th, 2007 at 5:27 pm
I couldn’t agree more with your assessment. At that level of consumption (custom jet, etc.), wastefulness is no longer really a consideration. As you note, that type of consumption is actually economically productive on many levels. And if you’re using two iPods, that’s fine too, in my opinion
In addition to just pondering the realities of astronomical wealth, I wanted to point out that there’s absolutely nothing wrong with having it or spending it. The problems arise for the masses when we spend what we don’t have because we “must have it now” - and the convenience of our credit cards enables us to ignore the realities of our income.