We’ve all heard this maxim, particularly in the Christian community. No Robert Frank, a Cornell University economics professor, is trying to prove it quantitatively in his new book luxury Fever: Why Money Fails to Satisfy in an Era of Excess. Yacht makers are so backlogged that used boats sell for close to their original prices. All 84 spots on Tavoca World Tours’ $38,000-a-head round-the-world excursions are booked up months ahead. Luxury cars—those costing more than $30,000—account for 12% of all vehicles sold today, up from 7% in ’88. Overall luxury spending in the U.S. jumped by 21% in ’96, while total merchandise sales climbed by just 5%. Et numerous surveys taken through the decades show that the share of people who say they’re “very happy,” or express some other measure of subjective satisfaction doesn’t rise with a society’s income. This has been true for Americans in surveys taken between ’72 and today—while per-capita income jumped by 39%. (Business Week 2/15/99)
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