Wealthy people will keep getting richer, says UBS, but Bain says they may try to hide it

Under Trump 2.0, this means discussions about who should be subject to tax and the amount of “wealthy”, and how private capital should be mobilized to address public financing concerns.

The “One, Great, Great, Great” draft law divided the opinion, after the CBO budget office estimated that the policies would cost the poorest Americans about $ 1,600 a year with the increase in the income of the richest families at a rate of $ 12,000 annually.

This is a matter of courtesy, such as increasing the threshold of exemption for real estate and gifts to 15 million dollars, as well as changing the maximum amount of discounts for government and local taxes (SALT) from $ 10,000 to $ 40,000.

Paul Dunovan, chief economist at Paul Dunovan, says one of the current discussions about wealth taxes.

Speaking at a round table last week, Donovan explained: “A somewhat interesting issue has started to see more and more in discussions … about things like wealth taxes and inheritance taxes is that there is an increasing gap between the perception of wealth and the reality of wealth.

“So people will say,” Yes, we must do a wealth for millionaires, but not me, I do not consider a millionaire “when you are actually an apartment of my bedroom in Manhattan. You are by definition, a millionaire.”

Donovan continued that social media deform wealth as well. He said that even if there is no inequality in wealth, people feel worse because of the common online extravagance.

“As a result, people may be more confused by their perception of their wealth and the facts of their wealth.”

“Many people are wealthy, but they see themselves deprived in one way or another because they do not live the best influencing life on social media.”

Luxurious

Although wealth becomes a socially divided theme-even with their launch from the reality of their situation-consumers already have the status of their status and their experiences.

The Bain & Co’s Spring update on the luxury sector, which was released last week, shows that the work of personal commodities in the industry in particular has decreased.

Claudia Darbizio, one of the authors of the report, recounts, luck The phrase “luxurious shame” was first formulated during the 2008 financial crisis when wealth was seen as Gucci given millions of Americans who lost their homes and jobs.

D’Apizio added that luxury stores are widely stored widely stored in white paper bags to send consumers with their purchases because individuals do not want to see with the designer holders.

“In the United States, that was self -desirable; people were correcting their behaviors because they were ashamed,” D’Apizio continued. The trend now, led by Chinese consumers, is governmental.

She explained: “This is a communist system that prompted luxury consumption in the past fifteen years when people have become richer and wealthy every year. Now that growth has slowed, there is an unemployment on young generations, so to prevent tension, they try to say to the wealthy people,” Do not show that you are rich at this moment. ”

D’Apizio added that this social tension is spreading west, which means that luxury brands should focus less on the perception of being the elite and more on the stronghold of culture and innovation.

Rich becomes richer

However, just because the wealthy do not want or do not realize that they are rich, this does not mean that the engines that generate their origins move any slower.

In response to a question from a question from a question from a question from a question from a question from a question from a question from a question from a question from a question from a question from a question from: “There are two independent drivers that we need to think about, and they have no effect on the wealth growth driver.” luck. “The first of these is the rise of economic nationalism.”

One only needs to take a look at the Trump initiative in America’s first, but Dunovan added that the behavior is also prevalent in countries like China.

“Often there can be hostility to foreign brands, for foreign companies. This is definitely something we have seen, for example, with European luxury brands in China,” he added.

Donovan added that the second factor that constitutes the wealthy approach to consumption is that its focus is less on goods and more on fun.

“The question I often ask is: What does the economist mean by enjoying? The answer is anything you can post on Instagram.” “So it is foreign travel, it’s external meals, it’s Taylor Swift parties. To be fair, it’s also clothes because it is clear, if you are moving on your latest meal, you must do this in a new group.

“These trends are independent of creating the entire wealth … We have to deal with it because it can give the appearance of a shame about wealth when it is actually just changing consumption patterns for other reasons.”