Lakshmi Mittal, the Indian-born steel magnate and one of Britain's wealthiest residents, whose company is bidding for Europe's Arcelor, is a prime example. But for every Abramovich, Mittal, Bill Gates and Sir Richard Branson, there are thousands of others who never make it into the headlines but who all contribute to the plutonomy. While some of this wealth is being spent on high-profile corporate acquisitions, the bulk of it is being channelled into up-market property, private equity investments, hedge funds and art.
The plutonomy thesis helps to explain why high oil prices haven't slowed the global economy, why consumer confidence might be low yet consumption remains robust in the United States, and why the depreciation of the dollar hasn't done much for the U.S. trade deficit.
—Sylvia Pfeifer, "We're living in a plutonomy," The Sunday Telegraph, April 2, 2006
In a report called "The Plutonomy Symposium Rising Tides Lifting Yachts," Ajay Kapur, Citigroup's global strategist, says the balance sheets of the rich are "in great shape, and will get much better," which is why he recommends going out and buying stocks of companies that cater to that very select market.
Spending by the uber-rich overwhelms that of the average consumer and helps explain why the U.S. economy has continued to do well and the U.S. dollar hasn't collapsed even in the face of the current federal budget deficit, a negative savings rate, global imbalances and high energy prices, he says. The United States is one of the plutonomy countries countries whose economies are powered by a relatively small number of rich people.
—Angela Barnes, "Want wealth? Invest in the uber-rich," The Globe and Mail, October 2, 2006
—"Internalising Kantian ethics," Business Line, July 3, 1999
sudden loss of wealth syndrome
sudden wealth syndrome