Karela Fry

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The view over Altamount Road

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Tina Ambani inside Antilia

Vanity Fair has a very small picture set of the inside of Antilia. The Ambanis are not giving away much, even though they show no signs of moving into the eyesore.

Immediately after seeing these few photos it would be interesting to read an article by Stiglitz in Vanity Fair where he argues, among other things:

Moving money from the bottom to the top lowers consumption because higher-income individuals consume, as a fraction of their income, less than lower-income individuals do.

In our imaginations, it doesn’t always seem as if this is the case, because spending by the wealthy is so conspicuous. Just look at the color photographs in the back pages of the weekend Wall Street Journal of houses for sale. But the phenomenon makes sense when you do the math. Consider someone like Mitt Romney, whose income in 2010 was $21.7 million. Even if Romney chose to live a much more indulgent lifestyle, he would spend only a fraction of that sum in a typical year to support himself and his wife in their several homes. But take the same amount of money and divide it among 500 people—say, in the form of jobs paying $43,400 apiece—and you’ll find that almost all of the money gets spent.

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Written by Arhopala Bazaloides

June 3, 2012 at 6:18 am

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