The turn of the twenty-first century witnessed a spectacular rise in gross consumption. With the super-rich setting the pace, everyone spent furiously in a desperate attempt to keep up. As cars and houses grew larger and more expensive, the costs were enormous - not only monetarily but also socially. Consumers spent more time at work and less time with their family and friends; they saved less money and borrowed more. In this book, Robert Frank presents the first comprehensive and accessible account of these financial choices. Frank uses scientific evidence to demonstrate how these spending patterns have not made us happier or healthier. "Luxury Fever" offers an exit from the rat race, suggesting ways to curb the culture of excess and restore true value to our lives.

Table of Contents

Acknowledgments ix 1. Money Well Spent? 1 2. The Luxury Spending Boom 14 3. Why Now? 3 4. The Price of Luxury 45 5. Does Money Buy Happiness? 6 6. Gains That Endure 7 7. Our Forgotten Future 94 8. Excellent, Relatively Speaking 107 9. Why Context and Position Are So Important 122 10. Smart for One, Dumb for All 146 11. Understanding Conspicuous Consumption 15 12. Self Help? 17 13. Other Failed Remedies 19 14. Luxury Without Apology 20 15. Equity Versus Efficiency: The Great Trade-Off? 227 16. We Can't Afford It? 25 17. Cash on the Table 266 Endnotes 281 References 295 Index 317

Reviews

Luxury Fever is an important book... It's admirable that an economist makes use of the research of behavioral biologists and evolutionary psychologists to explain why consumers spend as they do. USA Today Frank's analysis should be just as interesting to those who do not share his political position as to those who do. -- Samuel Brittan Times Literary Supplement One does not have to be the kind of person who complains about fat-cat City salaries to wonder whether certain wealthy people are not, on the one hand, rich beyond utility, and spending their money on things that no sane consumer needs, on the other. Robert Frank's thoughtful study of conspicuous consumption ... has a dreadful fascination. Sunday Times The shop-till-you-drop, 'retail therapy' culture may have become more dominant in the last few years... But are we really any happier for it? One person who thinks we are not is Robert Frank ... whose new book, Luxury Fever, has been causing a bit of a stir... The burst of consumerism in the U.S... gives a new bite to these well-rehearsed concerns. The Independent

From The Publisher:

A new luxury fever has America in its grip--the past two decades have witnessed a spectacular and uninterrupted rise in luxury consumption. Ordinary, functional goods are no longer acceptable. Our cars have gotten larger, heavier, and far more expensive. As the super rich set the pace, everyone else spends furiously in a competitive echo of wastefulness. The costs are enormous: we spend more time at work, leaving less time for family and friends, less time for exercise. Most of us have been forced to save less and spend and borrow much more. Frank offers the first comprehensive and accessible summary of scientific evidence that our spending choices are not making us as happy and as healthy as they could. The good news is that we can do something about it. "Luxury Fever" boldly offers a way to curb the excess and restore the true value of money.