It's well known that people around the world can be really bad at saving money. Pre-pandemic, Americans saved an average of 7.6% of their income, electing to spend the rest. If people saved more money and invested it, then they'd be able to retire earlier, be wealthier, and therefore probably be better off. Yet, people visibly aren't choosing to do that, so what's going on here?
The standard Econ response to conspicuous consumption is a progressive consumption tax, or potentially an excise tax on relatively visible goods. See Robert Frank's writings for more on these policies.
The standard Econ response to conspicuous consumption is a progressive consumption tax, or potentially an excise tax on relatively visible goods. See Robert Frank's writings for more on these policies.