Keeping up with the Joneses in the third millennium.

• Author: Peters, Charles
• Position: Tilting at windmills - Brief article

Of course, most of us can't afford mansions or concierges. But the spending of the rich has, nonetheless, had an impact on us, according to research by the University of Chicago's Marianne Bertrand and Adair Morse, reported by the Washington Post's Brad Plumer. They call the effect "trickle-down consumption."

As the very rich spend more, the slightly less rich spend more to keep up, and then each of the rungs below tend to do the same. It doesn't take long for the spending to reach the average man, who since 1980 has not been making more income. "In areas where incomes of the top 10 percent are growing," writes Plumer, "the supply of businesses and services that cater to the well-off also increase. Swankier bars replace cheaper bars. Expensive restaurants replace cheap restaurants. Whole Foods nudges out the local grocery store. And less-well-off residents end up spending more at these...