The Velvet Rope Economy
Nelson D. Schwartz
26 min
11 Key Points
4.8 RateWhat's inside?
Explore how economic inequality is being capitalized upon, creating a divide in services and experiences between the rich and the poor.
You'll learn
1. What's the Velvet Rope Economy and why should we care?2. How does inequality shape the way businesses work?3. Are businesses just pandering to the rich and what does that mean for everyone else?4. Is technology making the rich richer and the poor poorer?5. What's the real cost of the growing gap between the rich and the poor?6. How can we make the economy fairer for everyone?Key points
01The Velvet Rope Economy is making the rich richer and the poor poorer, causing more division in society
In Nelson D. Schwartz's exploration of the widening gap between the rich and the rest, he introduces us to the idea of the Velvet Rope Economy. This is the growing trend where businesses roll out the red carpet for the wealthy, offering them exclusive, premium services. This isn't just about money, but also about the social and cultural divide it creates. Schwartz suggests this could add fuel to the fire of division in our society. Let's break this down with a couple of examples. Imagine you're visiting SeaWorld in Orlando, Florida. For most folks, this means long lines, scorching heat, pricey food, and a quick, hurried encounter with a marine creature. But if you've got $1,240 to spare for a ticket to Discovery Cove, you're in for a different experience. You get to chill in a private cabana and have a personal meet-and-greet with a dolphin, all without the hassle of queuing. They only let in 1,300 visitors a day, so it's a pretty exclusive deal. This is the Velvet Rope Economy at work. Now, let's take a trip to Yankee Stadium. If you can cough up $1,000 or more for a Legends ticket, you're in for some VIP treatment. You get your own entrance, a private dining room with fancy food, and the best seats in the house. You can even avoid mingling with the other fans if you want. The stadium even has a moat to keep anyone but Legends seat holders from getting too close to the field. This isn't your grandpa's baseball game, it's another example of the Velvet Rope Economy. These examples show how businesses are bending over backwards to cater to the rich, creating experiences that are out of reach for the average Joe. It's simple economics: the more wealth is concentrated, the more businesses can profit from catering to the rich. But Schwartz warns that this trend is also creating a bigger divide in our society. The rich get richer and more isolated, while the rest of us are left on the other side of the velvet rope. This, he suggests, could make the divisions in our politics and culture even worse.
02This economy isn't just about money, it's changing our culture and politics too
Imagine you're at a swanky nightclub, and there's a velvet rope separating the VIPs from the rest of the crowd. That velvet rope is a symbol of exclusivity, a barrier that only a select few can cross. Now, imagine that velvet rope extending into every aspect of our lives - from the economy to our culture and politics. This is the reality we're living in, a reality where the rich can pay for exclusivity and convenience, creating a widening gap between them and the rest of us. In the economy, this velvet rope is becoming more and more noticeable. The rich can afford better services, quicker access, and more convenience. They can bypass the queues, the waiting, and the inconvenience that the rest of us have to deal with. This is what we call the Velvet Rope Economy. But this isn't just about money. It's about the way we live, the experiences we have, and the world we inhabit. The rich live in a different world, a world filled with exclusive experiences, services, and products that the rest of us can only dream of. This isn't just an economic divide, it's a cultural one. And it doesn't stop there. The Velvet Rope Economy also impacts our politics. If the rich can afford to bypass public services like public transportation and schools, they might not see the need to support funding and improvements for these services. This could lead to a decline in the quality of public services, making the gap between the rich and the rest of us even wider. Take, for example, the private terminal at Los Angeles International Airport. For a hefty fee, the rich can avoid the crowded main terminal. This makes it easy for them to ignore the poor conditions of the main terminal, and less likely to support improvements to it. The same goes for healthcare and education. If the rich can afford private healthcare and education, they might not see the need to support reforms in these areas. This could lead to a decline in the quality of public healthcare and education, making the gap between the rich and the rest of us even wider. So, you see, the Velvet Rope Economy isn't just about money. It's about the way we live, the experiences we have, and the world we inhabit. It's about the divide in our society, a divide that's not just economic, but cultural and political too. And unless we do something about it, this divide is only going to get wider.
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03Being rich in this economy can mean the difference between life and death
04Businesses have always had different prices for different products, but now it's getting extreme
05Envy is a big motivator in the Velvet Rope Economy, making people want to trade up
06Showing off isn't just about possessions anymore, it's about exclusive access too
07We all have a deep desire for exclusivity, but it's being exploited in this economy
08Everyone should have easy access to goods and services, not just the rich
09Money isn't just for buying things, it's for peace of mind too
10We all need to work together to build a fairer society
11Conclusion
About Nelson D. Schwartz
Nelson D. Schwartz is a prominent journalist for The New York Times, specializing in economics. He has covered a wide range of topics, including the intersection of economics and everyday life, Wall Street, and the global economy.
