While the Economy Flounders, Hermes Handbags Has a Big Problem – Shortages

So the Economy is Not Floundering for Everyone – Just the People Who Cannot Afford Hermes Handbags



A Real Flounder - Not an Economic One
Not Found at Hermes



The Dismal Political Economist was attracted to a story about how even though the people who make Hermes handbags are doing very nicely, the future does not  look strong.  He assumed that this was because in a weak economy, luxury handbags might not be selling all that well.

He was wrong.  The problem is that the demand for super expensive products like Hermes is so great the company cannot keep up with it.

Hermès Chief Executive Patrick Thomas said revenue growth in the second half of the year was unlikely to exceed these targets, due to stock constraints, rising raw-material prices and increased ad spend.

To keep up with the blistering demand for its prized Kelly and Birkin handbags, Hermès said it has hired close to 400 new employees and confirmed it would open around 10 new stores this year.

"We are not resting on our laurels," Mr. Thomas said. "But we can only make so many bags."

Now The Dismal Political Economist knows nothing about many things, Hermes handbags being just one of those many things.  So he went to e-bay to see what was available at a bargain.  This is what he found



A Used Purse - $6,445.00  AAGH!!!



A used handbag was available for $6,445.00.

Yes, that’s right, a “pre-owned” handbag for $6,445.00.  This was so discouraging that The Dismal Political Economist made no effort to find the original price of this item.

His conclusion  is that if this is what very wealthy people need their money for then not only should  they be paying more in taxes, they deserve to be paying more in taxes. Really, is spending thousands, or tens of thousands on a purse the best way for someone to consume?

 Do Republicans know that their defense of the wealthy is so they can afford to buy these items?  Yes, they probably do know and they probably don’t care.