The creator explains that price no longer reflects value in the American economy, arguing this is caused by the immense wealth of 25 million millionaires. He details how this has polarized the market into two extremes—cheap 'value' items and expensive 'signal' items—eliminating the middle ground. Using examples from fashion, food, and lifestyle goods, he discusses the rise of 'dupes' and how this economic shift has distorted consumer perception and pricing strategies, making it impossible to know what things should cost.
Post caption
Products are being developed and marketed for US millionaires, but people not in that demographic are buying into their marketing. People have lost the idea of price, can’t understand the sheer amount of wealth in America, and are unaware how good companies have gotten at marketing that wealth from us.
Sources
- Swiss Bank USB’s 2025 Global Wealth Report
- Institute of Economic Affairs discussion Paper No 149
- IMF World Economic Outlook
Transcript
Prices don't mean anything anymore. The Hermes bag worst $10,000 A Sheehan dress costs $4 Michelin tasting menu 400. A burger $1.99 in Plano and $28 in Austin. The relationship between price and value is completely decoupled. And it starts with the 25,000,000 millionaires in The United States. America is 4% of the world's population and holds 40% of the world's millionaires. More than Western Europe and China combined. In 2024 alone, The US minted more than a thousand new millionaires every day. Regular people whose house value went up, whose four zero one k compounded, endless influencers, anyone in the never ending bull stock market who just held on. The American income per person in our poorest state, Mississippi, is higher than The UK, and the English would never think that. The world cannot understand how much American money is floating around for more people than ever. Even Americans are confused by it. What this means for prices is everything. When you have 25,000,000 millionaires living amongst 330,000,000 people, the market stops pricing for the middle and becomes either value or entirely signal. It's almost comical. And then dupes, the $10,000 bag and the $200 dupe now coexist openly. Nobody is embarrassed. No one knows. Rich person and the broke person are just as likely to have them. You get to have the code without paying the toll. If you're driving a Porsche, who's gonna question the capacious goyard? Then menus. They used to price from cheapest to most expensive so you could orient yourself. Now the expensive thing is sometimes the simplest. A steak, no sides, tier. You can get a bread course tasting menu. Mozzarella sticks can be $8 or $19, and they're both likely from Sysco. Price no longer tracks complexity or ingredient cost. The chef of the owner is pricing their worse on whatever. Some categories have completely lost the plot. $6 water, $8 coffee. D to c pillows, thousand dollar sneakers. How are most candles tier? A Sirui Trudeau candle smells incredible. And not to show my middle class, but a Yankee candle also smells incredible. Buying up is entirely identity. And 305,000,000 non millionaires are not supposed to buy the expensive ones but do anyway because they can't help themselves. Your parents knew what things should cost. A good car, a good dinner, a good suit. Tier had a realistic number in their heads and they stuck to it. Do
