January 13, 2009, 1:10 pm
New Model for the Rich: Minnesotans
When it comes to spending and flaunting their millions, the American wealthy have had no shortage of role models in recent years, from Trump and Stephen Schwarzman to Larry Ellison and Ira Rennert.
But now that thrift is in and bling is out, who can they look to for guidance?
Minnesotans.
Setting aside some obvious differences (for most of the rich, Sub-Zero is a luxury appliance, not a six-month climate), it turns out Minnesotans can teach the rest of the nation’s wealthy a thing or two about thrift, guilt and luxury shame.
An article in the Star Tribune by Kristin Tillotson says that luxury goods are the new porn, “things that must be hidden behind plain brown wrappers lest one be viewed as marching down the road to Prada perdition.”
And apparently when it comes to concealing their impure purchases, no one tops Minnesotans. “Conspicuous consumerism has never been in fashion for Minnesota’s anti-ostentation old money,” the article says. “Their idea of being flashy is breaking out Grandma’s diamond necklace once a year, and then only for a Wayzata fundraiser.” (For non-Minnesotans, Wayzata is a country club).
Of course, anyone who’s been to Boca or Naples, Fla. knows that some of the Minnesota wealthy are happy to spend for status, as long as it’s far away from home. And let it be said that not all New Yorkers or Californians feel compelled to keep up with the Joneses and Gates’s.
I’ve always said that the rich should spend their money as they please, especially if they earned it. But the coastal wealthy seem to have developed a culture of spending and status that is far removed from their more stripped-down Midwest compatriots. And now, it’s also out of sync with the times. Maybe Minnesotans can come to their rescue.
Minnesota can hold wealth seminars for the coastal rich on how to trade in Ferraris for Fords, how to host a 60th birthday party for less than $3 million and how to find coupons at Louis Vuitton. They can start five-step wealth-management programs called “The Minnesota Way,” featuring rigorous savings plans and models for conservative investing (example: CD’s count as an alternative investment).
All we need now is a front-man (or woman) from Minnesota to step up, go public and promote themselves. Or maybe not, since that wouldn’t be very Minnesotan.
http://blogs.wsj.com/wealth/2009/01/13/new-model-for-the-rich-minnesotans/
