The American middle class, concludes a new study from the ad industry’s top trade journal, has essentially become irrelevant.
By Sam Pizzigati
August 29, 2011
Mad Men’s real-life ad agency brethren, 50 years ago, behaved the exact same way ~ for an eminently common-sense reason: In mid-20th century America, the entire U.S. economy revolved around middle class households. The vast bulk of U.S. income sat in middle class pockets.
Madison Avenue has moved on ~ to where the money sits.
And that money does not sit in average American pockets. The global economic recession, Ad Age relates, has thrown “a spotlight on the yawning divide between the richest Americans and everyone else.”
“Simply put,” sums up Ad Age’s David Hirschman, “a small plutocracy of wealthy elites drives a larger and larger share of total consumer spending and has outsize purchasing influence ~ particularly in categories such as technology, financial services, travel, automotive, apparel, and personal care.”
“As the very rich become even richer,” as Ad Age observes, “they amass greater purchasing power, creating an increasingly concentrated market for luxury goods and services as well as consumer goods overall.”