In many countries, a small number of people are able to purchase very expensive luxurious products. Some people believe that this is good for the economy, but others think that governments should not allow products above a certain price level. Discuss both these views and give your own opinion.

Nowadays, the market of luxury goods is experiencing a growth all over the world. Some people are of the opinion that this issue has a positive bearing on the economy, while others opine that governments should stop the pricing on products above a certain level. Although I agree with the former statement, both arguments will be discussed in this essay in order to reach a conclusion. Some people claim that luxurious commodities have illusory prices. There are some arguments concerning this issue. To begin with, they believe that spending money for purchasing these products is a waste of money and results in an uneven development in terms of representing people’s positions in societies. A regional disparity in fact breeds negative influences such as increasing corruption in societies. These expensive luxurious goods furthermore lead to increase the price of other similar products that are produced by unknown companies. To clarify, the decision of buying a luxurious commodity is based on prestige and uniqueness, not on technical and functional factors and it means that other producing firms will take an action to boost the prices of their products from reaching a fake prestige in the market. On the other hand, it seems to me that luxurious products have a positive effect on the economy. It primarily encourages people to make hard efforts to acquire more revenue for obtaining these types of products. Indeed, it is beneficial for getting their own sense of self-worth. It moreover helps some businesses which only sell this kind of goods. The Rolex as a watch producer is, for instance based on luxurious watches, which has created jobs for myriads of people around the world. In conclusion, although in some circumstances, the extravagantly unique goods affect on an uneven wealth distribution, nevertheless, to my way of thinking, it helps a society for having a dynamic economy.