What is money if we don't spend it? This question does not seem to pose a problem for India's newest economic class of nouveau riche farmers. Many of these farmers have found themselves suddenly rich by selling their land and reaping the benefits. It is not these new pockets of wealth that are of interest, however; it's what these newly rich farmers decide to do with their money. For many, the influx of cash translates to "Spend Big, and Spend Now." The attached picture illustrates this: the newly rich Yadav family has decided to marry off their son by flying him in a helicopter to his bride's hometown. Although this impulsive consumption could be blamed on poor education and financial planning, as well as the allure of cold hard cash, sociologists say that much of it is due to the desire of lower casts to "show off their social mobility, partly by emulating the practices of the upper classes."
In India, a country with a strict caste system, social mobility is considered a rarity and a well-earned privilege. Everyone wants to be better than their neighbors, and the more material wealth you show off, the richer you are perceived to be. In fact, many of these farmers are truly rich by Western standards. But we're seeing the same effect here as was demonstrated by the Harvard students economics study - it doesn't matter how much money you have; it just matters how much you have in comparison to everyone else.
