Wtf is he even saying?
Translation pls
Wtf is he even saying?
Re: Translation pls
Luxury in Poverty: Psychology behind lavish spending in poor countries like Ethiopia
February 24, 2025
A picture of Addis Abeba, the capital of Ethiopia (Photo: ENA)
By Demessie Girma
https://addisstandard.com/luxury-in-pov ... pia/?amp=1
Addis Abeba – Recently, a friend sent me a YouTube clip from one of the entertainment TV channels in Ethiopia. On its Sunday show, it featured a woman proudly presenting a traditional dress with a twist—it was embroidered with pure gold. The shimmering masterpiece, meticulously woven with 21-carat gold threads, carried a price tag of circa two million birr. My friend, an accomplished economist, was appalled and expected me to share his outrage. He was right.
The video instantly reminded me of an experience I had in Ethiopia a few years ago. While accompanying a family friend in search of office furniture, I stumbled upon a massive two-meter-wide bed. Built for a single couple, it was an exaggerated display of grandeur. I remember asking the salesperson,
Her response was a simple “Yes”, as if such excess was entirely normal.Why would anyone need a bed this large? Can you even find a mattress and bed linens to fit it?
Equally disturbing is the prevalence of oversized residential dwellings in upmarket areas—it is not uncommon for wealthy Ethiopian families to occupy far more space than they need. A ground-plus-two or even ground-plus-three commercial-style building, which could have been a profitable business space, is often used solely as a private residence. These towering mansions, built in a country facing severe housing shortages, stand as yet another symbol of extravagance over necessity.
This paradox becomes even more glaring when viewed against the country’s economic landscape. While many struggle to afford basic housing, a select few construct massive, underutilized mansions, not out of necessity but as yet another status marker. These homes aren’t just large—they are excessively grand, often with lavish marble interiors, chandeliers, and expansive empty halls that serve no real purpose beyond displaying wealth.
This raises the same fundamental question: Why is wealth in such societies so often tied to visible, grandiose displays rather than productive investment?
Having lived in the UK for years, where practicality often trumps ostentation, I found these displays of wealth both fascinating and unsettling. But such instances aren’t isolated—thanks to social media segments like Reels, Shorts, and TikTok, Ethiopia’s extravagant wealth displays are now on full display, and yes, almost side by side with the abject poverty. Lavish weddings featuring fleets of luxury SUVs, banknotes showered over dancers and trampled underfoot, and golden jewelry weighing as much as a child—these are becoming the new normal.
Not Anecdotes, but a Pattern
As I discussed this topic with my economist friend, a realization emerged—these were not isolated incidents but a deeply ingrained cultural pattern. One example that particularly stunned my friend was wealthy Ethiopians’ tendency to build unnecessarily large, multistory homes. In conversations with acquaintances who owned such homes, he repeatedly asked a simple yet revealing question: Why do you need a multistory residence? When they struggled to provide a satisfactory answer, he even went as far as suggesting they modify their buildings to allow external access to the upper floors—making it possible to rent out the unoccupied space. The reaction? A surprising
—a clear indication that such decisions were made more out of social conformity than practical need.Wow, I never thought of that!
One discussion led to another, and our conversation drifted back to our university days. My friend’s observations during his postgraduate studies in the UK proved particularly insightful. He noted that virtually all Ethiopian students returning home from abroad, as I did over many years previously, carried back entertainment and luxury items. No surprise—until you compare this with students from neighboring East African countries such as Kenya, Uganda, and Tanzania, with whom he frequently interacted. Unlike Ethiopians, their peers prioritized investment goods—farm vehicles, dairy farm equipment, and other tools that could generate wealth.
The contrast was stark: while others prepared for long-term economic security, Ethiopians indulged in consumer luxuries. Today, this tendency has only intensified, with excessive home entertainment setups—wall-to-wall multimedia systems and 65-inch screens—becoming the norm, despite the absence of popular streaming services like Netflix or Amazon Prime. This isn’t just a collection of anecdotes; it’s a distinct cultural pattern.
Another crucial element in this phenomenon is consumer awareness—or rather, the lack thereof. Over the years, I’ve observed, and my economist friend concurs, that Ethiopia’s supply-and-demand dynamics do not follow conventional economic principles. In many cases, price increases do not deter demand but instead fuel it, driving up prices further and reinforcing the allure of exclusivity.
This peculiar consumer behavior raises a larger question: Could the psychology behind lavish spending in poverty be a topic worth deeper exploration? While that may be a discussion for another time, it is essential to acknowledge its relevance before returning to the core issue at hand.
Why Luxury Thrives in Poverty
How is it that in a country where millions struggle for basic necessities, a select few flaunt wealth so aggressively? What drives this behavior? Is it cultural? Psychological? A symptom of deep economic disparity?
This article is my attempt to unpack this paradox—to explore why, in societies where poverty is the norm, displays of extreme wealth become even more ostentatious.
The paradox is hard to ignore: Why do some of the world’s poorest countries exhibit some of the most extravagant displays of wealth? Why do individuals in nations with struggling economies pour fortunes into luxury goods rather than investing in long-term financial security?
In wealthier nations like the UK or the US, the affluent typically invest in businesses, real estate, and technology—assets that grow wealth over time. Yet in countries with widespread poverty, wealth is often tied to visible assets—gold, oversized mansions, extravagant clothing, and luxury cars. But why would a wealthy Ethiopian opt for a gold-threaded dress instead of investing in tech or education?
Why might a London billionaire wear an understated suit, blending seamlessly into elite circles, while a millionaire in Ethiopia aspires to drive a gold-plated car, announcing their wealth to the world?
Let’s try to unravel the forces at play behind luxury obsession in struggling nations and what it says about human nature itself.
Conspicuous Consumption (Veblen Goods)
The 19th-century economist Thorstein Veblen coined the term
—the act of purchasing goods not for their practicality but for social status.conspicuous consumption
The more impractical, the better—it signals that the owner possesses so much wealth that they can afford wastefulness.
This explains the gold-threaded dress and the two-meter-wide bed, or even the multistory family residence. None of these are about function; they are about status. In societies where wealth is often tied to prestige and power, luxury becomes a loud announcement of financial success.
The Psychology of Status Signaling
Human beings, across all cultures, have an innate drive to signal status. In societies with sharp economic divides, the wealthy feel an even stronger urge to distinguish themselves.
In Europe, subtle status signaling is the norm—wealthy individuals prefer tailored suits over designer logos, understated elegance over flamboyance. But in countries with extreme income gaps, wealth is expressed loudly—gold chains, oversized furniture, luxury cars parked in poor neighborhoods—because status is more directly associated with visible wealth.
The “Relative Deprivation” Factor
In wealthier societies, the rich do not feel the need to constantly prove their wealth—their status is secured through business ownership, philanthropy, and elite education. But in developing nations, the wealthy live among extreme poverty, making them feel a stronger need to visibly separate themselves. In addition, investing in productivity (tech, education) is less “visible,” so they opt for tangible displays of affluence.
Luxury Fetishization and the Scarcity Effect
When basic needs are scarce, luxury becomes more desirable, fueling an obsession with exclusivity. A gold-threaded dress in Ethiopia becomes a national spectacle. A two-meter-wide bed is viewed as rare and exclusive rather than excessive. A multistory family home is celebrated as a symbol of prestige rather than a practical response to limited land—unlike in Japan, where vertical living maximizes space efficiency in densely populated areas.
Developed nations see such excess as wasteful, but in societies with a history of economic hardship, luxury takes on exaggerated symbolic value.
Psychological Distortion of Wealth Priorities
In some cultures, social display takes precedence over financial security, creating pressure to “keep up.” This leads to unsustainable spending and insecurity-driven consumption—when wealth is uncertain, people showcase it while they can—ultimately fueling a vicious cycle where extravagance reinforces economic fragility.
A Cycle That’s Hard to Break
This article brings to light a complex socio-economic phenomenon that is having a colossal negative impact on developing countries like Ethiopia. It does not attempt to provide all the answers—rather, if it raises the right questions and sets the stage for deeper discourse, then its purpose is fulfilled.
The key psychological and economic theories explored—conspicuous consumption, status signaling, relative deprivation, scarcity effect, and psychological distortions in wealth prioritization—shed light on the distorted spending patterns that perpetuate economic fragility.
The tragedy of this spending pattern is that it does little to uplift the economy. Instead of investing in business, infrastructure, or technology, vast sums are funneled into status symbols—perpetuating the very economic disparity that fuels them.
The media, particularly entertainment channels, plays a major role in glorifying this culture. They should reflect on the hidden costs of promoting conspicuous consumption.
Perhaps a shift is needed—one that educates people about the true meaning of wealth. Instead of celebrating gold-threaded dresses, why not celebrate entrepreneurs creating jobs? Instead of showcasing extravagant weddings, why not highlight initiatives that transform lives?
Put differently, can those who indulge in extravagance channel their pursuit of success into a legacy that uplifts others—turning wealth from mere display into a force that educates, trains, empowers, and eradicates poverty?
The challenge is clear: How do we redefine success in societies where wealth has long been tied to material display?
There is no easy answer here, but addressing this requires a multi-faceted approach. Cultural leaders, businesspeople, financial literacy programs, and government policies all have roles to play.
Moreover, the media outlets are not only well-positioned but uniquely powerful in reversing—rather than perpetuating—conspicuous consumerism. But will they?
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Demessie Girma, PhD, CEng, MIET, SMIEEE, is a technologist specializing in emerging technologies, with a particular focus on mobile cloud computing and AI. Beyond his expertise in technology, Dr. Demessie enjoys writing on cultural, linguistic, and social topics that pique his interest and provide valuable insights.
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In other words, they're like rappers from the ghetto!
Re: Translation pls
"Ethiopianist" is a term often used in reference to foreign scholars who studied Ethiopia and its 76 years of history.
One such scholar was an American Professor Donald Levine from the Department of Sociology at the University of Chicago.
Back in 2011, in an interview with Abebe Gellaw on ESAT TV, Professor Levine recalled a conversation he had with one of his Ethiopian students which he described as a moment that allowed him to see deep into the mindset of the Ethiopian elite-- an educated class of people burdened by an inferiority complex so massive that no amount of education could save them, nor their country.
Here's an excerpt from Professor Levine's interview....
One such scholar was an American Professor Donald Levine from the Department of Sociology at the University of Chicago.
Back in 2011, in an interview with Abebe Gellaw on ESAT TV, Professor Levine recalled a conversation he had with one of his Ethiopian students which he described as a moment that allowed him to see deep into the mindset of the Ethiopian elite-- an educated class of people burdened by an inferiority complex so massive that no amount of education could save them, nor their country.
Here's an excerpt from Professor Levine's interview....
"..... I'll tell you an experience I had that signaled to me that terrible times were ahead for Ethiopia.
I had a student in Chicago, an Ethiopian (and this was around 1970-71), he was the son of an elite family, and he said "...a lot of us are thinking we should do what they did in Russia to modernize."
And I said to him, do you know that in Russia what Stalin did cost the lives of 20 million people?
He replied, "well, they had like 200 million people in Russia. So 20 million dead out of 200 million is 10%. Ethiopia has around 30 million people, and 10% of that is roughly 3 million people. Well... 3 million dead Ethiopians would not be too high of a price to pay for progress."
When he said that my heart stopped, because he's representative of the educated group. Ethiopians were so embarrassed to be poor, and to be backward, they thought how can we modernize as fast as possible, and if that means killing 3 million people, so be it!
I'm afraid that kind of thinking is still to be found even today. Much of the leadership today are forcibly removing 1.5 million Ethiopians off their ancestral lands in the Gambella, Ogaden, Afar and the Beni-shangul regions. In the name of what? In the name of 'progress.' In the name of what Russia did. And when the Ethiopian ruling elite say 'blood must flow', it's always poor people's blood must flow, not theirs...."