Sylvia Pfeifer: Plutonomy, Money Word
on Sunday, January 1, 2017Plutonomy, written online first in 2006 in the Telegraph about Sylvia Pfeifer reports and strangely descriptive of the new administration and cabinet in Washington, D.C. ten years later
Money Word “Plutonomy” — Sylvia Pfeifer
Share the Sylvia Pfeifer Money quote image above on your site:
Short Link to this Quote:
The money word “plutonomy” was coined by Citigroup analysts in 2005 to describe economies “where economic growth is powered by and largely consumed by the wealthy few.” Some key points:
- The term combines the words “plutocracy,” meaning rule or power of the wealthy, and “economy” to refer to systems where the rich hold disproportionate wealth and influence.
- When coined, it was used to characterize and analyze economies such as the United States, Canada and United Kingdom that were seen as dependent on consumption by the wealthy for growth.
- The word was intended to draw attention to how an increasing concentration of wealth in fewer hands could shape macroeconomic conditions and performance.
- It highlighted the rising power of top income groups and their outsized impact on these nations’ economic fortunes, for better or worse.
Overall, “plutonomy” was developed by Sylvia Pfeifer and other analysts to concisely describe market-based economies becoming increasingly reliant on the affluent few rather than mass consumption by middle/lower classes.
Money Words – Finance Neologisms