Why it Matters If the Rich Have Less

p>The annual Sunday Times Rich List was publishedmany industries. The wealthy are often known for
on 26th April, with steelmaker Lakshmi Mittal toppingtheir love of extravagant cars. This is less likely to be
the list with a £10.8 billion fortune. Chelseaa priority in the current financial climate. The motor
football club owner Roman Abramovich was second,industry is one the areas that has been most
with the Duke of Westminster in third place. Theaffected in the recession, both at the top and
fortunes for those in the list, though, have taken abottom ends. People are more likely to wait until
big drop in a recession hit economy.times are better before they purchase a car.
The total fortune for the 1000 listed has fallen byHigh end products are likely to suffer. If there is a
over a third. In 2008 the total fortune was a recordcheaper option available, it is more likely to be taken
high £413 billion. However a 37% fall has seenup when times are tough. Somebody who needs a
this amount drop by £155 billion to £259new suit, is less likely to go to a Savile Row Tailors
billion. Mittal is top of the list despite loosing moreto have a suit made for them, and more likely to pay
than anyone else. The last year has seen his fortunethe sales a visit.
drop from £27.7 billion, a fall of 61% andWith the super rich loosing money, expensive luxury
£17 billion. Abramovich's fortune has decreasedproducts and services are less likely to be sought
by 40%, from £11.7 billion to £7 billion.after. There will be less demand for Luxury Yachts,
So why does it matter if the rich have lost some offor example. Yachting is an area the wealthy like to
their vast fortunes? Business tycoons making lessindulge in, but they are less likely to see this as an
money, means they will take decision that couldessential activity in the current situation.
affect many industries around the country. They mayThe average person may not think that the rich are
well cut down on their business interests, especiallythe people who will suffer most in a recession, and
those not making the profits they are looking for.they are probably right. If they spend less though,
This will have the knock on effect of more peopleand cut down on their business interest, that doesn't
loosing their jobs.just affect them, but many others who work in all
In a recession even the super rich are likely to besorts of industries.
more careful with their money, and this will affect