Separate, Not Equal

The tale of the haves and have nots is an all-too-familiar narrative in America. For the past 35 years, real wages haven’t budged for the majority of flag-waving, red, white, and true blue believers in the land of the free.

An interesting variation on our economic duality was offered up by reporters, Nick Timiraos and Kris Hudson, in Thursday’s Wall Street Journal. They write that our economy is now “two-tiered,” and companies selling consumer goods are paying attention to this, in order to better reach those with the pay to play.

Timiraos and Hudson offer up the example of Quadrant Homes, a Seattle-area builder that used to build starter houses for $269,000, with a marketing slogan, “More House, Less Money.” Quadrant, however, recognized that their customer base—middle-class homebuyers looking to get into their first homes—was weighted down with debt and credit issues. The company is now going after those in the economy who have done well, offering amenities like “vaulted ceilings and gourmet kitchens.” They’ve also adopted a new marketing tagline; “Build Your Way,” for consumers who want and can afford choices beyond a mere tar paper shack. Continue reading