(ECONOMICS) economies in which consumption by the very rich is what drives most growth: Bulgari watches, Maybach limousines, Gulfstream
V business jets, vacations in the Maldives, Dolce & Gabbana suits, private security services, money laundering, and income tax evasion.
Initially
coined by analysts at Citigroup in
2005 to describe the growth of the Usonian economy during that period despite horrible economic fundamentals. Later used by Naomi
Klein in her essential work, *The Shock Doctrine*.
The US., UK, and
Canada are the key Plutonomies - economies powered by the wealthy. Continental Europe (excluding
Italy) and
Japan are in the egalitarian bloc.
- Equity risk premium embedded in "global imbalances" are unwarranted.
In plutonomies the rich absorb a disproportionate chunk of the economy and have a massive impact on reported aggregate numbers like savings rates, current account deficits, consumption levels, etc.
{Citigroup Oct 16, 2005 Plutonomy Report Part 1}