As we learned in Mat’s roundtable, people are spending unbelievable amounts of money on art. In class we spent most of the time discussing art’s liquidity, and the idea that it is only taxed once. The major conclusion we came to was that the rich wanted wealth in something other then money in case anything goes wrong with the monetary system, but I have a different idea. Maybe people actually like art. But only the rich have money to buy the expensive art. Also many people enjoy auctions. The commotion of Auctions, and the thrill of so much money makes the art exciting to buy and overpay for. Though I am sure the liquidity of art is maters to many of the buyers, but my two other points must be major contributors to the overpricing of art as well.
Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at email@example.com , with comments or suggestions.