Professor Gregory S. McNeal, JD/PhD, is an Associate Professor of Law and Public Policy at Pepperdine University. He is an expert on drones and topics related to security, technology and crime. He is a nationally recognized commentator and a frequent keynote speaker about technology, law and policy.

Is Affluenza Real? Ask Senator Elizabeth Warren And Other Experts

A 16 year old who killed four people while driving drunk after stealing alcohol from WalMart was sentenced to probation after his defense team argued he suffered from “affluenza” a malady that affects people who come from affluent families.

Is affluenza real? To answer that question I decided to research the term, and I found quite a few references to it in legal literature. The consistent theme in the literature is that affluenza is not a disorder per se, but rather a term used to describe rampant consumerism or materialism (although some authors referred to it as a “disease” or “malady” with quotes to indicate skepticism about the technical nature of the term). It’s also fascinating to note that most references to the term come from tax lawyers and estate planners.

The most prominent author citing the concept of “affluenza” was none other than U.S. Senator Elizabeth Warren. In a 2004 article in the Washington University Law Review, then Professor Warren noted (internal citations omitted):

Economist Robert Frank claims that America’s newfound “luxury fever” forces middle-class families “to finance their consumption increases largely by reduced savings and increased debt.” Documentary filmmaker John de Graaf and Duke Economics Professor Thomas Naylor explain in Affluenza: The All-Consuming Epidemic, “It’s as if we Americans, despite our intentions, suffer from some kind of Willpower Deficiency Syndrome, a breakdown in affluenza immunity.” They assert that Americans have a new character flaw–“the urge to splurge.” Economist Juliet Schor echoes the theme, explaining that American families are buying “designer clothes, a microwave, restaurant meals, home and automobile air conditioning, and, of course, Michael Jordan’s ubiquitous athletic shoes, about which children and adults both display near-obsession.”

Warren seems skeptical about the concept of affluenza, and consistent with her other writings believes that “affluenza” and rampant spending myths are barriers to regulation of the financial industry. She concludes, “So long as Americans can be persuaded that families in financial trouble have only themselves to blame, there will be no demand to change anything. In order to get on with the difficult business of making America once again safe for middle class families, the Over-Consumption Myth must be laid to rest for good.”

Paul Comstock, a noted author in the field of private foundations, coined the phrase: “Affluenza” for a malady common to children of affluent families. This Affluenza is characterized by one or more of the following symptoms: distorted view of money; lack of connection between work and reward; lack of self-discipline; lack of motivation; guilt; low self esteem; and feelings of incompetence.

Merrill Lynch, in particular, would have its customers believe that trusts, with their perceived magic powers, are capable of curing “affluenza.” Affluenza is a “disease” that strikes when the earned millions of middle-class parents turn good bourgeois children into wastrels.

A PBS special that aired in 1997, entitled “Escape from Affluenza” described the phenomenon as a “consumer chase” and “an epidemic of stress, waste, overconsumption and environmental decay.”

Daniel Farber, a law professor at Berkeley wrote in a Vanderbilt Law Review article

Jessie H. O’Neill, a psychotherapist, defines affluenza as: The collective addictions, character flaws, psychological wounds, neuroses, and behavioral disorders caused or exacerbated by the presence of, or desire for money/wealth . . . . In individuals, it takes the form of a dysfunctional or unhealthy relationship with money, regardless of one’s socio-economic level. It manifests as behaviors resulting from a preoccupation with–or imbalance around–the money in our lives.

Children of affluent families are prone to a malady that some have referred to as “affluenza.” [citing Paul Comstock] It has been noted that this condition is characterized by one or more of the following symptoms:

Too much unearned income can have a negative impact on productivity. Some studies suggest that individuals who inherit large sums of money are more likely to leave the labor force. Psychological costs, such as substance abuse, anxiety, and depression, also are associated with being a child of wealthy parents. Receiving large unconditional bequests could compound these psychological costs. “Affluenza,” a term “coined to describe an epidemic of over-consumption and its often negative effects on children-alienation, laziness, arrogance and low self esteem,” is not merely a hypothetical problem.

All told, the bulk of the legal literature referencing affluenza does so as a means to provide guidance to financial planners and others when dealing with trusts, inheritance and other transfers of wealth.

Gregory S. McNeal is a professor specializing in law and public policy. You can follow him on Twitter @GregoryMcNeal.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.