Last Saturday, a friend—a businessman 34 years of age, Indian, resident in India—called out of the blue and among, other things, said, “Oh, I forgot to tell you, I am buying a plane.”
Yes, you read that right, a plane, an aeroplane. It’s going to cost Rs 34 crore.
Ours is not to ask why; ours is just to wonder what’s the EMI.
Which is a nice way of introducing you to the “Guns to Caviar Index”. The Economist newspaper of London has the Hamburger Index, by which it measures global prosperity by comparing the price of a MacDonald’s hamburger across the world.
The Guns to Caviar Index, the brainchild of Richard Aboulafia, an analyst at the Teal group, does something very similar. It measures the state of the world using by comparing how much money the world spends on fighter jets (guns) versus how much money the world spends on private business jets (caviar).
Which should explain why a 34-year-old Indian businessman is buying a plane.
Read more here.