The issue of using fake merch to show-off your status is that others will eventually catch up. Once every second person will have a fake expensive-looking phone, for example, it will lose its meaning. The rich and successful will find other ways to differentiate themselves. And I don't believe that owning a fake phone is going to make you successful. Being successful is a mindset.
I agree with your comment, and I believe that these status symbols —fake or not— make people unhappy.
However, I’ll like to point out a few things.
When you say “western cultures”, you mean the US and Europe; Latin America is also part of the western culture but the situation is different. In the US the iPhone is not a status symbol, because even with a low wage you’ll be able to easily get one with a cellphone contract.
But, I don’t think that first world people is “moving past” status symbols, they have others: Food, what you eat tells a lot about your status — you can see that all the time in the Bay Area. College, where you got your degree is another symbol of status. Hobbies, the more expensive —or extravagant— the better.
A beautifully naive and disconnected perspective. Why do you think Instagram or Snapchat or even Facebook are so popular? A good part of it is to show off conspicuous consumption.
If anything, now that they can afford it a bit more, people are even more vain.
Citation needed. So far from my point of observation the desire to obtain prestige items, get prestige credentials and live in prestige places has not subsided substantially.
I knew a girl, who had a minimum wage job, but bought her boyfriend a $300 sweater simply to show his parents she had money.. I asked about it, and she pretty much told me it came down to "give face".
i think it is this: "面子" and as others have written, one of the more difficult concepts for western culture to fully understand.
I think giving a gift to prove to someone that your rich is not giving face (that would be if the gift is freely given without the intent of proving your wealth), but rather taking face or in western terms, showing disrespect.
Seems like a bad thing either way, but for various reasons and (potentially) involved parties.
The people spend enough time around you to know that your phone, while looking a little beaten, is actually very reliable -- they don't care what kind of phone you have.
I think the film Parasite portrays the nuances of this kind of status quite well. (Even though the film is slightly comedic, I don't think the portrayal of status is exaggerated in the film.)
In the west I don't see nearly as much (well, I'm in the UK to be precise) and don't actually see it so much in others. But what I do see puzzles me.
But thanks for a solid perspective.
As to why some people who clearly cannot afford these would buy counterfeit goods or (more frequently in the West, accumulate excessive debts to pay them), I assume there is the desire to belong (or appear to belong) to said social class, coupled with the fact that appearance very much matters in our society and people are judged every day based on their appearance rather than their skills or their characters. That judgment can result in better job, promotions, better sexual partner, better social accceptance.
Now, multiply that tenfold for poorer countries.
But in these cultures it's also incredibly important to be seen as "doing well for yourself". You will see people from these cultures will frequently(for instance) drive a Mercedes, just because that means you've achieved something in life. Doesn't matter the Mercedes in question is 20 years old and on bald tires, it's a Mercedes, parents and grandparents can now say they are proud of you. It increases your social standing. Likewise, if you manage to buy an iPhone, that can be seen a an achievement(even if the iPhone is fake, what matters is people think you can afford an iPhone). Then in turn, if you are seen as successful(by the virtue of having those expensive things) you get better social opportunities, for employment, education, housing....it's almost cliche, but in some places having an iPhone, a good car and a gold chain(all fake of course) can really and measurably improve your standard of life.
Like, have you never seen a movie where a person emigrates to a wealthy country, and writes/calls the family back home saying "oh yeah I have my own bed, a car, a TV and a mobile phone! We eat meat every night" and like at home , that's incredibly impressive, even though to me or you that's just normal stuff.