Why the success of the iphone and ipad means the economy is in terrible shape

Apple has been one of the few bright spots in the economy with blockbuster sales of the ipad and iphone 4. Its stock is near an all time high which it reached a few days ago and has more than tripled since Steve Jobs' cancer scare in early 2009.

Despite the good fortune of Apple the company, the economy remains in the toilet with unemployment near 10% and the prospects of a double dip recession not impossible. I think the success of the ipad and iphone (ipip) is indicative of what troubles our economy.

The ipips are discretionary goods, so you need some amount of income to buy them. However, they also lend themselves to be escapist goods, where you channel your enjoyment into these products and their apps while you forget that either you, your spouse, or friends are either unemployed or have had their pay cut. You can play games on the iphone or watch videos on the ipad while you wait interminably for a response to the dozens of resumes you sent out.

If the economy was doing well, you still might have bought an ipip, but you could afford to wait. Instead it's being used as a device to distract us from a state of ennui.