Here’s an interesting debate on the role of luxury in our currently struggling economy. Recently on NPR’s Day to Day, Robert Frank of the Wall Street Journal talked about how the wealthy have curtailed their spending, not just on handbags, watches, jewelery, and designer clothes, but also on big-ticket items like yachts, private jets, and mansions.

Frank noted that this reduction in spending has an economic consequence–if the wealthy aren’t spending money, they aren’t creating jobs and supporting the economy. He also said those who are still spending are doing it on travel (to create memories), more sensible cars, things that are not as visible and could be considered to be ‘conscientious consumption’ rather than conspicious.

Then Frank made a slight dig at luxury magazines like Robb Report, which had been celebrating spending when so many people have become ashamed of it. This prompted Robb Report writer Jack Smith to respond in an op-ed in the Philadelphia Inquirer, saying that the rich are indulging too little and shouldn’t be ashamed — reiterating how their spending supports the economy. He had an example: stays at the penthouse suite at the Four Seasons New York cost $35,000 a night, and keep 12-15 staffers employed.

Frank in turn responded on his WSJ blog by agreeing that the wealthy should spend, but noting that the sales of personal helicopters, palatial mansions, polo ponies, and other big-ticket items might do more to make those who can’t afford such luxury upset at the fatcats who took advantage of bailouts and didn’t earn their wealth.

I think this was an interesting exchange, but it’s worth remembering that the true nature of luxury depends on how people interpret it. The wealthy might have a ‘responsibilty’ to spend to support the economy, but they also have a responsiblity to themselves to know what they want and make sure their spending is truly worthwhile.

The Robb Report, the monthly magazine and website about luxury goods and experiences, has just announced its annual holiday gift guide. While I haven’t been able to find the full ‘Ultimate Gifts’ section online, the Wall Street Journal Wealth blog has had a look and noted a few highlights, including a $250 million yacht (with 13 suites and two helipads) and $16 Ferrari package (with a F1 Ferrari, 2 VIP passes to all 20 Formula One races next season, and lunch with Ferrari personalities).

These are not the only luxury items the Robb Report has recently promoted–earlier this month they began offering the Robb Report Limited Edition Series from their website’s Marketplace section. It’s an elite offering, including a car (a bespoke commissioned Rolls Royce Phantom for $493,272.00), wines (Ultimate Burgundy or Definitive Bordeaux from the Terroir Company, $1 million each), jewelry (Beaudry diamond and platinum bespoke ring, bracelet and earrings), and travel (golf, shopping and winter sports trips with a Sentient Jet membership $195,000-475,000) among other offerings.

Does the fact that the Robb Report is offering such luxury directly (in addition to highlighting items in guides) suggest that demand exists and that the economy isn’t doing as badly as we might think? Are they (cynically) in it for the high margins luxury products often offer, or do they really want to bring their readers the very best luxury they can find? The answer is probably somewhere in between.