What a lot of people miss is that this is actually a species of charity. Let's say you spend $50,000 dollars on a purse that has, to be generous, $5,000 of actual inputs. The rest is profit.
First, the $5,000 while you are actually consuming it, does go to support various people and industries. So it's not really wasted. But the extra $45,000 you spent to be a brand whore is not consumed at all, at least not by you. Rather it is redistributed, mostly to people who are probably not as well -off as you and, who are, probably, smarter than you so they are more likely to put these additional resources to some productive use. After all, they were smart enough to sell you a $50,000 bag and you were stupid enough to buy it.
So it is the people, like the various fathers in this thread, who insist on value for money who are the ones with the real ethical problem. We spendthrifts, who are spending $250K on a watch, are helping to create a fairer, more productive and more just society.