GO
Loading...

Cramer: Rich people spending like mad

It's hard to keep the rich downat least that's the takeaway from Tiffany's strong earnings report, according to CNBC's Jim Cramer.

"If you're Obama ... you're probably saying we didn't raise taxes high enough," Cramer said Tuesday on "Squawk on the Street." "They're still spending. When are we going to crush the rich people? But in reality you can't because, man, they spend like mad."

(Read more: Tiffany's outshines other jewelers in 3Q)

Tiffany posted big earnings Tuesday morning thanks to overseas growth, especially among Chinese jewelry shoppers. Global sales at the high-end jeweler rose 7 percent to $911.5 million in the third quarter that ended Oct. 31, more than $20 million past expectations.

Tiffany "used to be very New York-centric," Cramer said. "When the brokers didn't do well, their numbers went down. It's much more international."

Cramer said the strong Tiffany sales in China pointed to a larger trend of the country's elite class using luxury Western goods as status symbols.

(Read more: Chinese real estate influence extends to the Big Apple)

"We don't tell the story enoughrich people in China are really an engine of growth for the globe right now," Cramer said.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." Reuters contributed to this report.

Disclaimer