Is it okay to spend money on luxury brands? in today's economy?

I thought some good might come from the recession (the tragic hardship imposed on those who loose their jobs aside) in getting people to cut back on consumerism and materialism in ways they’ve planned to for years but never gotten around to. But just saw 20 somethings buying bottles of Grey Goose at $450 a pop in Vegas clubs to secure a seat and table. Would love your thoughts.