Look, if shopping the high end segment of ANY market makes you feel better about yourself, go for it. That's the entire point. These segments exist so that individuals maximize their own utility, not that of others.
Fashion, though, is a lot more than what you pay or who designed it. If you're not blinded by the price tags or the concept of originality, you could go out and buy strikingly similar, or should i say near-identical, items for far less. It has more to do with whether or not you're willing to accept an off-label copy as opposed to a designer tag. However, personal utility may not be maximized by such a purchase. I'd venture to guess that the original poster of this thread sees an increase in his personal utility simply by purchasing designer clothing. It's not an insult to him, its merely stating his personal preference. I happen to be a very patient shopper when it comes to clothing. I like the latest trends, which the high price designers DO have a lot of influence over, but I don't prefer to pay a higher price. The result is that I manage to find near identical clothing at a fraction of the price. I would challenge the original poster or anyone else to tell the difference without looking at the tags, because my family and friends in the fashion industry (read: NOT floor sales people, because the original poster has already flamed them in general) cannot tell the difference.
Economically, it's a matter of spending your own disposable personal income on what maximizes your own utility. For me, I'd rather not spend a lot on clothes. But I'll bet my car's a lot faster than yours That's just what maxmizes my own utility. Then there's people like my father, who genuinely enjoys spending money on his family rather than personal items, and he wouldnt have it any other way. As long as you're not hurting anyone else, and the original poster of this thread is not, it's economically beneficial to spend money in a manner which makes you happiest.
I couldnt see spending thousands on clothes, even though my sweater will never throw a rod or drop a transmission. A lot of the more irate posters here couldnt see spending thousands on clothes but can justify computer expenditures of similar amounts, only to replace it every couple of years. Clothing might be the more practical expense, speaking outside of an economic context.
PS. The whole "made in" thing really doesn't mean a whole lot. It generally just means the final assembly of a product occurred in a certain country. I don't believe manufacturers are required to disclose origin of materials on the tag. Specific to "made in italy", it's unfortunate that that does not guarantee the lack of sweatshop conditions. I was watching the Italian news via satellite recently, with a segment about illegal sweat shops popping up here and there. It doesn't mean your clothing ISNT made in the same labor conditions as the lower priced clothing you've trashed.