What is "nice"? Is a $40,000 car not nice enough? Is a $100 watch not nice?
There's a difference between buying high quality things vs spending magnitudes greater than what's necessary for high quality. For happiness and confidence? If a person needs to show off luxury goods for confidence, they should be spending that money on a therapist or self-help books instead, or spend time with support groups. It doesn't cost much at all to look nice. A Ferrari doesn't make a person happy. Ask a psychologist.
So to answer the question. People may see such spending as a waste of resources. Instead of buying a $200,000 car, it will likely make the purchaser and others more happy if instead they buy a $50,000 car and donate the rest to charity.