In 1899, Veblen published The Theory of the Leisure Class, in
which he sought to apply Charles Darwin’s evolutionism to the
study of modern economic life. He examined problems in the
social institutions of the day, and savagely criticized Classical
and Neoclassical economic analysis. Although Veblen failed to
shift the path of mainstream economic analysis, he did
contribute the idea of the importance of long-run institutional
studies as a useful complement to short-run price theory
analysis. He also reminded the profession that economics is a
social science, and not merely a branch of mathematics.
Veblen remains most famous today for his idea of
“conspicuous consumption.” He observed that some
commodities were consumed not for their intrinsic qualities but
because they carried snob appeal. He suggested that the more
expensive such a commodity became, the greater might be its
ability to confer status on its purchaser.