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T
he work of US economist
and sociologist Thorstein
Veblen focuses on the
relationship between economy and
society, and on how different class
groups consume specific goods and
services. He draws on the ideas of a
number of key theorists, including
Karl Marx, British sociologist
Herbert Spencer, and British
naturalist Charles Darwin. Veblen’s
insights into capitalist society and
the types of consumer behavior
it gives rise to are outlined in his
most celebrated work, The Theory
of the Leisure Class: An Economic
Study of Institutions (1899).Capitalism and class
Veblen sees the transition from
traditional to modern society as
propelled by the development of
technical knowledge and industrial
production methods. Like Marx,
Veblen argues that capitalist
society is split into two competing
social-class groups: the industrious
class made up of workers; and the
leisure class, also referred to as the
pecuniary or business class (which
also includes politicians, managers,
lawyers, and so on), which owns
the factories and workshops.The industrious class forms
the vast majority of the population
and engages in productive labor,
such as manual craft and machine
work. By contrast, the leisure
class is a numerically far smaller,
but nevertheless socially and
economically privileged, group
that is parasitic on the labor
of the industrious class. For Veblen,
members of this predatory leisure
class do not produce anything of
any real benefit to the wider good
of society. The wealth and privilege
they possess derive from driving
competition and manipulating
workers, with the sole aim of
increasing their personal wealth.THORSTEIN VEBLEN
Capitalist society is divided into
two classes.Conspicuous consumption
of valuable goods is a
means of reputability to
the gentleman of leisure.The industrious class produces consumer
goods, and the leisure class thrives on the
profits created by the industrious class.Members of the leisure class buy
nonessential luxury goods to display
their wealth, power, and status.IN CONTEXT
FOCUS
Conspicuous consumptionKEY DATES
1844 Karl Marx discusses
class structure in capitalist
society in Economic and
Philosophical Manuscripts
of 1844.1859 Charles Darwin explains
his theory of evolution in On
the Origin of Species by Means
of Natural Selection.1979 Pierre Bourdieu reworks
Veblen’s theory of conspicuous
consumption in Distinction.1992–2005 Studies by US
sociologist Richard A. Peterson
suggest that snobbery is no
longer a determining factor in
the consumption practices of
the middle class.
From 2011 Veblen’s concept
of conspicuous consumption
influences economic ideas
about irrationality and
consumer behavior.The motive that lies at
the root of ownership
is emulation.
Thorstein Veblen