Thorstein Veblen

The Theory of the Leisure Class Thorstein Veblen

The Theory of the Leisure Class: An Economic Study of Institutions (1899) presents the evolutionary development of human institutions (social and economic) that shape society, arguing that technology and the industrial arts are the creative forces of economic production but that these forces are often purposefully wasted. The industrial production system requires the workers (men and women) to be diligent, efficient, and co-operative, whilst the owners (businessmen and businesswomen) concern themselves with making money and with the public display of their accumulated wealth. These displays, including conspicuous consumption and conspicuous leisure, serve to glorify exploit over industry. The glorification of exploit results in status gains for the exploitative leisure class, widespread admiration for behaviors which are fundamentally wasteful, and increased general reverence for members of the wasteful leisure class (rather than anger toward the leisure class). Veblen argues that the conspicuous leisure and conspicuous consumption of the leisure class are emulated by everyone-to the extent that their resources allow-as individuals attempt to attain increased status, often even at the expense of their own material needs and comfort. The sociology and economics of Veblen show the intellectual influences of Charles Darwin, Karl Marx, and Herbert Spencer; thus, his theories of socio-economics emphasize evolution and development as characteristics of human institutions. Like Marx, Veblen criticized the dominant (19th-century) economic theories of his day as static and hedonistic. Veblen argued that economists should take account of how people behave both consistently and dynamically through history, rather than rely solely upon static abstractions of non-historical theoretic deduction to explain the economic behaviours of society. Whereas classical economists measured utility in static terms of maximum material gain, Veblen perceived people as seeking status in addition to, or even above, material gain. For Veblen, the key point is that status has a utility of its own, even in addition to the material gain it sometimes facilitates. Through time, Veblen argues that technological development compels adaptations in the pursuit of status as well as material gain.