Thorstein Veblen (1857-1929) was an American economist, sociologist, and social theorist renowned for his contributions to the field of institutional economics. His seminal work, "The Theory of the Leisure Class" (1899), established him as a prominent figure in the study of conspicuous consumption and the critique of modern capitalism.
Veblen's ideas revolve around the concept of conspicuous consumption, which refers to the consumption of goods and services for the primary purpose of displaying one's wealth and social status. He argued that individuals in capitalist societies prioritize the accumulation of wealth for status purposes rather than for practical or productive means. Veblen coined the term "conspicuous consumption" to explain this phenomenon.
Moreover, Veblen dissected the behaviors and values of the "leisure class," whom he described as the wealthy elite who gain prestige and social standing through ostentatious consumption. He analyzed the lavish lifestyles and conspicuous waste of resources, criticizing their tendency to prioritize consumerism over the efficient use of resources and social betterment.
Veblen's work went beyond mere economic analysis, as he delved into the social and cultural implications of capitalism. He highlighted the significance of the social structure and institutions in shaping economic behavior, emphasizing the importance of understanding the wider societal context in economic analyses.
Overall, Thorstein Veblen's theories and concepts, centered around conspicuous consumption, laid the foundations for institutional economics and shaped the way we approach the study of consumption, economics, and social inequality.
