what does Thornstein Veblen's theory of leisure class mean?

Question

----conspicuous consumption
----what is your opinion and point of view about it?
----compare Thornstein veblen to other economists...
----how can we relate this to the present society
----what examples can u give??

your answers will be a great help...thanks

Answer 1

The Theory of Leisure Class argues that humans do not consume for gaining utility [satisfaction gained from consumption of a good or service], but rather to advance or maintain one's social status. The ruling class is referred to as the 'leisure class', whom in Veblen's view are grossly overpaid for their respective jobs, which usually concernt he direction of wealth rather than the creation of wealth (which was more important in Veblen's view).

Conspicuous Consumption (Definition): the lavish consumption of goods and services for the sole purpose of displaying a consumer's wealth.

Veblen has specifically stated that the essay "The Theory of the Leisure Class" was created as a alternative perception to consumerism, and that it was not intended to be an economics textbook. His essay has been frequently criticised for its almost complete lack of sources, as well as its dismissal of utility and its laws (eg. Law of Marginal Utility). Economists mostly discredit his theory, but some such as Robert Heilbroner (author of "The Worldly Philosophers") have stated that his theories may have been relevant in his time but are now outdated. His critique of consumerism has, however, drawn praise from non-economists.

Conspicuous consumption is all around us. For example, when people buy luxury yachts for the sole purpose of impressing friends. By strict definition utility, or the satisfaction gained from the consumption of a good or service, includes the satisfaction gained from a perceived 'high social status', so Veblen's theory would be irrelevant. However, it is likely that he meant for utility to be considered as the practical satisfaction gained internally (eg. eating ice cream on a hot day), or from oneself, rather than externally, from the praise of others (eg. being thought well-off by sporting an Armani suit).

Answer 2

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RE:
what does Thornstein Veblen's theory of leisure class mean?
----conspicuous consumption
----what is your opinion and point of view about it?
----compare Thornstein veblen to other economists...
----how can we relate this to the present society
----what examples can u give??

your answers will be a great help...thanks

Answer 3

The theory of leisure class was published in 1912 when the rich and super rich had extravagant life styles while the majority struggled to get by. Some are saying we are recreating this after decades of everyone incomes rising together that the rich are getting a bigger and bigger share of the economic pie. see graph at
http://www.visualizingeconomics.com/2007/03/24/us-income-of-top-01-percent-vs-marginal-tax-rate/

Answer 4

This is a good question, and one that intrigued me for quite some time.

Answer 5

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