"The Theory of the Leisure Class: An Economic Study of Institutions" (1899) by Thorstein Veblen is a groundbreaking work in economics and sociology, critically examining the economic behavior of the upper class and its relationship to social class and consumerism. Veblen introduces the concept of "conspicuous consumption," wherein the wealthy engage in extravagant spending to display their social status rather than for practical use. The book explores how the division of labor and the stratification of society give rise to a leisure class, which, unlike the working class, does not participate in productive labor but lives off the work of others. Veblen critiques the social institutions inherited from the feudal period, including marriage, education, and religion, which continue to perpetuate inequalities in modern society. The leisure class’s pursuit of wealth and status through consumption leads to wastefulness and inefficiency, which Veblen argues are detrimental to social progress. Through this critical examination of the economic activities and social institutions that sustain inequality, Veblen highlights the flaws of capitalist society and calls attention to the need for a more equitable system.
Thorstein Bunde Veblen (July 30, 1857 – August 3, 1929) was an influential American economist and sociologist, renowned for his critical analysis of capitalism and his contributions to institutional economics. Veblen’s most famous work, The Theory of the Leisure Class (1899), introduced the concepts of "conspicuous consumption" and "conspicuous leisure," which critique the extravagant display of wealth and status by the upper class. His work examined how the wealthy class's consumption patterns are driven by the desire to show social superiority rather than for practical use, and he argued that this behavior leads to societal inefficiency and waste. Veblen’s theories also laid the groundwork for the institutional economics perspective, emphasizing the role of institutions, such as laws, customs, and social structures, in shaping economic behavior. He distinguished between "institutions" and "technology," a framework known as the Veblenian dichotomy, which remains influential in contemporary economic thought. Veblen’s critiques of capitalism, alongside his focus on the broader societal context in which economic activities occur, have made him a significant figure in the field of economics and sociology.
