The Theory of the Leisure Class: Conspicuous Consumption

Veblen’s most famous phrase is ‘conspicuous consumption’: spending money in a way that other people can see.He wrote in the 1890s, when America’s new millionaires were building palaces and throwing famous parties.He begins with a simple observation.

“To win and keep the respect of others, it is not enough simply to have wealth. The wealth must be shown, for respect is given only on evidence.Spending freely on valuable goods is one way for the gentleman of leisure to be respected.When his own spending is not enough to display his riches, he gives expensive presents and holds costly feasts and balls, so that his guests can witness it.

In a small village, everyone knows how rich you are, but in a modern city we are surrounded by strangers.In churches, theatres, hotels, parks and shops, these strangers can judge us only by the goods we display.So the sign of our ability to pay must be written in letters that anyone can read at a glance.

That is why city families spend a larger part of their income on appearances than farm families with the same income.To keep up a decent appearance, many of them live from hand to mouth.”For Veblen, the point of such spending is not usefulness but waste: to earn respect, it must be wasteful.