Specifically, Veblen seems to define capitalism as the creation of conspicuous consumption. The higher classes accumulate profit to devote themselves to conspicuous consumption. Everyone emulates everyone who is higher than them in the social hierarchy. The lower classes emulate the higher classes by consuming as conspicuously as they possibly can. As capitalism progresses and the manifestations of conspicuous consumption grow in number, Veblen seems to say the lower classes may begin to feel like they are getting poorer and poorer comparatively. This feeling might be so strong that capitalism itself is overthrown.

I was wondering what everyone thinks about this (or if anyone disagrees with my layout of Veblen). First of all, I think it’s CRAZY that Veblen defines capitalism in the way he does. He equates capitalism with barbarism, saying it produces only worthless conspicuous consumption. Personally, I’m not prepared to say everything created by capitalism is necessary worthless. Second, I think Veblen puts an interesting psychological spin on the way we conceptualize quality of life. The rich are not getting richer and the poor are not getting poorer, in fact, but they nonetheless might feel like they are, and that’s the measure with which we should be concerned. Giving people extra money to ease their dissatisfaction won’t work either, because they will simply want more and more...

It’s a lot like when you give a mouse a cookie.

-- KalliopeKefallinos - 06 Apr 2010