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

This reminds me of the equality of outcome/equality of opportunity debate in wealth distribution. John Rawls posits that people will not want more even if they see others have more, but if you accept the proposition that even minor relative inequalities exist, his assumption underestimates the actual impact these inequalities in wealth may produce. Take for example a city in suburban United States which builds schools and shopping malls that are only accessible by car because most citizens can afford personal transportation. If an individual resides outside a reasonable walking distance from resources such as food, education, and house maintenance devices, which many people in larger states do, having a car and gasoline becomes obvious basic necessities for some, though a car is considered a luxury in many parts of the world and beyond financial means for many families. You should look at Anne Phillips's essay 'Defending Equality of Outcome' if you're interested in problems of perceived relative inequality.

-- NovikaIshar - 06 Apr 2010

Ah, somehow I deleted my comment - here goes the second try:

Kalliope I didn't read any class conflict in Veblen's text, I think that was pretty well covered by Marx 40 years prior. Veblen, as far as I can see, is more concerned with a sociological (economic?) break-down of how the class gap got so broad. His tone and perspective are detached, like some kind of ethnographer. Isn't there something so refreshing about being told that all these things we want, and all the status these things bring, is just a bizarre cultural vestige?

I never understood why the men and women who run Fortune 500 companies seem to spend a lot of time on the golf course, or the tennis or the squash court. This offers a pretty good explanation why.

-- AerinMiller - 06 Apr 2010