Document – Excerpt from Thorstein Veblen, The Theory of the Leisure Class (1899)

Abstract and Keywords

During America’s Gilded Age (1865–1900), individuals and families who achieved great wealth celebrated it as never before. Elegant city townhouses, huge country manors, lavish parties, and an extensive set of leisure activities were pursued by the wealthy elite, while the rising middle class emulated their “superiors” in fashion, food, and dress. The result was a period of unprecedented material accumulation in American history, a new emphasis on reputation and respectability, and the rise of “conspicuous consumption”—a term coined by economist Thorstein Veblen 1857–1929 to describe one of the major cultural impacts of the Industrial Revolution.

Although Veblen has earned the reputation as a skilled satirist and harsh critic of the lifestyles of the rich and famous during America’s Gilded Age, his Theory of the Leisure Class (1899) also provides a deeper understanding of the intimate relationship between the economy and society, and between wealth and cultural values. Veblen’s most unique contribution was to examine the workings of the economy through the lens of evolutionary theory. His views on economic behavior, patterns of consumption, and business excess continue to resonate today.

Thorstein Veblen, The Theory of the Leisure Class; an Economic Study of Institutions. New York: Macmillan (1902): 68–101.

Document

During the earlier stages of economic development, consumption of goods without stint, especially consumption of the better grades of goods,—ideally all consumption in excess of the subsistence minimum,—pertains normally to the leisure class. This restriction tends to disappear, at least formally, after the later peaceable stage has been reached, with private ownership of goods and an industrial system based on wage labor or on the petty household economy. But during the earlier quasipeaceable stage, when so many of the traditions through which the institution of a leisure class has affected the economic life of later times were taking form and consistency, this principle has had the force of a conventional law. It has served as the norm to which consumption has tended to conform, and any appreciable departure from it is to be regarded as an aberrant form, sure to be eliminated sooner or later in the further course of development.

The quasi-peaceable gentleman of leisure, then, not only consumes of the staff of life beyond the minimum required for subsistence and physical efficiency, but his consumption also undergoes a specialization as regards the quality of the goods consumed. He consumes freely and of the best, in food, drink, narcotics, shelter, services, ornaments, apparel, weapons and accouterments, amusements, amulets, and idols or divinities. . . . Since the consumption of these more excellent goods is an evidence of wealth, it becomes honorific; and conversely, the failure to consume in due quantity and quality becomes a mark of inferiority and demerit.

This growth of punctiliousi discrimination as to qualitative excellence in eating, drinking, etc. presently affects not only the manner of life, but also the training and intellectual activity of the gentleman of leisure. He is no longer simply the successful, aggressive male,—the man of strength, resource, and intrepidity. In order to avoid stultificationii he must also cultivate his tastes, for it now becomes incumbent on him to discriminate with some nicety between the noble and the ignoble in consumable goods. . . . Closely related to the requirement that the gentleman must consume freely and of the right kind of goods, there is the requirement that he must know how to consume them in a seemly manner. His life of leisure must be conducted in due form. Hence arise good manners. . . . High-bred manners and ways of living are items of conformity to the norm of conspicuous leisure and conspicuous consumption.

As wealth accumulates, the leisure class develops further in function and structure, and there arises a differentiation within the class. There is a more or less elaborate system of rank and grades. This differentiation is furthered by the inheritance of wealth and the consequent inheritance of gentility. . . . Those who stand near the higher and the highest grades of the wealthy leisure class, in point of birth, or in point of wealth, or both, outrank the remoter-born and the pecuniarily weaker. . . .

And here occurs a curious inversion. It is a fact of common observance that in [the] lower middle class there is no pretense of leisure on the part of the head of the household. Through force of circumstances it has fallen into disuse. But the middleclass wife still carries on the business of vicariousiii leisure, for the good name of the household and its master. . . . The head of the middle-class household has been reduced by economic circumstances to turn his hand to gaining a livelihood by occupations which often partake largely of the character of industry, as in the case of the ordinary business man of today. But the derivative fact—the vicarious leisure and consumption rendered by the wife, and the auxiliary vicarious performance of leisure by menials—remains in vogue as a conventionality which the demands of reputability will not suffer to be slighted. It is by no means an uncommon spectacle to find a man applying himself to work with the utmost diligence, in order that his wife may in due form render for him that degree of vicarious leisure which the common sense of the time demands.

The leisure rendered by the wife in such cases is, of course, not a simple manifestation of idleness or indolence. It almost invariably occurs disguised under some form of work or household duties or social amenities, which prove on analysis to serve little or no ulterior end beyond showing that she does not occupy herself with anything that is gainful or that is of substantial use. As has already been noticed under the head of manners, the greater part of the customary round of domestic cares to which the middle-class housewife gives her time and effort is of this character. Not that the results of her attention to household matters, of a decorative nature, are not pleasing to the sense of men trained in middle-class proprieties; but the taste to which these effects of household adornment and tidiness appeal is a taste which has been formed under the selective guidance of a canon of propriety that demands just these evidences of wasted effort. The effects are pleasing to us chiefly because we have been taught to find them pleasing. There goes into these domestic duties much care for a proper combination of form and color, and for other ends that are to be classed as aesthetic in the proper sense of the term; and it is not denied that effects having some substantial aesthetic value are sometimes attained. Pretty much all that is here insisted on is that, as regards these amenities of life, the housewife’s efforts are under the guidance of traditions that have been shaped by the law of conspicuously wasteful expenditure of time and substance. If beauty or comfort is achieved—and it is a more or less fortuitous circumstance if they are—they must be achieved by means and methods that commend themselves to the great economic law of wasted effort. The more reputable, “presentable” portion of middle-class household paraphernalia are, on the one hand, items of conspicuous consumption, and on the other hand, apparatus for putting in evidence the vicarious leisure rendered by the housewife. . . .

This vicarious consumption practiced by the household of the middle and lower classes can not be counted as a direct expression of the leisure-class scheme of life, since the household of this pecuniary grade does not belong within the leisure class.

It is rather that the leisure-class scheme of life here comes to an expression at the second remove. The leisure class stands at the head of the social structure in point of reputability; and its manner of life and its standards of worth therefore afford the norm of reputability for the community. The observance of these standards, in some degree of approximation, becomes incumbent upon all classes lower in the scale. In modern civilized communities the lines of demarcation between social classes have grown vague and transient, and wherever this happens the norm of reputability imposed by the upper class extends its coercive influence with but slight hindrance down through the social structure to the lowest strata. The result is that the members of each stratum accept as their ideal of decency the scheme of life in vogue in the next higher stratum, and bend their energies to live up to that ideal. On pain of forfeiting their good name and their self-respect in case of failure, they must conform to the accepted code, at least in appearance. . . .

It is rather that the leisure-class scheme of life here comes to an expression at the second remove. The leisure class stands at the head of the social structure in point of reputability; and its manner of life and its standards of worth therefore afford the norm of reputability for the community. The observance of these standards, in some degree of approximation, becomes incumbent upon all classes lower in the scale. In modern civilized communities the lines of demarcation between social classes have grown vague and transient, and wherever this happens the norm of reputability imposed by the upper class extends its coercive influence with but slight hindrance down through the social structure to the lowest strata. The result is that the members of each stratum accept as their ideal of decency the scheme of life in vogue in the next higher stratum, and bend their energies to live up to that ideal. On pain of forfeiting their good name and their self-respect in case of failure, they must conform to the accepted code, at least in appearance. . . .

. . . No class of society, not even the most abjectly poor, forgoes all customary conspicuous consumption. The last items of this category of consumption are not given up except under stress of the direst necessity. Very much of squalor and discomfort will be endured before the last trinket or the last pretense of pecuniary decency is put away. There is no class and no country that has yielded so completely before the pressure of physical want as to deny themselves all gratification of this higher or spiritual need.

From the foregoing survey of the growth of conspicuous leisure and consumption, it appears that the utility of both alike for the purposes of reputability lies in the element of waste that is common to both. In the one case it is a waste of time and effort, in the other it is a waste of goods. Both are methods of demonstrating the possession of wealth, and the two are conventionally accepted as equivalents. . . .

The modern organization of industry works in the same direction also by another line. The exigenciesiv of the modern industrial system frequently place individuals and households in juxtaposition between whom there is little contact in any other sense than that of juxtaposition. One’s neighbors, mechanically speaking, often are socially not one’s neighbors, or even acquaintances; and still their transient good opinion has a high degree of utility. The only practicable means of impressing one’s pecuniary ability on these unsympathetic observers of one’s everyday life is an unremitting demonstration of ability to pay. In the modern community there is also a more frequent attendance at large gatherings of people to whom one’s everyday life is unknown; in such places as churches, theaters, ballrooms, hotels, parks, shops, and the like. In order to impress these transient observers, and to retain one’s self-complacency under their observation, the signature of one’s pecuniary strength should be written in characters which he who runs may read. It is evident, therefore, that the present trend of the development is in the direction of heightening the utility of conspicuous consumption as compared with leisure. . . .

Throughout the entire evolution of conspicuous expenditure, whether of goods or of services or human life, runs the obvious implication that in order to effectually mend the consumer’s good fame it must be an expenditure of superfluities. In order to be reputable it must be wasteful. No merit would accrue from the consumption of the bare necessaries of life, except by comparison with the abjectly poor who fall short even of the subsistence minimum; and no standard of expenditure could result from such a comparison, except the most prosaicv and unattractive level of decency. . . .

Notes

Review

  1. 1. What does Veblen mean by “conspicuous consumption”? How is it related to “survival of the fittest”? How does it also reflect the transient nature of modern society?

  2. 2. Veblen argues that the wealthy elite—a small minority of the total population—have nonetheless set the standards for cultural tastes and values. How did this happen? Do you find his reasoning persuasive?

  3. 3. According to Veblen, what motives and concerns shape the lifestyles of many middle-class housewives? Why does he consider most of their actions “a wasteful expenditure of time and substance”?

  4. 4. Veblen concludes that in order for consumption to be “reputable,” it must be wasteful. How does he come to this conclusion? Is his argument convincing?

Notes:

(i) Marked by extreme care and attention to detail, convention, and fashion.

(ii) To look foolish or stupid.

(iii) To experience through one’s imagination, or by a sympathetic participation in the experiences of others.

(iv) Demands.

(v) Dull, unimaginative.

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