| The Theory of the Leisure Class | |
|---|---|
| Author(s) | Thorstein Veblen |
| Country | United States |
| Language | English |
| Genre(s) | societal study |
| Publication date | 1899 |
The Theory of the Leisure Class: An Economic Study of Institutions is a book, first published in 1899, by the Norwegian-American economist and sociologist Thorstein Veblen while he was a professor at the University of Chicago. In the book's introduction he explains that much of the material discussed can be traced back to the proper sources by any well-read person. The Theory of the Leisure Class is considered one of the first detailed critiques of consumerism.
Contents |
In the book, Veblen argues that economic life is driven not by notions of utility, but by social vestiges from pre-historic times. Drawing examples from the contemporary period and anthropology, he held that much of today's society is a variation on early tribal life.
According to Veblen, beginning with primitive tribes, people began to adopt a division of labor along certain lines. The "higher status" group monopolized war and hunting, while farming and cooking were considered inferior work.
He argued this was due to their culture of barbarism and conquest of some tribes over others. Once conquerors took control, they relegated the more menial and labor-intensive jobs to the subjugated people, while retaining the more warlike and violent work for themselves. It did not matter that these "menial" jobs did more to support society (in Veblen's view) than the "higher" ones. Even within tribes that were initially free of conquerors or violence, Veblen argued that certain individuals, upon watching this labor division take place in other groups, began to emulate the behavior in higher-status groups.
Veblen referred to the emerging ruling class as the "leisure class." He argued that while this class did perform some work and contributed to the tribe's well-being, it did so in only a minor, peripheral, and largely symbolic manner. For example, although hunting could provide the tribe with food, it was not as productive or reliable as farming or animal domestication, and compared with the latter types of work, was relatively easier to perform. Likewise, while tribes occasionally required warriors if a conflict broke out, Veblen argued that militaristic members of the leisure class retained their position—and, with it, exemption from menial work—even during the extremely long stretches of time when there was no war, even though they were perfectly capable of contributing to the tribe's "menial" work during times of peace.
At the same time, Veblen claimed that the leisure class managed to retain its position through both direct and indirect coercion. For example, the leisure class reserved for itself the "honor" of warfare, and often prevented members of the lower classes from owning weapons or learning how to fight. At the same time, it made the rest of the tribe feel dependent on the leisure class's continued existence due to the fear of hostilities from other tribes or, as religions began to form, the hostility of imagined deities. Veblen argued that the first priests and religious leaders were members of the leisure class.
To Veblen, society never grew out of this stage; it simply evolved different forms and expressions. For example, he noted that during the Middle Ages, only the nobility was allowed to hunt and fight wars. Likewise, in modern times, he noted that manual laborers usually make less money than white-collar workers.
Veblen, in this book, introduced the concepts of conspicuous consumption and conspicuous leisure.
He defined conspicuous consumption as the use of money or other resources by people to display a higher social status than others, e.g. the use of silver utensils at meals, even though utensils made of cheaper material worked just as well or better.
Veblen goods are defined as goods whose desirability increases with their price and scarcity, especially "socially visible" goods rather than goods consumed in private. This idea has received empirical support.[1]
He defined conspicuous leisure as time given certain pursuits in return for higher status. As examples, he noted that to be a gentleman, a man must study such things as philosophy and the fine arts, which he deemed had little economic value in themselves.
Whereas neoclassical economics defines humans as rational, utility-seeking people who try to maximize their pleasure, Veblen recast them as irrational creatures who pursue social status with little regard to their own happiness.
He said that people "emulate" the more respected members of their group in order to gain more status. Certain brands and stores are considered more "high class" than others, and people may buy them when they cannot afford to do so, even though cheaper goods may be of equal utility.
Following this line of reasoning, Veblen also concluded that businessmen were simply the latest manifestation of the leisure class. He noted that businessmen do not produce goods and services, but simply shift them around whilst taking a profit. He thus argued that the modern businessman is no different from a barbarian, in that he uses prowess and competitive skills to make money from others, and then lives off the spoils of conquests rather than producing things himself.
Veblen outlined a number of consequences of this social order:
Veblen reflected many of his views in his personal habits: his house was often a mess, with unmade beds and dirty dishes; his clothes were often in disarray; he was an agnostic; and he tended to be rude when dealing with other people.[2]
The Theory of the Leisure Class is often considered a satire on modern society. For example:
A better illustration [of conspicuous leisure], or at least a more unmistakable one, is afforded by a certain king of France who was said to have lost his life in the observance of good form. In the absence of the functionary whose office it was to shift his master's seat, the king sat uncomplaining before the fire and suffered his royal person to be toasted beyond recovery. But in so doing he saved his Most Christian Majesty from menial contamination.
The book's popularity and commercial success is based largely on this satire. After William Dean Howells gave the book a rave review as a social satire, it became a bestseller. Veblen's style of writing had a lifelong impact on sociologist C. Wright Mills.
Veblen did not intend for The Theory of the Leisure Class to be a satire, but a serious economic analysis of contemporary America. For example, his theories on businessmen would find a more serious forum for discussion in his 1904 book, The Theory of Business Enterprise. His occasional use of satire (e.g., a paper where he defended the virtues of cannibalism) often made it difficult for his contemporaries to tell when he was serious. In The Theory of the Leisure Class, Veblen uses the word "evolve" to describe the leisure class's constant movement into different societal niches, even though he made clear in other works that he did not believe that evolution could be applied to the study of society. He uses the word "evolve" sarcastically, as he argued that the leisure class was incapable of fundamental change, and had essentially the same values and outlook as tribal barbarians.
Another problem related to interpretations of Veblen—and The Theory of the Leisure Class—stems from Veblen's peculiar personality and highly misanthropic view of society. As Robert Lekachman observed:
As a child Veblen was a notorious tease and an inveterate inventor of malicious nicknames. As an adult, Veblen developed this aptitude into the abusive category and the cutting analogy. In this volume [The Theory of the Leisure Class] the most striking categories are four in number: Conspicuous Consumption, Vicarious Consumption, Conspicuous Leisure, and Conspicuous Waste. It is amazing what a very large proportion of social activity, higher education, devout observance, and upper-class consumer goods seemed to fit snugly into one or another of these classification.—Lekachman , Introduction to the Penguin edition of The Theory of the Leisure Class, 1967
This viewpoint was echoed by John Kenneth Galbraith in his own introduction to The Theory of the Leisure Class—Galbraith argued that the book was an intellectual "put-down" of society on Veblen's part.
However, in the same essay, Lekachman also suggested that Veblen may have used satire to mask the scathing implications of his theories. He argued that Veblen's theories posed a much greater threat to the status quo than those of Karl Marx ever did. Lekachman noted that, while Marx conceded that capitalism was superior to earlier social arrangements (e.g. feudalism) and was able to produce good things, Veblen denied this. Veblen said capitalism was simply a form of primitive barbarism, and that its creations (as forms of conspicuous consumption) were fundamentally worthless.
While Veblen was an economist and published this book as a treatise on economics, many modern classical economists take issue with some of his ideas. The primary reason for this appears to be his attack on the rational expectations theories that continue to dominate the discipline. Only in recent years, with the rise of such theories as Butterfly Economics, is Veblen being given serious consideration by economists.
In contrast, Veblen quickly became influential within the field of sociology. The classic Middletown studies made much use of Veblen's theories. More to the point, these and many other sociological studies supplied empirical evidence that confirmed Veblen's theories. In the Middletown studies, for example, researchers learned that lower-class families were willing to go without necessities such as food or new clothes to maintain a certain level of conspicuous consumption.
The concept of conspicuous consumption has been applied to advertising, and to explain why poorer classes have been unable to advance economically. Veblen's views on the uselessness of "businessmen", while usually discarded, have been adopted by Warren Buffett, who has criticized the growth of practices such as day trading and arbitrage which make money solely through abstract means, with no value being added. However, the technocratic society predicted by Veblen in later books has not come to pass.
Filmmaker Gabriel Bologna wrote and directed a film called The Theory of The Leisure Class in 2001 about the disintegration of American culture. The movie starred Christopher McDonald, Tuesday Knight, and Brad Renfro. The film received awards from The New York International Independent Film and Video Festival,[3] the Milan International Film Festival, and the Los Angeles International Film Awards.
While few observers deny the reality of emulation and conspicuous consumption, the lack of precise definitions makes it difficult to identify specific instances.
As H. L. Mencken sarcastically remarked[4]:
Do I enjoy a decent bath because I know that John Smith cannot afford one – or because I delight in being clean? Do I admire Beethoven's Fifth Symphony because it is incomprehensible to Congressmen and Methodists – or because I genuinely love music? Do I prefer terrapin à la Maryland to fried liver because plowhands must put up with the liver – or because the terrapin is intrinsically a more charming dose? Do I prefer kissing a pretty girl to kissing a charwoman because even a janitor may kiss a charwoman – or because the pretty girl looks better, smells better and kisses better?—Mencken , "Professor Veblen," from Prejudices, First Series, 1919
Mencken considered golf to be conspicuous leisure; a dedicated golf player would no doubt disagree.[5]
Attempts to universally define conspicuous consumption are often attacked as being elitist, most notably those of Herbert Marcuse, which involve a supposedly higher-educated group being given the power to define which items are luxuries.
Robert Heilbroner, in his book The Worldly Philosophers, argued that while Veblen's theories were valid for his time (the 1890s and the Gilded Age) and his location (the United States in general, and the city of Chicago in particular), these theories are now outdated.
Editions of The Theory of the Leisure Class are often distinguished by the author of the introduction, the most noteworthy authors being C. Wright Mills and John Kenneth Galbraith.