The Theory of the Leisure Class

The Theory of the Leisure Class, by Thorstein Veblen, is an economic study of institutions that critiques the behavior of the wealthy. Veblen coined the term conspicuous consumption to describe the practice of buying goods and services not for their utility but to display wealth and social status.

Veblen argued that the wealthy engage in conspicuous consumption to gain admiration and demonstrate their affluence. This behavior, he contended, is a form of "waste" because it consumes more resources than necessary for practical use, driven by the "honorific" aspect of goods rather than their "serviceability." The book also explores how advertising fuels consumer desires for status-displaying goods, contributing to the gap between production potential and actual output in a profit-driven economy.12