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53 pages 1 hour read

Thorstein Veblen

The Theory of the Leisure Class: An Economic Study of Institutions

Nonfiction | Book | Adult | Published in 1899

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Chapters 8-11Chapter Summaries & Analyses

Chapter 8 Summary & Analysis: “Industrial Exemption and Conservatism”

This chapter observes how institutions shape human experience and how they encourage conservatism over progress.

Institutions are typically established by powerful elites for the purpose of promoting a specific social outlook. As such, they are the products of natural selection, a process that encourages the formation of dominant attitudes. In this chapter, institutions are defined as forces that shape human development—such as habits, outlook, social attitudes, etc.—which can change as society develops and adapts to new environmental conditions. These changes can only take place if multiple classes in the community are willing to develop new traditions, habits, and mindsets.

However, since institutions are primarily reactive, they tend to struggle with progress and do not always adapt in time to the circumstances of the present. This is because dominant social attitudes change only in response to outside stimulus which coerce it into reevaluating and readjusting its position. Slow-changing institutions can lead to conservatism and social and psychological inertia. Progressive outlooks are more easily adopted if more members of the community are allowed to be exposed rather than sheltered from the environment.

People resist social change because existing institutions already promote a way of life that is “right, good, expedient, and beautiful” (133) for the majority of the community. Altering these conditions, even for the sake of improvement, can force some people into abandoning their previous habits in favor of new customs. Even in modern times, people are eager to refer back to earlier development periods and archaic practices, such as that of the master and servant from the “quasi-peaceable” stage. For instance, many modern institutions, even those that are progressive, are not always devoid of the vestiges of the past because they have defined the human experience for so long. Veblen comments that some men who are exposed to a more “primitive” cultural environment quickly revert back to adopting attitudes fitting of the early “predatory” period (131). He believes this is the case of the American colonies.

In modern societies, pecuniary pressure is the main force that pushes institutional change—defined as a readjustment of “men’s views on what is good and right” (130). This means that the leisure class, which does not want for money and is not properly part of the industrial community, is not as deeply affected by changes in the environment. In comparison, the working class, which may be equally averse to changes in their customs as the leisure class, does not have the pecuniary means to avoid change. Thus, it is commonly accepted that the wealthy class is much more conservative in nature than the industrial class. Conservatism, being the dominant attitude of the wealthy, gradually becomes a mark of respectability while innovation, associated with the lower classes, is seen as vulgar. For example, people of higher class might recognize the merits of an innovation yet are still reluctant to be associated with the workers who came up with it.

In economic terms, change and innovation require an expenditure in energy because they force people to abandon old habits and learn new ones. This implies that another group of people, the abject poor who spend all their energy on survival, are also by nature conservative. It also explains why the wealthy can enforce a conservative outlook on the lower classes by reducing their economic means and available energy. Conspicuous consumption, a habit of the leisure class that spreads into the industrial class, encourages people to spend any surplus on wasteful expenditures rather than innovation or physical comfort.

Veblen concludes that the leisure class enforces conservatism and stifles innovation due to three factors. First, the class itself resists change. Second, it encourages wasteful behavior through conspicuous consumption. Finally, the hierarchical social system upon which the class system stands is a product of unequal distribution of resources, which forces the lower classes to adhere to the dominant conservative scheme. Although Veblen admits that there may be some merit to resisting constant change, especially for the sake of maintaining order, conservatism ultimately runs counter to the principle of natural selection, which encourages adaptation over stagnation. Clinging to the past for the sake of habit is therefore wrong from a developmental standpoint.

Chapter 9 Summary & Analysis: “The Conservation of Archaic Traits”

This chapter expands upon the principles established in Chapter 8. Previously, Veblen argued that conspicuous consumption and industrial exemption are two methods through which the leisure class controls institutions and promotes conservatism. Veblen notes that the leisure class’s influence extends even further: by selectively facilitating the survival of certain human traits over others, they can alter individual human character and affect social evolution. Ultimately, modern society is selectively conserving two opposing human temperaments: predatory traits, which serve pecuniary ends for the leisure class, and cooperative traits, which serve the advancement of the industrial class.

Veblen lays out his theory on ethnic evolution, which he declares is “not indispensable to the discussion” (143). Given the outdated and unsupported claims spouted therein, this summary will only briefly visit its key points. First, Veblen divides industrial communities into three main ethnic types: the dolichocephalic-blond, the brachycephalic-brunette, and the Mediterranean. From these types are derived two variations: the ante-predatory and the predatory variants. Western communities are a hybrid of these types, with the dolicho-blond being more predatory and violent than the other two. Modern ethnic types are variants of their primitive counterparts, conditioned by barbarian culture.

The main point of Chapter 9 is that human nature is fixed during the most primitive stages of evolution, when people live in relative peace: Early humans value an “unreflecting, unformulated sense of group solidarity” (144).

Veblen states these fundamental traits are not suitable in the next stages of social development, such as the predatory stage, which favors individualism and violence. At that point, the community transitions from struggling collectively against their environment to fighting other communities until finally it fosters antagonism within members of the same group.

Nevertheless, the fundamental nature of humanity is not altered in the process, however long the “predatory” period may stretch. This is because genetic features such as good-nature, equity, and sympathy cannot easily be altered or eliminated, even when they are disadvantageous traits to have in a competitive social environment. Veblen concludes that while competitive environments have selectively favored predation and selfishness, the fundamental human traits of solidarity and sympathy are useful for the purpose of the collective, which is why they persist to this day.

For Veblen, the unaltered nature of humanity explains why, in recent years, people have begun to instinctively appreciate workmanship and “race solidarity” (145). “Advanced” industrial societies that value efficiency and productiveness have moved beyond the stage of individual competition. A successful industrial community is one that serves the collective interest, and corporations can best achieve this by hiring workers who exhibit traits such as diligence, honesty, and selflessness. From the point of view of the collective, then, pacifism and solidarity are prerequisites to development. Veblen cautions, however, that it remains to be seen whether the corporate pursuit of complacent workers is moral or ultimately beneficial to the collective.

In a culture of conspicuous consumption, individuals’ self-interests are best served if they do not abide by peacefulness and sympathy. Capitalism breeds a comparative mindset in which people view others as competitors or rivals. Thus, modern societies are divided into two categories of labor: pecuniary system, which employs the leisure class and promotes ownership and acquisition, and the industrial system, which values workmanship and production and employs the working class. They differ greatly in their values and their reputability, with pecuniary work requiring a predatory mindset but enjoying greater reputability. For example, management positions in a company are often occupied by people who exhibit shrewdness and other “predatory” traits whereas manual laborers are not pressed to emulate their superiors or participate in pecuniary competitiveness.

Veblen believes the leisure class is responsible for keeping predatory attitudes alive. A selective process exists to gain admittance to their ranks, and valued traits include “clannishness, massiveness, ferocity, unscrupulousness, and tenacity of purpose” (155). In contrast, the industrial class develops best with cooperative members who value solidarity. Veblen cautions that these characteristics are not universal but are rather the dominant traits of each class; there is no fundamental difference in the spiritual makeup between the upper and lower classes. Rather, environmental conditions, including the people’s propensity to emulate and their adherence to the principle of conspicuous waste, condition people of various ranks to adopt the dominant traits in their rank.

Chapter 10 Summary & Analysis: “Modern Survivals of Prowess”

This chapter observes how the predatory traits of the “barbarian” age persist in the contemporary world. Veblen considers collective predatory activity as a result of people’s “martial spirit” (161). Among the leisure class, war is considered honorable, and this is emulated only in one other social class: the lower-class delinquents. Veblen claims that in every other group in modern times, the spirit of aggression and warfare is widely considered impractical. For example, the institution of the duel, which is based on individual propensity for combat and used to settle disputes, is mainly practiced among members of the leisure class concerned with maintaining their reputation.

Young boys in the leisure class are raised to pursue physical challenges, and those who refuse or cannot lose their peers’ esteem. Their childhood years and adolescent years are spent struggling for recognition and developing their fighting spirit. Finally, they settle down in adulthood and their martial spirit fades somewhat. Veblen sees this same pattern in human development, when communities transition from the “predatory” to the “quasi-peaceable” age, finally settling in the modern “industrial” phase. Their fighting spirit can be ignited if their mentors or certain formative institutions set violence as an example. This is the case of the “boys’ brigades” established by military organizations, the “college spirit” of athletic fields in universities, and the fostering system established by the clergy.

Sport—especially hunting—is worthy of note because it symbolizes the human impulse to exploit and commit violence outside of warfare. Veblen believes hunting fuels a boyish, immature spirit and stunts men’s moral development. The main draw for sportsmen is glory and prowess, not a desire for recreation (which can be otherwise satisfied) nor a desire to enjoy nature (which they are destroying in the process). The same is the case for athletic sports, which are attractive to the leisure class because they provide an arena for emulation and allow players to demonstrate their skills. Sport justifies itself with a make-belief purpose of fostering sportsmanship but is ultimately wasteful and without productive substance. In sum, hunting and athletic sport allow people to emulate the predatory characteristics of the “predatory” age without losing respectability.

To the leisure class, encouraging exercise through sport is advantageous because it promotes fitness. Similarly, pushing people of the industrial class who have accumulated enough wealth to participate in sport is advantageous because they ultimately become strong workers who in turn can be economically serviceable. Beyond these pecuniary incentives, sports are attractive because they recall the dominant aesthetic and ethical standards of past eras.

Sports are a means to emulate the lifestyle of a previous “barbarian” age. Thus, in Veblen’s day, women and poor people, who were treated as chattel to the men of that era, are noticeably absent from sports. Veblen concedes that sport does, under certain circumstances, promote the spirit of workmanship. This explains why, on the whole, the leisure class, which is more nostalgic about warlike attitudes than the industrial class, is more fervently in favor of the institution of sports.

War and sports allow individuals to demonstrate their prowess. During the “barbarian” era, there were two primary methods to achieve success: force and fraud. Force is symbolized by physical dominance while fraud is about cunning, planning, and strategy (all of which can devolve into falsehood and chicanery). Both of these traits, cultivated during the “barbarian” age, are present in war and sport. They are considered desirable even in modern times because they are economically serviceable, have aesthetic value, and fuel pecuniary culture.

Chapter 11 Summary & Analysis: “The Belief in Luck”

Chapter 11 observes that people with a “barbarian” temperament, such as the sporting and warmongering men discussed in the previous chapter, also have a propensity to gamble. This is due to their belief in luck, a human trait that predates the “barbarian” period but takes its modern shape at that time. Belief in luck is the core factor behind people’s desire to gamble although it must be paired with a desire for competition. This explains why some sporting men bring with them charms or tokens that bring them good fortune.

Luck takes two forms. The first, more “primitive” form, is animistic. People of the past believed that objects or occurrences in nature were imbued with individuality and could affect the environment or alter events. The more modern interpretation of luck is based on a belief in preternatural agency, which does not assign individuality or personality to objects and phenomena but assumes that supernatural forces can act upon the world. Veblen points out that the two concepts are not incompatible, and the modern man may yet believe in both.

Whether it stems from animism or preternatural agency, people’s belief in luck affects their outlook and their actions, which in turn disturbs their industrial efficiency. This is because modern society relies on a system of chain production that requires workers to think in terms of causation and derivatives; it is vastly different from pre-modern agricultural systems, where people’s productivity was partly reliant on nature and thus outside of any individual’s control. Animism might have been acceptable then, but as industrial methods develop and handicraftsmen see the value of their works decline, the capacity to discern between fact and belief is increasingly important for economic growth and collective efficiency.

Beyond industry, people’s belief in luck is a crucial factor in shaping economic theory. First, it indicates that certain archaic human traits persist to this day and can significantly affect people’s economic decisions. Second, it gives rise to anthropomorphic cults which affect their members’ consumption pattern and enforce allegiance to a superior force. The best example of this is the “barbarian” society, which establishes a lifestyle based on predation based on a firm belief in luck and animistic cults. During this time sports and warfare are also highly regarded, and society establishes a hierarchical system for social status. Animism requires a superior force to govern people who consider themselves to be powerless in the face of the supernatural. Belief in luck, therefore, affects the economy because it acts as a hindrance to efficiency and collective growth in modern industrial society.

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