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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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Key Figures

Thorstein Veblen

Thorstein Veblen (1857-1929) is a Norwegian-American economist and sociologist best known for authoring The Theory of the Leisure Class. Veblen is one of the first to critique classical economic theory (referring to the theory established by Adam Smith), which views market forces and economic behavior as motivated by rational self-interest. In The Theory of the Leisure Class, Veblen offers concrete evidence of cultural and social institutions influencing consumer behavior, steering them away from productivity and toward conspicuous consumption. He is best remembered for coining the terms “leisure class,” “conspicuous consumption” and “conspicuous leisure.” His framework gave rise to institutional economics, which incorporate sociology in economic analysis.

Veblen was born in 1857 in Wisconsin to a middle-class farming family, the sixth of twelve children. His parents had immigrated from Norway ten years prior to his birth. Veblen studied economics under John Bates Clark at Carleton College in Minnesota, but he soon developed an interest in philosophy and natural history. He pursued further education at John Hopkins University, then Yale University, eventually graduating with a doctoral degree in philosophy. Due to his unconventional views, especially his open agnosticism, Veblen remained unemployed for seven years after completing his doctoral program and returned to his family farm. He returned to school at Cornell University to study economics and later became a fellow at the University of Chicago, where he published The Theory of the Leisure Class.

Charles Darwin

English naturalist and biologist Charles Darwin (1809-1882) is best known for his work on evolutionary biology published in his seminal work On the Origin of the Species (1859). He was the first to propose that all life on Earth descended from a common ancestor (modern research proved this to be a single-celled microorganism), and this theory has become an established principle of science. Darwin’s theory on natural selection deeply influenced Veblen’s understanding of human evolution and social development. The phrase “survival of the fittest,” which is often attributed to Darwin, is actually a term coined by one of Darwin’s contemporaries, English sociologist Herbert Spencer. Western 19th-century colonialism and imperialism drew upon these quasi-scientific theories to rationalize their domination of Indigenous peoples on the African and Eurasian continents. Though pseudo-scientific theories of racism had existed since the early 17th century, Darwin’s concepts about natural selection, applied in a social context, provided further rationale for these theories. “Survival of the fittest” was also used to describe people who excelled in a society that prized strength and self-interest over compassion and sharing, which were seen as weaknesses.

Veblen reprises Darwinian language throughout his work, which by modern standards is outdated, racist, and disproven, most notably in his analysis of “ethnic types” in Chapter 9. His description of people with “predatory” instincts excelling in a capitalist society that promotes conspicuous consumption is a critique of societies, such as late-19th-century America, that encourage those attributes.

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