The Theory of The Leisure Class - Economic Drive

Economic Drive

Whereas neoclassical economics define humans beings as rational, utility-seeking agents who try to maximize their pleasure, Veblen recast people them as irrational, economic creatures who pursue social status with little regard to their own happiness; thus, people emulate the more respected members of their socio-economic class in order to attain a greater status within that social group. Certain brands and retail shops are considered of a higher class than others such shops; people might buy from such businesses even when they cannot economically afford to do so, despite the utility of consumer goods of lesser brands and lower prices.

Hence, businessmen were just the latest manifestation of the leisure class, because businessmen do not produce consumer goods and services, but simply shift them about the market in order to increase the profit yielded by the goods and services. The contemporary businessman, then, is no different from a barbarian, in that he uses prowess (business acumen) and competitive skills (marketing) to make increased sums of money from the conspicuous consumption of the buyers of the goods and services for sale; and then lives off the spoils of economic conquest rather than from producing consumer goods and services, himself.