The Theory of The Leisure Class - Intellectual Significance

Intellectual Significance

See also: Conspicuous consumption#Consumerism theories

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, the Milan International Film Festival, and the Los Angeles International Film Awards.