2024: discussing ‘The Theory of the Leisure Class’

A book by Thorstein Veblen (1857-1929) titled The Theory of the Leisure Class provides a very fascinating analysis into the phenomenon of what the author calls conspicuous consumption and conspicuous leisure, tracing its origins and outlining how it impacts our desires and choices.

The Theory of the Leisure Class show the influences of Charles Darwin and Karl Marx, Adam Smith and Herbert Spencer, thereby Veblen’s socio-economic theory emphasises social evolution and development as characteristics of human institutions.

In his time, Veblen criticised contemporary (19th century) economic theories as intellectually static and hedonistic. He pointed out that economists should take account of how people actually behave, socially and culturally, rather than rely upon the theoretic deduction meant to explain the economic behaviours of society. Veblen outlines that leisure classes are most distinctly found in high stages of culture. Here, there is a strong class demarcation, with classes separated by their employments.

Readers are conscious how society has changed over the past 125 years since Veblen published his influential work, albeit the rise of social media and endemic advertising has only increased the desire to improve one’s social standing through consumption.

Observe the “influencers” of Instagram and TikTok, the “need” by Gen Z to always have the latest iPhone, perfect job, and newest fashion. Veblen’s observation of such high-status members of the socio-economic class, is identified by consuming overpriced brands of goods and services perceived to be of better quality and thus of a higher social-class. What lessons are gained locally from Veblen’s philosophy? He discusses how the pursuit and the possession of wealth affects human behaviour, that the contemporary property barons, home grown oligarchs who own major assets, have all employed themselves in the economically unproductive practices of conspicuous consumption and leisure.

The latter are vain activities that contribute neither to the economy nor to the material production of the useful goods and services required for the functioning of society. Perhaps the most overt and ostentatious display of wealth by members of the leisure class was prevalent in the US during the Gilded Age.

At the time, large mansions were built that served as the summer homes of the ultrawealthy. The Gilded Age is a term coined by novelist Mark Twain and used to refer roughly to the period in the USA from 1877 to 1900. It was a time of rapid economic growth in the United States.

As American wages grew much higher than those in Europe, especially for skilled workers, and industrialisation demanded an increasing unskilled labour force, the period saw an influx of millions of European immigrants. Therefore, millions of immigrants, many from impoverished regions, poured into the United States, consequently the high concentration of wealth became more visible and contentious. Immigration from Europe led to the rapid growth of the West based on farming, ranching and mining.

Sociologically, the industrial production system required workers to be diligent, efficient and co-operative, while the owners of the factories and investors concerned themselves with profits and vices with public displays of exuberant 50-metre yachts; thus the contemporary socioeconomic behaviours of conspicuous consumption and of conspicuous leisure survived from the predatory past of the tribal age.

The development of Veblen’s sociology of conspicuous consumption also identified and described other economic behaviours such as invidious consumption, which is the ostentatious consumption of goods, an action meant to provoke the envy of other people and the ostentatious use of charity meant to enhance the reputation and social prestige of the donors, while political opportunists associate themselves to improve their image among voters. In this example, the socio-economic practices of consumerism derive from conspicuous consumption. Both social media and other forms of mass-media have widened the scope of conspicuous consumption and leisure. This was previously limited to one’s friends, acquaintances and close circles, but is now open for all to join. Furthermore, while one was previously only judged on their current consumption, social media now provides a record of all our previous tastes and habits.

Advertising, which is pervasive on social media and in our increasingly urbanised world, manipulates this need for social acceptance. It is devastating and heart-breaking that every year a circus is made during Yule time, out of human suffering in an effort to constrain people’s conscience to get them to dig into their pockets, thereby assuaging their guilt for pretending that these issues do not exist for the rest of the year. Due consideration for others, courtesy and a sense of civic duty have to be taught and instilled from a very young age, be it at home, at school and everywhere else.

Can 2024 see the taming of inflation and lowering of a high cost of living? Will an improvement in demand pacify the forces of conspicuous consumption next year?

The answer is that the monetary policy cycle is still uncertain with probable policy divergence in 2024 and beyond as the ECB is potentially implementing rate cuts next year. However, expectations may change drastically overnight depending on the Russian war in Ukraine, MiddleEast hostilities while the USA faces a decisive election.

Back home we heed Dr George Vella’s last speech as President of Malta. He took umbrage on certain political deficiencies, questioning “what use is it to celebrate that our country is a Republic, and boast that we have now taken control of our own future, if we do not have people who are wise and smart enough to lead this country in the best interest of the people? Above all, people whose integrity is not in any doubt”, Vella said.

“Corruption, both proven and alleged, gnaws at the very backbone of democracy and deters those who wish to participate in political and public life.”

In the context of attracting thousands of worker participation from third country nationals, he warned that conspicuous consumption has hit the island. Speaking about the country’s rapid population growth, Vella said it was unfair to think of people who have been living and working in Malta for several years simply as “foreigners”, particularly as it was “our choice” to bring them to the country in the interest of economic development.

He added that the country must reflect properly on how to continue expanding the economy and come up with a plan that encompasses all of what the future can offer in the interest of moving forward. In conclusion, in the spirit of Veglan’s notion of the Leisure Class, Vella referred to our duty to integrate foreign workers into Maltese society not only by teaching them our language and customs but protecting them from precarious jobs and potential exploitation by temping agencies.

A prosperous New Year to readers.