thorstein veblen’s social theory (mainly) in his own words

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Thorstein Veblen’s Thorstein Veblen’s Social Theory Social Theory (Mainly) in his Own (Mainly) in his Own Words Words

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Page 1: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Thorstein Veblen’sThorstein Veblen’sSocial TheorySocial Theory

(Mainly) in his Own Words(Mainly) in his Own Words

Page 2: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Thorstein VeblenThorstein Veblen

(1857-1929)(1857-1929)

Page 3: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Assumption: Human NatureAssumption: Human Nature

““The psychological and anthropological The psychological and anthropological preconceptions of the economists have preconceptions of the economists have been those which were accepted by the been those which were accepted by the psychological and social sciences some psychological and social sciences some generations ago. The hedonistic generations ago. The hedonistic conception of man is that of a lightning conception of man is that of a lightning calculator of pleasures and pains who calculator of pleasures and pains who oscillates like a homogeneous globule of oscillates like a homogeneous globule of desire of happiness under the impulse of desire of happiness under the impulse of stimuli that shift him about the area, but stimuli that shift him about the area, but leave him intact.” leave him intact.”

Page 4: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Assumption: Human NatureAssumption: Human Nature

““Spiritually, the hedonistic man is not Spiritually, the hedonistic man is not a prime mover. He is not the seat of a prime mover. He is not the seat of a process of living, except in the a process of living, except in the sense that he is subject to a series of sense that he is subject to a series of permutations enforced upon him by permutations enforced upon him by circumstances external and alien to circumstances external and alien to him.” him.”

Page 5: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Assumption: Human NatureAssumption: Human Nature

““The later psychology, re-enforced by The later psychology, re-enforced by modern anthropological research, modern anthropological research, gives a different conception of gives a different conception of human nature. According to this human nature. According to this conception, it is the characteristic of conception, it is the characteristic of man to do something, not simply to man to do something, not simply to suffer pleasures and pains through suffer pleasures and pains through the impact of suitable forces.” the impact of suitable forces.”

Page 6: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Assumption: Human NatureAssumption: Human Nature

““He is not simply a bundle of desires He is not simply a bundle of desires that are to be saturated by being that are to be saturated by being placed in the path of the forces of placed in the path of the forces of the environment, but rather a the environment, but rather a coherent structure of propensities coherent structure of propensities and habits which seeks realization and habits which seeks realization and expression in an unfolding and expression in an unfolding activity.” activity.”

Page 7: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Assumption: Economic BehaviorAssumption: Economic Behavior

Economic behavior, Veblen contended, Economic behavior, Veblen contended, had to be analyzed in terms of its had to be analyzed in terms of its social context. Human beings are social context. Human beings are active participants within this holistic active participants within this holistic context, they are not merely the context, they are not merely the passive repository of social and passive repository of social and economic forces.economic forces.

Page 8: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Assumption: A Social AnimalAssumption: A Social Animal

““Sensitiveness to rebuke or approval is a Sensitiveness to rebuke or approval is a matter of selective necessity under the matter of selective necessity under the circumstances of associated life. Without it circumstances of associated life. Without it no group of men could carry on a no group of men could carry on a collective life in a material environment collective life in a material environment that requires shaping to the ends of man. that requires shaping to the ends of man. In this respect, again, man shows a In this respect, again, man shows a spiritual relationship with the gregarious spiritual relationship with the gregarious animals rather than with the solitary animals rather than with the solitary beasts of prey.” beasts of prey.”

Page 9: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Assumption: AdaptationAssumption: Adaptation

Societies make constant adaptations Societies make constant adaptations of their technology to meet their of their technology to meet their economic ends.economic ends.

Page 10: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social Evolution Social Evolution

Adaptations to the natural and social Adaptations to the natural and social environment take the form of environment take the form of technological innovation. The technological innovation. The invention or diffusion of more invention or diffusion of more powerful technologies is the driving powerful technologies is the driving force behind social evolution.force behind social evolution.

Page 11: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““The process of cumulative change The process of cumulative change that is to be accounted for is the that is to be accounted for is the sequence of change in the methods sequence of change in the methods of doing things—the methods of of doing things—the methods of dealing with the material means of dealing with the material means of life.”life.”

Page 12: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““The life of man in society, just like the The life of man in society, just like the life of other species, is a struggle for life of other species, is a struggle for existence, and therefore it is a existence, and therefore it is a process of selective adaptation. The process of selective adaptation. The evolution of social structure has been evolution of social structure has been a process of natural selection of a process of natural selection of institution.”institution.”

Page 13: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““The progress which has been and is being The progress which has been and is being made in human institutions and in human made in human institutions and in human character may be set down, broadly, to a character may be set down, broadly, to a natural selection of the fittest habits of natural selection of the fittest habits of thought and to a process of enforced thought and to a process of enforced adaptation of individuals to an adaptation of individuals to an environment which has progressively environment which has progressively changed with the growth of the changed with the growth of the community and with the changing community and with the changing institutions under which men have lived.”institutions under which men have lived.”

Page 14: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““Institutions are not only themselves Institutions are not only themselves the result of a selective and adaptive the result of a selective and adaptive process which shapes the prevailing process which shapes the prevailing or dominant types of spiritual or dominant types of spiritual attitude and aptitudes; they are at attitude and aptitudes; they are at the same time special methods of life the same time special methods of life and of human relations, and are and of human relations, and are therefore in their turn efficient therefore in their turn efficient factors of selection.” factors of selection.”

Page 15: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““So that the changing institutions in So that the changing institutions in their turn make for a further their turn make for a further selection of individuals endowed with selection of individuals endowed with the fittest temperament, and a the fittest temperament, and a further adaptation of individual further adaptation of individual temperament and habits to the temperament and habits to the changing environment through the changing environment through the formation of new institutions.”formation of new institutions.”

Page 16: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

Social evolution, therefore, is a pattern Social evolution, therefore, is a pattern of institutional adaptation (and of institutional adaptation (and ultimately human adaptation)—to ultimately human adaptation)—to changing technology and the changing technology and the economy of a society.economy of a society.

Page 17: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

Technology and economy affect all Technology and economy affect all other institutions within a society.other institutions within a society.

Page 18: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““A study of …primitive cultures…shows A study of …primitive cultures…shows a close correlation between the a close correlation between the material (industrial and pecuniary) material (industrial and pecuniary) life of any given people and their life of any given people and their civic, domestic, and religious scheme civic, domestic, and religious scheme of life; the myths and the religious of life; the myths and the religious cult reflect the character of these cult reflect the character of these other—especially the economic and other—especially the economic and domestic—institutions in a peculiarly domestic—institutions in a peculiarly naïve and truthful manner.”naïve and truthful manner.”

Page 19: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

Veblen places economic (pecuniary) Veblen places economic (pecuniary) and technological interests in and technological interests in opposition to one another. Contrary opposition to one another. Contrary to many evolutionists of his day, he to many evolutionists of his day, he did not see the capitalist or the did not see the capitalist or the businessman as being at the businessman as being at the pinnacle of an evolutionary pyramid, pinnacle of an evolutionary pyramid, but rather as a parasite on but rather as a parasite on technological advance.technological advance.

Page 20: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““The leisure class lives by the The leisure class lives by the industrial community rather than in industrial community rather than in it. Its relations to industry are of a it. Its relations to industry are of a pecuniary rather than an industrial pecuniary rather than an industrial kind. Admission to the class is gained kind. Admission to the class is gained by exercise of the pecuniary by exercise of the pecuniary aptitudes—aptitudes for acquisition aptitudes—aptitudes for acquisition rather than for serviceability.” rather than for serviceability.”

Page 21: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Social EvolutionSocial Evolution

““There is, therefore, a continued There is, therefore, a continued selective sifting of the human selective sifting of the human material that makes up the leisure material that makes up the leisure class, and this selection proceeds on class, and this selection proceeds on the ground of fitness for pecuniary the ground of fitness for pecuniary pursuits.” pursuits.”

Page 22: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

The Leisure ClassThe Leisure Class

““The quasi-peaceable gentleman of leisure, The quasi-peaceable gentleman of leisure, then, not only consumes of the staff of life then, not only consumes of the staff of life beyond the minimum required for beyond the minimum required for subsistence and physical efficiency, but his subsistence and physical efficiency, but his consumption also undergoes a consumption also undergoes a specialization as regards the quality of the specialization as regards the quality of the goods consumed. He consumes freely and goods consumed. He consumes freely and of the best, in food, drink, narcotics, of the best, in food, drink, narcotics, shelter, services, ornaments, apparel, shelter, services, ornaments, apparel, weapons and accoutrements, weapons and accoutrements, amusements, amulets, and idols or amusements, amulets, and idols or divinities.” divinities.”

Page 23: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

The Leisure ClassThe Leisure Class

““Since the consumption of these more Since the consumption of these more excellent goods is an evidence of excellent goods is an evidence of wealth, it becomes honorific; and wealth, it becomes honorific; and conversely, the failure to consume in conversely, the failure to consume in due quantity and quality becomes a due quantity and quality becomes a mark of inferiority and demerit.” mark of inferiority and demerit.”

Page 24: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

The Leisure ClassThe Leisure Class

““This growth of punctilious discrimination as This growth of punctilious discrimination as to qualitative excellence in eating, to qualitative excellence in eating, drinking, etc., presently affects not only drinking, etc., presently affects not only the manner of life, but also the training the manner of life, but also the training and intellectual activity of the gentleman and intellectual activity of the gentleman of leisure. He is no longer simply the of leisure. He is no longer simply the successful, aggressive male,--the man of successful, aggressive male,--the man of strength, resource, and intrepidity. In strength, resource, and intrepidity. In order to avoid stultification he must also order to avoid stultification he must also cultivate his tastes, for it now becomes cultivate his tastes, for it now becomes incumbent on him to discriminate with incumbent on him to discriminate with some nicety between the noble and the some nicety between the noble and the ignoble in consumable goods.” ignoble in consumable goods.”

Page 25: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

The Leisure ClassThe Leisure Class

““Closely related to the requirement that the Closely related to the requirement that the gentleman must consume freely and of gentleman must consume freely and of the right kind of goods, there is the the right kind of goods, there is the requirement that he must know how to requirement that he must know how to consume them in a seemly manner. His consume them in a seemly manner. His life of leisure must be conducted in due life of leisure must be conducted in due form. Hence arise good manners in the form. Hence arise good manners in the way pointed out in an earlier chapter. way pointed out in an earlier chapter. High-bred manners and ways of living are High-bred manners and ways of living are items of conformity to the norm of items of conformity to the norm of conspicuous leisure and conspicuous conspicuous leisure and conspicuous consumption.” consumption.”

Page 26: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

The Leisure ClassThe Leisure Class

““As wealth accumulates, the leisure class develops As wealth accumulates, the leisure class develops further in function and structure, and there arises further in function and structure, and there arises a differentiation within the class. There is a more a differentiation within the class. There is a more or less elaborate system of rank and grades. This or less elaborate system of rank and grades. This differentiation is furthered by the inheritance of differentiation is furthered by the inheritance of wealth and the consequent inheritance of wealth and the consequent inheritance of gentility. With the inheritance of gentility goes gentility. With the inheritance of gentility goes the inheritance of obligatory leisure; and gentility the inheritance of obligatory leisure; and gentility of a sufficient potency to entail a life of leisure of a sufficient potency to entail a life of leisure may be inherited without the complement of may be inherited without the complement of wealth required to maintain a dignified leisure.” wealth required to maintain a dignified leisure.”

Page 27: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

The Leisure ClassThe Leisure Class

““The leisure class stands at the head The leisure class stands at the head of the social structure in point of of the social structure in point of reputability; and its manner of life reputability; and its manner of life and its standards of worth therefore and its standards of worth therefore afford the norm of reputability for the afford the norm of reputability for the community. The observance of these community. The observance of these standards, in some degree of standards, in some degree of approximation, becomes incumbent approximation, becomes incumbent upon all classes lower in the scale.” upon all classes lower in the scale.”

Page 28: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““The basis on which good repute in The basis on which good repute in any highly organized industrial any highly organized industrial community ultimately rests is community ultimately rests is pecuniary strength; and the means pecuniary strength; and the means of showing pecuniary strength, and of showing pecuniary strength, and so of gaining or retaining a good so of gaining or retaining a good name, are leisure and a conspicuous name, are leisure and a conspicuous consumption of goods.” consumption of goods.”

Page 29: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““In modern civilized communities the In modern civilized communities the lines of demarcation between social lines of demarcation between social classes have grown vague and classes have grown vague and transient, and wherever this happens transient, and wherever this happens the norm of reputability imposed by the norm of reputability imposed by the upper class extends its coercive the upper class extends its coercive influence with but slight hindrance influence with but slight hindrance down through the social structure to down through the social structure to the lowest strata.” the lowest strata.”

Page 30: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““The result is that the members of The result is that the members of each stratum accept as their ideal of each stratum accept as their ideal of decency the scheme of life in vogue decency the scheme of life in vogue in the next higher stratum, and bend in the next higher stratum, and bend their energies to live up to that ideal. their energies to live up to that ideal. On pain of forfeiting their good name On pain of forfeiting their good name and their self-respect in case of and their self-respect in case of failure, they must conform to the failure, they must conform to the accepted code, at least in accepted code, at least in appearance.” appearance.”

Page 31: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““From the foregoing survey of the growth of From the foregoing survey of the growth of conspicuous leisure and consumption, it conspicuous leisure and consumption, it appears that the utility of both alike for appears that the utility of both alike for the purposes of reputability lies in the the purposes of reputability lies in the element of waste that is common to both. element of waste that is common to both. In the one case it is a waste of time and In the one case it is a waste of time and effort, in the other it is a waste of goods. effort, in the other it is a waste of goods. Both are methods of demonstrating the Both are methods of demonstrating the possession of wealth, and the two are possession of wealth, and the two are conventionally accepted as equivalents.” conventionally accepted as equivalents.”

Page 32: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““The exigencies of the modern industrial The exigencies of the modern industrial system frequently place individuals and system frequently place individuals and households in juxtaposition between households in juxtaposition between whom there is little contact in any other whom there is little contact in any other sense than that of juxtaposition. One's sense than that of juxtaposition. One's neighbors, mechanically speaking, often neighbors, mechanically speaking, often are socially not one's neighbors, or even are socially not one's neighbors, or even acquaintances; and still their transient acquaintances; and still their transient good opinion has a high degree of utility.” good opinion has a high degree of utility.”

Page 33: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““The only practicable means of impressing The only practicable means of impressing one's pecuniary ability on these one's pecuniary ability on these unsympathetic observers of one's unsympathetic observers of one's everyday life is an unremitting everyday life is an unremitting demonstration of ability to pay. In the demonstration of ability to pay. In the modern community there is also a more modern community there is also a more frequent attendance at large gatherings of frequent attendance at large gatherings of people to whom one's everyday life is people to whom one's everyday life is unknown; in such places as churches, unknown; in such places as churches, theatres, ballrooms, hotels, parks, shops, theatres, ballrooms, hotels, parks, shops, and the like.”and the like.”

Page 34: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““In order to impress these transient In order to impress these transient observers, and to retain one's self-observers, and to retain one's self-complacency under their complacency under their observation, the signature of one's observation, the signature of one's pecuniary strength should be written pecuniary strength should be written in characters which he who runs may in characters which he who runs may read.” read.”

Page 35: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Conspicuous ConsumptionConspicuous Consumption

““It is evident, therefore, that the It is evident, therefore, that the present trend of the development is present trend of the development is in the direction of heightening the in the direction of heightening the utility of conspicuous consumption as utility of conspicuous consumption as compared with leisure.” compared with leisure.”

Page 36: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Absolute & Relative PovertyAbsolute & Relative Poverty

““The modern industrial system is based on The modern industrial system is based on the institution of private property under the institution of private property under free competition, and it cannot be claimed free competition, and it cannot be claimed that these institutions have heretofore that these institutions have heretofore worked to the detriment of the material worked to the detriment of the material interests of the average member of interests of the average member of society. The ground of discontent cannot society. The ground of discontent cannot lie in a disadvantageous comparison of the lie in a disadvantageous comparison of the present with the past, so far as material present with the past, so far as material interests are concerned.” interests are concerned.”

Page 37: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Absolute & Relative PovertyAbsolute & Relative Poverty

““It is notorious, and, practically, none It is notorious, and, practically, none of the agitators deny, that the of the agitators deny, that the system of industrial competition, system of industrial competition, based on private property, has based on private property, has brought about, or has at least co-brought about, or has at least co-existed with, the most rapid advance existed with, the most rapid advance in average wealth and industrial in average wealth and industrial efficiency that the world has seen.” efficiency that the world has seen.”

Page 38: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Absolute & Relative PovertyAbsolute & Relative Poverty

““Especially can it fairly be claimed that the Especially can it fairly be claimed that the result of the last few decades of our result of the last few decades of our industrial development has been to industrial development has been to increase greatly the creature comforts increase greatly the creature comforts within the reach of the average human within the reach of the average human being. And, decidedly, the result has been being. And, decidedly, the result has been an amelioration of the lot of the less an amelioration of the lot of the less favored in a relatively greater degree than favored in a relatively greater degree than that of those economically more that of those economically more fortunate.” fortunate.”

Page 39: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Absolute & Relative PovertyAbsolute & Relative Poverty

““The claim that the system of competition The claim that the system of competition has proved itself an engine for making the has proved itself an engine for making the rich richer and the poor poorer has the rich richer and the poor poorer has the fascination of epigram; but if its meaning fascination of epigram; but if its meaning is that the lot of the average, of the is that the lot of the average, of the masses of humanity in civilized life, is masses of humanity in civilized life, is worse to-day, as measured in the means worse to-day, as measured in the means of livelihood, than it was twenty, or fifty, or of livelihood, than it was twenty, or fifty, or a hundred years ago, then it is farcical. a hundred years ago, then it is farcical. The cause of discontent must be sought The cause of discontent must be sought elsewhere than in any increased difficulty elsewhere than in any increased difficulty in obtaining the means of subsistence or in obtaining the means of subsistence or of comfort.” of comfort.”

Page 40: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Absolute & Relative PovertyAbsolute & Relative Poverty

““But there is a sense in which the aphorism But there is a sense in which the aphorism is true, and in it lies at least a partial is true, and in it lies at least a partial explanation of the unrest which our explanation of the unrest which our conservative people so greatly deprecate. conservative people so greatly deprecate. The existing system has not made, and The existing system has not made, and does not tend to make, the industrious does not tend to make, the industrious poor poorer as measured absolutely in poor poorer as measured absolutely in means of livelihood; but it does tend to means of livelihood; but it does tend to make them relatively poorer, in their own make them relatively poorer, in their own eyes, as measured in terms of eyes, as measured in terms of comparative economic importance, and, comparative economic importance, and, curious as it may seem at first sight, that curious as it may seem at first sight, that is what seems to count.” is what seems to count.”

Page 41: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

Absolute & Relative PovertyAbsolute & Relative Poverty

““Human nature being what it is, the struggle Human nature being what it is, the struggle of each to possess more than his neighbor of each to possess more than his neighbor is inseparable from the institution of is inseparable from the institution of private property. And also, human nature private property. And also, human nature being what it is, one who possesses less being what it is, one who possesses less will, on the average, be jealous of the one will, on the average, be jealous of the one who possesses more; and "more" means who possesses more; and "more" means not more than the average share, but not more than the average share, but more than the share of the person who more than the share of the person who makes the comparison.” makes the comparison.”

Page 42: Thorstein Veblen’s Social Theory (Mainly) in his Own Words

ReferencesReferences Lewis A. Coser, Lewis A. Coser, Masters of Sociological ThoughtMasters of Sociological Thought.  New York: Harcout, Brace, .  New York: Harcout, Brace,

Jovanovich Publishers, 1977. Retrieved from Jovanovich Publishers, 1977. Retrieved from http://www2.pfeiffer.edu/~lridener/DSS/INDEX.HTML on August 31http://www2.pfeiffer.edu/~lridener/DSS/INDEX.HTML on August 31 , 2005., 2005.

The Theory of the Leisure Class, The Theory of the Leisure Class, http://xroads.virginia.edu/~HYPER/VEBLEN/veblenhp.htmlhttp://xroads.virginia.edu/~HYPER/VEBLEN/veblenhp.html

The Instinct of Workmanship and the Irksomeness of Labor The Instinct of Workmanship and the Irksomeness of Labor http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/veblen/irksomehttp://socserv2.mcmaster.ca/~econ/ugcm/3ll3/veblen/irksome

““Why is Economics Not an Evolutionary Science” Why is Economics Not an Evolutionary Science” ttp://socserv2.mcmaster.ca/~econ/ugcm/3ll3/veblen/econevol.txtttp://socserv2.mcmaster.ca/~econ/ugcm/3ll3/veblen/econevol.txt