The Theory of the Leisure Class

The Theory of the Leisure Class is a book, first published in 1899, by the American economist Thorstein Veblen while he was a professor at the University of Chicago.

Intellectual significance

While Veblen was an economist and published this book as a treatise on economics, most modern economists ignore him. 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.

Related Topics:
Rational expectations - Butterfly economics

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Within the field of sociology, in contrast, Veblen was quickly picked up and integrated into their work. 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 basic necessities such as food or new clothes to maintain a certain level of conspicuous consumption.

Related Topics:
Sociology - Middletown studies - Empirical

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The concept of conspicuous consumption has been carried forward to this day, and is often used to criticize advertising and to explain why poorer classes have been unable to advance economically. His views on the uselessness of "businessmen," while usually discarded, have been adopted in modified form by none other than Warren Buffett. However, it is generally not believed that technocrats will eventually rule society.

Related Topics:
Advertising - Warren Buffett - Technocrats

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