Business & Economics Collection: Thorstein Veblen Edition (30+ Works in One Volume). Thorstein Veblen
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Men differ in respect of transmitted aptitudes, or in respect of the relative facility with which they unfold their life activity in particular directions; and the habits which coincide with or proceed upon a relatively strong specific aptitude or a relatively great specific facility of expression become of great consequence to the man's well-being. The part played by this element of aptitude in determining the relative tenacity of the several habits which constitute the standard of living goes to explain the extreme reluctance with which men give up any habitual expenditure in the way of conspicuous consumption. The aptitudes or propensities to which a habit of this kind is to be referred as its ground are those aptitudes whose exercise is comprised in emulation; and the propensity for emulation—for invidious comparison—is of ancient growth and is a pervading trait of human nature. It is easily called into vigorous activity in any new form, and it asserts itself with great insistence under any form under which it has once found habitual expression. When the individual has once formed the habit of seeking expression in a given line of honorific expenditure—when a given set of stimuli have come to be habitually responded to in activity of a given kind and direction under the guidance of these alert and deep-reaching propensities of emulation—it is with extreme reluctance that such an habitual expenditure is given up. And on the other hand, whenever an accession of pecuniary strength puts the individual in a position to unfold his life process in larger scope and with additional reach, the ancient propensities of the race will assert themselves in determining the direction which the new unfolding of life is to take. And those propensities which are already actively in the field under some related form of expression, which are aided by the pointed suggestions afforded by a current accredited scheme of life, and for the exercise of which the material means and opportunities are readily available—these will especially have much to say in shaping the form and direction in which the new accession to the individual's aggregate force will assert itself. That is to say, in concrete terms, in any community where conspicuous consumption is an element of the scheme of life, an increase in an individual's ability to pay is likely to take the form of an expenditure for some accredited line of conspicuous consumption.
With the exception of the instinct of self-preservation, the propensity for emulation is probably the strongest and most alert and persistent of the economic motives proper. In an industrial community this propensity for emulation expresses itself in pecuniary emulation; and this, so far as regards the Western civilized communities of the present, is virtually equivalent to saying that it expresses itself in some form of conspicuous waste. The need of conspicuous waste, therefore, stands ready to absorb any increase in the community's industrial efficiency or output of goods, after the most elementary physical wants have been provided for. Where this result does not follow, under modern conditions, the reason for the discrepancy is commonly to be sought in a rate of increase in the individual's wealth too rapid for the habit of expenditure to keep abreast of it; or it may be that the individual in question defers the conspicuous consumption of the increment to a later date—ordinarily with a view to heightening the spectacular effect of the aggregate expenditure contemplated. As increased industrial efficiency makes it possible to procure the means of livelihood with less labor, the energies of the industrious members of the community are bent to the compassing of a higher result in conspicuous expenditure, rather than slackened to a more comfortable pace. The strain is not lightened as industrial efficiency increases and makes a lighter strain possible, but the increment of output is turned to use to meet this want, which is indefinitely expansible, after the manner commonly imputed in economic theory to higher or spiritual wants. It is owing chiefly to the presence of this element in the standard of living that J. S. Mill was able to say that "hitherto it is questionable if all the mechanical inventions yet made have lightened the day's toil of any human being." The accepted standard of expenditure in the community or in the class to which a person belongs largely determines what his standard of living will be. It does this directly by commending itself to his common sense as right and good, through his habitually contemplating it and assimilating the scheme of life in which it belongs; but it does so also indirectly through popular insistence on conformity to the accepted scale of expenditure as a matter of propriety, under pain of disesteem and ostracism. To accept and practice the standard of living which is in vogue is both agreeable and expedient, commonly to the point of being indispensable to personal comfort and to success in life. The standard of living of any class, so far as concerns the element of conspicuous waste, is commonly as high as the earning capacity of the class will permit—with a constant tendency to go higher. The effect upon the serious activities of men is therefore to direct them with great singleness of purpose to the largest possible acquisition of wealth, and to discountenance work that brings no pecuniary gain. At the same time the effect on consumption is to concentrate it upon the lines which are most patent to the observers whose good opinion is sought; while the inclinations and aptitudes whose exercise does not involve a honorific expenditure of time or substance tend to fall into abeyance through disuse.
Through this discrimination in favor of visible consumption it has come about that the domestic life of most classes is relatively shabby, as compared with the éclat of that overt portion of their life that is carried on before the eyes of observers. As a secondary consequence of the same discrimination, people habitually screen their private life from observation. So far as concerns that portion of their consumption that may without blame be carried on in secret, they withdraw from all contact with their neighbors, hence the exclusiveness of people, as regards their domestic life, in most of the industrially developed communities;