Conspicuous consumption

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Conspicuous consumption (pronunciation: /kənˈspɪkjʊəs kənˈsʌmpʃən/) is a term that originated from the works of economist and sociologist Thorstein Veblen. It refers to the practice of purchasing goods or services to publicly display wealth rather than to cover basic needs.

Etymology

The term "conspicuous consumption" was first introduced in the book The Theory of the Leisure Class by Thorstein Veblen in 1899. The term is derived from the Latin words 'conspicere' meaning 'to look at' and 'consumere' meaning 'to use up'.

Definition

Conspicuous consumption is the spending of money on and the acquiring of luxury goods and services to publicly display economic power. This display of discretionary economic power is a means of either attaining or maintaining a given social status.

Related Terms

  • Veblen goods: Goods for which demand increases as the price increases because of their exclusive nature and appeal as status symbols.
  • Consumerism: The theory that an increasing consumption of goods is economically desirable.
  • Status symbol: A perceived visible, external denotation of one's social position and perceived indicator of economic or social status.
  • Luxury goods: Goods that are not necessary but that we desire or wish for.

See Also

External links

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