What is Conspicuous Consumption?

Definition and origins 

The term “conspicuous consumption,” coined by Thorstein Veblen in The Theory of the Leisure Class (1899), describes the act of ostentatiously displaying wealth in order to enhance one's social status and reputation within society. For example, a person may purchase a luxury item (such as a designer handbag) to show that they are affluent, rather than for its utility. Veblen argues this is primarily done by the “leisure class,” a group of wealthy individuals who partake in non-productive activities. 

Veblen was in awe at the lavish expenditure of wealthy individuals in the US during the period from 1890 to the start of World War I, also known as America’s Gilded Age. As Robert H. Frank writes, 

Veblen noticed that these groups were displaying their costly goods and extravagant lifestyles as a way of communicating their high status. 

While Veblen identifies that sometimes the accumulation of possessions and wealth is for physical comfort or necessity, he writes that 

It is worth noting that while Veblen focuses heavily on the leisure class, he does recognize that conspicuous consumption occurs at all socioeconomic levels: 

This guide will explore Veblen’s seminal text, identifying how the leisure class (and with it, conspicuous consumption) evolved from older civilizations, and providing examples of how the consumption patterns of the wealthy are geared towards advancing their social status and respect within society. 

The evolution of the leisure class 

Veblen argues that we find the inception of the leisure class in older civilizations, such as feudal Europe and feudal Japan, where we see a movement from a “savage” period characterized by cooperation, to a “barbaric” period which is marked by violence and competition. Veblen sees this competitive and predatory behavior in modern industrial societies, ultimately leading to a perceived need to conspicuously consume. There are three main ways in which people from different social classes (primarily the leisure class), from savage society to modern culture, attempt to mark themselves as of a superior status: abstention from work, property ownership, and pecuniary emulation. 

Abstention from work

Prior to the conspicuous consumption of goods, status was marked in alternative ways. In the higher stages of what Veblen describes as “barbarian” culture, classes were distinguished through their occupations or lack of occupation. Veblen writes that

Veblen gives the example of the Icelandic community in the Saga Age (c. 930–1030) in which manual labor was associated with the inferior classes of slaves, other dependents, and women. Conversely, men from the upper class were barred from all industrial occupations and only permitted to be employed in “government, warfare, religious observations, and sports” (1899, [2017]). 

We can see this abstention from manual labor in our modern age in something which Veblen refers to as “conspicuous leisure.” Conspicuous leisure is a way that the leisure class develops a framework of respectability through not partaking in menial work and engaging in non-productive leisure activities. For example, a member of the upper classes may choose to go traveling around the world and stay at luxury resorts, displaying that they have the financial capability to spend money without having to sell their labor. 

Property ownership 

The cultural evolution of the leisure class, Veblen argues, also coincides with the beginning of property ownership. The beginning of ownership in lower barbarian stages of culture begins with the ownership and enslavement of women, often through the seizure of female captives as “prizes” during wartime: 

Veblen argues that marriage during this period was a form of coercion and ownership: 

This mindset, Veblen argues, would become applicable to all forms of consumption in which commodities were only valuable insofar as they could display their owner’s success, respectability, and taste. Veblen goes on to state that, 

In other words, as opportunities to show predatory skills lessened with our move to another stage of civilization, the primary way of showing social status became the accumulation of wealth. 

Pecuniary emulation 

With the emergence of property ownership, Veblen notes the rise of pecuniary emulation (i.e., the desire to outperform others economically):

Individuals purchase commodities, according to Veblen, to mimic the behavior of those in the wealthier classes; believing this emulation will improve their social standing. 

In addition to pecuniary emulation, we also see the conflicting process of “invidious consumption,” whereby members of the upper class try to spend even more to discourage the lower classes from emulating them. As Lilach Gilady explains, 

This competitive desire, however, is motivated by rank and status rather than security and comfort.. 

One of the main issues with pecuniary emulation, as Gilady points out, is that it is a never-ending cycle. As John Kenneth Galbraith states, 

Moreover, those with lower incomes are encouraged to present a facade of wealth, resulting in them spending beyond their means and potentially accruing debt. As Frank argues, 

This does not solely happen on the level of the individual consumer. As Gilady points out, it can factor into how countries emulate others to improve their international social standing: 

Gilady goes on to explain that international relations are “replete with examples of excess,” such as expensive (and unaffordable) weapons systems. These countries, much like the individual consumer, spend outside of their means to convey prestige. 

The consumptive patterns of the leisure class 

Commodities and commodity fetishism

Now that the leisure class has accumulated wealth, they need to find ways of flaunting it. The dawn of the internet and reality television has offered ample opportunities for the rich and famous to reveal their extravagant homes, giving viewers a voyeuristic taste of luxury and wealth. We can see this in shows such as Selling Sunset (2019–present), which offer a glimpse into a real estate market in Los Angeles which caters for the ultra-wealthy. This is also evident in the early 2024 TikTok trend of wealthy influencers showing off their expensive homes, in an unironic nod to the titular mansion in the movie Saltburn (2023). 

There are also ways the leisure class can reveal their wealth when out in public and away from their costly manors. As Daniel R. Smith writes, 

While these items have utility, purchasing these at a luxury grade begins to be a form of conspicuous consumption. For example, while a car has a functional purpose, the ultra-wealthy tend to buy expensive sports cars to display wealth and status. 

We can also see this form of consumption occurring at lower income levels. A current trend, for example, is the emergence of fashionable, and often expensive, reusable water bottles (Conor Murray, “Why is TikTok Obsessed with Stanley Cups?”, 2024). While fashionable water bottles also have a practical purpose, the additional accessories and limited edition colors encourage buyers to purchase more than one. Moreover, the trending hashtag #emotionalsupportwaterbottle conveys value to this commodity outside of its use and its aesthetic. This is an example of what Karl Marx refers to as commodity fetishism, whereby goods have a perceived, mystical value beyond their function. Postmodern theorist Guy Debord makes a similar argument, stating that: 

(For more on this, see our study guide “What is Guy Debord’s Theory of the Spectacle?”)

Fashion 

Set in New York during the Jazz Age, F. Scott Fitzgerald’s The Great Gatsby (1925) tells the story of Jay Gatsby, a member of the nouveau riche who ostentatiously displays his wealth in an attempt to win back his love Daisy and gain respect from the elite classes who are born into generational wealth. In this text, fashion is shown to be indicative of status. In one scene, Gatsby shows the narrator, Nick, and Daisy around his home, and displays his collection of clothes: 

This is but one example of the conspicuous consumption Gatsby engages in throughout the text. The abundance of tailored garments reveals how excessively he can spend, particularly as his collection is curated by a man in England who he also pays to ensure he is fashionable. 

In Introducing Fashion Theory, for example, Andrew Reilly explains that fashion has been a way of demonstrating wealth for centuries:

According to Veblen, there are three main ways in which the leisure class can reveal the luxuriousness of their garments: 

• Expense: Items must be high quality and expensive. Counterfeits, even those which are near-identical, are therefore worthless.  
• Impracticality: Impractical Clothes convey (particularly in the case of women at the time Veblen was writing) that the wearer is not suited for labor-intensive activities. 
• Up to date: Fashion items must be on-trend and not outdated; the wearer should be able to purchase and disregard clothing “freely and uneconomically.” Veblen refers to this type of consumption as “conspicuous waste.”

(1899, [2017])

The advent of fast fashion has resulted in a rapid turnover of trends, encouraging consumers to purchase clothes at an excessive rate. These items quickly become unfashionable, however, and are then discarded in landfills. This has had a troubling impact on our climate (see Nikolay Anguelov, The Dirty Side of the Garment Industry, 2015, and our study guide on climate change). 

Vicarious consumption 

The leisure class also partake in vicarious consumption, a practice which is closely related to (and a part of) conspicuous consumption. Vicarious consumption is where a person conveys their wealth, generosity, and ability to spend frivolously on others by giving extravagant gifts, for example, or throwing lavish parties. In other words, the receiver of a gift or the guest at a lavish party vicariously consumes on behalf of the host or gift-giver. The host or gift-giver, in turn, derives vicarious satisfaction from this consumption — and benefits from an improved social standing. Veblen explains, 

For example, in the aforementioned Saltburn (2023) the wealthy Catton family try to impress their guest, Oliver Quick (played by Barry Keoghan) who comes from a less privileged background. When Oliver arrives at Saltburn, he is shown expensive art and gifted lavish meals and clothes. For his birthday, an extravagant Midsummer Night’s Dream-themed party is thrown in his honor. All of these expenses are examples of vicarious consumption; the ways in which the Catton family display their wealth and spoil their guests. 

Criticisms of Veblen’s theory

In The World of Goods, Mary Douglas and Baron Isherwood take issue with Veblen’s arguments regarding emulation: 

Douglas and Isherwood go on to explain how individuals consume to avoid exclusion within social groups. For example, some forms of consumption are forms of “rituals” which are “the normal marks of friendship,” such as inviting people to a wedding. Consumption of goods can be used more for social purposes than for private advancement or to create envy in one’s peers. Consumption events, such as weddings, funerals, or anniversary dinners, encourage integration and connection. 

Critics have also addressed the limitations of Veblen’s methodology. In “The Strengths and Weaknesses of Veblen,” Douglas F. Dowd argues that 

C. Wright Mills explains that Veblen’s generalizations include conflating the characteristics of the aristocracy and the bourgeoisie: 

By only dealing in broad strokes, Veblen does not account for other subsections of the wealthy classes. For example, Mills argues that Veblen recognized only the wealthy unproductive classes and the work population, ignoring the “power elite,” a network of individuals who have economic, military, and political power (Mills, 1956, [2017]). 

Veblen’s critics do, however, tend to agree that his work is incredibly significant. Mills admits that 

In his 1979 text Annals of an Abiding Liberal, Galbraith refers to Veblen’s work as “a wide-ranging and timeless comment” on the affluent classes:

Consumption in the digital age

The rise of social media and influencer culture in the twenty-first century has provided new platforms for younger generations to showcase their commodities. The need to “keep up” with the extravagant lifestyles showcased on social media continues to be felt as people are encouraged to spend in order to take part in trends, and even microtrends. This, of course, all has a major impact on our environment as fast fashion and consumption reaches all-time highs. 

As Douglas and Isherwood have previously indicated, however, we do not necessarily engage in consumptive habits to showcase wealth. For example, BookTok (a TikTok subcommunity of readers) has been accused of encouraging excessive spending and the hoarding of books. These readers may not be flaunting their wealth, however — instead, they may be engaging with these books in order to be accepted into a particular online community. Our consumption habits can indicate our status within a community, rather than our financial status. Excessive consumption within fandoms, for example, can demarcate the biggest fans and the most loyal hobbyists, affording individuals recognition and respect within certain communities. 

It is worth noting, however, that while consumption (through advertising, sponsorship, and reviews) saturates social media, many have commented on this and encouraged a more mindful approach to spending. Many content creators on social media have taken part in a “No Buy Year” to encourage thriftiness, for example. While we are seeing an increase in some areas of conspicuous consumption (as outlined throughout this guide), we can also observe the emergence and popularization of conspicuous thrift — where influencers and content creators reveal their financial restraint. This more conscious reflection on spending may offer a potential antidote to the pressures of consumption in the modern age. 

Further reading on Perlego

Hiding in the Light (2003) by Dick Hebdige

The Sociology of Consumption (1997) by Peter Corrigan

Thorstein Veblen and His Critics, 1891–1963 (2014) by Rick Tilman

Bibliography 

Anguelov, N. (2015) The Dirty Side of the Garment Industry: Fast Fashion and Its Negative Impact on Environment and Society. CRC Press. Available at: https://www.perlego.com/book/1520089/the-dirty-side-of-the-garment-industry-fast-fashion-and-its-negative-impact-on-environment-and-society-pdf 

Cowles, C. (2024) “How’s Your No-Spend January Going?”, The Cut, January 25. 

Debord, G. (2020) The Society of the Spectacle, translated by Donald Nicholson-Smith. Zone Books. Available at: https://www.perlego.com/book/1636424/the-society-of-the-spectacle-pdf 

Douglas, M. and Isherwood, B. (2002) The World of Goods: Towards an Anthropology of Consumption. Routledge. Available at: https://www.perlego.com/book/1613461/the-world-of-goods 

Dowd, D. F. (2017) “The Strengths and Weaknesses of Veblen,” excerpted in Irving Horowitz (ed.) Veblen’s Century: A Collective Portrait. Available at: https://www.perlego.com/book/1546480/veblens-century-a-collective-portrait-pdf 

Fitzgerald, F. S. (2023) The Great Gatsby. Original Classics Editions. Available at: https://www.perlego.com/book/4247488/the-great-gatsby-pdf 

Frank, R. H. (2001) Luxury Fever: Why Money Fails to Satisfy In An Era of Excess. Free Press. Available at: https://www.perlego.com/book/780883/luxury-fever-why-money-fails-to-satisfy-in-an-era-of-excess 

Galbraith, J. K. (2001) “The Myth of Consumer Sovereignty,” The Affluent Society, excerpted in The Essential Galbraith. Mariner Books. Available at: https://www.perlego.com/book/2417860/the-essential-galbraith 

Galbraith, J. K. (2001) “Who was Thorstein Veblen?”, Annals of an Abiding Liberal, excerpted in The Essential Galbraith. Mariner Books. Available at: https://www.perlego.com/book/2417860/the-essential-galbraith 

Gilady, L. (2018) The Price of Prestige: Conspicuous Consumption in International Relations. University of Chicago Press. Available at: https://www.perlego.com/book/1850777/the-price-of-prestige-conspicuous-consumption-in-international-relations 

Mills, C. W. (2017) “The Theory of the Leisure Class,” in The Power Elite, excerpted in Irving Horowitz (ed.) Veblen’s Century: A Collective Portrait. Available at: https://www.perlego.com/book/1546480/veblens-century-a-collective-portrait-pdf 

Murray, C. (2024) “Why Is TikTok Obsessed With Stanley Cups? The Water Bottle Craze Racks Up Millions Of Views And Lots Of Revenue,” Forbes, January 3. 

Reilly, A. (2020) Introducing Fashion Theory: From Androgyny to Zeitgeist. Bloomsbury Visual Arts. Available at: https://www.perlego.com/book/2035510/introducing-fashion-theory-from-androgyny-to-zeitgeist 

Smith, D. R. (2020) “Elites,” in Payne, G. and Harrison, E. (eds.) Social Divisions: Inequality and Diversity in Britain. Policy Press. Available at: https://www.perlego.com/book/3533309/social-divisions-inequality-and-diversity-in-britain 

Veblen, T. (2017) The Theory of the Leisure Class. Routledge. Available at: https://www.perlego.com/book/1578663/the-theory-of-the-leisure-class 

Filmography 

Saltburn (2023) Directed by Emerald Fennell. Available on Amazon Prime. 

Selling Sunset (2019–present) Created by Adam DiVello. Available on Netflix.