The Theory of the Leisure Class by Thorstein Veblen, published in 1899, is a foundational critique of social and economic norms regarding wealth and class.
In his time, Veblen criticised contemporary (19th-century) economic theories as intellectually static and hedonistic. He pointed out that economists should take account of how people behave, socially, and culturally, rather than rely upon the theoretic deduction meant to explain the economic behaviours of society.
Readers are conscious how society in Malta has changed over the past decades, such that the meteoric rise of social media and endemic advertising has exasperated the drive to improve one’s social standing through consumption. The sustainability of energy and food subsidies and extensive social benefits fire the domestic market in Malta, and a resulting deficit is rolled over in burgeoning national debt.
The extremes of conspicuous consumption are found in families whose lavish weddings, have many of the negative dimensions cited in the book. They’re willing to trade down — or trade out — on everyday expenses to afford meaningful indulgences. Growing up with emergence and proliferation of social media apps and the world wide web, the emerging Gen Z has been named “the first global generation”, with access to everything at just one click of a button.
Pair this with the global economic and health upheavals caused by the global financial crisis that spanned 2007 to 2009, the global distress caused by Ukraine and Middle East wars, and the economic fallout from COVID-19 that transitioned the world.
Moving on, Veblen comments are equally valid today. One observes how the ‘influencers’ of Instagram and TikTok, form the characteristics of Gen Z. The latter expect the latest iPhone, a perfect job, fine dining, drive EV cars, and wear latest fashion.
Veblen’s observation of such high-status members of the socio-economic class, is identified by them consuming over-priced brands of goods and services perceived to be of better quality and thus of a higher social class. What lessons are gained locally from Veblen’s philosophy? He discusses how the pursuit and the possession of wealth corrupts human behaviour, triggers contemporary robber barons, home grown oligarchs who own major assets (build extensive hotel towers on prime sites) all indulging themselves in economically unproductive practices of conspicuous consumption and leisure.
Corruption and sleaze creeps surreptitiously in public administration – unsung and unheard. The latter are vain activities that contribute neither to the economy nor to the material production of useful goods and services required for the unfettered functioning of society. Perhaps the most overt and ostentatious display of wealth by members of the leisure class was prevalent in the US during the Gilded Age.
At the time, large mansions were built that served as the summer homes of the ultra-wealthy. It was a time of rapid economic growth, as American wages grew much higher than those in Europe, especially for skilled workers, and a rapid industrialization demanded increasing numbers of unskilled labour force. Perhaps as in Malta, in the past six years, we witnessed an influx of low-wage immigrants. Therefore, thousands of immigrants — many from impoverished regions — poured into Malta, consequently contributing at a comparative low cost to boost growth in GDP (this more than tripled in the past decade).
GDP growth thus became more visible and contentious. Immigration from third country nationals led to the rapid growth in productive jobs, such as in a rapid expansion of fast-food deliveries, construction jobs, health and home care services, all drivers of public transport and many other jobs such as public collection of household waste, still others work in some government agencies all registered via muscled temping agencies. Sociologically, the daily production system required low-wage workers to be diligent, efficient, and co-operative, whilst the owners of the leisured concerned themselves solely with profits and vices. The latter distinct themselves with public displays of exuberant luxury yachts, skiing holidays in the Swiss alps, higher education of family members at foreign universities and dining in Michelin restaurants.
The development of Veblen’s sociology of conspicuous consumption also identified use of charity jamborees meant to enhance the reputation and social prestige of donors, while political opportunists associate themselves to improve their image among voters. In this example, the socio-economic practices of consumerism thrive upon conspicuous consumption. Both social media and other forms of mass-media have widened the scope of conspicuous consumption and leisure. Today, social media, which is pervasive particularly in our urbanized world, manipulates a persistent need for acceptance.
It is heartbreaking that every year, a circus is made during charity jamborees, with organizers reminding us of human suffering in an effort to prick people’s conscience. Please donate more. Bloggers cautiously warn us about corruption, both proven and alleged. This gnaws at the very backbone of democracy and deters those who wish to progress honestly in political and public life. They heed us that conspicuous consumption has hit the island. In conclusion, in the spirit of Veglan’s notion of the Theory of the Leisure Class, good governance and true sustainability points towards a duty to cut hedonistic trends and inculcate virtue into society.
George M Mangion is a Senior Partner PKF Malta
