Conspicuous Consumption - Man's animal instinct to show off.

CONSPICUOUS  CONSUMPTION

It turns out our need to flaunt our wealth is based on nothing more than animal instinct. Even those who try to claim God has "blessed" them in this life are simply catering to the same animal need to conspicuously boasts of their success. 

One of the most disturbing trends in American society today is our addiction  to "stuff".  More than ever before our way of life seems dedicated to the belief that "He who dies with the most toys wins".  We shouldn't be surprised to know that this activity is nothing new.   In 1899 Thorstein Veblen discussed this activity he called conspicuous consumption in his first book titled The Theory of the Leisure Class. 

Thorstein Veblen was an American-Norwegian academic who was born in Cato, Wisconsin in 1857. He studied economics at Carleton College but rejected the Neo-classical ideas of John Bates Clark. After earning his undergrad degree he studied under a pragmatist philosopher at Johns Hopkins and continued on to earn a Ph.D. in Moral Philosophy at Yale in 1884.

Veblen is considered the founder of the Institutionalist school of thought, a perspective that had a large following throughout the 1920's. Institutionalist thought and Thorstein Veblen have made many significant contributions to Economics in the last century.

Conspicuous Consumption is defined as the act of consuming expensive, or showy goods, that are also referred to as "luxury" goods. In this model, higher priced items offer a type of status benefit and are therefore, more desirable. It is, however, important to understand that it is not "the price of an object that affects utility directly, or that individuals seek to pay high prices for the sheer pleasure of being overcharged. Rather, [Veblen] proposed that individuals crave status, and that status is enhanced by material displays of wealth" (Bagwell 350). In this manner, conspicuous consumption, or the practice of consuming items for the enhancement of one's relative position, alters the typical models of supply and demand by making demand for certain items a function of price.

As Veblen outlined conspicuous consumption in The Theory of the Leisure Class, he divided this consumption behavior up into two distinct types. The first type of conspicuous consumption is referred to as invidious comparison and the second, more prevalent type is known are pecuniary emulation. 

Invidious Comparison is a type of conspicuous consumption that occurs when a member of the upper class conspicuously consumes, or makes some type of purchase or investment for its status implications, in order to further distinguish themselves from the upper and lower classes. This type of consumption is done to get an individual further ahead than they already are. In addition to actually getting ahead, this type of investment may be made in order to stay ahead. As Bagwell and Bernheim state, "Members of higher classes voluntarily incur costs to differentiate themselves from members of lower classes (invidious comparison), knowing that these costs must be large enough to discourage imitation" (350). It is for this reason that some individuals may participate in invidious comparison behavior.

The second type of conspicuous consumption is much more common than Invidious comparison for a number of reasons. Pecuniary Emulation is defined by Veblen as the tendency of lower class individuals to conspicuously consume or imitate the spending habits of members of the upper class in order to appear to be a member of the upper class. 

To clarify the differences between the two types of conspicuous consumption, invidious consumption is done by members of the upper class to further signal their high status while pecuniary emulation occurs when member of the lower classes attempt to appear to have a higher status than they actually do. 

Information pulled from:

http://wiki.dickinson.edu/index.php/Conspicuous_Consumption_and_Game_Theory

There are a couple of things to note within Veblen's theory. 

The first is that Veblen's definition of Upper or Leisure class consists of those individuals who have enough wealth that they no long have to work for a living. That doesn't include individuals who chose to work even though they have enough wealth to retire - since it is a matter of principle to the Leisure class that work is undignified or beneath them.  

You should also note that even if you are successful enough (by the world's standard) to reach the Leisure class, you will find that there are levels of success and importance within the Leisure class (of course these levels are defined by the Leisure class as you might guess) and those who achieved success on their own happen to be at the lowest level.

The other thing to note regarding Veblen's theory is that his basis for developing his theory regarding human's conspicuous consumption is Darwin's theory of natural selection or survival of the fittest. Veblen saw that the human species mirrored the behavior  of all other animal species in that there is an instinctive competition within the species to differentiate the strong from the weak. The stronger (or more capable) animal is more desirable since they tend to assure the survival and continuation of the species.  

Over time human society has changed the way they measure the success of an individual. For the majority of cultures around the world wealth has become the mark of the successful among the human species. However since it is impossible to know how much a person is worth just by looking at them, it becomes necessary to outwardly and openly display ones wealth through the conspicuous consumption of expensive goods. 

So if you ever wondered why a couple with no children needs a 10,000 square foot house with 9 bathrooms - the answer is - they don't.  However if they are controlled by their animal instincts they feel they need a house that size so that they are able to conspicuously show their high rank among the human species. 

The last thing of note from Veblen's study was that he did find that in some small instances there were individuals who's religious beliefs allowed them to alter this model in their own lives. I would guess it might have something to do with the fact that God's ways are not man's ways, and that those who are in Christ are truly new creatures.  I have no doubt that there is a small handful of true believers within each church that actually get this. 

What I really find interesting is that the majority of Christians today have simply decided to claim that their conspicuous consumption is their way of showing God's blessings in their life for being such wonderful Christians. Even though the Bible makes it extremely clear that God doesn't "bless" people here on Earth.

If I read Matthew 6 correctly I am pretty sure Jesus would explain that their desire to show off their "blessings" to others is so that they can receive the praise of others - not God.  I have a feeling Jesus would also share that those who seek and receive the praise of men should not expect to also receive praise in heaven.  

2013 10 27 - The intelligence to destroy or save ourselves.

As Homo sapiens (or wise man)  we possess a number of unique traits or characteristics that separate us from - and position us above - all other species on our planet. While our physical attributes alone place us among the average - it is our intelligence that clearly and unarguably sets us apart.

Thanks to this advanced intelligence our species has invented a great deal of tools and technologies that serve to enhance our species quality of life.

Unfortunately that same superior intelligence has given us the unique distinction of being the only species on the planet with the ability to force, or influence, other species into extinction. We also have the unique distinction of being capable of bringing about the extinction of our own race.

Prior to the existence of homo sapiens (as well as prior to the vast expansion of homo sapiens) all other species were able to establish a natural balance which allowed each species its unique place in the cycle of life. As our species has expanded we have time and again - directly or indirectly - brought about the extinction of other species and have placed many others at the brink.

We fear - and attempt to hunt into extinction - those species that have the ability to harm man - even though they are only known to harm us when we venture into their habitat and are either mistaken for a food source or are seen as a threat to their young. Yet we are the only species on the planet that is willing to kill simply for sport and who has used our superior mind to develop ways to preserve for display the dead body as a trophy.

Sadly it is our species - and our species alone - that chooses to ignore the needs of all other species in order to fulfill our own selfish desires.

No other species has the intelligence to prevent or even deter mans elimination of other species and the eventual destruction of the earth. 

Let us hope that our species will one day realize the enormous responsibility that we have been given - put aside our childish desires for fame and fortune - live up to our name and begin to make wise choices - before it is too late.

2013 10 26 ... why exactly are we here?

One of my favorite movie scenes of all time has to be from the movie Men In Black.  It occurs when James Edwards a police man with the N.Y.P.D., played by Will Smith, shows up for a test at the office of the MIB.  Because his early meeting with one the MIB agents known as K and played by Tommy Lee Jones, was erased from his memory, he cannot remember why he has been invited to a meeting, but he has shown up anyway.

He enter a strange entry way where there sits a security officer reading the paper. When Edwards begins to ask him where he should go the security officer quickly tells him to go to the elevator at the end of the room.  Edwards enters the elevator and turns to face the elevator doors as it begins to drop below ground. As the elevator slows to a stop the doors behind Edwards open and we see a room where five young men in various uniforms sit in chairs as an older man in a suit stands in front of them in the process of briefing them.

All the individuals turn to look at Edwards as the doors of the elevator open.
ZED:  You're late. Sit down.
Edwards quickly takes a seat in the empty chair closest to the elevator.

ZED:  My name is Zed.  You're all here because you're the best of the best. Marines, Air Force, Navy SEALs, Army Rangers, N.Y.P.D.  And we're looking for one of you.  Just one.   What will follow is a series of simple tests...   for motor skills, concentration, stamina.
As Zed is still speaking, Edwards raises his hand.

ZED:  I see we have a question.

EDWARDS:  I'm sorry, maybe you already answered this but...   why exactly are we here?
One of the young officers quickly raises his hand to show he would be happy to answer Edwards question.  Zed notices his hand and calls on him.

ZED:  Son.
The young officer quickly stands to attention and excitedly answers Edwards question.
LIEUTENANT JENSEN:   Second Lieutenant Jake Jensen. West Point. Graduate with honors.
We're here because you want the best of the best of the best, Sir!

As Zed nods in approval to the young officer's answer, the young officer gives a quick derogatory look to Edwards as he sits back down.

In response, Edwards begins laughing.

ZED:  What's so funny, Edwards?
EDWARDS:  Your boy, Captain America, here.
''The best of the best of the best, sir!''
''With honors."

He's just really excited,  and he has no clue why we're here.
That's very funny to me.   But y'all ain't laughing, though.

Rather than give a response to Edwards comment, Zed simply gives him a strange glance and then says, "Let's get started".

I love this scene for two reasons.  The first is simply that it is a very funny exchange between the characters.  The main reason however, is because I believe this scene mimics our life to a great degree.

Our society takes a great deal of pride in competing and especially in winning. It doesn't seem to matter why we are competing - just that we are competing.  Our quest is to be the "best of the best of the best,  Sir."  That's all that matters.  

The person who happens to ask the question, "Why exactly are we here?" is looked upon as the idiot or the odd ball.

The truth is that is exactly the question we should be asking.  Why exactly are we here?  Unless we know that answer nothing else really matters.  In the movie Men In Black, the irony is that Will Smith's character is the only one asking the right questions. He can care less about the various contests, and medals and awards, as well as who the "Best of the best of the best" is - something in life has helped him move beyond the contests most young men are caught up in - he is looking for truth.

The majority of smart phones today come equipped with GPS capabilities that can tell the owner exactly WHERE they are in the world.  Yet with all our advances in technology there is still no device or app that can tell us WHY we are in the world.

What I find extremely interesting is that we are the only species on the planet that is actually able to ask "Why are we here"?   No other species questions or ponders there existence.  No other species commits suicide - which would lead us to believe they don't sit around and ponder if life has a meaning for them. 

It leads me to wonder, shouldn't we ask "Why are we here?" if for no other reason than we can?

2013 10 26 - The Ramblings Begin.

In June of 1978 Aleksander Solzhenitsyn delivered the Commencement Address to the graduating class of Harvard University.  In the opening segment of his speech Mr. Solzhenitsyn touched on Harvard's motto.

"Harvard's motto is 'Veritas.' Many of you have already found out and others will find out in the course of their lives that truth eludes us if we do not concentrate with total attention on its pursuit."

I am in complete agreement with Mr. Solzhenitsyn regarding the elusiveness of truth, and the fact that its attainment will take both our effort and our complete attention.

We live in a very complicated and noisy world, in which truth has become even more difficult to attain.  It is my desire to use this blog in the pursuit of truth.