Thorstein Veblen Paper Essay Example | Topics and Well Written Essays - 1500 words

Thorstein Veblen Paper - Essay Example In his first, famous book, the theory of Leisure Class, he coined the system of spending as being â€Å"conspicuous consumption†. He was intensely critical of businessperson concerning their greedy and the tendency of spending money for things, which are not even productive. Thorstein Veblen described the wealthy class using hyperbole and some humours in order to show hierocracies of people who are wealthy. This paper will try to analyze the impacts of economics that Thorstein Veblen has contributed to, in the field of the economics (Peil, 2009, p.121). Impact of Thorstein Veblen in the field of economics Veblen in the field of economics makes his readers aware of American small-scale, which was intensely competitive was giving its ways for the large-scale monopoly trusts. He further explained by emphasizing that the monopolistic practices administered prices, which meant that, there was a charge in what the traffic will bear; as well as, the limitations of producing high qual ity for the sake of raising the prices and maximizing the profits. However, the case of the emergence of the leisure class which led to wasteful as well as, conspicuous consumption for status. ... While technological knowledge to be the common stock that is held as well as, carried forward by the community collectively, but it is not a creative achievement of the individuals who are working in isolation of self-sufficiently (Veblen, 2004, p. 103). Veblen continued to argue that every new invention in addition to innovation comes in, to a given degree, which is made by individuals. However, he is a social individual because every change made must always be made by individuals who are immersed in a community plus exposing to disciplines of the group life because it runs in the community and all life are group life. Subsequently, welfares that are generated by the social wealth are substitutes to the material output; however, it is a necessary condition, which is suggested to be for the long-term developments of the material output (Krugman, 2009, p.124) The bonds of interaction may be fragile, while the human society may be at a lower level of development if there fails to be st ructures of the community as well as, trust. Technology knowledge has become a common theme that is used in economics today. However, the study shows that, in some states for example Kerala, which is in India, the social wealth provided a foundation for high standards of living but less Gross Domestic Product (GDP) per capita. A similar notion that seemed to have the same meaning to that of Veblen was developed. The notion was all about the social structures of schools accumulations. The institution is that to be suitable for providing a reproductive foundation for the growth and accumulation, since social wealth is able to promote growth at the same time to be essential to dimensions of the quality life. He explains further by analyzing that when