
In Our Time The Theory of the Leisure Class
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Dec 14, 2023 Matthew Watson, a Political Economy professor, Bill Waller, an Economics professor, and Mary Wrenn, a Senior Lecturer in Economics, delve into Thorstein Veblen's pivotal work. They discuss the Gilded Age's emergence of a leisure class, highlighting conspicuous consumption and waste. The conversation covers how Veblen's critiques predated modern economic thought, influenced the New Deal, and introduced the concept of Veblen goods. They also explore the interplay between economic theories and societal change, revealing the enduring relevance of Veblen's insights.
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Marginalist Theory and Labor
- Thorstein Veblen's teacher, John Bates Clark, applied marginal utility theory to labor.
- This justified wealth inequality by suggesting wages reflected productivity.
The Leisure Class and Industrialization
- Historically, the leisure class controlled surplus resources, justifying their position through ideology or religion.
- Industrialization disrupted this stability by making luxury goods cheaper and accessible to lower classes.
Veblen's Evolutionary Economics
- Veblen's economics was evolutionary, rejecting equilibrium and emphasizing social change as the driver.
- This contrasted with traditional economics, which often assumed a tendency towards equilibrium.


