Thorstein Veblen’s famous “leisure class” has evolved into the “luxury belief class”. Veblen, an economist and sociologist, made his observations about social class in the late nineteenth century. He compiled his observations in his classic work, The Theory of the Leisure Class. A key idea is that because we can’t be certain of the financial standing of other people, a good way to size up their means is to see whether they can afford to waste money on goods and leisure. This explains why status symbols are so often difficult to obtain and costly to purchase. These include goods such as delicate and restrictive clothing, like tuxedos and evening gowns, or expensive and time-consuming hobbies like golf or beagling. Such goods and leisurely activities could only be purchased or performed by those who did not live the life of a manual laborer and could spend time learning something with no practical utility. Veblen even goes so far as to say, “The chief use of servants is the evidence they afford of the master’s ability to pay.” For Veblen, butlers are status symbols, too.

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Veblen proposed that the wealthy flaunt status symbols not because they are useful, but because they are so pricey or wasteful that only the wealthy can afford them. A couple of winters ago it was common to see students at Yale and Harvard wearing Canada Goose jackets. Is it necessary to spend $900 to stay warm in New England? No. But kids weren’t spending their parents’ money just for the warmth. They were spending the equivalent of the typical American’s weekly income ($865) for the logo. Likewise, are students spending $250,000 at prestigious universities for the education? Maybe. But they are also spending it for the logo.

This is not to say that elite colleges don’t educate their students, or that Canada Goose jackets don’t keep their wearers warm. But top universities are also crucial for inculcation into the luxury belief class. Take vocabulary. Your typical working-class American could not tell you what “heteronormative” or “cisgender” means. But if you visit Harvard, you’ll find plenty of rich 19-year-olds who will eagerly explain them to you. When someone uses the phrase “cultural appropriation”, what they are really saying is “I was educated at a top college”. Consider the Veblen quote, “Refined tastes, manners, habits of life are a useful evidence of gentility, because good breeding requires time, application and expense, and can therefore not be compassed by those whose time and energy are taken up with work.” Only the affluent can afford to learn strange vocabulary because ordinary people have real problems to worry about.

The chief purpose of luxury beliefs is to indicate evidence of the believer’s social class and education. Only academics educated at elite institutions could have conjured up a coherent and reasonable-sounding argument for why parents should not be allowed to raise their kids, and that we should hold baby lotteries instead. Then there are, of course, certain beliefs. When an affluent person advocates for drug legalization, or defunding the police, or open borders, or loose sexual norms, or white privilege, they are engaging in a status display. They are trying to tell you, “I am a member of the upper class”.

Affluent people promote open borders or the decriminalization of drugs because it advances their social standing, and because they know that the adoption of those policies will cost them less than others. The logic is akin to conspicuous consumption. If you have $50 and I have $5, you can burn $10 and I can’t. In this example, you, as a member of the upper class, have wealth, social connections, and other advantageous attributes, and I don’t. So you are in a better position to afford open borders or drug experimentation than me.

Or take polyamory. I recently had a revealing conversation with a student at an elite university. He said that when he sets his Tinder radius to 5 miles, about half of the women, mostly other students, said they were “polyamorous” in their bios. Then, when he extended the radius to 15 miles to include the rest of the city and its outskirts, about half of the women were single mothers. The costs created by the luxury beliefs of the former are bore by the latter. Polyamory is the latest expression of sexual freedom championed by the affluent. They are in a better position to manage the complications of novel relationship arrangements. And even if it fails, they have more financial capability, social capital, and time to recover if they fail. The less fortunate suffer the damage of the beliefs of the upper class.

Rob Henderson, “Thorstein Veblen’s Theory of the Leisure Class – An Update”, Rob Henderson’s Newsletter, 2023-01-29.