The pioneering sociologist Thorstein Veblen’s Theory of the Leisure Class (1899) was the first systematic attempt to explain how status displays (e.g., conspicuous consumption) operate to communicate class membership among social elites. Most people never learn to think critically about such status-display behaviors, so that their emulation of the “elite” is thoughtless and unconscious. This behavior often takes the form of displaying symbols of wealth (e.g., designer-label clothing or luxury automobiles) as if mere possession of these symbols meant the same thing as actually being wealthy. Driving the same car or wearing the same clothing brands as a movie star, a software entrepreneur or a professional athlete is not the same as having millions of dollars in the bank, but we often see people who don’t seem to grasp this fact. The young guy with a $45,000-a-year job driving around in a new Cadillac Escalade wants to impress people by pretending to have wealth he doesn’t actually have. His luxury SUV is a status symbol, but the status he’s attempting to display is an illusion, if he’s leasing this vehicle for $1,800 a month (nearly half his annual income) while living with his mother. This is a cargo-cult type of behavior, and is in fact quite the opposite of behaviors that actually produce wealth. A young man who hopes to become wealthy would be best advised to live within his means, preferring to put money in the bank rather than engaging in ostentatious displays of a luxurious lifestyle. Nevertheless, we often see young people go deeply in debt to indulge their appetite for status symbols, and this cargo-cult mentality can also be witnessed in acts of criminal stupidity […]
Flashing actual stacks of money is the crudest possible status display, and I can 99.9% guarantee you that anyone who does something like this on social media is engaged in some kind of criminal behavior. People who obtain wealth by honest means are not prone to such shameless ostentation, and this kind of cargo-cult behavior exhibits a level of stupidity that is not usually compatible with economic success.
Robert Stacy McCain, “The Cargo Cult Mentality”, The Other McCain, 2019-12-20.
