Human beings become more preoccupied with social status once our physical needs are met. In fact, research reveals that sociometric status (respect and admiration from peers) is more important for well-being than socioeconomic status. Furthermore, studies have shown that negative social judgment is associated with a spike in cortisol (hormone linked to stress) that is three times higher than non-social stressful situations. We feel pressure to build and maintain social status, and fear losing it.
It seems reasonable to think that the downtrodden might be most interested in obtaining status and money. But this is not the case. Inhabitants of prestigious institutions are even more interested than others in prestige and wealth. For many of them, that drive is how they reached their lofty positions in the first place. Fueling this interest, they’re surrounded by people just like them — their peers and competitors are also intelligent status-seekers. They persistently look for new ways to move upward and avoid moving downward. The French sociologist Émile Durkheim understood this when he wrote, “The more one has, the more one wants, since satisfactions received only stimulate instead of filling needs.” And indeed, a recent piece of research supports this: it is the upper class who are the most preoccupied with gaining wealth and status. In their paper, the researchers conclude, “relative to lower-class individuals, upper-class individuals have a greater desire for wealth and status … it is those who have more to start with (i.e., upper-class individuals) who also strive to acquire more wealth and status”. Plainly, high-status people desire status more than anyone else.
Furthermore, other research has found that absolute income does not have much effect on general life satisfaction. An increase in relative income, on the other hand, has a positive effect. Put differently, making more money isn’t important. What’s important is making more than others.
Rob Henderson, “Thorstein Veblen’s Theory of the Leisure Class — A Status Update”, Quillette, 2019-11-16.
July 13, 2024
QotD: The need for social status
May 6, 2023
QotD: The luxury beliefs of the leisure class
[…]
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.
January 31, 2023
“Thorstein Veblen’s famous ‘leisure class’ has evolved into the ‘luxury belief class'”
Rob Henderson had a particularly difficult childhood, but thanks to his own efforts ended up going to Yale after leaving the military. He discovered a very different world when he began his studies:
I was bewildered when I encountered a new social class at Yale four years ago: the luxury belief class. My confusion wasn’t surprising given my unusual background. When I was three years old, my mother was addicted to drugs and my father abandoned us. I grew up in multiple foster homes, was then adopted into a series of broken homes, and then experienced a series of family tragedies. Later, after a few years in the military, I went to Yale on the GI Bill. On campus, I realized that luxury beliefs have become fashionable status symbols. Luxury beliefs are ideas and opinions that confer status on the rich at very little cost, while taking a toll on the lower class.
In the past, people displayed their membership in the upper class with their material accoutrements. But today, luxury goods are more affordable than before. And people are less likely to receive validation for the material items they display. This is a problem for the affluent, who still want to broadcast their high social position. But they have come up with a clever solution. The affluent have decoupled social status from goods, and re-attached it to beliefs.
[…]
You might think that rich students at elite universities would be happy because they are in the top 1% of income earners. But remember, they’re surrounded by other members of the 1%. Their social circle, their Dunbar number, consists of 150 baby millionaires. Jordan Peterson has discussed this phenomenon. Citing figures from his experience teaching at Harvard in the 1990s, Peterson noted that a substantial proportion of Ivy League graduates go on to obtain a net worth of a million dollars or more by age 40. And yet this isn’t enough for them. Not only do top university graduates want to be millionaires-in-the-making, they also want the image of moral righteousness. Elite graduates desire high status not only financially, but morally as well.
For our affluent social strivers, luxury beliefs offer them a new way to gain status.
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.
Converging on these sociological observations, the biologist Amotz Zahavi proposed that animals evolve certain displays because they are so costly. The most famous example is the peacock’s tail. Only a healthy bird is capable of growing such plumage while managing to evade predators. This idea might extend to humans, too. More recently, the anthropologist and historian Jared Diamond has suggested that one reason why humans engage in displays such as drinking, smoking, drug use, and other physically costly behaviors, is because they serve as fitness indicators. The message is “I’m so healthy that I can afford to poison my body and continue to function.” Get hammered while playing a round of golf with your butler, and you will be the highest status person around.
February 22, 2020
QotD: Veblen’s “leisure class” evolve into the “luxury belief class” in truly affluent cultures
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.
Building on these sociological observations, the biologist Amotz Zahavi proposed that animals evolve certain displays because they are so costly. The most famous example is the peacock’s tail. Only a healthy bird is capable of growing such plumage while managing to evade predators. This idea might extend to humans, too. More recently, the anthropologist and historian Jared Diamond has suggested that one reason humans engage in displays such as drinking, smoking, drug use, and other physically costly behaviors is because they serve as fitness indicators. The message is: “I’m so healthy that I can afford to poison my body and continue to function.” Get hammered while playing a round of golf with your butler, and you will be the highest status person around.
Rob Henderson, “Thorstein Veblen’s Theory of the Leisure Class — A Status Update”, Quillette, 2019-11-16.
January 24, 2016
QotD: There are no Veblen goods at Wal-Mart
People buy Rolex watches for reasons other than their timekeeping excellence, just as people buy Ferraris and horses for reasons other than going to the store to pick up a gallon of milk and a loaf of bread. Economists talk about “Veblen goods,” which are more valued because of their high prices rather than in spite of them, coveted not for their conventional utility but for their exclusivity. Owning a Rolls-Royce isn’t about the car — it’s about you. Which is why you see magazines such as The Robb Report — one of those glossies full of “bland advertisements for being wealthy,” as the novelist William Gibson put it — for sale in places such as Wal-Mart, where the typical customer is not actually in the market for a yacht or Kiton overcoat. If you’ve ever seen the heartbreaking sight of a young woman stopping a Wal-Mart checker three-fourths of the way through ringing up her purchases — because she does not have enough money to pay for what’s left in her cart — then you can be pretty sure that what’s going in her sack is more or less the opposite of Veblen goods.
Ironically, the anti-Wal-Mart crusaders want to make life worse for people who are literally counting pennies as they shop for necessities. Study after study has shown that Wal-Mart has meaningfully reduced prices: 3.1 percent overall, by one estimate — with a whopping 9.1 percent cut to the price of groceries. That comes to about $2,300 a year per household, savings that accrue overwhelmingly to people of modest incomes, not to celebrity activists and Ivy League social-justice crusaders.
Ultimately, these campaigns are exercises in tribal affiliation. The Rolex tribe, and those who aspire to be aligned with it, signal their status by sneering at the Timex tribe — or by condescending to it as they purport to act on its behalf, as though poor people were too stupid to know where to find the best deal on a can of beans. Or call it the Trader Joe’s tribe vs. the Wal-Mart tribe, the Prius tribe vs. the F-150 tribe.
Kevin D. Williamson, “Who Boycotts Wal-Mart? Social-justice warriors who are too enlightened to let their poor neighbors pay lower prices”, National Review, 2014-11-30.
December 14, 2015
QotD: Veblen goods
… the point about a Veblen Good is not that sales rise when prices do. Rather, it’s that a Veblen Good is desirable because it is expensive. It is a way of showing that you can afford to buy something expensive. That you can afford something expensive is a sign of social status (well, it is in our society, where having lots of money and thus being able to buy something expensive is a sign of social status. It’s possible to imagine other societal forms which don’t include this).
The archetypal example was certain of the Vanderbilt women who would have diamonds implanted into their backs, where they would be visible to people at parties given the low cut backs of dresses at the time. The point of such implantations simply being to show that one had enough money (and perhaps little enough sense in a pre-antibiotic era) to have a diamond implanted over one’s spine. There’s a story that Mick Jagger had a diamond implanted into one of his teeth for the same sort of reason at one point (removed when it promoted caries).
The point being that a Veblen Good does signal something, and as such the greater the price the more desirable the ability to transmit that signal. But it doesn’t go as far as stating that the more the price rises then the higher sales go.
Tim Worstall, “Being Quoted In The New York Times Is Great But…”, Forbes, 2014-11-22.
