Topic > The pros and cons of mechanization - 1729

Thorstein Veblen, professor and economics scholar influenced by Darwin, examined capitalism from a perspective heavily contaminated by the theory of evolution. His main argument was that human beings were not only driven by their self-interest and accumulation of power, but also by the ostentation and reputation of their wealth. He maintains that when "man consumes freely and of the best, in food, drink, narcotics, accommodation, services... [this] is evidence of wealth", on the contrary, if he fails to "consume in due quantity and quality" of one's counterparts and brothers, then "it becomes a sign of inferiority and demerit"8. During America's Gilded Age, a new emphasis was placed on self-image and reputation, giving rise to an awareness of conspicuous consumption. A term coined by Veblen, conspicuous consumption is where “one's wealth, status and 'reputation' are increasingly defined by the quantity and quality of one's material possessions”4. Contrary to Adam Smith, Veblen argued that “irrational human desire and control for greater status and prestige” is what determines economic behavior5. Smith, on the other hand, disagreed and believed that the rational pursuit of self-interest was what caused the primary driving force of economic behavior. Because Veblen viewed economics with an evolutionary perspective, he noticed that men who ran the business world possessed a more “survival” ambition than others.