Thorstein Veblen

Introduced in his 1899 book "The Theory of the Leisure Class," conspicuous consumption describes the practice of buying luxury goods to display wealth and social status rather than for practical utility. Veblen argued that the wealthy engage in this behavior to assert their dominance in a capitalist society. This concept remains a cornerstone in the study of consumer behavior and sociology.

Institutional economics is a school of economic thought that emphasizes the role of social, legal, and cultural institutions in shaping economic behavior. Thorstein Veblen is widely considered a primary founder of this field because he rejected classical economics' assumptions of rational actors. He believed that human behavior is heavily driven by instinct, habit, and social emulation.

Despite his massive influence, Veblen had a famously difficult academic career and struggled to maintain long-term teaching positions. He taught at the University of Chicago, Stanford University, and the University of Missouri, often leaving due to personal controversies or clashes with administrators. He spent his later years working at the New School for Social Research in New York City.

Veblen used the term "the leisure class" to describe wealthy individuals who avoided productive labor, instead engaging in predatory or ceremonial activities. He argued that this class relied on the exploitation of the working class to maintain their wealth and status. The concept was a sharp critique of the consumption habits and social structures of early 20th-century American capitalism.