Thorstein Bunde Veblen, born Torsten Bunde Veblen (July 30, 1857 - August 3, 1929) was an American economist and sociologist, and he became a leader of the so-called institutional economics movement. Besides his technical work he was a popular and witty critic of capitalism, as shown by his best known book The Theory of the Leisure Class (1899). Veblen is famous in the history of economic thought for combining a Darwinian evolutionary perspective with his new institutionalist approach to economic analysis. He combined ...
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Thorstein Bunde Veblen, born Torsten Bunde Veblen (July 30, 1857 - August 3, 1929) was an American economist and sociologist, and he became a leader of the so-called institutional economics movement. Besides his technical work he was a popular and witty critic of capitalism, as shown by his best known book The Theory of the Leisure Class (1899). Veblen is famous in the history of economic thought for combining a Darwinian evolutionary perspective with his new institutionalist approach to economic analysis. He combined sociology with economics in his masterpiece, The Theory of the Leisure Class (1899), arguing there was a basic distinction between the productiveness of "industry," run by engineers, which manufactures goods, and the parasitism of "business," which exists only to make profits for a leisure class. The chief activity of the leisure class was "conspicuous consumption", and their economic contribution is "waste," activity that contributes nothing to productivity. The American economy was therefore made inefficient and corrupt by the businessmen, though he never made that claim explicit. Veblen believed that technological advances were the driving force behind cultural change, but, unlike many contemporaries, he refused to connect change with progress. Veblen also wrote about Marxism, though he was not technically a Marxist. While Marx regarded socialism as the ultimate goal for civilization, Veblen saw socialism as but one stage in the economic evolution of society.
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