Front Page Titles (by Subject) CHAPTER V: The Pecuniary Standard of Living - The Theory of the Leisure Class: An Economic Study of Institutions
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CHAPTER V: The Pecuniary Standard of Living - Thorstein Veblen, The Theory of the Leisure Class: An Economic Study of Institutions 
The Theory of the Leisure Class: An Economic Study of Institutions (New York: B. W. Huebsch, 1918).
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The Pecuniary Standard of Living
For the great body of the people in any modern community, the proximate ground of expenditure in excess of what is required for physical comfort is not a conscious effort to excel in the expensiveness of their visible consumption, so much as it is a desire to live up to the conventional standard of decency in the amount and grade of goods consumed. This desire is not guided by a rigidly invariable standard, which must be lived up to, and beyond which there is no incentive to go. The standard is flexible; and especially it is indefinitely extensible, if only time is allowed for habituation to any increase in pecuniary ability and for acquiring facility in the new and larger scale of expenditure that follows such an increase. It is much more difficult to recede from a scale of expenditure once adopted than it is to extend the accustomed scale in response to an accession of wealth. Many items of customary expenditure prove on analysis to be almost purely wasteful, and they are therefore honorific only, but after they have once been incorporated into the scale of decent consumption, and so have become an integral part of one's scheme of life, it is quite as hard to give up these as it is to give up many items that conduce directly to one's physical comfort, or even that may be necessary to life and health. That is to say, the conspicuously wasteful honorific expenditure that confers spiritual well-being may become more indispensable than much of that expenditure which ministers to the “lower” wants of physical well-being or sustenance only. It is notoriously just as difficult to recede from a “high” standard of living as it is to lower a standard which is already relatively low; although in the former case the difficulty is a moral one, while in the latter it may involve a material deduction from the physical comforts of life.
But while retrogression is difficult, a fresh advance in conspicuous expenditure is relatively easy; indeed, it takes place almost as a matter of course. In the rare cases where it occurs, a failure to increase one's visible consumption when the means for an increase are at hand is felt in popular apprehension to call for explanation, and unworthy motives of miserliness are imputed to those who fall short in this respect. A prompt response to the stimulus, on the other hand, is accepted as the normal effect. This suggests that the standard of expenditure which commonly guides our efforts is not the average, ordinary expenditure already achieved; it is an ideal of consumption that lies just beyond our reach, or to reach which requires some strain. The motive is emulation — the stimulus of an invidious comparison which prompts us to outdo those with whom we are in the habit of classing ourselves. Substantially the same proposition is expressed in the commonplace remark that each class envies and emulates the class next above it in the social scale, while it rarely compares itself with those below or with those who are considerably in advance. That is to say, in other words, our standard of decency in expenditure, as in other ends of emulation, is set by the usage of those next above us in reputability; until, in this way, especially in any community where class distinctions are somewhat vague, all canons of reputability and decency, and all standards of consumption, are traced back by insensible gradations to the usages and habits of thought of the highest social and pecuniary class — the wealthy leisure class.
It is for this class to determine, in general outline, what scheme of life the community shall accept as decent or honorific; and it is their office by precept and example to set forth this scheme of social salvation in its highest, ideal form. But the higher leisure class can exercise this quasi-sacerdotal office only under certain material limitations. The class cannot at discretion effect a sudden revolution or reversal of the popular habits of thought with respect to any of these ceremonial requirements. It takes time for any change to permeate the mass and change the habitual attitude of the people; and especially it takes time to change the habits of those classes that are socially more remote from the radiant body. The process is slower where the mobility of the population is less or where the intervals between the several classes are wider and more abrupt. But if time be allowed, the scope of the discretion of the leisure class as regards questions of form and detail in the community's scheme of life is large; while as regards the substantial principles of reputability, the changes which it can effect lie within a narrow margin of tolerance. Its example and precept carries the force of prescription for all classes below it; but in working out the precepts which are handed down as governing the form and method of reputability — in shaping the usages and the spiritual attitude of the lower classes — this authoritative prescription constantly works under the selective guidance of the canon of conspicuous waste, tempered in varying degree by the instinct of workmanship. To these norms is to be added another broad principle of human nature — the predatory animus — which in point of generality and of psychological content lies between the two just named. The effect of the latter in shaping the accepted scheme of life is yet to be discussed.
The canon of reputability, then, must adapt itself to the economic circumstances, the traditions, and the degree of spiritual maturity of the particular class whose scheme of life it is to regulate. It is especially to be noted that however high its authority and however true to the fundamental requirements of reputability it may have been at its inception, a specific formal observance can under no circumstances maintain itself in force if with the lapse of time or on its transmission to a lower pecuniary class it is found to run counter to the ultimate ground of decency among civilised peoples, namely, serviceability for the purpose of an invidious comparison in pecuniary success.
It is evident that these canons of expenditure have much to say in determining the standard of living for any community and for any class. It is no less evident that the standard of living which prevails at any time or at any given social altitude will in its turn have much to say as to the forms which honorific expenditure will take, and as to the degree to which this “higher” need will dominate a people's consumption. In this respect the control exerted by the accepted standard of living is chiefly of a negative character; it acts almost solely to prevent recession from a scale of conspicuous expenditure that has once become habitual.
A standard of living is of the nature of habit. It is an habitual scale and method of responding to given stimuli. The difficulty in the way of receding from an accustomed standard is the difficulty of breaking a habit that has once been formed. The relative facility with which an advance in the standard is made means that the life process is a process of unfolding activity and that it will readily unfold in a new direction whenever and wherever the resistance to self-expression decreases. But when the habit of expression along such a given line of low resistance has once been formed, the discharge will seek the accustomed outlet even after a change has taken place in the environment whereby the external resistance has appreciably risen. That heightened facility of expression in a given direction which is called habit may offset a considerable increase in the resistance offered by external circumstances to the unfolding of life in the given direction. As between the various habits, or habitual modes and directions of expression, which go to make up an individual's standard of living, there is an appreciable difference in point of persistence under counteracting circumstances and in point of the degree of imperativeness with which the discharge seeks a given direction.
That is to say, in the language of current economic theory, while men are reluctant to retrench their expenditures in any direction, they are more reluctant to retrench in some directions than in others; so that while any accustomed consumption is reluctantly given up, there are certain lines of consumption which are given up with relatively extreme reluctance. The articles or forms of consumption to which the consumer clings with the greatest tenacity are commonly the so-called necessaries of life, or the subsistence minimum. The subsistence minimum is of course not a rigidly determined allowance of goods, definite and invariable in kind and quantity; but for the purpose in hand it may be taken to comprise a certain, more or less definite, aggregate of consumption required for the maintenance of life. This minimum, it may be assumed, is ordinarily given up last in case of a progressive retrenchment of expenditure. That is to say, in a general way, the most ancient and ingrained of the habits which govern the individual's life—those habits that touch his existence as an organism m are the most persistent and imperative. Beyond these come the higher wants— later-formed habits of the individual or the race—in a somewhat irregular and by no means invariable gradation. Some of these higher wants, as for instance the habitual use of certain stimulants, or the need of salvation (in the eschatological sense), or of good repute, may in some cases take precedence of the lower or more elementary wants. In general, the longer the habituation, the more unbroken the habit, and the more nearly it coincides with previous habitual forms of the life process, the more persistently will the given habit assert itself. The habit will be stronger if the particular traits of human nature which its action involves, or the particular aptitudes that find exercise in it, are traits or aptitudes that are already largely and profoundly concerned in the life process or that are intimately bound up with the life history of the particular racial stock.
The varying degrees of ease with which different habits are formed by different persons, as well as the varying degrees of reluctance with which different habits are given up, goes to say that the formation of specific habits is not a matter of length of habituation simply. Inherited aptitudes and traits of temperament count for quite as much as length of habituation in deciding what range of habits will come to dominate any individual's scheme of life. And the prevalent type of transmitted aptitudes, or in other words the type of temperament belonging to the dominant ethnic element in any community, will go far to decide what will be the scope and form of expression of the community's habitual life process. How greatly the transmitted idiosyncracies of aptitude may count in the way of a rapid and definitive formation of habit in individuals is illustrated by the extreme facility with which an all. dominating habit of alcoholism is sometimes formed; or in the similar facility and the similarly inevitable formation of a habit of devout observances in the case of persons gifted with a special aptitude in that direction. Much the same meaning attaches to that peculiar facility of habituation to a specific human environment that is called romantic love.
Men differ in respect of transmitted aptitudes, or in respect of the relative facility with which they unfold their life activity in particular directions; and the habits which coincide with or proceed upon a relatively strong specific aptitude or a relatively great specific facility of expression become of great consequence to the man's well-being. The part played by this element of aptitude in determining the relative tenacity of the several habits which constitute the standard of living goes to explain the extreme reluctance with which men give up any habitual expenditure in the way of conspicuous consumption. The aptitudes or propensities to which a habit of this kind is to be referred as its ground are those aptitudes whose exercise is comprised in emulation; and the propensity for emulation —for invidious comparison — is of ancient growth and is a pervading trait of human nature. It is easily called into vigorous activity in any new form, and it asserts itself with great insistence under any form under which it has once found habitual expression. When the individual has once formed the habit of seeking expression in a given line of honorific expenditure,—when a given set of stimuli have come to be habitually responded to in activity of a given kind and direction under the guidance of these alert and deep-reaching propensities of emulation, — it is with extreme reluctance that such an habitual expenditure is given up. And on the other hand, whenever an accession of pecuniary strength puts the individual in a position to unfold his life process in larger scope and with additional reach, the ancient propensities of the race will assert themselves in determining the direction which the new unfolding of life is to take. And those propensities which are already actively in the field under some related form of expression, which are aided by the pointed suggestions afforded by a current accredited scheme of life, and for the exercise of which the material means and opportunities are readily available, — these will especially have much to say in shaping the form and direction in which the new accession to the individual's aggregate force will assert itself. That is to say, in concrete terms, in any community where conspicuous consumption is an element of the scheme of life, an increase in an individual's ability to pay is likely to take the form of an expenditure for some accredited line of conspicuous consumption.
With the exception of the instinct of self-preservation, the propensity for emulation is probably the strongest and most alert and persistent of the economic motives proper. In an industrial community this propensity for emulation expresses itself in pecuniary emulation; and this, so far as regards the Western civilised communities of the present, is virtually equivalent to saying that it expresses itself in some form of conspicuous waste. The need of conspicuous waste, therefore, stands ready to absorb any increase in the community's industrial efficiency or output of goods, after the most elementary physical wants have been provided for. Where this result does not follow, under modern conditions, the reason for the discrepancy is commonly to be sought in a rate of increase in the individual's wealth too rapid for the habit of expenditure to keep abreast of it; or it may be that the individual in question defers the conspicuous consumption of the increment to a later date — ordinarily with a view to heightening the spectacular effect of the aggregate expenditure contemplated. As increased industrial efficiency makes it possible to procure the means of livelihood with less labour, the energies of the industrious members of the community are bent to the compassing of a higher result in conspicuous expenditure, rather than slackened to a more comfortable pace. The strain is not lightened as industrial efficiency increases and makes a lighter strain possible, but the increment of output is turned to use to meet this want, which is indefinitely expansible, after the manner commonly imputed in economic theory to higher or spiritual wants. It is owing chiefly to the presence of this element in the standard of living that J. S. Mill was able to say that “hitherto it is questionable if all the mechanical inventions yet made have lightened the day's toil of any human being.”
The accepted standard of expenditure in the community or in the class to which a person belongs largely determines what his standard of living will be. It does this directly by commending itself to his common sense as right and good, through his habitually contemplating it and assimilating the scheme of life in which it belongs; but it does so also indirectly through popular insistence on conformity to the accepted scale of expenditure as a matter of propriety, under pain of disesteem and ostracism. To accept and practise the standard of living which is in vogue is both agreeable and expedient, commonly to the point of being indispensable to personal comfort and to success in life. The standard of living of any class, so far as concerns the element of conspicuous waste, is commonly as high as the earning capacity of the class will permit — with a constant tendency to go higher. The effect upon the serious activities of men is therefore to direct them with great singleness of purpose to the largest possible acquisition of wealth, and to discountenance work that brings no pecuniary gain. At the same time the effect on consumption is to concentrate it upon the lines which are most patent to the observers whose good opinion is sought; while the inclinations and aptitudes whose exercise does not involve a honorific expenditure of time or substance tend to fall into abeyance through disuse.
Through this discrimination in favour of visible consumption it has come about that the domestic life of most classes is relatively shabby, as compared with the éclat of that overt portion of their life that is carried on before the eyes of observers. As a secondary consequence of the same discrimination, people habitually screen their private life from observation. So far as concerns that portion of their consumption that may without blame be carried on in secret, they withdraw from all contact with their neighbours. Hence the exclusiveness of people, as regards their domestic life, in most of the industrially developed communities; and hence, by remoter derivation, the habit of privacy and reserve that is so large a feature in the code of proprieties of the better classes in all communities. The low birthrate of the classes upon whom the requirements of reputable expenditure fall with great urgency is likewise traceable to the exigencies of a standard of living based on conspicuous waste. The conspicuous consumption, and the consequent increased expense, required in the reputable maintenance of a child is very considerable and acts as a powerful deterrent. It is probably the most effectual of the Malthusian prudential checks.
The effect of this factor of the standard of living, both in the way of retrenchment in the obscurer elements of consumption that go to physical comfort and maintenance, and also in the paucity or absence of children, is perhaps seen at its best among the classes given to scholarly pursuits. Because of a presumed superiority and scarcity of the gifts and attainments that characterise their life, these classes are by convention subsumed under a higher social grade than their pecuniary grade should warrant. The scale of decent expenditure in their case is pitched correspondingly high, and it consequently leaves an exceptionally narrow margin disposable for the other ends of life. By force of circumstances, their own habitual sense of what is good and right in these matters, as well as the expectations of the community in the way of pecuniary decency among the learned, are excessively high — as measured by the prevalent degree of opulence and earning capacity of the class, relatively to the non-scholarly classes whose social equals they nominally are. In any modern community where there is no priestly monopoly of these occupations, the people of scholarly pursuits are un avoidably thrown into contact with classes that are pecuniarily their superiors. The high standard of pecuniary decency in force among these superior classes is transfused among the scholarly classes with but little mitigation of its rigour; and as a consequence there is no class of the community that spends a larger proportion of its substance in conspicuous waste than these.