CHAPTER 13
Veblen
Critique of Corporate Capitalism
LEARNING OBJECTIVES
OUTLINE OF CHAPTER
I. Veblen on the New Structure of Capitalism
II. The Antagonistic Dichotomy of Capitalism
KEY TERMS
business
entity that produces profits for wealthy absentee owners and often sabotages industry
conspicuous consumption
emulative consumption
trying to equal or surpass the consumption of someone else
–
independence rather than pervasive relations of subordination, logical social interrelationships
rather than ceremonial role playing, and peaceable rather than predatory dispositions generally
invidious distinction
ANSWERS TO END OF CHAPTER REVIEW QUESTIONS
ure of capitalism.
1.
affect his view of the world?
2. What are the two basic cl
analysis? Describe the characteristics and outcomes associated with each trait.
The instinct of workmanship stressed cooperation rather than competition, individual
3. Explain what Veblen means by the antagonistic dichotomy of capitalism.
The opposition of these two sets of behavioral traits led to social conflict. The dichotomy
4. How did private property cause society to be divided?
5. Explain how productivity gives rise to exploitation. Which behavior raises productivity
and why?
6.
industry and salesmanship and workmanship?
7. How does Veblen see sabotage as a tool for business to maintain profit? What happens to
efficiency and use of available productive capacity?
Business sabotaged industry for the sake of profit. Capitalism was more profitable by
8. According to Veblen, what caused business cycles and fluctuations?
9. In a capitalist system, who has the legal right to enforce the laws?
The ultimate power in the capitalist system was in the hands of the owners because they
10. ?
11. How did Veblen view capitalist imperialism? Why is expanding markets important to
capitalism?
Expanding markets were important to the quest for profits. Imperialism was important in
independent, and the quest for a peaceable brotherhood.
12. What common sentiments gain public support for imperialism? How does this work?
13. Whom did imperialism actually benefit? Explain.
Explain the concept of conspicuous consumption and how it was used by the leisure class to
stay in power.
14. Society views the rich with a certain level of admiration. What must the wealthy elite to
do to retain this? What forces put pressure on the leisure class?
The wealthy were admired when the predatory instinct dominated society. The worthy
15. The capitalists relied on two principal means of cultural discipline and social control.
working class?
Pecuniary culture relies on invidious distinction meaning differences that give rise to
16. What is conspicuous consumption? How does it tie into the consumerism we see today?
