“In 1899, economist and sociologist, Thorstein Veblem coined the phrase “conspicuous consumption” in his book The Theory of the Leisure Class. He argued that some types of consumption are intended to send a message about the consumer’s status rather than just to satisfy a need. “Consumers buy certain goods because of what those goods reveal about their standing in the society, rather than the intrinsic enjoyment they derive from the purchase.” Conspicuous consumption is the ostentatious display and the consumption of resources by the wealthy class, in particular, to advertise their wealth.
With the growing prosperity in some segments of society, we are continually seeking ways to outdo one another by showing off and boasting. As the term “keeping up with the Joneses” suggests, we measure our success against those around us and have become so consumed with the image of affluence that we fail to be content with the pleasure and satisfaction that come from financial stability and good old-fashioned family values.
The impact of conspicuous consumption
Conspicuous consumption has many negative effects that include serious societal implications. The upsurge in incidents of violence is not an isolated phenomenon; it portrays a complex set of political, cultural and social trends that prevail in the polity. Cultural and religious intolerance are often cited among the catalysts to unrest, and certainly, these issues must be addressed and if not remedied, the strong underlying economic factors that fuel violence will continue unabated and can create an irreparable damage to economic development.
The wide and ever widening abyss in incomes between the rich and the poor and the incredible show of opulence and ostentatious living by the rich slowly give rise to a sense of despondency, deprivation and degradation among much of the populace that largely live in abject poverty. Most people at the short end of the economic divide are resigned to their fate and appear to have accepted their lot, but a small minority becomes restive and translates its resentment and wrath into acts of violence and disorder.
All over the world, such resentment breeds a desperation that can become extreme and manifest in organised political resistance or sectarian violence that could eventually result in lawlessness, armed robbery, assassination and other extreme acts of violence. Conspicuous spending sends a powerful message to a society, and particularly to impressionable youths, that they must strive to make money by hook or by crook. On the contrary, they must be encouraged to value education, hard work, ambition and the ability to realise that, given the opportunity, they can and will succeed by dint of sheer hard work and perseverance.
Financial, social and economic discipline
Financing items or activities that have little or no real value can drastically affect your economic security. Such audacious spending diverts funds away from saving and investing. The “play now, pay later” syndrome implies that people who spend a large part of their wealth on acquiring luxuries, often on credit, are in essence robbing their retirement funds and could ultimately undermine their future financial security.
Stop comparing yourself to others! There will always be people that simply have much, much more than you can ever hope to have; nicer homes, cars, clothes, jewellery, etc. If you are constantly trying to outdo them – and remember you don’t know how they attained their wealth – you will put yourself under an intense pressure and undermine your financial wellbeing. It is wiser to examine your own particular situation and look at ways of improving yourself, for example, through self-development and education. Focus on what is really important to you. It is tempting to imitate others and want what they have, but if you stay focused on your own goals, chances are that you won’t be distracted.
The phenomenon of wasteful and lavish consumption to enhance social prestige can be reversed where the mindset shifts towards a disciplined approach to wealth creation and spending, where there is a systematic approach to achieving long-term financial goals and being less swayed by short-term impressions and wants.
For many of us today, this realisation often comes far too late. Unfortunately, a growing number of people are living far beyond their means in an effort to impress others. Some people “appear” to be wealthy; making a feverish display of opulence and wealth that sometimes shields huge liabilities and debt.
There is a discipline associated with creating, building and retaining true wealth; it comes from saving and investing wisely, and maintaining a disciplined mindset and a cautious approach to spending. Acquiring and maintaining long-term wealth is a process with few short cuts, but the rewards over time are well beyond the thrill of any instant gratification or outward image.
Punch
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