Thorstein Veblen and economic theory

Sociology

Thorstein Veblen's The Theory of the Leisure Class: An Economic Study of Institutions is a sociological discourse that centers on the phenomenon of new technology, popularly termed as the technological revolution of human civilization. Veblen discusses the relationship between new technologies (particularly technologies in communication) and how these (technologies) affect the degree of social interaction and shaping society and its culture. He introduces the technological theory of history, where he posits that "the "state of the industrial arts," that is, the technology available to a society, determines the character of its culture... A new technology erodes vested ideas, overcomes vested interests, and reshapes institutions in accord with its own needs" (Coser, 1977:273). Of particular interest to the study of technological and information technology revolutions are found in the fourth chapter of his discourse, entitled, "Conspicuous Consumption." Borrowing from his ideas that technology will eventually determine the culture of a society, the sudden influx of communications technology such as faxes, e-mails, mobile phones, and chat communication, among others, will cause the eventual stratification of the society into two classes: one group who are technologically-skilled and the other group as technologically-deficient: "when the differentiation has gone farther and it becomes necessary to reach a wider human environment, consumption begins to hold over leisure as an ordinary means of decency... The means of communication and the mobility of the population now expose the individual to the observation of many persons who have no other means of judging of his reputability than the display of goods..." (Veblen, 1902). Furthermore, the proliferation of communication technology results to a fast-pace society, due to the fast-paced character of people's society in the modern society. Indeed, communication technology, as Veblen stated, paved the way for a 'global village' to occur, where social interactions become easier, accessible, and faster, creating a new society with a new culture.