Question

Explain Veblen’s Theory of the Leisure Class. Is it still valid today? Why or why not?

Answer 1

Veblen’s Theory of the Leisure Class

Veblen’s Theory of the Leisure Class is an economic theory which focuses on development of social and economic institutions. The theory states technology as a factor that majorly contributes to the economic production. That it drives in the profits for the owners of an institution whose prime objective is to make profits.. The theory suggests workers to be effective as well as time efficient to be able to contribute their best in terms of production of an organization. The workers that a firm hire should be cooperative and skillful. It says that the means of production that company employs should be used efficiently and resourcefully. The theory revolves around the social and economic development of the economy.

The Veblen’s Theory of the Leisure Class is still valid today because the guidelines that it provides is still required in today’s culture of production and economy. To make the best out of it, workers today are hired on the basis of their capabilities only. The concept of using resources sustainably and the owners still operate to derive profits.