Is Starbucks coffee no longer a Veblen good?

See Heard on the Street: Is That Starbucks Latte Finally Getting Too Expensive? by Spencer Jakab of The WSJ.

"You see an Iced Starbucks Blonde Vanilla Latte that costs $7.25. An economist sees a “Veblen good.”

Part of the secret to the coffee chain’s success and ubiquity has been the fact that it sells coffee not only at a huge markup to the cost of foamy brown water but simply that it costs a lot. Like an expensive handbag, the small luxury of the beverage that could be bought more cheaply elsewhere for the same utility is part of the appeal.

But, with the chain’s share price hitting a one-year low on Wednesday and same-store sales slumping, could it be hitting its limit with some customers? That is one of the interesting conclusions from a proprietary survey by analysts at Deutsche Bank.

“Among the 45% of consumers buying less or no longer buying from Starbucks, the top reason was related to price, with 47% saying ‘it's become too expensive,’ wrote Lauren Silberman’s team. Cost was “well above every other reason indicated.”

A year ago, analysts polled by FactSet saw revenue for the current fiscal year through September of $40.367 billion. That is now down to $38.784 billion. Excluding the year the pandemic hit, the chain is seen having its slowest growth in same-store sales since 2018.

Silberman thinks the slump is temporary and the deflated stock attractive. In addition to price sensitivity, part of the problem might be Starbucks' greater dependence on cold beverages and the fact that those were less desirable during a chilly winter. Spring is here—so it is about time to test that hypothesis."

Also see Veblen Goods by Andrew Loo of CFI (Corporate Finance Institute) . Excerpts:

"Veblen good is a type of luxury good named after American economist Thorstein Veblen. It shows a positive relationship between price and demand [it should say quantity demanded-CM], and thus an upward-sloping demand curve.

The demand [it should say quantity demanded-CM] for a Veblen good rises (drops) when its price increases (decreases). A Veblen good generally is considered a high-quality exclusive product and a status symbol. When the price goes higher, its status symbol makes the Veblen good more desirable to consumers with high social and economic standing. Some common examples of Veblen goods include luxury cars, wines, handbags, fine jewelry and watches and even sneakers."

"Conspicuous consumption is another relevant concept of Veblen goods. It represents the purchase of goods and services to display one’s economic power and social status, motivated by the desire for prestige.

The concept of conspicuous consumption was also identified by Thorstein Veblen in his book The Theory of the Leisure Class (1899). In the practices of conspicuous consumption, a higher price makes a product more desirable for its status symbol, which explains the features of Veblen goods from a sociological perspective."

Adam Smith may have beaten Veblen to the punch. In The Wealth of Nations, he wrote:

"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common." (the entire book is online)

In Veblen's chapter on "Conspicuous Consumption," there is no mention of Adam Smith. 

There is statistical or empircal evidence that supports Veblen's theory. A Ph. D. student found that rich families do spend more on "Conspicuous Consumption." 

See also Doctoral Thesis Says Rich People Spend More on Conspicuous Things. Excerpts:

"Ori Heffetz, a doctoral student in economics at Princeton University (back in 2005-now he is a professor at Cornell University), has developed the first broad-gauged index of product visibility. Sure enough, he finds in his thesis that conspicuous items make up a greater share of the consumption budget in wealthier families."

"Mr. Heffetz estimated the relationship between the amount spent on each of 29 products and a household's income, using data on 3,924 households from the 1997 Consumer Expenditure Survey, conducted by the Bureau of Labor Statistics. The "income elasticity of demand," defined as the percentage change in consumption for a 1 percent increase in income, summarizes the degree to which a good is a luxury or a necessity. A good is a luxury if a 1 percent increase in income is associated with more than a 1 percent increase in consumption of that good.

Mr. Heffetz's analysis indicates that the higher the visibility of a good, the more likely it is to be a luxury item. For example, spending on cars and jewelry, two highly visible items, rises as a share of a household's budget as its income rises, while spending on home utilities, an inconspicuous category, falls as a share of the budget as income rises."

Related posts:

China's Government Cracks Down On Displays Of Wealth On Social Media (2022)  

(See In China, Bragging About Your Wealth Can Get You Censored: Online posts by users showing off their receipts, over-ordering food or scattering money have been deemed vulgar. Regulators say such content leads young people astray by Vivian Wang and Joy Dong of The New York Times.)

Payless sold its discount shoes for $600 a pair at mock luxury influencer event (2018)

Federal Reserve Economists May Have Discovered Another Cause Of Bankruptcy (if a neighbor wins the lottery people start spending more on consumption to keep up) (2016)

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007)

Is knowledge of fashion history a new status symbol?

See Is the Luxury Handbag’s Heyday Ending? An $8 billion slide in sales shows attitudes toward designer bags are changing by Carol Ryan of The WSJ.  

I have several links below on what Thorstein Veblen called Conspicuous Consumption. That is when rich people "purchase goods and services to display one’s economic power and social status." Adam Smith also said something like this. 

But now knowledge of fashion history might be a more powerful status symbol. See the text in red in the excerpts below:

"Status symbols are an odd thing. Some purchases, like a mansion, have never lost their power to flaunt wealth. Pineapples—which were once so rare and expensive that they became the 17th century’s equivalent of the Birkin—fell out of fashion as soon as rising supply meant the middle classes could afford them too."

"Sales of luxury bags are down almost 10% from peaks seen in 2023"

"brands raised prices too aggressively during the pandemic"

"Luxury companies released 80% fewer new bags between 2023 and 2025 than they did between 2016 and 2019"

"Social-media feeds are flooded with images of once-scarce bags like the Hermès Birkin and the Chanel Classic Flap, which has killed some of the magic."

"“You are selling the promise of exclusivity. Anything that creates visibility is not necessarily good,” says Luca Solca, luxury goods analyst at Bernstein."

"shoppers are still obsessed with luxury handbags, but their tastes are evolving in ways that are unhelpful for luxury companies’ profits."

"Social-media content about affordable ways to access luxury handbags through resale and rental platforms like Vivrelle is up sharply"

"carrying a vintage luxury bag is becoming cooler than buying new. In May, searches for vintage bags were up 131% compared with the same month of 2025" 

"Vintage is gaining popularity because of growing disenchantment with modern, mass-produced luxury, according to Silvia Bellezza, an associate professor of marketing at Columbia Business School." 

"buying vintage is a way to look different in an era of algorithm-driven fashion trends. Buying vintage also requires knowledge of fashion history, which is emerging as a new status symbol itself."

Also see Veblen Goods by Andrew Loo of CFI (Corporate Finance Institute) . Excerpts:

"Veblen good is a type of luxury good named after American economist Thorstein Veblen. It shows a positive relationship between price and demand [it should say quantity demanded-CM], and thus an upward-sloping demand curve.

The demand [it should say quantity demanded-CM] for a Veblen good rises (drops) when its price increases (decreases). A Veblen good generally is considered a high-quality exclusive product and a status symbol. When the price goes higher, its status symbol makes the Veblen good more desirable to consumers with high social and economic standing. Some common examples of Veblen goods include luxury cars, wines, handbags, fine jewelry and watches and even sneakers."

"Conspicuous consumption is another relevant concept of Veblen goods. It represents the purchase of goods and services to display one’s economic power and social status, motivated by the desire for prestige.

The concept of conspicuous consumption was also identified by Thorstein Veblen in his book The Theory of the Leisure Class (1899). In the practices of conspicuous consumption, a higher price makes a product more desirable for its status symbol, which explains the features of Veblen goods from a sociological perspective."

Adam Smith may have beaten Veblen to the punch. In The Wealth of Nations, he wrote:

"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common." (the entire book is online)

In Veblen's chapter on "Conspicuous Consumption," there is no mention of Adam Smith. 

There is statistical or empircal evidence that supports Veblen's theory. A Ph. D. student found that rich families do spend more on "Conspicuous Consumption." 

See also Doctoral Thesis Says Rich People Spend More on Conspicuous Things. Excerpts:

"Ori Heffetz, a doctoral student in economics at Princeton University (back in 2005-now he is a professor at Cornell University), has developed the first broad-gauged index of product visibility. Sure enough, he finds in his thesis that conspicuous items make up a greater share of the consumption budget in wealthier families."

"Mr. Heffetz estimated the relationship between the amount spent on each of 29 products and a household's income, using data on 3,924 households from the 1997 Consumer Expenditure Survey, conducted by the Bureau of Labor Statistics. The "income elasticity of demand," defined as the percentage change in consumption for a 1 percent increase in income, summarizes the degree to which a good is a luxury or a necessity. A good is a luxury if a 1 percent increase in income is associated with more than a 1 percent increase in consumption of that good.

Mr. Heffetz's analysis indicates that the higher the visibility of a good, the more likely it is to be a luxury item. For example, spending on cars and jewelry, two highly visible items, rises as a share of a household's budget as its income rises, while spending on home utilities, an inconspicuous category, falls as a share of the budget as income rises."

Related posts:

Is there InConspicuous Consumption? (2025) (what if rich people spend their money and they don't want to be seen doing it)

Is there InConspicuous Consumption? (Part 2) (2025) (links to some research on this concept)

What if you had to spend alot of money just to be offered the chance buy a luxury item? (2025) 

Has Luxury Lost Its Shine? Customers are complaining that they are getting less bang for their buck at the luxury store (a case of Veblen goods) (2024)  

Is Starbucks coffee no longer a Veblen good? (2024)

China's Government Cracks Down On Displays Of Wealth On Social Media (2022)  

(See In China, Bragging About Your Wealth Can Get You Censored: Online posts by users showing off their receipts, over-ordering food or scattering money have been deemed vulgar. Regulators say such content leads young people astray by Vivian Wang and Joy Dong of The New York Times.)

Payless sold its discount shoes for $600 a pair at mock luxury influencer event (2018)

Federal Reserve Economists May Have Discovered Another Cause Of Bankruptcy (if a neighbor wins the lottery people start spending more on consumption to keep up) (2016)

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007)

Has Luxury Lost Its Shine? Customers are complaining that they are getting less bang for their buck at the luxury store (a case of Veblen goods)

By Carol Ryan of The WSJ. I have more below about economist Thorstein Veblen and his concept of Conspicuous Consumption. Excerpts:

"Shoppers aren’t imagining it: Luxury goods cost a lot more these days, with no improvement in quality to make up for it. Weak sales look like a more deep-seated problem than some brands will admit. 

A basic cotton T-shirt with a Christian Dior logo will now set you back $1,000. Gucci’s plainest black horsebit loafers ring in at $990. How about a Brunello Cucinelli  cardigan for $8,995? Shoppers pay up for luxury goods precisely because they set them apart as people who can afford to spend large amounts of money on them. But brands can only push so far before cracks start to appear. 

Psychologists who study consumer behavior point out that people buy designer goods for emotional reasons. The main one is to separate themselves from the crowd and signal where they sit in the social pecking order. Luxury brands spend billions of dollars a year on advertising to make sure that their products become totems of wealth and success in consumers’ minds.

Some luxury shoppers like to telegraph their riches more than others. People who want to make a statement gravitate toward labels with bigger logos to send an obvious signal. 

The ultrarich, on the other hand, don’t tend to shout about their wealth as much. They buy the costliest, but most discreet, luxury brands such as Hermès RMS. One study found that for every $5,000 increase in the price of luxury goods, the brand’s logo shrinks by a centimeter. In other words, the guy wearing head-to-toe logos is unlikely to be one of luxury’s biggest spenders. 

Because consumers value luxury goods as status symbols, they are willing to pay a huge premium for them. Luxury brands routinely charge a markup of eight to 12 times on the production cost of their goods, according to Bernstein estimates. This makes the business of selling luxury very profitable. Top luxury labels can generate operating margins north of 30%, compared with around 7% for mass-market fashion brands such as Gap or H&M.  

Luxury brands are so-called Veblen goods: a category of consumer products that inverts the usual laws of economics. Instead of crimping demand when prices rise, luxury goods can become more sought-after if shoppers interpret higher prices as a sign that the goods are precious and scarce. 

Except that isn’t what is happening today. The average luxury product is 60% more expensive today than it was back in 2019, HSBC analysis shows. But the industry is going through one of its rockiest patches in years. 

Sales of the eight luxury brands that have so far reported their third-quarter results are down 4% on average from a year earlier."

"consumers are also questioning whether luxury brands are worth the prices they charge today."

"beefier gross margins are also a sign that luxury companies have raised prices faster than they have invested in the quality of their raw materials."

"if customers have to pay higher prices, you have to give them something new and surprising."

"Based on an analysis by social-media data company Brandwatch, there was an increase in negative comments about luxury brands on online platforms late this summer"

"For the last two decades, they have increased sales by “democratizing” access to luxury."

with "cheaper categories such as cosmetics, sunglasses and small handbags"

"brands’ shift toward democratization has made them much more reliant on comfortable, if not rich, consumers for a huge chunk of revenue. More than half of the luxury-goods industry’s sales are from shoppers who spend less than $3,000 a year on designer products. Alienate them with price hikes and sales will inevitably suffer."

Also see Veblen Goods by Andrew Loo of CFI (Corporate Finance Institute) . Excerpts:

"Veblen good is a type of luxury good named after American economist Thorstein Veblen. It shows a positive relationship between price and demand [it should say quantity demanded-CM], and thus an upward-sloping demand curve.

The demand [it should say quantity demanded-CM] for a Veblen good rises (drops) when its price increases (decreases). A Veblen good generally is considered a high-quality exclusive product and a status symbol. When the price goes higher, its status symbol makes the Veblen good more desirable to consumers with high social and economic standing. Some common examples of Veblen goods include luxury cars, wines, handbags, fine jewelry and watches and even sneakers."

"Conspicuous consumption is another relevant concept of Veblen goods. It represents the purchase of goods and services to display one’s economic power and social status, motivated by the desire for prestige.

The concept of conspicuous consumption was also identified by Thorstein Veblen in his book The Theory of the Leisure Class (1899). In the practices of conspicuous consumption, a higher price makes a product more desirable for its status symbol, which explains the features of Veblen goods from a sociological perspective."

Adam Smith may have beaten Veblen to the punch. In The Wealth of Nations, he wrote:

"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common." (the entire book is online)

In Veblen's chapter on "Conspicuous Consumption," there is no mention of Adam Smith. 

There is statistical or empircal evidence that supports Veblen's theory. A Ph. D. student found that rich families do spend more on "Conspicuous Consumption." 

See also Doctoral Thesis Says Rich People Spend More on Conspicuous Things. Excerpts:

"Ori Heffetz, a doctoral student in economics at Princeton University (back in 2005-now he is a professor at Cornell University), has developed the first broad-gauged index of product visibility. Sure enough, he finds in his thesis that conspicuous items make up a greater share of the consumption budget in wealthier families."

"Mr. Heffetz estimated the relationship between the amount spent on each of 29 products and a household's income, using data on 3,924 households from the 1997 Consumer Expenditure Survey, conducted by the Bureau of Labor Statistics. The "income elasticity of demand," defined as the percentage change in consumption for a 1 percent increase in income, summarizes the degree to which a good is a luxury or a necessity. A good is a luxury if a 1 percent increase in income is associated with more than a 1 percent increase in consumption of that good.

Mr. Heffetz's analysis indicates that the higher the visibility of a good, the more likely it is to be a luxury item. For example, spending on cars and jewelry, two highly visible items, rises as a share of a household's budget as its income rises, while spending on home utilities, an inconspicuous category, falls as a share of the budget as income rises."

Related posts:

Is Starbucks coffee no longer a Veblen good? (2024)

China's Government Cracks Down On Displays Of Wealth On Social Media (2022)  

(See In China, Bragging About Your Wealth Can Get You Censored: Online posts by users showing off their receipts, over-ordering food or scattering money have been deemed vulgar. Regulators say such content leads young people astray by Vivian Wang and Joy Dong of The New York Times.)

Payless sold its discount shoes for $600 a pair at mock luxury influencer event (2018)

Federal Reserve Economists May Have Discovered Another Cause Of Bankruptcy (if a neighbor wins the lottery people start spending more on consumption to keep up) (2016)

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007)

Is there InConspicuous Consumption?

I have alot below on Conspicuous Consumption. But what if rich people spend their money and they don't want to be seen doing it? I also wonder what share of spending by the rich is on Conspicuous Consumption and what share is on  InConspicuous Consumption. A google search shows that there is research on InConspicuous Consumption. Maybe I will post some of those links tomorrow.

See The Ultrarich Are Spending a Fortune to Live in Extreme Privacy: In Miami and elsewhere, the wealthy are moving in increasingly private spheres, shelling out big money to bypass the indignities of public life by Arian Campo-Flores of The WSJ. Excerpts:

"The ultrawealthy are wielding their growing fortunes to glide through a rarefied realm unencumbered by the inconveniences of ordinary life. They don’t wait in lines. They don’t jostle with airport crowds or idle unnecessarily in traffic."

"A new service economy enables them to avoid everybody else if they want to. In the Bentley Residences condo tower under construction in Sunny Isles Beach, north of Miami, car elevators will deliver residents straight up to their homes and deposit vehicles in adjoining “sky garages,” avoiding the need to deal with parking valets and reception areas."

"Those who can afford it sometimes rent an entire facility to have exclusive use of it. At Centner Wellness, a high-end holistic healing center in Miami that offers a host of treatments employing the latest technology, rich clients occasionally book the whole place for several days, said founder Leila Centner.

One family of about 10 people did that a few months ago, she said, turning the 15,000-square-foot center into their own wellness playground, at a cost of $150,000."

"When the ultrawealthy choose to socialize, they often seek circles that are meticulously selected, said Gregory Pool, a managing director with NewEdge Wealth in Miami.

Faena Rose is a private social club in Miami Beach focused on art and culture, whose members are vetted by a committee and pay $15,000 initially and another $15,000 annually. They get VIP access to the beach club, spa and other amenities at the Faena Miami Beach hotel, and admission to roughly 80 cultural events a year, held in intimate settings for members only."

"A newer variant: private dinner clubs, where members get haute cuisine, personalized service and the ability to secure a table whenever they want."

"Lauren Beall, owner of Travel Couture in Miami Beach, specializes in arranging custom travel experiences for the ultrawealthy. She has booked private islands for clients and flown in Michelin-starred chefs, yoga instructors and performers."

Also see Veblen Goods by Andrew Loo of CFI (Corporate Finance Institute) . Excerpts:

"Veblen good is a type of luxury good named after American economist Thorstein Veblen. It shows a positive relationship between price and demand [it should say quantity demanded-CM], and thus an upward-sloping demand curve.

The demand [it should say quantity demanded-CM] for a Veblen good rises (drops) when its price increases (decreases). A Veblen good generally is considered a high-quality exclusive product and a status symbol. When the price goes higher, its status symbol makes the Veblen good more desirable to consumers with high social and economic standing. Some common examples of Veblen goods include luxury cars, wines, handbags, fine jewelry and watches and even sneakers."

"Conspicuous consumption is another relevant concept of Veblen goods. It represents the purchase of goods and services to display one’s economic power and social status, motivated by the desire for prestige.

The concept of conspicuous consumption was also identified by Thorstein Veblen in his book The Theory of the Leisure Class (1899). In the practices of conspicuous consumption, a higher price makes a product more desirable for its status symbol, which explains the features of Veblen goods from a sociological perspective."

Adam Smith may have beaten Veblen to the punch. In The Wealth of Nations, he wrote:

"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common." (the entire book is online)

In Veblen's chapter on "Conspicuous Consumption," there is no mention of Adam Smith. 

There is statistical or empircal evidence that supports Veblen's theory. A Ph. D. student found that rich families do spend more on "Conspicuous Consumption." 

See also Doctoral Thesis Says Rich People Spend More on Conspicuous Things. Excerpts:

"Ori Heffetz, a doctoral student in economics at Princeton University (back in 2005-now he is a professor at Cornell University), has developed the first broad-gauged index of product visibility. Sure enough, he finds in his thesis that conspicuous items make up a greater share of the consumption budget in wealthier families."

"Mr. Heffetz estimated the relationship between the amount spent on each of 29 products and a household's income, using data on 3,924 households from the 1997 Consumer Expenditure Survey, conducted by the Bureau of Labor Statistics. The "income elasticity of demand," defined as the percentage change in consumption for a 1 percent increase in income, summarizes the degree to which a good is a luxury or a necessity. A good is a luxury if a 1 percent increase in income is associated with more than a 1 percent increase in consumption of that good.

Mr. Heffetz's analysis indicates that the higher the visibility of a good, the more likely it is to be a luxury item. For example, spending on cars and jewelry, two highly visible items, rises as a share of a household's budget as its income rises, while spending on home utilities, an inconspicuous category, falls as a share of the budget as income rises."

Related posts:

What if you had to spend alot of money just to be offered the chance buy a luxury item? (2025) 

Has Luxury Lost Its Shine? Customers are complaining that they are getting less bang for their buck at the luxury store (a case of Veblen goods) (2024)  

Is Starbucks coffee no longer a Veblen good? (2024)

China's Government Cracks Down On Displays Of Wealth On Social Media (2022)  

(See In China, Bragging About Your Wealth Can Get You Censored: Online posts by users showing off their receipts, over-ordering food or scattering money have been deemed vulgar. Regulators say such content leads young people astray by Vivian Wang and Joy Dong of The New York Times.)

Payless sold its discount shoes for $600 a pair at mock luxury influencer event (2018)

Federal Reserve Economists May Have Discovered Another Cause Of Bankruptcy (if a neighbor wins the lottery people start spending more on consumption to keep up) (2016)

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007)

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!)

Friday's Wall Street Journal had an article titled "Conspicuous Virtue and the Sustainable Sofa." You have to be a subscriber to read it online. But here is the intro:

"Lance Armstrong's ubiquitous yellow "Live Strong" wristbands have become a world-wide phenomenon: More than 60 million have sold since 2004, one of the greatest successes in nonprofit fund-raising history, with the proceeds going to cancer-related causes. No doubt some wear the bands in solidarity, or for inspiration -- but, that said, the wristband conceit was simply ingenious. It allowed people to make a show of their virtue. They could give to a good cause, and they could advertise their caring to everyone else. Not for nothing did John Kerry flaunt a Live Strong."

The author, Joseph Rago, calls this "conspicuous virtue." It is inspired by the term "conspicuous consumption" coined by Thorstein Veblen in his book The Theory of the Leisure Class. (the whole book is online there)

This site which has a short bio for Veblen, an economist who lived from 1857-1929, states:

"Veblen is best known for his book The Theory of the Leisure Class. In it he introduced the term "conspicuous consumption." Conspicuous consumption was consumption undertaken to make a statement to others about one's class or accomplishments. This term, more than any other, is what Veblen is known for."

But The Wall Street Journal article argues that now people are buying certain items to show how virtuous they are, like a Toyota Prius to show that you care about the environment even though "fuel savings do not justify the price premium of a gasoline-electric power train."

Adam Smith may have beaten Veblen to the punch. In The Wealth of Nations, he wrote:

"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common." (the entire book is online)

In Veblen's chapter on "Conspicuous Consumption," there is no mention of Adam Smith. There is statistical or empircal evidence that supports Veblen's theory. A Ph. D. student found that rich families do spend more on "Conspicuous Consumption." Click here to read about it. See also Doctoral Thesis Says Rich People Spend More on Conspicuous Things

Federal Reserve Economists May Have Discovered Another Cause Of Bankruptcy

See Why You Might Go Bankrupt If Your Next-Door Neighbor Wins the Lottery by Ben Leubsdorf at The Wall Street Journal blog. In case that link does not work, try Here’s why winning the lottery makes your neighbors go broke by the same author in The New York Post. Excerpts from the WSJ blog:

"Winning the lottery can be hazardous to your neighbors’ financial health.

Research released this month by the Federal Reserve Bank of Philadelphia found a significant jump in bankruptcies among households living near someone who won a big lottery jackpot. The economists theorized that people may have seen the good fortune next door and felt pressure to accumulate more assets of their own, especially flashy purchases like cars, that they simply could not afford.

“Income inequality induces poorer neighbors to consume more visible (rather than invisible) commodities to signal their abilities to ‘keep up with the Joneses’ to their richer neighbors,” economists Sumit Agarwal, Vyacheslav Mikhed and Barry Scholnick wrote. “This tendency can lead to additional and unsustainable borrowing among the relatively poor to finance this additional conspicuous consumption, which can eventually result in financial distress and bankruptcy.”"

"The headline finding: For every $1,000 increase in the lottery prize, there was a 2.4% increase in bankruptcy filings by the winner’s neighbors over the next few years. “These results are more pronounced for low-income neighborhoods and high income-inequality areas,” they wrote.

Why would someone winning the jackpot cause someone living down the street to go bankrupt a year or two later? The economists argued that people who feel they are poorer than their peers may spend more in a conspicuous fashion, financing their purchases with debt. But that debt will need to be repaid, potentially leading to financial difficulties and even bankruptcy.

Messrs. Agarwal, Mikhed and Scholnick analyzed the Canadian bankruptcy data and found “evidence that those who filed for bankruptcy after a larger lottery win of a close neighbor have significantly larger holdings of visible assets (e.g., cars, motorcycles, houses) relative to the holdings of these same visible assets by those who filed for bankruptcy after smaller lottery wins of a close neighbor,” they wrote. There was no similar difference for “invisible assets” like cash or pensions, they said.

In other words, when someone wins a big lottery prize, neighbors appear more likely to buy cars and remodel their houses to show that they can keep up—and go broke in the process."

I put conspicuous consumption in red because that is a well known term in economics and sociology. See Thorstein Veblen and What is Conspicuous Consumption .Veblen first coined the term over 100 years ago. The idea is that rich people buy things just to show how rich they are.

Adam Smith may have beaten Veblen to the punch. In The Wealth of Nations, he wrote:

"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common." (the entire book is online)

See also an earlier blog post I did called Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) . See also Doctoral Thesis Says Rich People Spend More on Conspicuous Things

Payless sold its discount shoes for $600 a pair at mock luxury influencer event

By Mike Snider of USA TODAY. Excerpt:

"The privately held Topeka, Kansas-based shoe seller executed the reverse of a bait-and-switch operation recently with a luxury influencer event held in Santa Monica, California.

Payless took over a former Armani store, renamed the retail location as "Palessi" and stocked the outlet with its discount-priced boots, heels, tennis and leisure shoes. Then, it invited a flock of partygoers and sold them the shoes, typically priced at $20 to $40 in Payless stores, at inflated designer price tags of $200 to $600.

"Palessi" sold about $3,000 worth of shoes within a few hours and, after the shoppers paid, staffers told them that the shoes were actually from Payless, according to AdWeek, which reported on the event Wednesday. "They are elegant (and) sophisticated," one shopper described her purchase as, in a Payless video posted on YouTube.

Then, the woman, who Payless says is a real person not an actor, was told the shoes actually were the handiwork of Payless. "You’ve got to be kidding me," she said.

Another shopper, this one a man, said about his purchase, "I could tell it's made with high-quality material.""

 This reminds me of conspicuous consumption, a well known term in economics and sociology. See Thorstein Veblen and What is Conspicuous Consumption. Veblen first coined the term over 100 years ago. The idea is that rich people buy things just to show how rich they are.

Adam Smith may have beaten Veblen to the punch. In The Wealth of Nations, he wrote:

"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common." (the entire book is online)

See also an earlier blog post I did called Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) . See also Doctoral Thesis Says Rich People Spend More on Conspicuous Things

What if you had to spend alot of money just to be offered the chance buy a luxury item?

See Trying to Dethrone the Birkin? Make Fewer Bags: Chanel has taken a less effective approach to competing with the Hermès bag than American luxury brand The Row by Carol Ryan of The WSJ. Excerpts: 

"The wish to mimic the Birkin is understandable, as the bag is a gold mine for Hermès. The brand limits how many it produces, so demand far outstrips supply. Hermès could easily jack up the price but has found a smarter way to profit from the Birkin’s popularity that is less likely to alienate loyal clients.

To get a Birkin, shoppers must build a relationship with one of the brand’s sales assistants and wait to be offered a purse. This creates a perception that the biggest spenders get access to Birkins and encourages customers to splurge on other goods to build the equivalent of an “Uber rating” at the Hermès store. 

Although the brand says shoppers aren’t obliged to buy other goods to be considered for a Birkin, collectors of the bags call this the “pre-spend.” To get their hands on a Birkin 25 in basic Togo leather, shoppers might have to shell out $10,000 or more on other goods they don’t necessarily want."

"Because the supply of Birkins is restricted at the Hermès store, people are willing to pay up extravagantly for used bags. A Birkin 25 in Togo leather that cost $11,400 to buy new in 2024 sells for more than double that amount on resale platform Fashionphile."

Related posts:

Has Luxury Lost Its Shine? Customers are complaining that they are getting less bang for their buck at the luxury store (a case of Veblen goods) (2024) 

Is Starbucks coffee no longer a Veblen good? (2024)

China's Government Cracks Down On Displays Of Wealth On Social Media (2022)  

(See In China, Bragging About Your Wealth Can Get You Censored: Online posts by users showing off their receipts, over-ordering food or scattering money have been deemed vulgar. Regulators say such content leads young people astray by Vivian Wang and Joy Dong of The New York Times.)

Payless sold its discount shoes for $600 a pair at mock luxury influencer event (2018)

Federal Reserve Economists May Have Discovered Another Cause Of Bankruptcy (if a neighbor wins the lottery people start spending more on consumption to keep up) (2016)

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007)

Is a character in Andrew Mayne's new novel based on mathematician Jim Simons (AKA the World’s Greatest Investor)?

The book is called The Final Equinox. Here is the Amazon description:

"Dr. Theo Cray and FBI agent Jessica Blackwood follow a deadly celestial trail in a thrilling novel by the Amazon Charts and Wall Street Journal bestselling author of Mastermind.

A signal is detected at the outer edge of the solar system. Computational biologist Dr. Theo Cray and magician-turned-FBI-agent Jessica Blackwood are looking—and listening—a little closer.

The man at the center of this cosmic mystery is billionaire Thomas T. Theismann. He’s spent a lifetime—and a fortune—trying to find out if we’re alone in the universe. Highly skeptical, Theo joins the effort to find the source of the signal, and he quickly enlists Jessica to look into the suspicious death of another academic at the lab. As their investigations converge, they uncover curious connections to the otherworldly contact, including a 1970s science-fiction writer and the body of an astronaut found buried in an ancient tomb.

As they delve into Theismann’s history, Theo and Jessica’s fascination with the signal intensifies. How dangerous will the investigation get? That depends on how deep into the unknown Theo and Jessica are prepared to venture." 

Here is an excerpt from the book:

"Theismann is an interesting figure. He's known to most of the world as a billionaire investor who avoids attention, but to math nerds and people like me, he has a different reputation.

In the 1970s, when the use of computers to trade stocks started to ramp up, Theismann was a graduate student at MIT who took a side job helping a financial firm build software to determine at what price to buy or sell currencies. Traders would input the latest data and look for trends and then make decisions. While electronic trading didn't exist yet, private institutions would use teletype time stamps to verify when an execution was made, allowing for an almost real-time network like the one that came about a decade later.

Currency traders looked for trends to see if a price was going up or down. With real-time data, traders using computers and software could spot a trend and buy into or sell before other less-adept firms were able to make decisions."

Also in the book, Theismann gets a venture going with an investment firm. They hire other mathematicians and make alot of money. Theismann is also a philanthropist. Sounds like Jim Simons.

Here is an excerpt from Wikipedia about Jim Simons: 

"James Harris Simons (/ˈsaɪmənz/; born 25 April 1938) is an American mathematician, billionaire hedge fund manager, and philanthropist.^[3] He is the founder of Renaissance Technologies, a quantitative hedge fund based in East Setauket, New York. He and his fund are known to be quantitative investors, using mathematical models and algorithms to make investment gains from market inefficiencies. Due to the long-term aggregate investment returns of Renaissance and its Medallion Fund, Simons is described as the "greatest investor on Wall Street," and more specifically "the most successful hedge fund manager of all time."^[4][5][6] 

As reported by Bloomberg Billionaires Index, Simons' net worth is estimated to be $25.2 billion, making him the 66th-richest person in the world.^[7] 

Simons is known for his studies on pattern recognition.^[8] He developed the Chern–Simons form (with Shiing-Shen Chern), and contributed to the development of string theory by providing a theoretical framework to combine geometry and topology with quantum field theory.^[9] In 1994, Simons founded the Simons Foundation with his wife to support researches in mathematics and fundamental sciences. He is one of the biggest donors to the University of California, Berkeley, establishing the Simons Institute for the Theory of Computing in 2012, and to Berkeley's Simons Laufer Mathematical Sciences Institute, where he has served as a trustee since 1999."

He has a Ph. D. in math from the University of California, Berkeley. His B.S. in math was from MIT. Simons was the 1976 recipient of the AMS Oswald Veblen Prize in Geometry (Oswald Veblen was the nephew of economist Thorstein Veblen).

Related post:

The Making of the World’s Greatest Investor

China's Government Cracks Down On Displays Of Wealth On Social Media

See In China, Bragging About Your Wealth Can Get You Censored: Online posts by users showing off their receipts, over-ordering food or scattering money have been deemed vulgar. Regulators say such content leads young people astray by Vivian Wang and Joy Dong of The New York Times. 

This reminds me of the concept of "conspicuous consumption" from economist Thorstein Veblen (and something Adam Smith said, too-see links to related posts at the end). Excerpts:

"He started by exploring the sauna, built into the palatial bathroom of the hotel’s presidential suite. Then the video blogger moved on to the dining room, where a chef waited with a glistening steak. The next morning, he awoke to a lobster breakfast, which he ate cross-legged in bed.

“Today’s bill: 108,876 kuai,” or more than $17,000, he said after checking out from the hotel in Chengdu, China, waving his receipt at the camera. “I slept away the equivalent of multiple iPhones,” he giggled.

The video was tacky, sure. Ostentatious, definitely. Now, it’s also a violation of Chinese internet regulations.

The Chinese authorities have declared war on content deemed to be “flaunting wealth,” amid sweeping calls by China’s leader, Xi Jinping, to combat inequality. As Mr. Xi positions himself for a third term, he has cast himself as a man of the people, leading a campaign against entrenched interests.

Financial regulators have cracked down on the country’s tech giants, extracting pledges of loyalty and hefty donations. Tycoons have been detained on corruption accusations. And online, the authorities have ordered social media platforms to scrub the hugely popular videos that make clear the gap between the haves and have-nots.

Douyin, the Chinese version of TikTok, by posting videos where he toured expensive hotels and sampled delicacies. But after being singled out by state media, he deleted those videos. His recent posts show him trying convenience store snacks. (He did not respond to requests for comment.)

“We will strengthen our management and increase the power of our crackdown, to make internet platforms feel there is a sword above their heads,” Zhang Yongjun, a senior official at China’s cyberspace administration, said at a news conference this year.

There is no clear definition of what constitutes flaunting or wealth. While officials have laid out a few specific examples, such as showcasing receipts or over-ordering food, they have largely outlined a sort of “I know it when I see it” rule."

"In a viral trend in 2018, Chinese users posted photos of themselves splayed on the ground surrounded by expensive objects. An entire industry exists to help users look richer than they are."

"Douyin and Kuaishou were each fined about $31,000 in October for allowing an advertisement that the authorities said promoted “excessive consumption.”

Xiaohongshu (an Instagram-like lifestyle app) announced last month that it had improved its algorithm for identifying wealth flaunting."

Related posts

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!)

Payless sold its discount shoes for $600 a pair at mock luxury influencer event

Federal Reserve Economists May Have Discovered Another Cause Of Bankruptcy (if a neighbor wins the lottery people start spending more on consumption to keep up)

Today is the 303rd Anniversary of the Birth of Adam Smith

Click here to read a bio of Adam Smith. It is by economist David R. Henderson.

This bio includes links to complete versions of his two famous books:

1759. The Theory of Moral Sentiments. Edited by D. D. Raphael and A. L. Macfie. Oxford: Clarendon Press; New York: Oxford University Press, 1976. Available online at: http://www.econlib.org/library/Smith/smMS.html

 

1776. An Inquiry into the Nature and Causes of the Wealth of Nations. Edited by Edwin Cannan. Chicago: University of Chicago Press, 1976. Available online at: http://www.econlib.org/library/Smith/smWN.html

 

There is also a great site called Adam Smith Works. They have lots of great blog posts and podcasts. Plus learning and teaching resources.

Here are links to my posts on Adam Smith: 

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007) (Veblen is best known for his book The Theory of the Leisure Class. In it he introduced the term "conspicuous consumption." Conspicuous consumption was consumption undertaken to make a statement to others about one's class or accomplishments-Adam Smith said something similar in The Wealth of Nations) 

 

Science Proves That Adam Smith Was Right Over 200 Years Ago (sort of) (2009) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

New Biography Of Adam Smith (2010) (It is called Adam Smith: An Enlightened Life by Nicholas Phillipson)

 

Adam Smith vs. Muhammad Yunus (2010) In 2006, economist Muhammad Yunus won the Nobel peace prize (not the economics prize). What did he do? "He invented microcredit, the practice of lending tiny amounts of money to the poor."

 

Adam Smith vs. Ace Ventura (2010) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

Adam Smith vs. Bart Simpson (2011) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

Adam Smith, Marriage Counselor (2011)

Adam Smith Meets Joseph Campbell (2017) (the force of history is hard for man to change)  Campbell wrote the book The Hero With a Thousand Faces, which was one of the inspirations for Star Wars. He was interviewed by Bill Moyers in a six hour series in the 1980s on PBS. That series was called The Power of Myth.

Adam Smith And Joseph Campbell On The Dangers Of "The Man Of System" (2017) (the danger of those who want to impose their system on everyone else or move people against their will like they are chessmen on a chess board)

 

The Chronicle of Higher Education Posted My Letter To The Editor About Adam Smith And Jonathan Haidt (2017). Here is that post:

"See The Ugly and Dangerous Side of Political Righteousness? Haidt is a social psychologist who works to reduce the political polarization and animosity in America today.

Evan Goldstein’s article ("Can Jonathan Haidt Calm the Culture Wars?" July 7) reminded me of a passage in The Theory of Moral Sentiments, by Adam Smith, on the "animosity of hostile factions." Smith says there are only a very few whose judgment is "untainted by the general contagion." Haidt seems to be one of those few today. But Smith says "such people are held in contempt" by "the furious zealots of both parties" due to their candor, which is anathema to the "true party-man." These zealots "impute all their own prejudices" and "all their own vindictive and implacable passions" to the "great Judge of the universe." We need people like Haidt to remind us of this ugly and dangerous side of political righteousness." 

Is it a retailer’s job to keep shoppers from their vices? (or Adam Smith vs. CVS pharmacy) (2023) (or should they sell cigarettes if it increases their profits?)

 

Adam Smith Meets Jonathan Haidt (on political polarization and the animosity of hostile factions) (2021) 

Great advice from Adam Smith (2022) (What does the prudent man do)

 

The Invisible Hand Increases Trust, Cooperation, and Universal Moral Action (2022)

Pride and Profit: The Intersection of Jane Austen and Adam Smith (2023)

 

A ChatGPT story: What if Jane Austen and Adam Smith met to discuss his book The Theory of Moral Sentiments? (2025) 

Adam Smith's influence on three Jane Austen Novels (2025) 

 

What if Adam Smith discussed how to be loved and how to be lovely with a romance novelist? (2026) 

Today is the 300th Anniversary of the Birth of Adam Smith

Click here to read a bio of Adam Smith. It is by economist David R. Henderson.

This bio includes links to complete versions of his two famous books:

1759. The Theory of Moral Sentiments. Edited by D. D. Raphael and A. L. Macfie. Oxford: Clarendon Press; New York: Oxford University Press, 1976. Available online at: http://www.econlib.org/library/Smith/smMS.html

1776. An Inquiry into the Nature and Causes of the Wealth of Nations. Edited by Edwin Cannan. Chicago: University of Chicago Press, 1976. Available online at: http://www.econlib.org/library/Smith/smWN.html

 

 

Here are links to my posts on Adam Smith:

 

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007) (Veblen is best known for his book The Theory of the Leisure Class. In it he introduced the term "conspicuous consumption." Conspicuous consumption was consumption undertaken to make a statement to others about one's class or accomplishments-Adam Smith said something similar in The Wealth of Nations)

Science Proves That Adam Smith Was Right Over 200 Years Ago (sort of) (2009) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

New Biography Of Adam Smith (2010) (It is called Adam Smith: An Enlightened Life by Nicholas Phillipson)

 

Adam Smith vs. Muhammad Yunus (2010) In 2006, economist Muhammad Yunus won the Nobel peace prize (not the economics prize). What did he do? "He invented microcredit, the practice of lending tiny amounts of money to the poor."

 

Adam Smith vs. Ace Ventura (2010) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

Adam Smith vs. Bart Simpson (2011) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

Adam Smith, Marriage Counselor (2011)

Adam Smith Meets Joseph Campbell (2017)  Campbell wrote the book The Hero With a Thousand Faces, which was one of the inspirations for Star Wars. He was interviewed by Bill Moyers in a six hour series in the 1980s on PBS. That series was called The Power of Myth.

Adam Smith And Joseph Campbell On The Dangers Of "The Man Of System" (2017) (the danger of those who want to impose their system on everyone else or move people against their will like they are chessmen on a chess board)

 

The Chronicle of Higher Education Posted My Letter To The Editor About Adam Smith And Jonathan Haidt (2017). Here is that post:

"See The Ugly and Dangerous Side of Political Righteousness? Haidt is a social psychologist who works to reduce the political polarization and animosity in America today.

Evan Goldstein’s article ("Can Jonathan Haidt Calm the Culture Wars?" July 7) reminded me of a passage in The Theory of Moral Sentiments, by Adam Smith, on the "animosity of hostile factions." Smith says there are only a very few whose judgment is "untainted by the general contagion." Haidt seems to be one of those few today. But Smith says "such people are held in contempt" by "the furious zealots of both parties" due to their candor, which is anathema to the "true party-man." These zealots "impute all their own prejudices" and "all their own vindictive and implacable passions" to the "great Judge of the universe." We need people like Haidt to remind us of this ugly and dangerous side of political righteousness."

 

Is it a retailer’s job to keep shoppers from their vices? (or Adam Smith vs. CVS pharmacy) (2023) (or should they sell cigarettes if it increases their profits?)

 

Adam Smith Meets Jonathan Haidt (on political polarization and the animosity of hostile factions) (2021) 

Great advice from Adam Smith (2022) (What does the prudent man do)

 

The Invisible Hand Increases Trust, Cooperation, and Universal Moral Action (2022)

Pride and Profit: The Intersection of Jane Austen and Adam Smith (2023)

Today is the 302nd Anniversary of the Birth of Adam Smith

Click here to read a bio of Adam Smith. It is by economist David R. Henderson.

This bio includes links to complete versions of his two famous books:

1759. The Theory of Moral Sentiments. Edited by D. D. Raphael and A. L. Macfie. Oxford: Clarendon Press; New York: Oxford University Press, 1976. Available online at: http://www.econlib.org/library/Smith/smMS.html

1776. An Inquiry into the Nature and Causes of the Wealth of Nations. Edited by Edwin Cannan. Chicago: University of Chicago Press, 1976. Available online at: http://www.econlib.org/library/Smith/smWN.html

 

There is also a great site called Adam Smith Works. They have lots of great blog posts and podcasts. Plus learning and teaching resources.

Here are links to my posts on Adam Smith: 

Conspicuous Consumption, Conspicuous Virtue, Thorstein Veblen (and Adam Smith, too!) (2007) (Veblen is best known for his book The Theory of the Leisure Class. In it he introduced the term "conspicuous consumption." Conspicuous consumption was consumption undertaken to make a statement to others about one's class or accomplishments-Adam Smith said something similar in The Wealth of Nations) 

 

Science Proves That Adam Smith Was Right Over 200 Years Ago (sort of) (2009) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

New Biography Of Adam Smith (2010) (It is called Adam Smith: An Enlightened Life by Nicholas Phillipson)

 

Adam Smith vs. Muhammad Yunus (2010) In 2006, economist Muhammad Yunus won the Nobel peace prize (not the economics prize). What did he do? "He invented microcredit, the practice of lending tiny amounts of money to the poor."

 

Adam Smith vs. Ace Ventura (2010) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

Adam Smith vs. Bart Simpson (2011) (this one is about empathy and neuroscience & relates to The Theory of Moral Sentiments)

 

Adam Smith, Marriage Counselor (2011)

Adam Smith Meets Joseph Campbell (2017)  Campbell wrote the book The Hero With a Thousand Faces, which was one of the inspirations for Star Wars. He was interviewed by Bill Moyers in a six hour series in the 1980s on PBS. That series was called The Power of Myth.

Adam Smith And Joseph Campbell On The Dangers Of "The Man Of System" (2017) (the danger of those who want to impose their system on everyone else or move people against their will like they are chessmen on a chess board)

 

The Chronicle of Higher Education Posted My Letter To The Editor About Adam Smith And Jonathan Haidt (2017). Here is that post:

"See The Ugly and Dangerous Side of Political Righteousness? Haidt is a social psychologist who works to reduce the political polarization and animosity in America today.

Evan Goldstein’s article ("Can Jonathan Haidt Calm the Culture Wars?" July 7) reminded me of a passage in The Theory of Moral Sentiments, by Adam Smith, on the "animosity of hostile factions." Smith says there are only a very few whose judgment is "untainted by the general contagion." Haidt seems to be one of those few today. But Smith says "such people are held in contempt" by "the furious zealots of both parties" due to their candor, which is anathema to the "true party-man." These zealots "impute all their own prejudices" and "all their own vindictive and implacable passions" to the "great Judge of the universe." We need people like Haidt to remind us of this ugly and dangerous side of political righteousness."

 

Is it a retailer’s job to keep shoppers from their vices? (or Adam Smith vs. CVS pharmacy) (2023) (or should they sell cigarettes if it increases their profits?)

 

Adam Smith Meets Jonathan Haidt (on political polarization and the animosity of hostile factions) (2021) 

Great advice from Adam Smith (2022) (What does the prudent man do)

 

The Invisible Hand Increases Trust, Cooperation, and Universal Moral Action (2022)

Pride and Profit: The Intersection of Jane Austen and Adam Smith (2023)

 

A ChatGPT story: What if Jane Austen and Adam Smith met to discuss his book The Theory of Moral Sentiments? (2025) 

Adam Smith's influence on three Jane Austen Novels (2025)