Insights:

1. Adam Smith's economics of individual self interest and the pursuit of wealth is an example of Occam's razor at play. Complexity was ironed out of economic theories.

Insights:

1. Veblen goods are an example of spending designed to enhance status.
2. Veblen goods are desired because they are widely known to be expensive - they function as an advertisement for wealth.
3. The appeal of Veblen goods is that higher prices mean they are more exclusive. A fall in price might lead to a fall in demand.
4. Prices of goods sought by the wealthy force up all prices, meaning people have to work harder to 'keep up with the Joneses'.

References:

1. Thorstein Veblen - American theorist of conspicuous consumption.