- Insight: 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.
How Much is Enough?
by Robert Skidelsky, Edward Skidelsky
Published date: 2012
Category: Reference
Index Topics & Notes
- Insight: Veblen goods are an example of spending designed to enhance status.
- Insight: Veblen goods are desired because they are widely known to be expensive - they function as an advertisement for wealth.
- Insight: 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.
- Insight: Prices of goods sought by the wealthy force up all prices, meaning people have to work harder to 'keep up with the Joneses'.
- Reference: Thorstein Veblen - American theorist of conspicuous consumption.