The price of prestige: Is status up for sale?
The article explores the 'Veblen Effect,' where certain goods become more desirable as their price increases, driven by the pursuit of visibility, prestige, and status rather than utility. It contrasts this 'status consumption' with genuine wealth accumulation, highlighting the significant 'opportunity cost' incurred by individuals and families who prioritize lavish spending (e.g., luxury cars, weddings, large bungalows) over savings and investments. The author argues that this pursuit of fleeting applause hinders the creation of enduring wealth, posing a critical challenge for a developing nation like India in defining its future prosperity.
The article explores the 'Veblen Effect,' where certain goods become more desirable as their price increases, driven by the pursuit of visibility, prestige, and status rather than utility. It contrasts this 'status consumption' with genuine wealth accumulation, highlighting the significant 'opportunity cost' incurred by individuals and families who prioritize lavish spending (e.g., luxury cars, weddings, large bungalows) over savings and investments. The author argues that this pursuit of fleeting applause hinders the creation of enduring wealth, posing a critical challenge for a developing nation like India in defining its future prosperity.
Exam linkage
GS Paper 3 - Indian Economy: Issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it.
Syllabus mapping
This topic appears in Mains
Questions on Indian Economy come up regularly in GS papers. Practice writing an answer — and see exactly what earns marks.