Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Explain how Stanley Jevons treats labor and consumption. Compare his ideas to Veblen’s concepts of conspicuous leisure and conspicuous consumption.

In the course of history, there have been varied intellectual opinions, hence disagreements among neoclassical economists as to how cost influences the supply of labor. For a long time, Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Stanley Jevons, a renowned economist, treated labor supply to the psychic measurement of pain and the disunity that resulted thereof. He argues that the production of labor resources is the subjective experience of the work done by employees.

On the other hand, other classical theorists argue in support of the alternative uses of time allocated to work and the opportunity of the cost of labor. According to Veblen’s theory, employees are likely to resist supplying their labor because of the allure of having leisure time. The whole argument circumnavigates the origin of utility and whether utility should be considered the function of consumption alone or whether labor can be viewed as a source of utility within its own nature.

According to Veblen, if a worker is capable of making use of their imaginative power, then the results will go beyond simple repetitive labor. He argued that the opposite of this would be the worst situation resulted in equate man to brute animals. When art is coined to become meaningful to man, not would the production be the result of pleasure derived from the work itself, but also the consumption to the employee. In his argument, he held that diversity, as opposed to monotony, was capable of providing nourishment to an individual.

For one to continue consuming or pleasuring from his work, he must be prepared to produce in a perfect form. In essence, one must render the newly found leisure or want a little cheap to those willing to consume it. In Veblen’s view, vacation relates to wealth. He treats conspicuous labor as the solution to the urge for workers to take a vacation and a way to make more money.

Vacation economics, in the view of its proponents, affirms that a worker with sufficient disposable income will fight to disentangle himself from the traps of staying out of his workstation for more days just enjoying leisure. Instead, he will once again be motivated to spend more money. Hence there will arise the need to work even harder.
Keynes postulates contemplate that the amount of employment opportunities available remains constant in case there is the marginal utility of employment. It would then follow from this foregoing that there are only four possible ways of raising the volume of employment:

  • First of all, the organization management should focus on improving the organization to diminish the frictional unemployment;
  • Second, decreasing the marginal disutility of labor, as shown by the real wage for which marginal labor is made available, will be a step forward to diminishing voluntary unemployment;
  • The next way to raise the volume of employment is to increasing the price of non-wage-goods and reducing the price of wage-goods, associated with the shifting expenditure of non-wage-earners;
  • The final way would be to increase the marginal physical product of labor, especially in the industries that produce wage-goods, i.e., the price of goods upon which the marginal utility of money depends.

While classical economics has an almost accurate interpretation of the nature of employment and the level of wages, the application of this postulate remains relevant only in limited cases. Although a reduction in the existing money-wage can cause a withdrawal of the money-wage regarding the wage-goods, the situation would only be possible only if it were due to a rise in the overall price of wage-goods.

Although an employee will not support a move to lower his or her wages, they can’t stay away from work because the prices of goods have risen. Therefore, it is illogical and almost impractical that employees will refuse to render their labor on account of increased prices of the wage-goods. Additionally, the physical productivity of labor is less by all standards. Going by these facts and from experience, the findings based on these facts serve as the prima facie ground to argue that classical analysis only serves in limited cases that might not be applicable in real-life situations.

Answer by Academic.tip's expert
An answer to this question is provided by one of our experts who specializes in social studies. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2021) 'Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Explain how Stanley Jevons treats labor and consumption. Compare his ideas to Veblen’s concepts of conspicuous leisure and conspicuous consumption'. 8 June.

Reference

Academic.Tips. (2021, June 8). Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Explain how Stanley Jevons treats labor and consumption. Compare his ideas to Veblen’s concepts of conspicuous leisure and conspicuous consumption. https://academic.tips/question/veblens-concepts-of-conspicuous-leisure-and-conspicuous-consumption-constitute-direct-criticisms-of-the-neoclassical-understanding-of-labor-and-consumption-explain-how-stanley-jevons-treats/

References

Academic.Tips. 2021. "Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Explain how Stanley Jevons treats labor and consumption. Compare his ideas to Veblen’s concepts of conspicuous leisure and conspicuous consumption." June 8, 2021. https://academic.tips/question/veblens-concepts-of-conspicuous-leisure-and-conspicuous-consumption-constitute-direct-criticisms-of-the-neoclassical-understanding-of-labor-and-consumption-explain-how-stanley-jevons-treats/.

1. Academic.Tips. "Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Explain how Stanley Jevons treats labor and consumption. Compare his ideas to Veblen’s concepts of conspicuous leisure and conspicuous consumption." June 8, 2021. https://academic.tips/question/veblens-concepts-of-conspicuous-leisure-and-conspicuous-consumption-constitute-direct-criticisms-of-the-neoclassical-understanding-of-labor-and-consumption-explain-how-stanley-jevons-treats/.


Bibliography


Academic.Tips. "Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Explain how Stanley Jevons treats labor and consumption. Compare his ideas to Veblen’s concepts of conspicuous leisure and conspicuous consumption." June 8, 2021. https://academic.tips/question/veblens-concepts-of-conspicuous-leisure-and-conspicuous-consumption-constitute-direct-criticisms-of-the-neoclassical-understanding-of-labor-and-consumption-explain-how-stanley-jevons-treats/.

Work Cited

"Veblen’s concepts of conspicuous leisure and conspicuous consumption constitute direct criticisms of the neoclassical understanding of labor and consumption. Explain how Stanley Jevons treats labor and consumption. Compare his ideas to Veblen’s concepts of conspicuous leisure and conspicuous consumption." Academic.Tips, 8 June 2021, academic.tips/question/veblens-concepts-of-conspicuous-leisure-and-conspicuous-consumption-constitute-direct-criticisms-of-the-neoclassical-understanding-of-labor-and-consumption-explain-how-stanley-jevons-treats/.

Copy