Thorstein Veblen Questions -

A - True or False

1. Thorstein Veblen was critical of the predatory and wasteful aspects of contemporary capitalism.

2. According to Veblen, making money is the same thing as making goods. They both contribute to societal progress.

3. Veblen believed that two classes-- the Leisure Class and the Menial Class -- existed in the American society.

4. Industrial Sabotage is not efficient and it leads to overcapacity and underproduction.

5. Mainstream economists use the theory of marginal productivity to justify why the CEOs should be paid more than the workers.

B - Short Answers

1. J.K. Galbraith wrote in 1972 stating that "In the USA, the most significant non-Marxist critique of late 19th century capitalism was penned by Thorstein Veblen. That Marx was an enemy whose venom was to be returned in kind, capitalist did not doubt. But not Veblen. The American rich never quite understood what he was about-or what he was doing to them." What are some of the problems that Veblen criticized? Please list three. Why did not capitalists know how to deal with Veblen?

2. What is Conspicuous Consumption according to Veblen? What are the main incentives behind Conspicuous Consumption? Can you give one example?

3. In his 1904 book, The Theory of Business Enterprises, Veblen distinguished the social function of making goods versus making money. In terms of business and industry, which one makes goods? Which one makes money /profits? What is Veblen's "industrial sabotage"?

4. Sociologist C. Wright Mills said that Veblen was "the best critic of America that America has ever produced". Did Veblen propose any solutions to solving the problems he criticized?

5. What are the major differences between Veblen and Marx? Discuss them from the names of their respective classes and their approaches to Capitalism. Which theorist makes more sense to you?

6. What are the major differences between Veblen and Smith? Discuss them from their targets of observation--18th century England and 19th century America-and the evolution of capitalism in two societies.

7. How are Veblen's critiques still relevant to post-2008 America or the world you are familiar with?

Reading - Chapter 4: Thorstein B. Veblen (1857-1929) & the Predatory Nature of Contemporary Capitalism.

Attachment:- Reading File.rar