To What Extent Does Thorstein Veblen’s Work Challenge the Idea of the “Economic Man”?

Thorstein Veblen’s work (1899) challenges the foundational assumption of the "economic man", which is the idea that individuals act rationally and in their self-interest within economic contexts. Through a meticulous analysis of Veblen's seminal work, The Theory of the Leisure Class (1899), I explore how he does this. I highlight Veblen's concepts of pecuniary emulation as well as his ideas of conspicuous consumption and leisure as key elements that disrupt the conventional understanding of economic behaviour, emphasising the influence of social and cultural factors. The relevance of Veblen's ideas in the modern age is discussed, suggesting potential insights into macroeconomic trends and the dynamics of inequality during economic uncertainty. Despite critiques questioning the precision of Veblen's theories, the paper concludes by advocating for a reconsideration of the "economic man" assumption in economic models, endorsing Veblen's holistic approach that incorporates social and cultural influences for a more comprehensive and nuanced understanding of human behaviour in economic contexts.