Economics Research Seminar - Dr. Emre Balikci

Title: Unveiling the Signaling Power of “Efficient Goods”: Exploring Conspicuous Consumption in 1920s America

Abstract

This paper aims to illuminate the essence and role of consumption, particularly focusing on consumption patterns in the United States during the 1920s. Building upon Veblen’s theories, consumption is explored for its dual nature: serving as a means for individuals to establish their uniqueness, while also facilitating a sense of belonging by aligning with others. These dimensions of consumption are commonly associated with symbolic and identity-related elements, often entailing extravagance that diverges from the utilitarian attributes inherent in material possessions.

This study elucidates the utilitarian attributes prevalent in goods that gained prominence as status symbols in the 1920s in the US. The paper’s objective is to examine the prevalence of “efficient goods” during this era, demonstrating that the consumers of that time pursued items that not only distinguished them but also embodied American values and identity, intertwined with advancements in technology.

This exploration underscores the convergence of two perspectives on consumption previously expounded by Thorstein Veblen and his adherents. Veblen posited that conspicuous consumption, emblematic of status-driven aspirations, necessitates an element of waste. In contrast to goods predominantly valued for their utilitarian functionalities, status-oriented commodities need not serve tangible purposes. The paper, however, unveils instances where this dichotomy in consumption is not universally applicable.