« Micro-development | Main | First Column: On Capitalism & Slavery» Don Boudreaux
February 16, 2005
Frank-inspired
Don Boudreaux
Cornell University economist Robert Frank – a very creative and interesting economist – believes that too much consumption in modern society is harmful. It’s harmful because, Frank thinks, many of the things that we work hard to buy are bought ultimately only for the status they accord to us. Because not everyone can enjoy above-average social status, we are all on a treadmill, working and spending feverishly to impress others, to keep up with the Joneses. With everyone doing the same, we all work too much and spend too much on things that we really don’t want (or that we don’t want except insofar as they enhance our status in the eyes of others).
One cure for this destructive “luxury fever” as Frank calls it is higher taxes, especially on the wealthy.
As reported in The Ithaca Journal, Frank rehearsed his views at a teach-in held this past Saturday in Ithaca. (Thanks to my friend Marshall Stocker for the pointer.)
I could write a very long post on what I believe is wrong with the economics of Frank’s thesis.
Doing my part not to tempt others into wasting their time outperforming me in the blogosphere, I limit myself here to one point.
Let’s grant, for the sake of argument, Frank’s assertion that too many of the goods and services that we consume aren’t bought really for any intrinsic use they have for us but, rather, principally because they raise our status.
I drive a 2003 Lexus GS300. According to Frank, I would likely be almost just as happy with a reliable 1993 Honda Civic were it not for my desire to be seen in a luxury automobile – a desire to impress others with my high status. I can’t deny that there’s something to his argument. If I were single, I know that I’d be more self-confident driving a beautiful and desired woman to dinner in my Lexus than I would be if I drove her to dinner in a twelve-year old compact car. And, I suppose, if no other man drove a nicer automobile than my 12-year-old compact, my desire for the Lexus would be muted.
(Interesting, though, I hesitated before writing the above paragraph. I’m a bit embarrassed admitting publicly that I drive a Lexus. Why? I don’t really know why. Whatever the reason, clearly my demand for status isn’t as straightforward as Frank seems to think.)
Anyway, people demand status and will spend time, energy, and resources to get it. Suppose that the government taxes or regulates the economy very cleverly so that it succeeds both in equalizing incomes and in severely dampening the mad rush to buy goods whose real purpose is to enhance their owners’ status.
Does the scramble for status end? Put aside the inevitable scramble for political office and appointments – and the status enjoyed by those who occupy such positions.
Will ordinary men and women just kick back and relax? Will men unable to buy Rolexes or Lexuses not find other ways to signal higher status in their quest to intimidate other men and to win the favor of desirable women? Will women unable to get botox treatments and to buy YSL handbags not discover other ways to win the envy of other women and the attention of desirable men?
I’m confident that other treadmills will emerge. What these might be, I can’t say. Perhaps a chief avenue for seeking status would be literary. With commercial and industrial energies thwarted by Frank-inspired government policies, many more men might turn their effort toward writing poetry or drama or novels. Bookstores (if such would exist in Frank’s world) would overflow with many more works of literature. “I wrote ten books last year, baby! How many did your boyfriend write?!” “Oh yeah!” retorts the threatened boyfriend, “I plan to write twelve books this year. So there!”
Or maybe men will take to physical combat. Or excelling in sports. Or much larger muscles. Or achieving greatness in cooking.
It’s intriguing (for men, at least) to imagine the ways that women might compete for status in Frank’s de-consumerized world.
Posted by Don Boudreaux in Standard of Living | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d834518ccc69e200d83422b0ec53ef
Listed below are links to weblogs that reference Frank-inspired:
» The Lexus versus the Civic from Jacqueline Mackie Paisley Passey
Don Boudreaux writes about Robert Frank's concerns about [Read More]
Tracked on Feb 16, 2005 5:54:54 PM
» Competition and the drive for status from Eric's Random Musings
Over at Cafe Hayek Don Boudreaux has an excellent post countering an economic theory put forth that spending on consumer goods is motivated by a desire for visible social status. As you might guess, the economist putting forth this theory, Robert Fra... [Read More]
Tracked on Feb 18, 2005 2:23:35 AM
» Microsoft offers more time on Eolas changes from hackers have
IE security update is released at which time the changes to ActiveX are permanent," said Microsoft's public relations agency [Read More]
Tracked on Mar 30, 2006 5:32:43 PM
» Europages, European directory from Open Directory Project
Multilingual european business directory, 600000 european companies, european company directory and business opportunities, trade leads, ... [Read More]
Tracked on Apr 29, 2006 10:11:26 AM
» VW Polo GTI goes on sale in Britain from supermini has
Fit, Toyota Yaris, Hyundai Accent, Chevrolet Aveo,etc.) in American showrooms, can a small VW be far behind? If the Polo GTI [Read More]
Tracked on May 20, 2006 11:16:03 AM
» Dictionary Search Page from Dictionary Search
An unabridged dictionary from aalii to zymurgy, including a pronunciation guide... [Read More]
Tracked on May 22, 2006 10:18:04 AM
» Working May Be Better For Moms' Health from has compared
with their children with those who returned to the workforce while raising their kids. Its authors aren't sure [Read More]
Tracked on May 24, 2006 6:14:24 AM
» Vatican scientists gaze at stars in Arizona from telescope for
Arizona, Father Jose Funes is lining up the Vatican telescope for a night of observation, probing the processes that lead galaxies [Read More]
Tracked on Jun 5, 2006 6:46:13 PM
» Internal Audit: Resources for Internal Auditors from Audit Company
Internal Audit - is the Web portal and online community for the internal audit profession provides free audit work programs, ICQ's, checklists, ...
[Read More]
Tracked on Jun 7, 2006 8:03:52 AM
