Veblen was a philosopher/economist. He said people are stupid. Well, more precisely he said that people will want certain goods/products the more they cost.
Really. It's true. People will pay more for BMW's because they think they are somehow more desirable or fit into a certain 'crowd' because of how much they cost. If you decreased the price of a BMW, less people would think of them as being 'luxurious' or whatever a BMW is supposed to stand for, and less would be sold.
This stands for things like certain wines, cigars, houses, etc etc.
People in my area went Veblen nuts when house prices started going up. No one wanted the same houses for 100K, but when they were 400K, they SURE AS HELL wanted them like crazy. And when they were 500K (the same house) was seen to be super desirable. Man people are stupid.
The market has crashed and the same house is somehow less worthy of being lived in?? Sigh.
1 comment:
You write very well.
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