11/28/2011
By Charles Payne

I've always said the notion that somehow the rich take advantage of the poor including "keeping them down" is silly and easy to refute at least one day of the year. Black Friday sees millions of Americans, all part of the so-called 99%, stay up late, camp out for days, or break out the pepper spray all to give away their money to the top 1%. They are not forced to do this but instead do so in an attempt to live a better life. This brings to mind the theories of Thorstein Veblen author of "The Leisure Class."

That infamous tome stated among other things that businessmen were useless and modern American society was nothing more than primitive barbarism.

Veblen believed the leisure class, which evolved from Middle Age societies, where only the noble fought wars and hunted thereby never having to do menial labor even in times of peacetime, morphed into one where business owners were over-compensated for their services/wares.

A rebuke of consumerism, this new society created dubious activities:

Conspicuous consumption- buying stuff you can't afford to impress others or make yourself feel richer, but some would say college majors where no jobs available fit the bill, too

Conspicuous leisure- playing golf almost 100 times as leader of a free world that's falling apart or windsurfing or getting social security benefits at age 25 for the rest of your life

Conspicuous waste- is harder to define, some saw the pyramids as the greatest example while others think recycling, organic food and learning dead languages are prime examples

Vicarious consumption- living through others like a well-dressed butler although not sure if it applies to Chihuahua with diamond collar

Not only are all these factions of consumerism alive and well, they also underscore the importance of the so-called 1% that make them possible. For those purists that believe humans are rational and utility-seeking, it means getting by with the basics, and the providers that are businessmen, job-creators and innovators get little to no credit. For those that understand how important it really is for people to feel good about themselves, then Veblen critique is off-base. Yet, in this current climate, it's good to go back and look at this long-running issue that has been a part of the democratic debate in one form or another from the beginning of civilization.

People work hard to gain the things they want in life, and we call that aspiration. It's a good thing because it sparks motivation, which in turn sparks action. Of course there is the debate over how the leisure class maintains its position ostensibly at the expense over the rest of society. In the Middle Ages such position was maintained direct and indirect through coercion, but that's not the case anymore. Sure, one could argue the leisure class remains so through direct and indirect marketing, which would prove once again that the pen, glossy magazine ads, sleek television commercials, and ever-shifting consumer taste are mightier than the sword. In the end, it comes down to trickle up economics; people can't wait to give their money away to feel good in return.

Occupy Gilligan's Island

I can't think of a better example of how society has bought into the notion the leisure class deserves to skip menial task than the sitcom Gilligan's Island. Thurston Howell III and his wife Lovey chilled out most of the time surviving nicely on the chores of others. It would stand to reason on this uncharted desert island that money would have no value, and yet the hint of future reward bought the millionaires a cushy existence. This is the character the Occupy movement began to go after someone that inherited wealth and all entitlements that go with it. But America isn't an uncharted desert island, and three quarters of our rich earned it through hard work and many sacrifices. These people should be applauded not disdained.

Charles Payne
Wall Street Strategies