Wealth Wisdom from History

Economist Thorstein Veblen coined the term “conspicuous consumption” in 1899 — the idea that people flaunt wealth through flashy homes, luxury cars, and designer goods. From Gatsby’s mansion to the phrase “keeping up with the Joneses,” this mindset shaped how we view success.

But here’s the catch: this status race doesn’t just cost money — it costs long-term family wealth and national prosperity.

👉 True wealth isn’t in what you show, but in what you grow.

Long-term impacts:

🔸 On Family Wealth:

• Prioritizing luxury over investment often leads to poor cash flow and mounting debt.

• Families stuck in status-driven spending may fail to build generational wealth through assets like real estate, stocks, or businesses.

• Children often inherit a mindset of spending, not investing — continuing the cycle.

🔸 On National Wealth:

• Overconsumption encourages imports and consumer debt, weakening economic stability.

• Societies driven by image rather than productivity may face declining innovation and savings rates.

• Governments may cater to short-term consumerism rather than long-term policies for economic resilience.