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<h2> Chapter Five ~~ The Pecuniary Standard of Living </h2>
<p>For the great body of the people in any modern community, the proximate
ground of expenditure in excess of what is required for physical comfort
is not a conscious effort to excel in the expensiveness of their visible
consumption, so much as it is a desire to live up to the conventional
standard of decency in the amount and grade of goods consumed. This desire
is not guided by a rigidly invariable standard, which must be lived up to,
and beyond which there is no incentive to go. The standard is flexible;
and especially it is indefinitely extensible, if only time is allowed for
habituation to any increase in pecuniary ability and for acquiring
facility in the new and larger scale of expenditure that follows such an
increase. It is much more difficult to recede from a scale of expenditure
once adopted than it is to extend the accustomed scale in response to an
accession of wealth. Many items of customary expenditure prove on analysis
to be almost purely wasteful, and they are therefore honorific only, but
after they have once been incorporated into the scale of decent
consumption, and so have become an integral part of one's scheme of life,
it is quite as hard to give up these as it is to give up many items that
conduce directly to one's physical comfort, or even that may be necessary
to life and health. That is to say, the conspicuously wasteful honorific
expenditure that confers spiritual well-being may become more
indispensable than much of that expenditure which ministers to the "lower"
wants of physical well-being or sustenance only. It is notoriously just as
difficult to recede from a "high" standard of living as it is to lower a
standard which is already relatively low; although in the former case the
difficulty is a moral one, while in the latter it may involve a material
deduction from the physical comforts of life.</p>
<p>But while retrogression is difficult, a fresh advance in conspicuous
expenditure is relatively easy; indeed, it takes place almost as a matter
of course. In the rare cases where it occurs, a failure to increase one's
visible consumption when the means for an increase are at hand is felt in
popular apprehension to call for explanation, and unworthy motives of
miserliness are imputed to those who fall short in this respect. A prompt
response to the stimulus, on the other hand, is accepted as the normal
effect. This suggests that the standard of expenditure which commonly
guides our efforts is not the average, ordinary expenditure already
achieved; it is an ideal of consumption that lies just beyond our reach,
or to reach which requires some strain. The motive is emulation—the
stimulus of an invidious comparison which prompts us to outdo those with
whom we are in the habit of classing ourselves. Substantially the same
proposition is expressed in the commonplace remark that each class envies
and emulates the class next above it in the social scale, while it rarely
compares itself with those below or with those who are considerably in
advance. That is to say, in other words, our standard of decency in
expenditure, as in other ends of emulation, is set by the usage of those
next above us in reputability; until, in this way, especially in any
community where class distinctions are somewhat vague, all canons of
reputability and decency, and all standards of consumption, are traced
back by insensible gradations to the usages and habits of thought of the
highest social and pecuniary class—the wealthy leisure class.</p>
<p>It is for this class to determine, in general outline, what scheme of Life
the community shall accept as decent or honorific; and it is their office
by precept and example to set forth this scheme of social salvation in its
highest, ideal form. But the higher leisure class can exercise this
quasi-sacerdotal office only under certain material limitations. The class
cannot at discretion effect a sudden revolution or reversal of the popular
habits of thought with respect to any of these ceremonial requirements. It
takes time for any change to permeate the mass and change the habitual
attitude of the people; and especially it takes time to change the habits
of those classes that are socially more remote from the radiant body. The
process is slower where the mobility of the population is less or where
the intervals between the several classes are wider and more abrupt. But
if time be allowed, the scope of the discretion of the leisure class as
regards questions of form and detail in the community's scheme of life is
large; while as regards the substantial principles of reputability, the
changes which it can effect lie within a narrow margin of tolerance. Its
example and precept carries the force of prescription for all classes
below it; but in working out the precepts which are handed down as
governing the form and method of reputability—in shaping the usages
and the spiritual attitude of the lower classes—this authoritative
prescription constantly works under the selective guidance of the canon of
conspicuous waste, tempered in varying degree by the instinct of
workmanship. To those norms is to be added another broad principle of
human nature—the predatory animus—which in point of generality
and of psychological content lies between the two just named. The effect
of the latter in shaping the accepted scheme of life is yet to be
discussed. The canon of reputability, then, must adapt itself to the
economic circumstances, the traditions, and the degree of spiritual
maturity of the particular class whose scheme of life it is to regulate.
It is especially to be noted that however high its authority and however
true to the fundamental requirements of reputability it may have been at
its inception, a specific formal observance can under no circumstances
maintain itself in force if with the lapse of time or on its transmission
to a lower pecuniary class it is found to run counter to the ultimate
ground of decency among civilized peoples, namely, serviceability for the
purpose of an invidious comparison in pecuniary success. It is evident
that these canons of expenditure have much to say in determining the
standard of living for any community and for any class. It is no less
evident that the standard of living which prevails at any time or at any
given social altitude will in its turn have much to say as to the forms
which honorific expenditure will take, and as to the degree to which this
"higher" need will dominate a people's consumption. In this respect the
control exerted by the accepted standard of living is chiefly of a
negative character; it acts almost solely to prevent recession from a
scale of conspicuous expenditure that has once become habitual.</p>
<p>A standard of living is of the nature of habit. It is an habitual scale
and method of responding to given stimuli. The difficulty in the way of
receding from an accustomed standard is the difficulty of breaking a habit
that has once been formed. The relative facility with which an advance in
the standard is made means that the life process is a process of unfolding
activity and that it will readily unfold in a new direction whenever and
wherever the resistance to self-expression decreases. But when the habit
of expression along such a given line of low resistance has once been
formed, the discharge will seek the accustomed outlet even after a change
has taken place in the environment whereby the external resistance has
appreciably risen. That heightened facility of expression in a given
direction which is called habit may offset a considerable increase in the
resistance offered by external circumstances to the unfolding of life in
the given direction. As between the various habits, or habitual modes and
directions of expression, which go to make up an individual's standard of
living, there is an appreciable difference in point of persistence under
counteracting circumstances and in point of the degree of imperativeness
with which the discharge seeks a given direction.</p>
<p>That is to say, in the language of current economic theory, while men are
reluctant to retrench their expenditures in any direction, they are more
reluctant to retrench in some directions than in others; so that while any
accustomed consumption is reluctantly given up, there are certain lines of
consumption which are given up with relatively extreme reluctance. The
articles or forms of consumption to which the consumer clings with the
greatest tenacity are commonly the so-called necessaries of life, or the
subsistence minimum. The subsistence minimum is of course not a rigidly
determined allowance of goods, definite and invariable in kind and
quantity; but for the purpose in hand it may be taken to comprise a
certain, more or less definite, aggregate of consumption required for the
maintenance of life. This minimum, it may be assumed, is ordinarily given
up last in case of a progressive retrenchment of expenditure. That is to
say, in a general way, the most ancient and ingrained of the habits which
govern the individual's life—those habits that touch his existence
as an organism—are the most persistent and imperative. Beyond these
come the higher wants—later-formed habits of the individual or the
race—in a somewhat irregular and by no means invariable gradation.
Some of these higher wants, as for instance the habitual use of certain
stimulants, or the need of salvation (in the eschatological sense), or of
good repute, may in some cases take precedence of the lower or more
elementary wants. In general, the longer the habituation, the more
unbroken the habit, and the more nearly it coincides with previous
habitual forms of the life process, the more persistently will the given
habit assert itself. The habit will be stronger if the particular traits
of human nature which its action involves, or the particular aptitudes
that find exercise in it, are traits or aptitudes that are already largely
and profoundly concerned in the life process or that are intimately bound
up with the life history of the particular racial stock. The varying
degrees of ease with which different habits are formed by different
persons, as well as the varying degrees of reluctance with which different
habits are given up, goes to say that the formation of specific habits is
not a matter of length of habituation simply. Inherited aptitudes and
traits of temperament count for quite as much as length of habituation in
deciding what range of habits will come to dominate any individual's
scheme of life. And the prevalent type of transmitted aptitudes, or in
other words the type of temperament belonging to the dominant ethnic
element in any community, will go far to decide what will be the scope and
form of expression of the community's habitual life process. How greatly
the transmitted idiosyncrasies of aptitude may count in the way of a rapid
and definitive formation of habit in individuals is illustrated by the
extreme facility with which an all-dominating habit of alcoholism is
sometimes formed; or in the similar facility and the similarly inevitable
formation of a habit of devout observances in the case of persons gifted
with a special aptitude in that direction. Much the same meaning attaches
to that peculiar facility of habituation to a specific human environment
that is called romantic love.</p>
<p>Men differ in respect of transmitted aptitudes, or in respect of the
relative facility with which they unfold their life activity in particular
directions; and the habits which coincide with or proceed upon a
relatively strong specific aptitude or a relatively great specific
facility of expression become of great consequence to the man's
well-being. The part played by this element of aptitude in determining the
relative tenacity of the several habits which constitute the standard of
living goes to explain the extreme reluctance with which men give up any
habitual expenditure in the way of conspicuous consumption. The aptitudes
or propensities to which a habit of this kind is to be referred as its
ground are those aptitudes whose exercise is comprised in emulation; and
the propensity for emulation—for invidious comparison—is of
ancient growth and is a pervading trait of human nature. It is easily
called into vigorous activity in any new form, and it asserts itself with
great insistence under any form under which it has once found habitual
expression. When the individual has once formed the habit of seeking
expression in a given line of honorific expenditure—when a given set
of stimuli have come to be habitually responded to in activity of a given
kind and direction under the guidance of these alert and deep-reaching
propensities of emulation—it is with extreme reluctance that such an
habitual expenditure is given up. And on the other hand, whenever an
accession of pecuniary strength puts the individual in a position to
unfold his life process in larger scope and with additional reach, the
ancient propensities of the race will assert themselves in determining the
direction which the new unfolding of life is to take. And those
propensities which are already actively in the field under some related
form of expression, which are aided by the pointed suggestions afforded by
a current accredited scheme of life, and for the exercise of which the
material means and opportunities are readily available—these will
especially have much to say in shaping the form and direction in which the
new accession to the individual's aggregate force will assert itself. That
is to say, in concrete terms, in any community where conspicuous
consumption is an element of the scheme of life, an increase in an
individual's ability to pay is likely to take the form of an expenditure
for some accredited line of conspicuous consumption.</p>
<p>With the exception of the instinct of self-preservation, the propensity
for emulation is probably the strongest and most alert and persistent of
the economic motives proper. In an industrial community this propensity
for emulation expresses itself in pecuniary emulation; and this, so far as
regards the Western civilized communities of the present, is virtually
equivalent to saying that it expresses itself in some form of conspicuous
waste. The need of conspicuous waste, therefore, stands ready to absorb
any increase in the community's industrial efficiency or output of goods,
after the most elementary physical wants have been provided for. Where
this result does not follow, under modern conditions, the reason for the
discrepancy is commonly to be sought in a rate of increase in the
individual's wealth too rapid for the habit of expenditure to keep abreast
of it; or it may be that the individual in question defers the conspicuous
consumption of the increment to a later date—ordinarily with a view
to heightening the spectacular effect of the aggregate expenditure
contemplated. As increased industrial efficiency makes it possible to
procure the means of livelihood with less labor, the energies of the
industrious members of the community are bent to the compassing of a
higher result in conspicuous expenditure, rather than slackened to a more
comfortable pace. The strain is not lightened as industrial efficiency
increases and makes a lighter strain possible, but the increment of output
is turned to use to meet this want, which is indefinitely expansible,
after the manner commonly imputed in economic theory to higher or
spiritual wants. It is owing chiefly to the presence of this element in
the standard of living that J. S. Mill was able to say that "hitherto it
is questionable if all the mechanical inventions yet made have lightened
the day's toil of any human being." The accepted standard of expenditure
in the community or in the class to which a person belongs largely
determines what his standard of living will be. It does this directly by
commending itself to his common sense as right and good, through his
habitually contemplating it and assimilating the scheme of life in which
it belongs; but it does so also indirectly through popular insistence on
conformity to the accepted scale of expenditure as a matter of propriety,
under pain of disesteem and ostracism. To accept and practice the standard
of living which is in vogue is both agreeable and expedient, commonly to
the point of being indispensable to personal comfort and to success in
life. The standard of living of any class, so far as concerns the element
of conspicuous waste, is commonly as high as the earning capacity of the
class will permit—with a constant tendency to go higher. The effect
upon the serious activities of men is therefore to direct them with great
singleness of purpose to the largest possible acquisition of wealth, and
to discountenance work that brings no pecuniary gain. At the same time the
effect on consumption is to concentrate it upon the lines which are most
patent to the observers whose good opinion is sought; while the
inclinations and aptitudes whose exercise does not involve a honorific
expenditure of time or substance tend to fall into abeyance through
disuse.</p>
<p>Through this discrimination in favor of visible consumption it has come
about that the domestic life of most classes is relatively shabby, as
compared with the �clat of that overt portion of their life that is
carried on before the eyes of observers. As a secondary consequence of the
same discrimination, people habitually screen their private life from
observation. So far as concerns that portion of their consumption that may
without blame be carried on in secret, they withdraw from all contact with
their neighbors, hence the exclusiveness of people, as regards their
domestic life, in most of the industrially developed communities; and
hence, by remoter derivation, the habit of privacy and reserve that is so
large a feature in the code of proprieties of the better class in all
communities. The low birthrate of the classes upon whom the requirements
of reputable expenditure fall with great urgency is likewise traceable to
the exigencies of a standard of living based on conspicuous waste. The
conspicuous consumption, and the consequent increased expense, required in
the reputable maintenance of a child is very considerable and acts as a
powerful deterrent. It is probably the most effectual of the Malthusian
prudential checks.</p>
<p>The effect of this factor of the standard of living, both in the way of
retrenchment in the obscurer elements of consumption that go to physical
comfort and maintenance, and also in the paucity or absence of children,
is perhaps seen at its best among the classes given to scholarly pursuits.
Because of a presumed superiority and scarcity of the gifts and
attainments that characterize their life, these classes are by convention
subsumed under a higher social grade than their pecuniary grade should
warrant. The scale of decent expenditure in their case is pitched
correspondingly high, and it consequently leaves an exceptionally narrow
margin disposable for the other ends of life. By force of circumstances,
their habitual sense of what is good and right in these matters, as well
as the expectations of the community in the way of pecuniary decency among
the learned, are excessively high—as measured by the prevalent
degree of opulence and earning capacity of the class, relatively to the
non-scholarly classes whose social equals they nominally are. In any
modern community where there is no priestly monopoly of these occupations,
the people of scholarly pursuits are unavoidably thrown into contact with
classes that are pecuniarily their superiors. The high standard of
pecuniary decency in force among these superior classes is transfused
among the scholarly classes with but little mitigation of its rigor; and
as a consequence there is no class of the community that spends a larger
proportion of its substance in conspicuous waste than these.</p>
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