ABSTRACT
Prior to 1918, institutional economics had not emerged as an identifiable school of economic thought. Yet by that time, Thorstein Veblen’s works had achieved an immense popularity in America. Among economists, Veblen was widely admired as an incisive thinker and a forensic critic of received wisdom. Citations in leading academic journals to Veblen’s works increased substantially, including from core journals in economics, reaching a high frequency in the interwar period (see Table 18.1 below). Part of the enduring appeal of Veblen’s works was his analytical treatment of the driving processes of American capitalism, from the rituals of consumption to the powers of technology. His underlying philosophical arguments and his fusion of economics with Darwinism received less attention. For many, Veblen was seen primarily as a critic of the existing order and a pioneer of a new American political radicalism. Although Veblen never provided a detailed policy analysis, and his political views were vague and covert in his writings, he also became an icon of radical economic reform. As the US emerged from the First World War and faced the tasks of economic revitalization, Veblen’s iconic status was further enhanced.
