Economist Per Bylund once noted: “The concept of economic value is easy: whatever someone wants has value, regardless of the reason (if any).” Not utility, not profits—just whether people want it or not, for any reason. So much of what happens in the economy is rooted in emotions, which can, at times, be nearly impossible to make sense of.
Morgan Housel • Same as Ever: Timeless Lessons on Risk, Opportunity and Living a Good Life
Every time you post a pic in your new kicks or answer the question, “Where’d you buy that dress?!” you’re influencing people’s purchasing decisions. Because it’s historically been hard to wrangle, track, and direct small amounts of influence, until now, you’ve done it out of the kindness of your heart. That’s very nice of you, but it causes a coupl... See more
Packy McCormick • Swaypay: Not Boring Investment Memo
So much consumer spending, particularly in developed countries, is socially driven: subtly influenced by people you admire, and done because you subtly want people to admire you.
Morgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
He also thought that a primary animating principle behind economic activity was vanity.
Raj Patel • The Value of Nothing: How to Reshape Market Society and Redefine Democracy
Quantified status also drives entire industries. Influencer marketing is a $24B market growing quickly. The industry is built on status associations. We see this clearly in the 2010s rise of “the lifestyle influencer”—lifestyles are the most obvious markers of status, and the influencer economy is built on aspiration .