Michael Lewis Echoes Thorstein Veblen

Monday, March 22nd, 2010

Michael Lewis echoes Thorstein Veblen, Seth Roberts says, when he describes the investors who shorted the bubble:

They were outsiders to the market that they were betting on. And in addition, they were, in many cases, personally curious people, not clubbable members of the group. And I think that was a key to the success. I think that the fact that they didn’t feel compelled in any way, on any level, to think like other people gave them an advantage.

Veblen describes another group of outsiders:

This is what Thorstein Veblen said about Jews in a 1917 essay titled “The intellectual pre-eminence of Jews in modern Europe.” Being outsiders gave them freedom of thought. Lewis may have read that essay. A few years ago, he compiled an anthology of economic classics, one of which was Veblen’s Theory of the Leisure Class. I mentioned this essay earlier.

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