Thorstein Veblen was an American economist and sociologist, born in 1857 and known for his critical analysis of capitalism. He introduced the concept of conspicuous consumption, which describes how individuals buy luxury goods to display wealth and social status rather than for practical use. His most famous work, The Theory of the Leisure Class, critiques the social dynamics of the wealthy and their impact on society. Veblen's ideas laid the groundwork for institutional economics, emphasizing the role of social and cultural factors in economic behavior. He argued that economic actions are influenced by social norms and institutions, challenging traditional economic theories that focus solely on individual decision-making. His work continues to influence contemporary economic thought and sociology.