What Does Potlatch Mean? Give a Modern-Day Equivalent

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The Answer is Veblen's inspiration came from anthropological studies he read of the Kwakiutl Indians, who lived in the Pacific Northwest. At a potlatch ceremony, the host showed off his wealth and gave extravagant presents to the guests. The more he gave away, the greater his status. Sometimes the host would use an even more radical strategy to flaunt his wealth: He would publicly destroy some of his property to demonstrate how much he had. And the plot thickens: Because guests had to reciprocate by giving a gift of equal value, the host could humiliate a poorer rival with an invitation to a lavish potlatch. The hapless guest would eventually be forced into bankruptcy because he needed to give away as much as the host, even though he could not afford it.
If this practice sounds "primitive," think for a moment about many modern weddings. Parents commonly invest huge sums of money to throw a lavish party and compete with others for the distinction of giving their daughter the "best" or most extravagant wedding, even if they have to dip into their retirement savings to do it.

What Does Potlatch Mean? Give a Modern-Day Equivalent

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