Economic growth is commonly justified as a means of overcoming scarcity and providing more of the goods and services that people want. But scarcity can have many causes, and some are much easier to eliminate than others. This chapter analyzes the increasingly important category of “positional” consumption, in which commodities are valued, directly or indirectly, because they are scarce. No amount of growth can satiate the desires for social distinction, exclusive access, and leadership positions – and as these and other positional motives rise in importance, additional economic output becomes less and less effective in providing the things people want.
