Why people flaunt their wealth and what we can do instead
In recent weeks, headlines have been filled with public outrage, not only about how flood-control funds were used, but also about the way some relatives of politicians and contractors displayed their wealth online.
Videos of luxury cars, designer items and lavish lifestyles circulated on YouTube and social media, which fueled anger at a time when many communities continue to struggle with basic needs.
This reaction is not new. Whenever wealth is flaunted in the middle of public hardship, it sparks controversy. This behavior may look like arrogance, but economics provides a clearer way to understand it.
Over a hundred years ago, an economist named Thorstein Veblen came up with an idea that still makes sense today. In his 1899 book The Theory of the Leisure Class, he introduced the term ‘conspicuous consumption.’ He said people often buy things not just for their use, but to show them off as symbols of wealth and status.
For example, a luxury bag that costs P500,000 can carry the same items as a bag that costs P5,000. The difference is not in what it does, but in what it shows. The more expensive bag simply sends a louder message that says ‘I belong to a higher class’.
Veblen’s point is that this kind of spending is not just wasteful or irrational. It is actually deliberate. People use goods as a kind of social language. The bag, the car, or the designer clothes do not matter much for their use but more for the message they send to others.
Today, conspicuous consumption is more visible than ever, but the stage has changed. What people once showed off at social gatherings is now broadcast daily on Instagram, TikTok and Facebook.
Posts about new cars, vacation photos, or fine-dining experiences are not just about sharing moments but signals. Every like or comment is applause like a quick validation of success.
Conspicuous consumption may grab attention, but it also comes with risks. One risk is financial strain. A lot of what we see online is not always backed by real money because it can be a vacation booked on credit, a gadget paid in installments, or lifestyle upgrades that go way beyond what income can support. On the surface, it looks like success, but underneath, it can weaken financial security.
Another risk is the cycle of constant upgrading. A purchase that feels impressive today can start to look ordinary tomorrow. To stay noticed, people feel the pressure to buy more, and because each new purchase only gives a moment of pleasure, the expenses keep piling up while the happiness fades quickly.
Backlash
There is also reputational risk. In times of crisis, public displays of wealth can backfire. Instead of admiration, they invite criticism and outrage. The very signals meant to elevate status can end up damaging credibility instead.
If signaling is part of human nature, the goal isn’t to erase it but to point it to a better direction. The real question is what kinds of signals really matter?
For ordinary people, the takeaway is simple. Don’t confuse flaunting with financial security. What looks like abundance on Instagram may actually be debt in real life. For leaders, the lesson is even sharper. In a country where inequality is high, showing off luxury is not just insensitive. It can also quickly damage credibility.
Perhaps there is a better way to use visibility. Instead of flaunting consumption, social media can be a platform to highlight value creation. Entrepreneurs who share how they built their businesses, or professionals who post about their educational achievements, send signals that last much longer than showing off an expensive purchase. These are signals with substance, not just style.
Modesty can send a powerful message too. Choosing not to show off, even when you can afford to, shows real confidence because it tells people your self-worth is not tied to possessions. In a society that is quick to envy and criticize, quiet strength often earns more trust than loud extravagance.
This is why many of the country’s wealthiest families practice what is sometimes called ‘quiet wealth.’ Their assets may be vast, but their public signals are subtle. In the long run, modesty communicates confidence more effectively than display of wealth ever could.
Status also doesn’t need to come from what you own. It can come from what you build. Creating a business or supporting local communities generates reputational capital that lasts longer than any luxury item. Contribution and creation are signals that outlive consumption because they add real value, not just appearances.
The same goes for businesses. Companies that reinvest profits, keep their balance sheets healthy and focus on long-term growth send stronger signals than those that rely on loud promotions.
The lesson is simple. Real wealth is not what turns heads today. It’s about what holds value tomorrow. What you achieve and what you give will always outlast what you show off.
(Henry Ong is a registered financial planner of RFP Philippines. Stock data and tools were provided by First Metro Securities. To learn more about investment planning, attend 113th batch of RFP Program this October 2025. To register, e-mail at info@rfp.ph.)
