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Veblen identified two theories of wealth generation. His narrow theory was based on the industry-business dichotomy and the instincts of workmanship and pecuniary interests, while the general theory was based on a theory of positive versus negative instincts or influences. In his general theory, the positive instincts include workmanship, parental ability, and idle curiosity, which promote community and social wealth or welfare. The negative instincts or influences of pecuniary interests, emulation, and predation, on the other hand, destroy aspects of the cultural fabric and promote individualism. When the negative influences dominate over the positive instincts, the economy is at risk for depression and social dislocation. When the positive instincts dominate the negative ones, socioeconomic progress is in order, and the community is developing in a communicative and integrative fashion. And when there is some degree of relative balance between the two instincts or interests, a moderate degree of social development is in process.<ref>Phillip A. O'Hara, "Thorstein Veblen's Theory of Collective Social Wealth, Instincts and Property Relations." ''History of Economic Ideas'' 1999 7(3): 153-179. Issn: 1122-8792</ref>

Veblen identified two theories of wealth generation. His narrow theory was based on the industry-business dichotomy and the instincts of workmanship and pecuniary interests, while the general theory was based on a theory of positive versus negative instincts or influences. In his general theory, the positive instincts include workmanship, parental ability, and idle curiosity, which promote community and social wealth or welfare. The negative instincts or influences of pecuniary interests, emulation, and predation, on the other hand, destroy aspects of the cultural fabric and promote individualism. When the negative influences dominate over the positive instincts, the economy is at risk for depression and social dislocation. When the positive instincts dominate the negative ones, socioeconomic progress is in order, and the community is developing in a communicative and integrative fashion. And when there is some degree of relative balance between the two instincts or interests, a moderate degree of social development is in process.<ref>Phillip A. O'Hara, "Thorstein Veblen's Theory of Collective Social Wealth, Instincts and Property Relations." ''History of Economic Ideas'' 1999 7(3): 153-179. Issn: 1122-8792</ref>

In Veblen's worldview, both private property and the nation-state were institutions that not only obstructed technological advance but in modern times also threatened mankind with reversion to a second Dark Ages. Veblen was a socialist in believing that a modern industrial economy requires unified, public control. But his skepticism of political authority made him more of an anarchist who rejected notionof of party discipline.

In Veblen's worldview, both [[private property]] and the [[nation-state]] were institutions that not only obstructed technological advance but in modern times also threatened mankind with reversion to a second Dark Ages. Veblen was a socialist in believing that a modern industrial economy requires unified, public control. But his skepticism of political authority made him more of an anarchist who rejected notion of of party discipline.

Much of Veblen's influence was due to his inimitable literary style. He made such phrases as "conspicuous consumption" and "cultural lag" a part of the common vocabulary. [[Wesley Clair Mitchell]], Walton Hamilton, and [[Stuart Chase]] were among the economists who considered themselves Veblen's disciples. His influence reached its peak during the [[New Deal]], through such policy makers as [[Rexford Guy Tugwell]], [[Jerome Frank]] and [[Leon Henderson]].  His witty critiques of capitalism gained their humor as he pretended to be an anthropologist studying a strange society, an approach that influenced [[Sinclair Lewis]]' novel ''Babbitt'' (1922), Robert and Helen Lynd's social anthropology of ''Middletown'' (1929), and later inspired [[John Kenneth Galbraith]].<ref>Clare Virginia Eby, "Babbitt as Veblenian Critique of Manliness." ''American Studies'' 1993 34(2): 5-23. Issn: 0026-3079</ref>

Much of Veblen's influence was due to his inimitable literary style. He made such phrases as "conspicuous consumption" and "cultural lag" a part of the common vocabulary. [[Wesley Clair Mitchell]], Walton Hamilton, and [[Stuart Chase]] were among the economists who considered themselves Veblen's disciples. His influence reached its peak during the [[New Deal]], through such policy makers as [[Rexford Guy Tugwell]], [[Jerome Frank]] and [[Leon Henderson]].  His witty critiques of capitalism gained their humor as he pretended to be an anthropologist studying a strange society, an approach that influenced [[Sinclair Lewis]]' novel ''Babbitt'' (1922), Robert and Helen Lynd's social anthropology of ''Middletown'' (1929), and later inspired [[John Kenneth Galbraith]].<ref>Clare Virginia Eby, "Babbitt as Veblenian Critique of Manliness." ''American Studies'' 1993 34(2): 5-23. Issn: 0026-3079</ref>