Scott Alexander wrote a great piece about counter-signaling; for instance, when expensive clothes become too accessible to the middle class, the wealthy can swerve by wearing cheap clothes as a counter-signal: https://www.lesswrong.com/posts/9kcTNWopvXFncXgPy/intellectu...

Signaling comes in many forms, and not all of it is bad; arguably, signaling eco-consciousness with a Prius or a Tesla can be a net win, even if it's just a proxy for socioeconomics. Rather, I would posit that extremes of Veblen goods (where cost and/or effort are abnormally high and positive social externalities are low) are more akin to market failure, or the Dutch tulip craze.

Only if and while the proles glut themselves on cheap stuff. As soon as unwashed masses start to copy that, the balance will flip and reverse. To act as a status symbol an action must be hard or costly to reproduce. If everybody can do it, it becomes worthless.

I think similar dynamics plays out with currency, we could all still be using sea shells otherwise.