"With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches"

Adam Smith’s observation suggests that wealth, for many individuals, holds its principal value not in what it can actually provide in terms of comfort, utility, or security, but in the visibility and display it enables. Instead of simply enjoying the goods and services that riches afford, the affluent often derive pleasure from the public recognition and distinction that come with having those riches. The social dimension of wealth, being seen to possess fine things, living in impressive houses, wearing fashionable clothes, and hosting extravagant gatherings, appeals profoundly to human vanity and the desire for esteem.

Such behavior points to an intrinsic psychological or social need that wealth fulfills beyond material satisfaction. Human beings are status-conscious; they often seek affirmation of their worth by distinguishing themselves in the eyes of others. Riches provide a convenient means to that end. Public displays of wealth broadcast success and superiority, not just affluence. For many, the satisfaction gained from being admired, envied, or even simply noticed by others rivals, or surpasses, the material pleasures their riches bring.

This tendency has broader implications too. Entire industries and markets thrive on this desire for ostentation: luxury brands, designer goods, and exclusive experiences gain much of their value from their function as status symbols rather than from any fundamental utility. The parade of riches thus perpetuates inequality and conspicuous consumption as social norms, encouraging even those of more modest means to emulate the outward behaviors of the wealthy, sometimes beyond their actual capacity.

Smith astutely identifies that wealth, far from being a purely utilitarian asset, is deeply embedded in the dynamics of social pride, aspiration, and human interaction. The spectacle of riches becomes an end in itself. In this way, the psychology of wealth proves as significant, if not more so, than its tangible advantages.