Luxury and the Logic of Sacrifice: Economic Expenditure in the Management of Surplus

My submission seeks to demonstrate that the luxury market, often assumed to be governed solely by rational economic imperatives, in fact conceals within its practices a deeply ritualistic dimension that produces and circulates both aesthetic and economic value. In particular, my paper examines the deliberate destruction of overstock—a practice that may seem like a straightforward business strategy but, upon closer inspection, reveals a mode of sacrifice that echoes ancient ritual. I argue that this practice, far from being a mere waste-management tactic, functions as a calculated act of purification, one that maintains scarcity and reinforces the aura of exclusivity intrinsic to luxury brands. In a market defined by relentless production and the pressures of commodification, the act of eliminating surplus is a strikingly symbolic performance that both critiques and subverts the prevailing narratives of secular capitalism. 

I contend that overstock destruction should be understood as a ritual act, one that performs a dual function: it sustains the economic value of luxury goods by preventing market saturation, and it simultaneously constructs an aesthetic experience that evokes the sensory and emotive dimensions of sacrifice. This ritual not only preserves the purity of luxury items but also transforms them into objects of desire imbued with an almost sacred quality. It is precisely this interplay between economic necessity and ritualistic excess that lies at the heart of my inquiry. In doing so, my paper aligns with the guiding topics of the Religion & Economics Panel by exploring how aesthetic and economic value are produced and circulated, and how religious sensibilities continue to inform and shape these processes.

The theoretical foundation for my analysis is rooted in the work of Georges Bataille, whose reflections on the collapse between the sacred and the profane offer a potent framework for interpreting modern market practices. Bataille’s insights allow me to see beyond the surface of economic rationality and to uncover the underlying forces of excess and sacrifice that animate luxury consumption. While previous research may have emphasized the role of ancient Sanskrit sources in tracing the genealogy of sacrifice, my work deliberately shifts the focus toward contemporary economic practices. By concentrating on the phenomenon of overstock destruction, I am able to show that the logic of sacrifice is not confined to historical or textual realms but is very much alive in the strategies employed by luxury marketing today.

This paper is both timely and necessary, given the current debates surrounding the aesthetics of capitalism and the critique of political economy. It challenges the assumption that modern economic practices are devoid of ritual or religious meaning by highlighting how a seemingly mundane practice can be read as a profound act of value production. The destruction of surplus inventory is not an aberration but rather a central mechanism through which luxury brands manage the tension between abundance and scarcity. In this light, overstock destruction emerges as a material and aesthetic mechanism that undermines the utilitarian tenets presumed inherent in capitalist production. It exposes the contradictions of a system that thrives on excess while simultaneously requiring the purification of its outputs. 

My approach combines a rigorous theoretical analysis with empirical case studies drawn from the luxury market. By engaging with key texts in Economic Theology (Agamben, Coleman and Singh), I provide a nuanced interpretation of how overstock destruction operates as a secularized economic phenomenon. This dual methodology—merging comparative textual analysis with detailed observations of market practices—ensures that my argument is grounded in both theory and practice. It allows me to demonstrate, with concrete examples, how the practice of eliminating surplus goods not only preserves the economic value of luxury items but also engenders a unique aesthetic experience that resonates with contemporary consumers.

The implications of my research extend beyond a mere reappraisal of market strategies. By revealing the ritual underpinnings of overstock destruction, my paper challenges the dominant secular narrative that regards economic behavior as purely instrumental. Instead, it offers a compelling argument for the persistence of religious sensibilities in modern market practices. The ritual act of destroying overstock reaffirms the idea that economic actions can carry symbolic weight, contributing to the production of value in ways that are both visible and subliminal. This perspective not only enriches our understanding of the luxury market but also opens up new avenues for interdisciplinary inquiry into the relationship between religion, aesthetics, and political economy.

I justify my submission by asserting that this research addresses a critical gap in the literature on economic theology and the aesthetics of capitalism. It demonstrates that the production and circulation of value in the luxury market are not solely the result of market forces or consumer demand but are also shaped by practices that resonate with deep-seated cultural and religious motifs. In a world increasingly dominated by the logic of profit and loss, my paper offers a counter-narrative that emphasizes the importance of ritual, sacrifice, and aesthetic value in sustaining economic systems.

In conclusion, my paper posits that overstock destruction in the luxury market is not a mere economic expedient but a ritual act imbued with both aesthetic and economic significance. It is a practice that produces and circulates value in a manner that is deeply intertwined with religious sensibilities and ritual performance. By critically examining this practice through the theoretical lenses of Bataille, Economic Theology, and aesthetics, my research provides a robust critique of contemporary political economy. It demonstrates that even within the ostensibly secular realm of high-end consumer markets, the forces of ritual and sacrifice continue to play a pivotal role. I firmly believe that this paper will contribute a unique and necessary perspective to the ongoing dialogue within the Religion & Economics Unit, making a strong case for its inclusion in the 2025 panel.