We embed a concern with relative consumption in an otherwise conventional model of economic growth. There exists a unique steady state with persistent and endogenously generated gambling. We further prove that any dynamic equilibrium path must converge to it. Risk-taking arises not from utility function having strictly convex segments (as in Friedman-Savage), but naturally and inevitably from status. Our steady state is broadly consistent with the stylized facts that individuals both insure downside risk and gamble over upside risk, in environments with quite different overall wealth levels. Finally, in contrast to Friedman (1953), endogenous risk-taking here is generally Pareto-inefficient.