Wanting to Dress Well for Work

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That can actually be a problem when it comes to raises and performance reviews. I've actually had that happen before. I tend to dress old-school WASP/Trad; OCBD + nice khakis, twills, or gabs + tie + jacket and I've had people insinuate that I must be made of money because I dress well. I once had a supervisor assume that I didn't need a job and that I must have my job just for my wardrobe.

I wouldn't differ TOO much from what your direct co-workers are wearing. If they're wearing suits and ties, go for it. If they're wearing jeans and (fancy) shirts, and your bosses being the only ones wearing actual suits, don't wear a suit. You'd be stepping outside your "rank", and all your co-workers (including bosses) will try to figure out the underlying evil, evil message you must be sending out with this remarkable move.

There are some very interesting points regarding the consequences of dressing/not dressing like your co-workers.

To the OP, if you want to smarten up, then go for it. Some of your co-workers may consider that you're getting above yourself (perhaps they're jealous?). Others, however, may be inspired by your example.

As long as your work is up to standard, your personal dress code should not be an issue.

This is interesting, because it is one of those things I know to be true, but truly do not understand.
Why would another person's insecurities dictate my life, even if they are in a position of power over me?
Doesn't that hold me down, and isn't holding someone else down one of the highest expressions of destructive selfishness?

Yes, yes and yes. But sadly that is the way it seems to be.

Personaly, I think it may be wise to consider your parents advice. I say this because I have receintly been told that members of my church have indicated they think I wear a suit or sports coat and tie to CHURCH because I think I am better than everyone else. I've been questioned on my reasons for my attire at church many times and my reply has always been "If you won't dress up for God who will you dress up for?" I mean this used to be refered to as "Sunday, go to meeting clothes", and to me seem to be appropriate attire for church. It strikes me as the epitome of arrogance to even think I would take them into consideration when I get dressed! Believe it or not, these aren't even particularly judgemental folks IMO. On several occasions my wife and I have eaten in quite fancy restaurants while dressed as tramps. My opinion has been "I'm paying the bill, I don't care if they approve or not". I also feel it is appropriate to wear a suit to a job interview irreguardless of the job you are applying for, however, as I am in construction, to do so has proven deliterious toward my desired end, and thus I have ceased this behaviour of neccessity. I actually agree with your perspective, however I suspect your parents judgement might be more astute.

Clothing is nonverbal communication. It communicates, among other things, wealth and status. In a heirarchical situation (such as a workplace) the person with the highest status generally dresses the most formally. Managers may wear suits, for instance, while peons wear business casual or casual.

If a person of lesser status--an employer further down in the chain of command--dresses better than the boss, it is a challenge to their bosses' authority. It indicates you think you are of higher wealth and status than the person in command, and even perhaps that you're gunning for their job.

I think I get it now. To break it down:

Clothes communicate status.
If a person dresses to indicate a higher status than they are, then they are stating one of two things: "I have this status" or "I want this status".
If it is "I have this status" and they do not have that status, then they must be saying "I want this status".
If more than one person cannot have the same status, then the business is a zero-sum-game (you must take from someone to have something).
A specific business is a zero-sum-game because the number of people in positions of status are limited if the business does not grow.
I do not want my boss's status (I LIKE doing what I am doing and would NOT like doing what he is doing).
The world outside of business is not a zero-sum-game because society could not advance if nothing new was created.
If someone communicates "I want this status" in a business, whether they mean to or not, then people of higher status will assume that person will want to take the status from them.
Wearing clothes more formal than your superiors is dressing to indicate a higher status.
People who are threatened by other people will hurt the person who threatens them.
Hurt in business is defined by either passively or actively punished by making the job harder in some way.
Based on my boss's personality type, in my case, it will be passively, by putting up roadblocks.
I do not wish my boss to make my job harder for me.
Therefore, I should not threaten people of a higher status and wear equal or better clothes than they.

Because the world is not a zero-sum-game, I can dress any way I wish.
I wish to have a higher status in the world.
Therefore, I should dress up when not in a business setting.

I think this makes sense. What do you think?

If these premises and conclusions are correct, this is exactly what I am going to do.
In the business setting, I will match exactly the clothes of those around me so as to not lose my job.
Outside of the business setting, I will wear the sports coat and button-down shirt to say, "I want this status".

Yes, your analysis makes perfect sense. I think wearing the clothes you want outside of work is a great idea, too.