Institutional Economics - Institutional Economics - John Kenneth Galbraith

John Kenneth Galbraith

John Kenneth Galbraith (1908–2006) worked in the New Deal administration of Franklin Delano Roosevelt. Although he wrote later, and was more developed than the earlier institutional economists, Galbraith was critical of orthodox economics throughout the late twentieth century. In The Affluent Society (1958), Galbraith argues voters reaching a certain material wealth begin to vote against the common good. He coins the term "conventional wisdom" to refer to the orthodox ideas that underpin the resulting conservative consensus.

In an age of big business, it is unrealistic to think only of markets of the classical kind. Big businesses set their own terms in the marketplace, and use their combined resources for advertising programmes to support demand for their own products. As a result, individual preferences actually reflect the preferences of entrenched corporations, a "dependence effect", and the economy as a whole is geared to irrational goals. In The New Industrial State Galbraith argues that economic decisions are planned by a private bureaucracy, a technostructure of experts who manipulate is marketing and public relations channels. This hierarchy is self-serving, profits are no longer the prime motivator, and even managers are not in control. Because they are the new planners, corporations detest risk, requiring steady economic and stable markets. They recruit governments to serve their interests with fiscal and monetary policy. While the goals of an affluent society and complicit government serve the irrational technostructure, public space is simultaneously impoverished. Galbraith paints the picture of stepping from penthouse villas on to unpaved streets, from landscaped gardens to unkempt public parks. In Economics and the Public Purpose (1973) Galbraith advocates a "new socialism" (social democracy) as the solution, with nationalization of military production and public services such as health care, plus disciplined salary and price controls to reduce inequality.

Read more about this topic:  Institutional Economics, Institutional Economics

Other articles related to "john kenneth galbraith, john, galbraith":

List Of Liberal Theorists - Mill and Further, The Development of (international) Liberalism - John Kenneth Galbraith
... John Kenneth Galbraith (Canadian-born economist who worked in the United States, 1908–2006) Some literature The Affluent Society, 1958 The Liberal Hour, 1960 ...
Steven Pressman (economist) - Selected Peer Reviewed Articles - Post-Keynesian Economics
... John King (Edward Elgar, forthcoming) ... "John Kenneth Galbraith and the Post Keynesian Tradition in Economics", Review of Political Economy, Vol. 475-490, Reprinted in The Legacy of John Kenneth Galbraith, ed ...
John Kenneth Galbraith - Honors - Bibliography
... John Kenneth Galbraith introduces India, 1974 ... The Galbraith Reader, 1977 ... Wisdom Essays on Economics in Honour of John Kenneth Galbraith, 1989 ...
Institutional Economists - Institutional Economics - John Kenneth Galbraith
... John Kenneth Galbraith (1908–2006) worked in the New Deal administration of Franklin Delano Roosevelt ... wrote later, and was more developed than the earlier institutional economists, Galbraith was critical of orthodox economics throughout the late twentieth century ... In The Affluent Society (1958), Galbraith argues voters reaching a certain material wealth begin to vote against the common good ...

Famous quotes containing the words kenneth galbraith, galbraith, john and/or kenneth:

    Consumer wants can have bizarre, frivolous, or even immoral origins, and an admirable case can still be made for a society that seeks to satisfy them. But the case cannot stand if it is the process of satisfying wants that creates the wants.
    —John Kenneth Galbraith (b. 1908)

    There is certainly no absolute standard of beauty. That precisely is what makes its pursuit so interesting.
    —John Kenneth Galbraith (b. 1908)

    Am I making myself clear, boys?
    Harvey Thew, U.S. screenwriter, John Bright, screenwriter, and Lowell Sherman. Lady Lou (Mae West)

    The traveler to the United States will do well ... to prepare himself for the class-consciousness of the natives. This differs from the already familiar English version in being more extreme and based more firmly on the conviction that the class to which the speaker belongs is inherently superior to all others.
    —John Kenneth Galbraith (b. 1908)