The Economic Contributions of John Kenneth Galbraith

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The Economic Contributions of John Kenneth Galbraith

Article in Review of Political Economy · April 2005

DOI: 10.1080/09538250500067254 · Source: RePEc CITATIONS 44

2 authors, including: Steven Pressman Monmouth University 73 PUBLICATIONS 982 CITATIONS SEE PROFILE

ReviewofPoliticalEconomy, Volume17,Number2,161–209,April2005

TheEconomicContributions ofJohnKennethGalbraith

STEPHENP.DUNN &STEVENPRESSMAN

DepartmentofHealth,London,UK, MonmouthUniversity, WestLongBranch,NJ,USA

ABSTRACT Galbraith’sprincipaltheoreticalcontributionisforeshadowedinAmerican capitalismandunfoldsmoreclearlyintoviewinhistrilogy TheAffluentSociety,TheNew IndustrialState and EconomicsandthePublicPurpose.Histhesisisthattheeconomic ideasthatonceexplainedaworldofpovertyhavenotadjustedtoaworldofaffluence dominatedbythemoderncorporation.Hismainthemesaretheconcentrationof economicpowerinthelargecorporationandthesocialandenvironmentalimbalance thatresultsfromthelargecorporation.Galbraithattemptstoteaseouttheimplications oftheunevendevelopmentofmodernaffluenceandoutlinesanemancipatorycasefor socialchange.

1.Introduction

TheeconomiccontributionsofJohnKennethGalbraithcanbeviewedbothnegativelyandpositively.OnthenegativesideGalbraithappearsasagadfly,highly criticaloftraditionalapproachestounderstandingthewaytheeconomyworks andtheeconomicpoliciesthatarepursued.Hehascriticizedeconomictheory forignoringandobscuringtheeconomicpoweraccumulatedbylargecorporations.Hehascriticizedpoliticianswhoalignthemselveswiththeobjectivesof thelargecorporationinsteadofactinginthepublicinterest.Inaddition,hehas censuredhisfelloweconomistsas‘idiotsavants’whoperformsophisticated mathematicalanalysisbutwhodonotseektounderstandtherealworld.

Thesecriticaleffortshavesoughtto‘emancipatebelief’byurgingthepublic toquestiontheprevailingstructureofeconomicknowledgeandtochallengethe conventionalwisdom.In EconomicsandthePublicPurpose Galbraith(1973a, Chapter22)arguesthattheemancipationofbeliefisrequiredinordertochallenge thehegemonyofacceptedbeliefs,whichexcludethepossibilityofallcontrary thoughtandpreventaproperunderstandingofhowtheeconomyworks.Galbraith arguesthatthepowerandprestigeoflargefirmsissustainedthroughthe conventionalwisdomandthatthisleadstoeconomicanalysisthatisneither

CorrespondenceAddress: Stephen.P.Dunn,DepartmentofHealth,RichmondHouse,79Whitehall, LondonSW1A2NS,UK.Email:Stephen.dunn@dh.gsi.gov.uk

ISSN0953-8259print=ISSN1465-3982online=05=020161–49 # 2005Taylor&FrancisGroupLtd DOI:10.1080=09538250500067254

sociallyrelevantnoruseful.Accordingly,hehascriticizedthevariousconventionalwisdomsthatpermeatesocialthought.Hisgoalherehasbeentoincrease thereceptivenesstootherideasabouthowtheeconomyoperatesandthepolicy agendathatisrequiredoncepeoplehaveaproperunderstandingofhowthe economyreallyworks.

Moreconstructively,Galbraithhassoughttoexaminepoweranditseconomicrelationsandtoanalyseandunderstandtheactualevolutionandworkings ofeconomies.Anunderstandingofpoweriscrucialforunderstandingthefirm, asthefirmisaninstitutionthatseekstocontrolandsupersedethemarketin ordertoexpandtheinfluenceofitsbureaucraticapparatus,whatGalbraith labels‘thetechnostructure’.Aproperunderstandingofthenatureofthefirm resultsinananalysisofhowpowerisexercisedinsocietyaswelltheeconomic consequencesthatstemfromsuchpower.Thisanalysisalsoyieldsarich examinationofthefactorsleadingtorisingpoverty(forthosewithoutpower) amidmoregeneralaffluence,thedegradationoftheenvironmentandanexpansive andimperialisticmilitary–industrialcomplexwithitsinterestinperpetuatingthe armsrace.Similarly,anunderstandingofpowerisnecessaryforunderstanding howeconomicandsocialpolicycancounterthepoweroffirmsandworkto improveeconomicperformanceandthelivesofthosedisenfranchisedbythe modernmodeofproduction.

Galbraithalsohighlightsthepowerthatideashaveinfacilitatingsocial change.HeseemstohaveacceptedKeynes’(1964)contentionthat‘theideasof economistsandpoliticalphilosophers aremorepowerfulthaniscommonly understood’(p.383).However,GalbraithalsowentfurtherthanKeynes, arguingthatincreasinglyoutmodedeconomicideasmisinformsocialpolicyina waythatsupportsthecorporatepowerstructure,tothedetrimentofwider society(seeReisman,1990).Intheirrefusaltoyieldtotheonslaughtofcircumstance,economicideascanbesociallydamaging.Wrongideasaboutthefirm sustaintheprestigeofthelargecorporationanditspersonnelaswellasthe increasinglyfrivolousandunnecessarygoodsthattheyproduceandpromote (Galbraith,1958a).Wrongideasabouttherelationshipbetweenthefirmand marketobfuscatetheproperregulatoryresponse(Galbraith,1967b,1973a). Theymakeiteasierforlargefirmstoresistgovernmentregulationandshield firmspursingpracticesthatmaybeenvironmentallyunsoundanddetrimentalto nationalsecurity(Galbraith,1973a,2004).Andwrongideasabouthow theeconomyworksmakesithardtoenacteffectivepoliciesforsupportingthe publicinterestratherthancorporateinterests.Itisthusnecessarytooppose theseideasandpointouttheirflaws.

Inwhatfollowsthispaperhighlightstherolethateconomicpowerplaysin theeconomicsofJohnKennethGalbraith.Itfocusesonthethreemainareas whereGalbraithhaselucidatedtheramificationsoftheconcentrationofeconomic power.First,thelargefirmhasacquiredeconomicpower,therebyemancipatingit fromthevagariesofthemarketand,thus,givingitincreasedcontroloverthe market.Second,thelargefirmhasacquiredpowerovertheconsumer,over workersandoverotherfirms.Thishasledtopocketsofpovertyamidstaffluence aswellasleadingtoothersocialproblems.Finally,whenthegoalsofsocietyare identifiedwiththeindustrialsystem,theinterestsofthemoderncorporation

dominatethegovernmentandpublicopinion.Thisresultsinthepursuitof economicpoliciesthatservetheinterestsofthepowerful.Torecognizethisis tobegintoopenthedoorforgovernmentpoliciesthatwilloperateinthepublic interest.Thepaperbegins,however,byconsideringGalbraithhimself.

2.TheLifeofGalbraith

SincechildhoodGalbraithhasgonebythenameKen.Hevehementlydislikeshis givennameJohn,whichcamefromanuncleafterwhomhewasnamed.Bythe timeGalbraithwasateenager,hisUncleJohnhadbecomeaheavydrinkerand thewholefamilydroppedthe“John”infavorof“Ken”.

GalbraithwasborninIonaStation,asmalltownonthenorthernshoreof LakeErie,in1908andhegrewupinSouthernOntario,partofScottish Canada.ThiswasanareasettledbyScottishimmigrantsinthe1820sand 1830s(Galbraith,1964b).Inhisautobiography ALifeinourTimes:Memoirs Galbraith(1981)regretsthathisschoolingwasfrequentlyinterruptedbyfarm workandthathisacademicrecordwasratherundistinguished.Parker(1999, p.154)contendsthatGalbraith’sfatherArchiewasamajorforceinhislife,particularlyafterhismotherdiedattheageof49,whenGalbraithwasonly14years old.Archiewasbothateacherandtheheadofacooperativeinsurancecompany thathehadhelpedtoform.Hewasalsoactiveinlocalpoliticsandaseniorofficial inthecountybranchoftheCanadianLiberalParty.Galbraithwouldoftentravel aroundthecountywithhisfather.

Hehasoftenretoldthestoryofhisfatherstridingbeforeacrowdgatheredina neighbor’sbarnyardandmountingalargemanurepile.Galbraithsayshisfather calledforsilencefromthesurprisedonlookers,thenwithastraightface(buta twinkleinhiseye),‘apologizedwithill-concealedsincerityforspeakingfrom theToryplatform’(Parker,1999,p.156).

Intheautumnof1926GalbraithenrolledatOntarioAgriculturalCollege, whichisnowtheUniversityofGuelph,locatedapproximately50mileswestof Toronto.Hisintentwastostudyagriculturaleconomics.Thecurriculumat OntarioAgriculturalCollegeinvolvedmainlypracticalinstructionintheagriculturalarts:howtobuildagooddairystableandhowtoraisequalitylivestock.To earnextraspendingmoneyGalbraithwroteaweeklycolumndescribingnewand usefulagriculturalpracticesforhishometownnewspaper.

However,astheGreatDepressionbegan,Galbraithrealizeditmadenosense toimprovethequalityoflivestockifthelivestockcouldnotbesoldatadecent price.Soheswitchedhisfieldofstudytofarmeconomics,whichsoughttounderstandthedeterminantsoffarmprices.Besidesthefactthatitlethimfocusona practicalproblem,Galbraithmadetheswitchforpragmaticreasons:herealized thatunderstandingthecausesoflowfarmprices‘mighthelpmegetajob.As theDepressioncontinued,therewould,logically,beademandforthosewitha remedy’(Galbraith,1981,p.15).

GalbraithspentfiveyearsatOntarioAgriculturalCollege,thefifthyear duemainlytohealthproblems(tuberculosis)andpoorpreparationforcollege (Parker,2005,p.33).DuringhislastyearthereGalbraithnoticedapostingfor

164 S.P.Dunn&S.Pressman

aresearchassistantpositionatBerkeleythatwassponsoredbytheGiannini FoundationofAgriculturalEconomics.1 Itcarriedastipendof$60amonth,a goodsumofmoneyduringtheGreatDepression.Soheappliedfortheposition, wasaccepted,andspenthisgraduatestudentdaysatBerkeley(Galbraith, 1971,p.259).

GalbraithclaimsthathisyearsatBerkeleywereamongthebestofhislife.In hiscourseshewasintroducedtothegreateconomists,bothpastandcontemporaneous:Smith,Ricardo,Marx,Marshall,theGermanhistoricalschool,Veblenand theearlyKeynes.Healsohadcompetentteacherswhoencourageddebaterather thansquashingit.Duringhissecondyearhisstipendwasraisedto$70permonth. InhisthirdyearGalbraithwassenttoDavistoheadupthedepartmentsof economics,agriculturaleconomics,andaccountingandfarmmanagement.He wasalsorequiredtoteachcoursesinalloftheseareasandhisannualpaywas increasedto$1800(Galbraith,1971,p.269).Apparently,theadministrativeand teachingdemandswerenottoogreat,andGalbraithhadenoughtimetowrite hisdoctoraldissertationduringtheyear.HisPhDthesis,ontheexpendituresof Californiacounties,‘waswithoutdistinction Thepurposewastogetthe degree’(Galbraith,1981,p.22).

Inthespringof1933GalbraithreceivedanofferfromHarvardforaninstructorshippositionatanannualsalaryof$2400.Harvardofferinhandandreadyto bargain,hewenttonegotiatewithhisdean,forGalbraithhadheardthiswashow academicsadvanced.Tohishorrorthedean‘congratulatedmewarmlyonmy offer,gavemetheimpressionthathethoughtHarvardwasbeingrecklesswith itsmoneyandsaidthatIshouldgo. Thegreatloveofmylifewasover’ (Galbraith,1971,p.270).AndsoGalbraithwentofftoHarvard,where,savean unhappysojourntoPrincetonandastintaseditorof Fortune magazine,he spenttherestofhisacademiclife,albeitwithmuchtimeofftopursuehispolitical andwritinginterests.

GalbraithquicklybecameinvolvedinpolicyissuesatHarvardandalsobegan tomakeimportantpoliticalconnections.Inlate1933theBrookingsInstitution decidedtostudytheoperationsoftheFarmCreditAdministration,andGalbraith wasputinchargeofthisstudy.Intheautumnof1935GalbraithfirstmetJoseph KennedyJr.,andtwoyearslaterJohnF.KennedyarrivedatHarvard(Galbraith, 1981,pp.53–60).

AnimportantearlyinfluenceonGalbraithwashisworkfortheAgricultural AdjustmentAdministrationbeginningin1934.Thisearlyexperiencein WashingtontaughtGalbraiththeimportanceofpower,athemethatappearsin muchofhismorematureworkineconomics.Duetooversupply,thegovernment waspayingfarmersnottogrowcrops,butthisresultedinmanysurplustenant farmersandsharecroppers.Onekeyissuewashowtodividegovernmentpaymentsbetweenfarmersandtheiremployees.Thefarmers,ofcourse,wantedall thegovernmentmoney;butthiscreatedproblemsastheiremployeesbecame extremelypoorandmigratedtonortherncities.Liberals,likeGalbraith,wanted

1ItresultedinaseriesofthreepaperspublishedbytheGianniniFoundation(seeVoorhies etal., 1933a,b;Galbraith,1934).

largefractionsofthemoneytogotothepoorfarmworkers.Theeventualcomprise wasthatmoneywouldcontinuetogoonlytofarmers,butthefarmerswouldagree nottogetridoftheiremployeesandtoprovidethemwithsomesupport.

Moreimportantly,atHarvardGalbraith’seconomicanalysismovedbeyond agriculturaleconomics(seeBruce,2000).Severalfactorswereatworkinthis transformation.In1935hebeganamonographonthecausesoftheGreat DepressionwiththeindustrialistHenryS.Dennison,essentiallyfocusingonthe effectsofmonopolisticcompetitioninamannerthat(lessformally)echoes Kalecki(1935).TheworkofBerle&Means(1932)haddemonstratedhowmanagershadusurpedpowerinthefirm,leavingshareholdersaspassiverecipientsof corporateprofits.However,themajorinfluenceonGalbraithoccurredfollowing thepublicationof TheGeneralTheoryofEmployment,InterestandMoney, whenKeynes(1936)‘reachedHarvardwithtidalforce’(Galbraith,1981,p.67). Galbraith,alongwiththeyoungerHarvardfaculty,readKeynesavidly.Keynes wasaninspirationbothforhisincisiveanalysisandbecausehewasableto writeinamannerthatcouldgrabtheattentionofhiscolleaguesandthegeneral public.GalbraithalsoadmiredKeynes’pragmaticside–hisabilitytoidentify arealworldproblem,analyzeit,anddevelopappropriateandconsideredpolicy solutionstailoredtoit.

Theyear1936alsosawGalbraith’spoliticalinvolvementdeepen.HevolunteeredtohelpoutontheRooseveltre-electioncampaignandtookthemessageof KeynesianismtoWashington(Galbraith,1971,Chapter3).Inaddition,atthesuggestionofseveralotherDemocrats,hedecidedtoapplyforAmericancitizenship.

Intheautumnof1937GalbraithbecameanAmericancitizenandmarried CatherineMerriamAtwater,knownas“Kitty”.Thenewly-wedstookashipto EnglandandheadedtoCambridge,whereGalbraithwastoserveasaRockefeller fellow.Keynes,whowasrecoveringfromhisfirstheartattack,didnotmeetwith Galbraith.However,Galbraithestablishedcloseandlifelongfriendshipswith RichardKahn,JoanRobinson,PieroSraffaandMichalKalecki.Onceaweek hewouldheadtoLondontoattendseminarsattheLondonSchoolof EconomicsrunbyFriedrichvonHayekandLionelRobbins.Onweekendsand holidaysGalbraithandhisnewwifewouldtourtheEnglishcountrysideandcontinentalEurope(Galbraith,1981,pp.70–99).

ReturningtoHarvardin1938Galbraithwasaskedtoheadupacommission toreviewthepublicworksprogramsoftheNewDeal.Thismeantfrequenttravel toWashingtonanddeeperimmersioninthepoliticsofthetime.In1939Galbraith hadhisfirstface-to-facemeetingwithFranklinRoosevelt(Galbraith,1981,p.95). In1940LauchlinCurrierecruitedGalbraithtoserveastheresidenteconomistfor theAmericanFarmBureauFederation,‘agovernment-organizedlobbyonbehalf ofgovernmentservicesforagriculture’(Galbraith,1981,p.98).However, Galbraith’stalentsasawriterwerequicklydiscovered,andhespentmostofhis timewritingpoliticalspeechesandmemosafterbeingaskedtobepartofthe WhiteHousespeech-writingteamforthe1940election.

In1941,astheUSAbecameinvolvedintheSecondWorldWarfollowingthe attackonPearlHarbor,CurriecalledGalbraithtoWashington,andaskedforhis helpinfacilitatingeconomicstabilizationandresourcemobilizationby controllingpricesinthewareconomy.Galbraithbecamedeputyadministrator TheEconomicContributionsofJohnKennethGalbraith 165

166 S.P.Dunn&S.Pressman

oftheOfficeofPriceAdministration,givinghimeffectivecontrolovertheprices ofmostUSgoods(until1943whenpricecontrolswerelifted).Galbraith(1981, p.170)arguesthathisworkattheOfficeofPriceAdministrationwasagreat success.Nationalincomegrewagreatdealduringthewar,shortageswere limitedtoafewitemssuchaswhiskyandgasolineand,whenthecontrolswere removed,therewasonlyasmallincreaseinprices,therebydemonstratingthat inflationarypressureswereactivelymanagedandnotjustkepttemporarily undercontrol.Galbraith’sworkattheOfficeofPriceAdministrationalsoinspired anovelcontributiontothetheoryofpricecontrol.Hearguedforcontrolsonwages andpricesasawayofdealingwithinflationinthepost-warworld(Galbraith, 1952b).Whatismore,thisexperiencecementedhisbeliefthatwageandprice controlsarethemosteffectivesolutiontotheproblemofinflation,aviewhe hasmaintainedthroughouthislife.

AstheOfficeofPriceAdministrationwasdisbandedduetomounting politicalpressure,Galbraithjoinedtheeditorialstaffof Fortune magazineand workedtherefrom1943to1948.Galbraithcreditshisexperienceat Fortune andparticularlyitsownerHenryR.(Harry)Luceforhelpinghimdevelophis well-knownabilitytowritewithhumourandgrace(Galbraith,1981,p.264; 1986,pp.409–416).Galbraith(1981,p.268)alsocreditshisyearsat Fortune withconsolidatinghisunderstandingofthedominanceofthelargecorporation intheAmericaneconomy,instructinghimabouthowlargefirmsactually operate,underscoringtheneedtomovebeyondthemythsofthefirmperpetuated inneoclassicaltextbooks,andhelpinghimtounderstandhowdecisionswereactuallymadeinthelargecorporationandhowthesedecisionsimpactedonsociety.

Intheautumnof1944GeorgeBallwasaskedtoprovideanindependent assessmentoftheresultsoftheairforcebombingofGermany.Ballasked Galbraithtojointheefforts,andtobeinchargeofassessingtheeconomic effectsofbothGermanmobilizationandtheairattacks.WorkingunderGalbraith wasavirtualwho’swhoofdistinguishedeconomists,includingNicholasKaldor, E.F.Schumacher,PaulBaran,TiborScitovskyandEdwardDennison(whowent ontobecomeamajorluminaryinmodernstatisticalanalysis).Theybegantheir studybelievingthattheairattackshadgreatlydamagedtheGermaneconomy. Muchtotheirsurprise,theyfoundthatthebombinghadactuallyaidedthewar effortbecauseitdestroyedcivilianbusinessesinthebigcities,leavingmany peoplewithoutjobsandinneedofemployment.However,themilitaryfactories ofGermanyweregenerallylocatedongreenfieldsitesoutsidethebigcitiesthat werebombed.Sothebombinggeneratedanincreasedsupplyoflaborforproducingmilitarygoods(Galbraith,1981,pp.199–205).2

BasedonthisstudyGalbraithconcludedthattheGermanwareconomywas badlyrun.Hemadethiscasein Fortune (Galbraith,1945),despitemisgivings fromtheeditors.Indeed,itsradicalthesiswasatoddswiththedominant

2Theeconomicreportwaspublishedas TheEffectsofStrategicBombingontheGermanWar Economy (USStrategicBombingSurvey,1945).Galbraithalsoparticipatedinanassessmentof aerialbombingontheJapaneseeconomy.ThisstudyconcludedthatUSbombingraidsdamaged theJapaneseeconomy(USStrategicBombingSurvey,1946).

interpretationoftheGermanwarmachine(Galbraith,1981,p.229).Accordingto Galbraith,Hitler’sintrusionintotechnicalareas,wherehehadnocompetence, resultedinpoordecisionmakingandcreatedseriousproblemsfortheGerman economy.Anotherproblem,Galbraithargued,wasGermanoverconfidenceat thebeginningofthewar.AfterquicklyoccupyinglargepartsofEurope,Hitler expectedthathiseasysuccesseswouldcontinue.ThisledtoconsiderableundermobilizationbyGermany.Galbraith(1946)alsoproducedaten-pointplanthat anticipatedtheMarshallPlanforredevelopingEuropethatwassetforthby SecretaryofStateGeorgeMarshallinthespringof1947.

Duringtheautumnof1948GalbraithreturnedtoHarvardandacademiclife. Histeachingresponsibilitiesincludedagriculturaleconomicsandindustrialorganization,buthisfocuswasmoreonwritingandpolitics.Sooncametwobookson powerrelationships, AmericanCapitalism:TheConceptofCountervailingPower (Galbraith,1952a)and ATheoryofPriceControl (Galbraith,1952b),plusa historyofthestockmarketbubbleofthe1920sanditssubsequentcrash, TheGreatCrash,1929 (Galbraith,1955b).

Inthesummerof1955Galbraitharrangedforayearlongsabbatical.Heused aGuggenheimfellowshiptogotoSwitzerlandinordertowriteabookonpoverty. Thishecombinedwithagooddealoftravel,includinghisfirsttriptoIndia,where hesawthepovertyoflessdevelopedcountriesfirsthand. TheAffluentSociety (Galbraith,1958a),alongwithHarrington’s(1962) TheOtherAmerica,helped bringtheproblemofpovertyamidstmuchaffluencetotheattentionofthe AmericanpublicandculminatedinPresidentJohnsondeclaringa‘waron poverty’in1964.

Afterfinishing TheAffluentSociety GalbraithwentonalecturetourofPoland andYugoslaviainMay1958attheinvitationofOscarLange.Duringthetriphe spentalotoftimewithMichalKalecki.Hisdiaryofthistrip(Galbraith,1958c) focusedontheunevenqualityoflifeinEasternEurope.Galbraithnotedboth thecleanstreetsandthehigheducationalachievementsattained;buthealso remarkedonthepoorqualityofworkmanshiponbuildingsandroadsandthe generaldrabnessoflifethere.

Intheautumnof1959HarvardappointedGalbraithtothePaulWarburg ChairinEconomics,whichhadbeenestablishedinhonorofoneofthearchitects oftheFederalReserveSystemandoneofitsoriginalgovernors.Atthesametime HarvardgaveGalbraithtwotermsofftobeginthesequelto TheAffluentSociety –whatwastobecome TheNewIndustrialState. Workonthebookwasinterrupted whenJohnKennedywaselectedPresidentinNovember1960andappointed GalbraithasambassadortoIndia.3

Notwithstandinghisextensiveacademicactivities,the1950sand1960swere alsoaperiodofhighpoliticalactivity.Galbraithwasoneofthefoundersofthe liberalAmericansforDemocraticAction.Inaddition,hewasanadvisorand speechwriterforAdlaiStevensoninhistwopresidentialcampaignsandthen forJohnKennedyinhis1960presidentialcampaign.

3ThestoryofGalbraith’stimeinIndiaappearsin Ambassador’sJournal:APersonalAccountofthe KennedyYears (1969a). TheEconomicContributionsofJohnKennethGalbraith

Inthe1952Stevensoncampaign,Galbraithwroteonfarmpolicyandeconomics.Martin(1976)describedsomerathertensemeetingsofStevenson’s speechwritersduringtheheatofthecampaign.Inanobscuresaloonin Springfield,Illinois,wherethewriterslunchedtoavoidthepressandrelax,they sataroundatablenexttothejukebox.AsMartin(1976)reported‘Oncewhen somebodystartedtoputanickelinthejukebox,Galbraithsaidtohim,“I’ll giveyouadimeifyoudon’tplayit’”(p.636).Betweenthe1952and1956 presidentialcampaignsGalbraith(1981,p.296)attemptedtoteachKeynesian economicstoStevenson,whowasscepticalofrunningbudgetdeficitsand thoughtKeynesasubversive.

OvertimehisrelationshipwithStevensoncooledandGalbraithbeganto supportJohnKennedyactively.Surprisingly,Galbraithwasmoreactively involvedintheStevensoncampaignsthantheKennedycampaign,sincehewas personallyclosertoKennedythantoStevenson.Nevertheless,hisambassadorial appointmentwastestamenttohispoliticalstandingandaccesstothecorridors ofpower.AlthoughGalbraithdesiredtobeappointedtoKennedy’soldSenate seatinMassachusetts,KennedypressedGalbraithtoserveastheUSambassador toIndia.GalbraithsentKennedytelegramsfromIndiaadvisingagainstthe growingUSinvolvementinVietnam,againsttheplanned(andinfamous)Bay ofPigsoperationinCubaandagainstclandestineCIAoperationsinIndia (Galbraith,1969a,1998).ShortlyafterKennedy’sdeathGalbraithresignedas ambassador,buthecontinuedtoprovideadvicetoLyndonJohnson,particularly hisstrongmisgivingsabouttheescalatingwarinVietnamandonthequestion ofreducingpovertyintheUSA.In1964JohnsonappointedGalbraithtothe WhiteHouseTaskForcethatwasresponsibleforformulatingawaronpoverty.

However,asJohnsonincreasedUSinvolvementinVietnam,Galbraith becamealeaderoftheanti-warmovement.Galbraith(1967a)published Howto GetOutofVietnam:AWorkableSolutiontotheWorstProblemofourTime, whicharguedforpullingUStroopsbacktothecitiesandcoastalareas,setting upsomesanctuariesthatcouldbedefendedandwaitingouttheopposition. Twoyearslater HowtoControltheMilitary (Galbraith,1969b)explainedhow boththemilitaryandthefirmssupplyingtheirneedshadacquiredconsiderable powerandinfluenceoverUSgovernmentpolicyandthearticulationofnational interests.Itforcefullyarguedthatarmscontrolagreementswerenecessary, aswereelectedpoliticianswhowouldstanduptothemilitary–industrial complex.HealsowroteaboutrevitalizingtheDemocraticPartyandmakingita truealternativetotheRepublicanParty(Galbraith,1970).

Duringthelate1960s,the1970sandtheearly1980sGalbraithcontinuedto playanactiveifsomewhatdiminishedroleinpolitics.In1968heworkedinthe presidentialcampaignofSenatorEugeneMcCarthy(secondinghisnomination attheChicagoDemocraticConvention)andin1972heworkedforSenator GeorgeMcGovern,servingasadelegateforMcGovernattheDemocratic ConventioninMiami.HethenworkedinthepresidentialcampaignsofRepresentativeMorrisUdallin1976andSenatorEdwardKennedyinthe1980s.

Inthe1970sGalbraithcontinuedhiseffortstobringeconomicideasto abroadandmoregeneralpublic.HeworkedontheBBC’stelevision series(whichwassyndicatedintheUSAonPBS) TheAgeofUncertainty 168 S.P.Dunn&S.Pressman

TheEconomicContributionsofJohnKennethGalbraith 169

(Galbraith1977a),andhisbook AlmostEveryone’sGuidetoEconomics (Galbraith& Salinger,1978)wasgeared,asthetitleproclaimed,toincreasegeneraleconomic literacy.

Duringthe1970sand1980sGalbraithalsobegantoreceiveagreatdealof professionalrecognition.In1972heservedaspresidentoftheAmericanEconomicAssociation(Galbraith,1973b),andin1976theAssociationofEvolutionaryEconomicshonoredhimwithitsVeblen–Commonsaward(Galbraith,1977b). In1982hewaselectedtothe50-memberAmericanAcademyofArtsandLetters, thefirsteconomisttobesohonored.Twoyearslaterhebecamepresidentofthe AmericanAcademyofArtsandLetters.

Galbraithcontinuedtobeactiveprofessionallyduringthistimeperiod.He providedboththe‘moralandfinancialsupport’tohelpstartthe JournalofPost KeynesianEconomics (King,2002,p.135),whichbeganpublishingin1978 underthejointeditorshipofPaulDavidsonandSidneyWeintraub(seeGalbraith, 1978).FollowingtheuntimelydeathofWeintraubin1984,Davidson(another long-standingfriendofGalbraith’s)becameitssoleeditor(Galbraith,1985). ThejournalimmediatelybecamethemajorpublicationoutletforPostKeynesian economists,withGalbraithservingasthechairmanofthehonoraryboardof editorssinceitsinception.

AlthoughheretiredfromHarvardin1975,andgreatlyreducedhisactive engagementinpoliticsnotlongafter,Galbraithcontinuedtowriteabouteconomic andpolicyissuesthroughoutthe1980sand1990s.Hestronglyopposedthe conservativetrendintheUSAandtheresurgenceofgreedasaprimarymotivation forindividualbehavior.HewasparticularlycriticaloftheReaganadministration policies,butalsoopposedtheClintonadministrationreductionsindomestic spendingandwelfarereformasunnecessaryandanundesirableaccommodation toconservativeRepublicansinCongress.Hiswritingsinthe1980sand1990s alsoemphasizedtheimportanceofknowinghistoryinordertounderstandthe economy,andtheimportanceofunderstandingthelocusofpowerinorderto understandtherealworld. TheAnatomyofPower (Galbraith,1983a)expounded thenatureofpoweranditsrelationtotheeconomicandpoliticalsystem. EconomicsinPerspective:ACriticalHistory (Galbraith,1987)integratedeconomichistoryandthehistoryofeconomicthought. TheCultureofContentment (Galbraith,1992)and TheGoodSociety:TheHumaneAgenda (Galbraith, 1996)examinedthereducedconcernwithaddressingtheneedsofthepoorin thelatetwentiethcentury. AJourneyThroughEconomicTime:AFirsthand View (Galbraith,1994)providedanoverviewandhistoryofeconomicpolicy makingintheUSAoverthelastcentury.And Name-dropping:FromF.D.R. On (Galbraith,1999)takesusonatripoftheeconomicpoliciesofPresidents Roosevelt,Truman,KennedyandLyndonJohnson.

Inwhatfollows,thispapersummarizesGalbraith’sprincipleeconomiccontributions.Readerscanfindmoredetails,andthenumerouscriticismsthathave beenleveledatGalbraith,intheseveralexcellentoverviewsofhiswork (Hession,1972;Sharpe,1973;Gambs,1975;Pratson,1978;Reisman,1980; Stanfield,1996).ThetwoGalbraith(1977,2001)readersandthethreefestschrifts (Bowles etal.,1989;Sasson,1999;Keaney,2001),aswellasthecollectionof interviewswithGalbraith(Stanfield&Stanfield,2004),alsoofferanexcellent

overviewanddiscussionofGalbraith’sthought.Finally,Parker’s(2005)intellectualbiographyprovidesmoreinformationonthelifeofGalbraithandthe developmentofhisthought.

3.PowerandtheFirm

Inhisearlywork,Galbraith(1936,1938,1943,1947,1949;Dennison& Galbraith,1938)exploredtheramificationsoftheriseofthelarge,moderncorporation.However,itwasnotuntil AmericanCapitalism:TheConceptofCountervailingPower (Galbraith,1952a)thathebegantomakeadecisivebreakfrom theneoclassicalmodelandbegantocreateanalternativetheoreticalsystemthat capturedthechangeusheredinbythelargefirminadvancedeconomies. American Capitalism:TheConceptofCountervailingPower (Galbraith,1952a), TheAffluentSociety (Galbraith,1958a)tosomedegreeandinparticular TheNewIndustrial State (Galbraith,1967b)analysetheimpactofhighlyconcentratedeconomic poweranditsnexustotechnology.IntheseworksGalbraitharguesthatthe largefirmshouldnotbeviewedasahistoricalaberration.Themoderncorporation isnotanexceptionthatprovesthecompetitiverule.Rather,itisaconsequenceof theevolutionofamodeofproductionthathascometodominatethemodern economy,differingmarkedlyfromtheconventionalanalysisofoligopolies presentedineconomicstextbooks.

Intheconventionalwisdomcompetitionensuresthatscarceresourceswith alternativeusesareusedefficiently.Thepursuitofself-interestcombines withcompetitiontopromotethewidersocialgood:

Theefficientandtheprogressivewererewardedwithsurvivalandgrowth.The inefficientwereandunprogressivewerepenalizedbyextinction. Competitionwasalsotheinstrumentofchange.Asthetastesofthesovereignconsumer altered,thedemandforsomeproductsroseandsodidtheirprices(Galbraith 1958a,p.40).

Inthedominantview,firmsare(orshouldbemadetobe)powerless.Theyare (orshouldbe)soleconduitsforthedemandscomingfromthemarket.(Impersonal)marketforcessetprices(includingthewagesofworkers)andtheprospect ofpowerandsupra-normalprofitsarecheckedbycompetition.Thiscompetitive idealsolidifiesintothewidespreadview,heldbymanyeconomists,thatthesole routetomaximizingsocialwelfareistomakemarketsmorecompetitiveand promoteprivateenterprise.

Theviewthatreceiveselaborationisonewheretheindividualfirm,runby eitherasingleownerorsmallmanagementexecutive,seekstomaximizefirm profitsandtheirresultantincome.Firmsthatdonotseektomaximizeprofits willbedrivenoutofbusinessbyotherfirmsthatoperatemoreefficientlyand growthroughprofitableaccumulation.AccordingtoGalbraiththisview,which continuestodominateeconomicinstruction,isoutmodedandapproximatesan earlierperiodinhistorythathassincebeensuperseded.Itisaviewthatno longerelucidatesreality;instead,itservestoobscureit.Todaythefirmsthat produceandsellthemajorityofthegoodsandservicesarelargebureaucracies, dominatedbyprofessionalmanagers.Whatismore,althoughmarketshave

ceasedtobecompetitive,Galbraith(1952a,b,1967b)arguedthatthestandard predictionsregardingtheconsequencesofthisshift,inefficiencyandtheruthless exploitationofeconomicpower,havenotbeensupportedbyfacts.Fewcustomers oflargecorporationscomplainofexploitation,anti-trustlawsareseldominvoked, andtheinstancesofoligopolyaretypicallyassociatedwiththegreatestoutputand themostrobustgrowth(Galbraith,1973a).

Insharpcontrasttothetraditionaltheoriesofoligopoly,whichdepict thelargefirmasresultingfromsignificanteconomicsofscaleinproduction costs,Galbraithexplainstheriseofthemoderncorporationasameansof facilitatingtechnologicalchangebyemancipatingitfromtheuncertaintiesof themarket.EchoingSchumpeter(1942),Galbraithsupplantstheconventional preoccupationwithtechnologyorsteady-stateproductionwithanexamination oftheforcesofconsciousdesignthatenablelarge-scaletechnologicalchangeto takeplace.

Galbraith(1967b,pp.32–35)identifiedseveralimportantconsequences oftechnology–itincreasesthelengthoftimetocompletetasks,itrequires morecapital,whichisinflexiblycommitted,itrequiresspecializedmanpower (whichcallsfororganization)anditentailsplanning(whichsupersedes themarket).Thatistosay,advancedtechnologyrequireslargespecialized investmentsincapitalandlabortobeinflexiblycommittedoverlongperiods oftime.

Asthefirmgrows,andasproductionprocessesbecomeincreasinglycomplex andtechnologicallymoresophisticated,thereisanincreasingneedforateamof dedicatedbureaucraticspecialistsforadministeringthedecisionsofthemodern businessfirm.Echoingthenotionofboundedrationality(Simon,1955),Galbraith notedthatthecomplexitiesofmoderntechnologymeanthatonepersoncanno longerbefamiliarwithalltheaspectsofengineering,procurement,quality control,laborrelations,andmarketing,whicharenecessaryfordoingbusiness.

Asgroupdecisionmakingandtechnicalexpertisebecomemoreimportant, powerpassesfromtheindividualownertothosepeoplewiththerequisite knowledgeoftheproductionprocess–thetechnostructure.Thetechnostructure representsanewclassandanewfactorofproduction.Itiscomprisedofthe diffusedecision-makingstructureofthelargecorporationanditaffectstheuse andpromulgationofmoderntechnology.Itencompassesanarrayofmanagerial, technical,legal,engineering,accountingandadvertisingexpertise.Thetechnostructureselectsproductsandchoosesproductiontechniques,includingthe numberandtypeofworkerstoemploy,itdevelopsmarketingandpricing policy,anditisresponsiblefororganizingaccesstofinance(internallyand externally).

Organizationisthemannerbywhichthetechnostructureachievescoordinationandmakesdecisions.Organizationexistsasanecessaryresponsetothe imperativesofcomplextechnologyandthediffusionofrequisiteknowledge thatneedstobebroughttobearinitsrealization.Itsdecision-makingconventions andstructurespermitinformed,reliableandcoordinateddecisions,anditenables thepursuitandalignmentofcommonobjectivesacrossarangeofspecialists. Thus,thedecisivefactorineconomicsuccessisnolongertheheroicindividual butratherorganizedintelligence:‘Itisnottoindividualsbuttoorganizations

172 S.P.Dunn&S.Pressman

thatpowerinthebusinessenterpriseandpowerinsocietyhaspassed’(Galbraith, 1967b,p.75).

Aspowerpassestothetechnostructurethebehaviorofthemodern corporationwillincreasinglyreflectitsaimsandobjectives.Thetechnostructure willchoosethosegoalsandstrategiesthatfacilitateitssurvivalandreproduction, suchasgrowthanduncertaintymitigation(whatGalbraithreferstoas‘the protectiveneed’)andthosethatenhanceitsstatusandposition,suchasthe pursuitoftechnicalvirtuosity(whatGalbraithreferredtoas‘theaffirmative need’).Moreover,unlikeownerswithavestedinterestinmaximizingprofits, professionalmanagersgainlittlefromdirectprofitmaximization.Theywillnot beinterestedinprofitmaximization perse orthemaximizationofshareholder valueasanendinitself.Rather,theyseektomaximizetheirownpower,prestige andaffluence.Suchmotivationsaremorecloselyalignedwiththegrowthof thefirm.

Survivalforthetechnostructureislikelytomeanachievingaminimum amountofearningssothattheindependenceofthesedecisionmakerscanbe maintained.Lowearningsorlosseswillchallengetheautonomyofthetechnostructure.Oncetheflowofearningsisaboveanacceptablelevel,thepre-eminence ofthetechnostructureisassured.Firmgrowthassuresthisminimumlevelof profitsandpreventsthedischargeofmembersofthetechnostructureasacostsavingmeasure.Growthalsoservesthe‘affirmative’orpsychologicalneedsof thetechnostructure–theprestigethatgenerallycomesfromworkingfora largewell-knownfirm.Finally,thepursuitofgrowthandtechnicalvirtuosity meansmorejobsandpromotionsformembersofthetechnostructure.

Ofcourse,profitscontinuetobenecessarytothetechnostructure’seconomic andmaterialwellbeing.However,toreiterate,thisneednotentailprofitmaximization.Themarketisnolongerenforcingthisgoal.Inaddition,thetechnical complexitiesofmoderntechnologymeanthatascertaininghowtomaximize profitsisnoeasymatter.AsGalbraith(1967b)pointedout,

profitmaximization–theonlygoalthatisconsistentwiththeruleofthemarket–isnolongernecessary.Thecompetitivefirmhadnochoiceofgoals.Themonopolycouldtakelessthanthemaximum;butthiswouldbeinconsistentwithits purposeofbeingamonopoly.Butplanningistheresultnotofthedesireto exploitmarketopportunitybuttheresultamongotherfactors,oftheunreliabilityofmarkets.Subordinationtothemarket,andtotheinstructionthatit conveys,hasdisappeared.Sothereisnolonger, apriori,reasontobelieve thatprofitmaximizationwillbethegoalofthetechnostructure.Itcouldbe, butthismustbeshown(p.122).

Whatismore,focusingongrowthandsurvivalalsodirectsattentionto thevariouspoliciespursuedbythetechnostructureformakingthemarketmore reliableandpredictable.Themarketandtheforcesofcompetitiongenerateconsiderableuncertaintiesforthelargefirm.Tothrive,firmsmustseektocontrolthe marketratherthanbeingsubservienttoit.Forexample,investmentinnew technologyiscostlyandfirmswishtoavoidtheprospectthat,afterexpensive investment,therewillbelittleornodemandforthegoodstheyproduce.

Largeinvestmentsoftimeandmoneymustbeprotectedifthecostsoftechnologicalchangearetoberecoveredanditsbenefitsrealized:

Technology,withitscompanioncommitmentoftimeandcapital,meansthatthe needsoftheconsumermustbeanticipated–bymonthsoryears. ... Bythe sametoken,whilecommonlaborandcarbonsteelwillbeforthcomingin responsetoapromisetopay,thespecializedskillsandarcanematerialsrequired byadvancedtechnologycannotsimilarlybecountedupon.Theneededactionin bothinstancesisevident:inadditiontodecidingwhattheconsumerwillwant andwillpay,thefirmmusttakeeveryfeasiblesteptoseewhatitdecidesto produceiswantedbytheconsumerattheremunerativeprices.Anditmust seethatthelabor,materialsandequipmentthatitneedswillbeavailableata costconsistentwiththepriceitwillreceive.Itmustexercisecontrolover whatissold.Itmustexercisecontroloverwhatissupplied.Itmustreplace themarketwithplanning(Galbraith,1967b,p.41).

Inordertoreducetheuncertaintiessurroundinglargecommitmentsoftime andmoney,thefirmmusteithersupersedethemarketorsubordinateittothe requirementsofplanning.Planningisthusaconsequenceofadvancedtechnology andplanningreplacesthemarketasameansofallocatingresources.For Galbraith,planningentailsnotonlycoordination,aswithCoase;itisalsoabout howthefirmpreparesforandattemptstocontrolunforeseenevents.Rather thanviewingthefirmasresultingfromapurelyinstrumentalchoiceofeconomizingonthecostsbetweenalternativemodesofcontracting,forGalbraiththe corporationisaninstitutionthatcopeswith,mitigates,oreliminatesuncertainties.4 Thelargefirmemergesinresponsetotheuncertainnatureofmarkets. This,accordingtoGalbraith,isaprimaryreasonfortheobservedgrowthofthe largefirmanditsnexustothepoliticalapparatus.Thetechnostructure,through themoderncorporation,mustleveritspowertoensureitscontinuedreproduction and,bysodoing,reducetherisksitissubjectto.

Theuncertaintiesofthemarketaremitigatedinavarietyofways(Galbraith, 1967b,pp.43–45).Throughverticalintegrationittakesoversuppliersandoutlet sources.Bydevelopingmanydiverseproducts,thefirmcanabsorbtheconsequencesofadrasticchangeinconsumertastesortheaversionofconsumers toaparticularproduct.Byspendingmoneyonadvertisingthefirmattemptsto manageconsumertastes.Long-termcontractsbetweenproducersandsuppliers

4AmajorshortcomingofGalbraith’sdiscussionofthefirmisthathedoesnotarticulatehow thetechnostructureadaptsandchanges.Forexample,thereisnodiscussionofwhytheU-form modeoforganizationwasreplacedbytheM-formmodeoforganization.Whilealltheelements ofthemodernnewinstitutionaleconomicsappeartobethere(complexity,uncertaintyandasset specificity),orthodoxtheoristsareinclinedtodismissGalbraith’sthesissuggestingthatthe absenceofaneconomizingperspectiveultimatelyresiststheexplanationofchange.Indeed,the absenceofsuchaperspectivemayexplainGalbraith’s(1988)admittedfailuretoforeseetherationalizationanddownsizingofAmericanindustryinthe1980s.Nevertheless,althoughGalbraithdoes notspecificallyevaluatethereasonsfortheevolutionofcertaingovernancestructures,hisframeworkdoespermitsuchanexplanation–organizationalchangesthatenhancethepowerofthe technostructurearepursued,buttheabsenceofconventionalmarketforcesmeansthatacomplacent technostructurewillexhibitsclerotictendenciesand/ormaybechallengedbyothertechnostructures (suchasthoseoriginatinginJapan).Suchconsiderationswarrantmoretheoretical. TheEconomicContributionsofJohnKennethGalbraith 173

attempttoeliminatetheuncertaintyofshort-termmarketfluctuations.5 Moreover, thelargerthefirm,themorelikelyitcanmoldthefuture.

Perhapsthemosthotlydebatedstrategythatthemoderncorporationusesfor mitigatinguncertaintyconcernsmanagingtheresponseoftheconsumer.Inthe conventionalwisdomthefirmissubservienttothegivenpreferencesofconsumers.AccordingtoGalbraith,consumerdemandisnotexogenous,butis shapedbyinstitutionalprocessesandbyparticularinfluencessuchasadvertising (seeAnderson&Dunn(2005)foranexaminationofGalbraith’sthesisinthe contextofthetobaccoindustry).6

Inidentifyingtheprocessofwantmanagement,Galbraith(1958a)firstarticulatedthenotionofadependenceeffect.Thedependenceeffectisaportmanteau conceptandembodiespassiveandactiveaspects.Thepassiveaspectisthe processofemulationwherebysocialnormsandlocalizedculturalcomparisons induceconsumptionpatterns,i.e.thesocialpressureto‘keepupwiththe Joneses’.Theactiveaspectreferstothecontrivingofspecificsocialwants and,equallyimportant,thecreationandreproductionofaconsumerculture.7 Nevertheless,Galbraithacceptsthatadvertisingandotherattemptsatconsumer manipulationmaynotbeperfect,butitspower,presenceandinfluencemustbe acknowledgedandanalysed.

However,oneoftheprincipaldeficienciesofthedependenceeffectwas thatitdidnotarticulateaclearrationaleforthemanagementoftheconsumer. In TheNewIndustrialState Galbraith(1967b)linkedtheprocessesofmanaging theresponseoftheconsumerwiththeneedtoprotectupfrontlarge-scaleinvestmentintechnologyandtheinterestsofthetechnostructure.Galbraithreferred tothismanagementoftheconsumerbythefirmas‘therevisedsequence’. Ratherthanfirmssatisfyingthewantsanddemandsoftheconsumer,the modernfirm‘accommodatestheconsumertothegoalsofthetechnostructure

5Thatistosaythat,althoughGalbraithnotesthatintegrationofferstheprospectofcontrollingthe priceandsupplyofstrategicfactorsunderconditionsofuncertainty,healsorecognizestherole oflong-term,money-denominatedcontracts.Thefirmcanenterintolargelong-termcontractsas astrategicresponsetouncertainty.Contractsandtheirenforceabilityareamajorsourceofstability andsecurityforthemoderncorporation.Money-denominatedcontractsoccupyapivotalroleinprotectingthepricesandcostsandsafeguardingthesalesandsuppliesatthesepricesandcosts. Galbraitharguesthat,asproductiontakestimeandplanning,money-denominatedcontracts representthemeansbywhichuncertaintiesaboutthefuturemaybemitigated.Alargeandextensive webofmoney-denominatedcontracts,cascadeddownward,greatlyfacilitatesthefutureplanning andstabilitynecessitatedbyadvancedtechnology.

6IndeedasHodgson(2001)pointedout,noauthorhasbroughttheseideastotheattentionofthe modernreadermoreclearlyanddefinitivelythanGalbraith.Indeed,manyareinclinedtoseethis asGalbraith’sprincipleconclusion.However,asshouldbeclearfromthisdiscussion,theirnexus totheimperativesoftechnologyandorganizationareparamountandmustnotbehiddenfrom viewnortreatedinisolation.

7Forexample,Galbraithtiesconsumerdebtdirectlytotheprocessofwantcreation:‘Itwouldbe surprisingindeedifasocietythatispreparedtospendthousandsofmillionstopersuadepeople oftheirwantswerenottotakethefurtherstepoffinancingthesewants,andwereitnotthento goontopersuadepeopleoftheeaseanddesirabilityofincurringdebttomakethesewantseffective. Thishashappened ThePuritanethicwasnotabandoned.Itwasmerelyoverwhelmedbythe massivepowerofmodernmerchandising’(Galbraith,1958a,p.200).

andprovidesaclimateofsocialbeliefthatisfavorabletothisresult’(Galbraith, 1967b,p.235).Likethedependenceeffect,therevisedsequenceisbroaderthan justthemanagementofspecificconsumerdemandbythefirm.Consumersmustbe abletobuygoodsaswellasdesirethem,sothetechnostructurehasavestedinterestinensuringthestatetakesgeneralresponsibilityforthis.8 State‘[r]egulationof aggregatedemandisnecessarytogivecertaintytothisplanningandtoprotectthe technostructure’(Galbraith,1967b,p.229).Thisunderlinesthesymbiotic relationshipbetweenthemoderncorporationandthestate,whilealso explainingtheearlyappearanceofKeynesianpoliciesbeforethewidespread acceptanceoftheKeynesiantheoreticalsystemandthelatentKeynesianismof theReaganera!

TheriseofthemoderncorporationisthusviewedasunderminingSmith’s invisiblehandandusurpingthedoctrineofconsumersovereignty(cf.Chandler, 1977).Indeed,animportantconsequenceoftherevisedsequenceisthatthe goodsproducedthroughtheplanningsystemareaccordedhigherprivilegeand statusthanotherproductiveandlife-affirmingactivitiesthatdonotfinddirect expressionthroughthemarket.Assuch,thepromotionandelevationofgoods producedbyprivatefirmsresultsinincreasinglymeaninglessproductsbeing accordedhighersocialvirtuethannumerouspublicgoodsthatmeetbasic humanneeds,butthattheprivateenterprisesystemhasnotbeenabletoproduce.

Theorganizationsthatareabletoemancipatethemselvesfromthevagariesof themarket,whatGalbraithreferstoas‘theplanningsystem’,accountforaround halfofthetotalproductioninamodernindustrializedeconomy.Smallfirmspopulatetheotherhalfoftheeconomy,whatGalbraithreferstoas‘themarketsystem’. Thesearefirmsthatappeartoapproximatetheneoclassicalmodel.Likethefirms thatarepartoftheplanningsystem,theywishtoescapetheuncertaintyofthe market.However,theirpowerisrestrainedbyfreecompetition.

Boththemarketandplanningsystemsareinterdependentstructuresthatform partofGalbraith’s(1977b)bimodalviewofmatureeconomies.Indeed,theresultingdistributionofpower,dominance,andcontrolofpricesbytheplanningsector, meansthatthetermsoftradefavorthelargecorporation.Thelargefirmexploits thispowerforitsownends,providingitwitharelativelysecureandfavorable income.Theconsequenceisthatthemarketsectorreceiveslowerandless secureincome(Galbraith,1973a,pp.65–66).

Oneimplicationofthisbimodalviewisthatitallowspolicymakersto ascertainthenatureandextentoftheplanningsystem’sinfluenceoversociety. Suchknowledgemaybemarshalledtoservethedevelopmentofpolicy,new institutionalstructuresandbroadersocialaims(Galbraith,1973a,Chapters 21–31).Forexample,Galbraithargues(inamannerthatechoesWilliamson’s (1975,1985)transactioncostanalysisoffirmsize)thatthereisnosensebreaking

8Thatis‘Membersseektoadaptthegoalsofthecorporationmorecloselywiththeirown;by extensionthecorporationseekstoadaptsocialattitudesandgoalstothoseofthemembersofits technostructure.Sosocialbelieforiginatesatleastinpartwiththeproducer.Thustheaccommodationofthemarketbehavioroftheindividual,aswellasofsocialattitudesingeneral,tothe needsofproducersandthegoalsofthetechnostructureisaninherentfeatureofthesystem’ (Galbraith,1967,p.217).

upthelargecorporationinthehopeofrestoringtheneoclassicalcompetitiveideal. Thiswouldentailrejectingthetechnologythatunderpinstheescapefromthe tyrannyandinsecurityofthemarket.Moreover,tobreakuplargecorporations wouldunderminethetechnicaldynamismthatprovidesformuchcontemporary wealth(evenifsuchwealthisinequitablydistributed).9 Finally,suchtrust bustingisunnecessary,notleastbecausethedevelopmentofsourcesofcountervailingpower(seebelow)furthermitigatesthescopeforabuseofsuchdominance (Galbraith,1952a).

Thismoreenlightenedresponseentailsharnessingtheproductivecapacityof largecorporationsbutmitigatingtheireconomicandsocialpower.Thisrequires anenlightenedpolicyregardingtheplanningsystem.Suchapolicy‘consistsin discipliningitspurposes–inmakingtheseserve,notdefinethepublicinterest’ (Galbraith,1973a,p.240).Thismeansdevelopingappropriateregulationsfor fetteringtheabusesofcorporatepowerandmakingthecorporateformmore democraticallyaccountable.Suchaprogramofreform,whichanticipates therecentconcernwithcorporategovernance,isnecessaryforconfrontingthe powerofthelargecorporationsthatdominatestheeconomy.Galbraith’sanalysis ofpovertyandwhatshouldbedonetoalleviateitislikewiseinformedbythisview ofthemodernfirm.

4.PowerandPoverty

Intheconventionalwisdom,theexistenceofpovertyistypicallyexplainedasa consequenceoftheactionsandchoicesofindividuals,ortheresultofdamaging anderroneousgovernmentpolicies.Individualistexplanationshavetendedtobe moreprevalent,particularlyintheUSAwhereSocialDarwinism(seeHofstater 1944)hashadastrongholdonthepopularimagination.Accordingtothis doctrine,theeconomicandsocialworldischaracterizedbyapowerstrugglein whichtheinevitableoutcomeisa‘survivalofthefittest’.Peoplewhopursue educationandpossessthedriveandthedesiretobeproductivewillsucceed. Incontrast,sloth,thefailuretotakeindividualinitiative,andanunwillingness tolearnanddevelopsociallyusefulskills,arechoicesthatrelegatecertain individualstomediocrityorfailure.Asaconsequence,suchindividualsare morelikelytoreceivelowwagesandexperiencefrequentboutsofpoverty throughouttheirlives.Onthestandardview,thisoutcomeistheresultof individualchoices.

Theseconddominantexplanationofpovertyfocusesontheunintended consequencesofanextensivesocialwelfaresafetynet.Theseanalysesfocuson policiesthatcreateperverseeconomicincentivesforpeople,andpromotea

9InGalbraith’s(1967b)ownwords,‘Thesmallfirmcannotberestoredbybreakingthepowerofthe largerones.Itwouldrequire,rather,therejectionofthetechnologywhichsinceearliestconsciousnesswearetaughttoapplaud.Itwouldrequirethatwehavesimpleproductsmadewithsimple equipmentfromreadilyavailablematerialsbyunspecializedlabor.Thentheperiodofproduction wouldbeshort;themarketwouldreliablyprovidethelabor,equipmentandmaterialsrequired forproduction;therewouldbeneitherpossibilitynorneedformanagingthemarketforthefinished product.Ifthemarketthusreignedtherewouldbe,andcouldbe,noplanning’(p.50).

relianceongovernmentbenefitsratherthaneconomicallycontributingtosociety (Murray,1984).Governmentpoliciesarealsoidentifiedasfailingtoencouragethe highlevelsofsavingandinvestmentthatarethoughttoberequirediftheeconomy andindividualincomesaretogrow.Governmentsrunninglargebudgetdeficitsare viewedasdiscouragingprivatesavingsandinvestment,includinginvestmentin humancapital(Seidman,1990).

Incontrasttothismainstreamview,radicaleconomistshaveidentified severaldysfunctionalinstitutionsthatcontributetopoverty,andhavestressed theneedforeliminatingthem.Radicaleconomistspointoutthatcapitalistsin developedcountriesneedalargenumberofcompliantworkerswhoarewilling toworkhardforlowwages.This‘reservearmyoftheunemployed’isintegral tothecapitalistmodeofaccumulationaccordingtoradicaleconomictheory.It functionstodisciplineworkersbyholdingtheireconomicpowerincheck,but suchanarmyofunemployedindividualsconsignsasizeableminoritytopoverty.

Similarly,radicaldevelopmenteconomistsfaultcolonialsystems,which haveperpetuatedfeudalagrarianlandsystemswheremostofthelandisowned byaverysmallminority.Thisexcludesagreatmanypeoplefrombothlandownershipandtheincomethatcomesfromowningtheland.Greatnumbersofpeople arethereforeforcedtoworkonthelandforsubsistencewages.

Thus,intheradicalviewthelocusofpovertyarisesintheendemicclass exploitationindevelopedcountriesandthehistoryofcolonialoppressionin lessdevelopedcountries.Bysubjugatingthemassesanddenyingworkersthe rewardsoftheirlabor,suchpeoplearecondemnedtoalifeofpoverty.

Galbraithacknowledgestherelevanceofpartsofboththeneoclassicaland theradicalanalysesofpoverty.Herecognizestheproblemscreatedbyinstitutionalstructuresandhestressestheneedfordevelopingnewones.Similarly, heagreeswiththemainstreamperspectiveontheneedforimprovingaccessto educationanddevelopinghumancapitalasameansofincreasingindividual capabilitiesandindividualincomes.However,Galbraithalsorejectslargeparts ofboththeneoclassicalandradicalanalyses.

Whilebelievingthattheradicalperspectiveiscorrecttofocusonthe institutionalproblemsthatcontributetopoverty,Galbraithcontendsthatitfails toidentifytheinstitutionsthatcontributetopovertycorrectlyand,thus,its solutionsareerroneous.Inparticular,theclassanalysisofcapitalismfailsto accountfortheriseofthetechnostructureandtheassociated(albeituneven) affluenceusheredinbythemoderncorporation.Theneoclassicalanalysisalso failstoappreciateactualprocesses.In TheNatureofMassPoverty,Galbraith (1979)notesthatsomecapitalistcountries(e.g.India)havedoneworsethan somecommunistcountries(e.g.China)whenitcomestoreducingpoverty.Itis thusunwarrantedtoconclude apriori thatgovernmentinterventionwillnecessarilyhindertheworkingsofthefreemarketandresultinlowereconomic growth,unemploymentandpoverty.Similarly,in EconomicDevelopment, Galbraith(Galbraith,1964a,p.16)pointedoutthatcolonialismisnotarecent probleminLatinAmerica,yetmostofLatinAmericaisstillpoor.Moreover, Australia,CanadaandtheUSAwereallBritishcoloniesatonepoint;however, allnowexperiencegeneralprosperity.Socolonialismdoesnotseemtobethe institutionalculpritresponsibleforpoverty.

178 S.P.Dunn&S.Pressman

WhileGalbraithstressestheimportanceofinvestinginhumancapital,his analysisofthemoderncorporationleadshimtorejectthemarginalproductivity theoryofdistributiononwhichthetraditionalanalysisofpovertyrests.Ina worldoftechnologicaladvance,wheregeneralaffluenceispossible,thetradition ofdespairandscarcityinradicalandmainstreameconomicshasbeenmadeobsolete(seeGalbraith,1958a,Chapters3–6).Contrarytothemarginalproductivity theoryofvalue,thewealthofthetechnostructureandtheaffluentisnotderived fromtheirhardworkandtheircontributionstoeconomicoutput,butfromtheir possessionofeconomicpower.Inaddition,theemergenceofthelargecorporation andthetechnostructurehasusheredinanepochwherecooperationunderpins economicsuccess(asopposedtoindividualisticcompetitivestruggle).Inaddition, oneconsequenceofKeynesianismisthatitisthestate,andnotindividuals,that mustassumeresponsibilityforassuringasufficientlevelofaggregatedemand anditsassociatedlevelsofemployment.

Thus,itappearsthatneitherdysfunctionalinstitutionsnordysfunctional individualbehaviorsarethemaincauseofpoverty.Instead,forGalbraith, povertyisaproblemthatstemsfromthelackofadequatepowerthatmanifests itselfinseveralways.First,povertyisduetoasocialimbalancethatresultsina lackofpublicgoods.Thisisseenmostclearlyindevelopedcountriesthat, throughthemoderncorporation,haveachievedalargemeasureofaffluence andhavealarge(potentiallyredistributable)socialsurplusavailableforantipovertyefforts.Similarly,thepovertyoflessdevelopednationsisalsothe resultofasocialimbalance.Manyofthesecountriesspendfartoomuchon armsandthemilitary,andfailtoprovidenecessarypublicservicessuchas decenthealthcare,adequatesanitation,andqualityeducation(Galbraith,1983b, Chapter4).Asecondproblemisthatthepooraretrappedinaviciouscycleof cumulativecausationthattheycannotovercomeontheirown.Thepoorlack economicpowerrelativetothetechnostructurebecausesocialprocesses,anda lackofsocialinfrastructure,underminetheirlifechancesandsocialmobility. Thisanalysisappliestoboththepocketsofthepoorindevelopedcountriesas wellasthelargenumberofpoorhouseholdsinlessdevelopedcountries.

TheseconsiderationsunderpinGalbraith’sanalysisofpoverty.Thissection firstoutlineshisanalysisof‘insularpoverty’(Galbraith,1958a,p.246)–the pocketsofpovertyindevelopedcountries.Thisistheproblemofpoverty amidstplenty,ofaminorityofhouseholdsonthecuspofsubsistenceinrich, vibranteconomies.Itistheproblemsofurbanslumsaswellasruraldecline andisolationinareassuchasAppalachia.Itthenconsidersthe‘masspoverty’ oflessdevelopednations.Thisisthepovertyofanentirenation,wheremostof thepopulationlivesonthebrinkofstarvation.Itisthepovertyofvastareasof Africa,ofChinaandIndiaandofruralareasandurbanslumsinLatinand SouthAmerica.

Galbraithfirstraisedtheissueofinsularpovertyin AmericanCapitalism:The ConceptofCountervailingPower (Galbraith,1952a,Chapter8).Therehenoted thattheaffluencecreatedbytechnologicaladvancecouldcauseproblemsfor thosewhodonotbenefitfromthenewtechnologyandwhoarerelegatedto receivinglowwagesforworkthatisnolongerindemand. TheAffluentSociety (Galbraith,1958a,p.248)extendedthisanalysisconsiderably.Galbraith

(1958a,p.248)againinsistedthattechnologydoesnotinitselfhelpreduce poverty,butnowheidentifiedsomeofthecausesofpovertywithtechnology itself.Thatistosay,thegeneralaffluencecreatedbytechnologyandtheassociated managementoftheconsumerblindsustothesituationofthepoorandmakes themincreasinglypowerlessandinvisible.

Aworldofaffluencealsocreatespoliticalproblemsforthepoor.Asasmall powerlessminority,politicianshavelittleincentivetospeakoutforthepoorand, thus,areunlikelytousethelegislaturetohelpthem,asthiswillnotgarnervotes. Inaddition,withgeneralaffluencethereisagreatertendencytoblamethepoorfor theircondition–forifmostpeoplecansucceedwhyshouldnoteveryone succeed?Thisexplainswhyindividualistexplanationsofpovertyaresopopular andprevalentintheaffluentsociety.Italsoexplainswhyaffluentsocieties oftenlackthepoliticalandeconomicwilltosolvetheproblemsofinsular poverty(Galbraith,1992,1996).

Thisargumentachievesitsclearesttheoreticaltreatmentin Economicsand thePublicPurpose (Galbraith,1973a),whichdescribeshowthebimodal economy,consistingoftheplanningandmarketsystems,givesrisetopoverty indevelopedcapitalisteconomies.Largefirms,whicharepartofwhatGalbraith callsthe‘planningsystem’,haveacquiredenormouseconomicpower.Asnoted above,theyhavethepowertocontrolpricesandtheresourcesthatenable themtomoldpublicopinion.Moreover,theclimateofconsumerismgenerated throughthemanagementofdemandequateshappinesswiththosegoodsproduced bytheprivatesectoroftheeconomy.Inaddition,largefirmscaninfluence thepoliticalprocesstotheiradvantageinawaythatoverridestheneedsof thepoor.

Incontrast,smallfirmsaresubjecttothedictatesofthemarket.Theyhave littleeconomicpower,andlittleabilitytoswaypublicopinionorthepolitical process.Theyarethusdisadvantagedrelativetotheplanningsystem.Theresult isunequaleconomicdevelopment:theplanningsystemproducestoomany goodsandthemarketsystemproducesaninadequatesupplyofgoods. Likewise,importantpublicgoodssuchasaccesstohighqualityhealthcareand education,whichmightbenefitthoseinthemarketsystem,arelikelytobeunderprovided,astheneedsoftheplanningsystempredominateandskewpublic expenditure.

Givenitslackofeconomicpower,themarketsystemisatadisadvantage relativetotheplanningsystem.Firmsinthemarketsystemmustselltheir goodstotheplanningsystematlowerprices,butwillbeforcedtobuygoods producedbyfirmsintheplanningsystemathigherprices.And,justasthereis adualeconomy,thereisaduallabormarket.Noteveryoneisemployedin largecorporations.Somepeoplewillworkforthesmallerfirmsthatcomprise themarketsystem.Thesepeoplewillbeatadisadvantagecomparedtoplanning sectorworkersandwillgetpaidconsiderablylowerwages.Thus,peoplearemore likelytoenduppoorwhentheyworkforsmallerfirmsorwhentheyareunableto obtainjobswithfirmsintheplanningsector.

Anotherimportantcauseofinsularpovertyisthepreoccupationwithprivate productionandconsumptionthatresultsfromtheriseofthemoderncorporation anditsneedtoplanandadvertise.Aswehaveseen,Galbraithrecognizedthe

powerheldbylargecorporationsoverconsumersandtheirneedtomanufacture consumerdemand.Demand,heclaimed,doesnotoriginatewiththeconsumer. Rather,itiscontrivedfortheconsumerbythefirmthroughadvertising(see Anderson&Dunn(2005)foramoredetaileddiscussion).Largefirmsthus possessadegreeofinfluenceoverthepatternofconsumerspending,which sustainstheprestigeofthegoodsthattheyproduceandsell.

Theconsequenceofelevatingprivateproductionandneglectingtheprovisionofpublicgoodsisasituationofprivateaffluenceamidpublicsqualor.In amuch-quotedpassageGalbraith(1958a)highlightsthiscontrast.

Thefamilywhichtakesitsmauveandcerise,air-conditioned,power-steeredand power-brakedautomobileoutforatourpassesthroughcitiesthatarebadly paved,madehideousbylitter,blightedbuildings,billboards,andpostsfor wiresthatshouldlongsincehavebeenputunderground Theypicnicon exquisitelypackagedfoodfromaportableiceboxbyapollutedstreamandgo ontospendthenightataparkwhichisamenacetopublichealth andmorals.Justbeforedozingoffonanairmattress,beneathanylontent, amidthestenchofdecayingrefuse,theymayreflectvaguelyonthecurious unevennessoftheirblessings(p.98).

Affluenceitselfcausespovertyinyetanotherway.Asfirmsfocusmoreon producinggoodsandservicesforaffluentconsumers,theywillnaturally producefewergoodsforlow-incomehouseholds.Withlesssupply,thepriceof suchgoodsincreases,makingthelivesofthepoorandnearpoormoredifficult.

InhisanalysisofpovertyGalbraith(1958a,p.250)followedVeblen(1898) andMyrdal(1944,1968).Heviewedpovertyasaself-perpetuatingcycleof cumulativecausation.Thoselivinginapoorcommunityreceiveapooreducation andpoorpublicservices.Theylackthetrainingandgoodhealthnecessaryto improvetheireconomicconditionandtoenablethemtoenterthetechnostructure. Thepoorarealsoeconomicallyandpoliticallypowerless,makingithardfor themtoobtainthegovernmentservicesthatmightimprovetheirlives.People livinginpoorareasalsocometoaccepttheirpovertyandseelittlemeansof escape.Thisreinforcestheirpoliticalpowerlessnessandcontributestothe inadequateprovisionofpublicgoodsthatmayalleviatetheirpredicament.In thisway,povertyreproducesitselfinpoorareasandacrossgenerations.

Nevertheless,anaffluentsocietyneednotacceptthis.Theprovisionofpublic goodsandservicescouldkeeppacewiththeproductionofprivategoods (Galbraith,1958a).Thegoodsocietydivertspublicresourcesawayfromsupportingthetechnostructureandtowardshelpingthepoor(Galbraith,1967b).Thus, Galbraithhaslongarguedforastrongwelfarestateprovidingbenefitssuchas jobprotectionandbasicincomeguarantees,aswellasanacknowledgedand legitimateroleforunions.Moreover,attheendof TheAffluentSociety,Galbraith (1958a)providesarationaleforhumancapitaloreducationprograms,particularly targetingthechildrenofthepoor.Onesuchprogram,HeadStart,becameakey partofLyndonJohnson’sGreatSocietyprogram.

Ofcoursealltheseactivitieshavetobepaidfor.Fundsmustbechannelled awayfromsupportingtheprovisionofincreasinglyirrelevantandsuperfluous privatecommoditiesandinsteadbeusedforprovidingthepublicgoodsthat 180 S.P.Dunn&S.Pressman

addressunmetpublicneeds.Towardsthisend,Galbraithhasadvocatedhigher salestaxesinordertofinancetheimportantsortsofgovernmentspending(e.g. publictransportation,educationandpoliceprotection).Hehasalsoadvocated greaterincometaxesonthewealthy,holdingthatthetaxsystemmustbemade progressiveenoughsothattherichprotestloudlyandvehemently.Thatisthe onlywayofknowingthatthetaxesimposedonthericharehighenough!

Themasspovertyofless-developedcountriesisquitedifferentfromthe insularpovertyofdevelopednations.Poorcountriesdonothavesufficient wealthandincomeforsupportingthemanymorepoorpeopleinneedofassistance.Inaddition,thepsychologicalpropensitiesleadingpeopletoaccepttheir conditionareevengreaterthanindevelopedcountries(seeSen,1999).Ina poorcountrythen,apovertyofhopecastsitsspellontheentirenationas peoplecometobelievethatthereisnooptionotherthanaccommodatetothe realityoftheircircumstances.

Forsuchreasons,Galbraith(1979,Chapter3)contendedthat‘anequilibrium ofpoverty’existsinless-developedcountries.Galbraithwentontoexplain howmasspovertyperpetuatesitselfandhowattemptstoimprovethingseasily getderailed.Livingatbaresubsistencemeanstherecanbenosavingsand nomoneyforagriculturalimprovementssuchasirrigation,hybridseedsor fertilizers.Likewise,newtechnologiesarealwaysrisky,embodyingmany uncertainties,includingthepossibilitiesofstarvationandprematuredeath. Thus,eveniftherearesavings,thesesavingarenotlikelytobeusedforimproved cultivationmethods.Ifpeopledomanagetosaveoutoftheirsubsistenceincomes, thesesavingswillbehoardedasabufferagainstbadharvestsinthefuturerather thanusedasameansofemployingmoreadvancedandefficientmeansof production.Subsistencefarmersarenaturallyreluctanttoinvestinanynew technologythatmightincreasetheiroutputbutwouldalsoberiskyand,thus, threatenstarvationduringabadyear.Finally,evenifsavingsareinvestedand leadtoimprovedagriculturaloutput,oreveniflandownerrevenuesare redistributedtothepoor,thiswillnotnecessarilysolvetheproblemofmass poverty.Greaterincomewillmeanthesurvivalofmorepeople,peoplewho wouldhaveotherwisedied,andsothefamilypercapitafoodconsumption wouldbelittlechangedandpovertywouldpersist.Reinforcingallthisisthe humantendencytoaccommodateoneselftoone’scondition.Thismeans acceptingalifeontheedgeofstarvationratherthanseekingtobetteroneself andescapingpoverty.Itisthroughthisdiagnosisoftheproblemsofthe poorthatGalbraith(1979,Chapter3)objectstomanyofthemainstreampolicy solutionstotheproblemofmasspoverty.

Galbraith(1979)arguedthathistoricallytherehavebeenthreewaysofbreakingoutofthecycleorequilibriumofpovertyinlessdevelopedcountries–trauma,migration,andeducation.BytraumaGalbraithmeanshorrificdisasters, eventssuchaswarsandfaminesthatreducethepopulationtoapointwhere thosewhoremainarefinallyabletosustainthemselvesontheland.Theseare essentiallythenegativecheckstopopulationgrowthfirstnotedbyMalthus [1798]manyyearsago.Sincethisisnotacivilizedmeansofreducingpoverty, noradesirablesolutiontotheproblemofpoverty,itiseasytorejectandsowe areleftwithmigrationandeducationaspracticalsolutions. TheEconomicContributionsofJohnKennethGalbraith

MigrationhasbeenoneofGalbraith’sfavoritepolicysolutionsfordealing withpoverty.Amongthemanysuccessesofmigrationasasolutiontomass poverty,Galbraith(1979,Chapter8)pointstohisancestors,theScottish Highlanders,whocametotheUSAandCanadainthenineteenthcentury,as wellasthesuccessfulstreamsofmigrationfromIreland,Italy,Swedenand EasternEuropetoNorthAmericainthenineteenthandearlytwentiethcenturies. MorerecentlytherehasbeenmigrationfromMexicoandLatinAmericatothe USA.Therehasalsobeenagreatdealofmigrationfromthepoorerpartsof EuropetowealthierareasofEurope.Turks,ItaliansandGreeksmigratedto Germany.MillionsofPortuguese,ItaliansandSpaniardsarelivinginFrance, makingupapproximately10%oftheFrenchlaborforce.Inaddition,more recentlytherehasbeenmigrationfromthetransitionaleconomiesofEastern EuropetothewealthiernationsofWesternEurope.Althoughmigrationbrings culturaltensionsandconflicts,itwillalwaysleadtoagreaterstandardofliving forthosewhomigrate.Thecountryreceivingtheseimmigrantswillalso benefit.Besidescontributingtotheirnewcountrybyaugmentingthelabor supplyand,inmanyinstances,byperformingarduousandtediousworkthat long-termresidentsseektoavoid,thereductioninpopulationintheirnative countrymakestheproblemofsurvivaleasierforthosewhoremainanddonot migrate.

Besidesmigration,theotherprincipalpolicyinstrumentisgreatereducation orthedevelopmentofhumancapital.Inthecontextofthelessdevelopedworld, educationmeansensuringbasicnumeracyandliteracy(Galbraith,1979, pp.100–103).Thisrequiresfreeandcompulsoryeducation.Thecompulsionis neededbecauseotherwisefamilieswilltendtokeeptheirchildrenathome wheretheycanhelpwithhomeproductionandwithchores.Educationalso helpspoorfarmersunderstandtheneedforusingtechnicalinnovations, whichwillhelpreducemasspoverty.Educationisnecessarytooasameansof controllingpopulationgrowth.Andeducationisalwaysagoodantidotetothe psychologyofaccommodation,particularlywhentheeducationinstructschildren abouthowmuchbetterthingsareinotherpartsoftheworld.Finally,educationis necessaryinordertounderpinanenlightenedpublicadministrationthatfurther promotesanddevelopsmasseducation,andchannelspublicfundsintoother relatedareasthatwillsustainfurthergrowth(e.g.transportation,communication andpublichealth)(Galbraith,1964a,p.66).

Migrationandeducationpoliciesbothworktoempowerthepoorwho arelivinginmasspoverty.Educationhelpspeopletorecognizethethings thattheyneedtodoinordertoimprovetheirchancesofescapingpoverty. Educationalsoletspeopleknowthatthingscanbedifferentandthattheycan dothingstomaketheirlivesbetter.Andmigrationallowsthosepeoplewith ambitionanddesiretomovetoplaceswhereitishighlylikelythattheirlives willimprove.

Finally,inthelessdevelopedworld,asinthedevelopedworld,somesocial balancemustbeprovidedbythestate.Asearlyas EconomicDevelopment, Galbraith(1964a,p.66)notedthatthefirststageofdevelopmentrequirestheeducation,communicationandtransportationthatmustbeprovidedbythestate.In addition,stateinitiativesforimprovinghealthandstatesupportfordeveloping

TheEconomicContributionsofJohnKennethGalbraith 183

heavyindustryareprerequisitesforeconomicdevelopment.However,theseare difficultthingsforapoornationtodo.Thus,developedWesternnationsmust helpredressthissocialbalancewithadequateforeignaid(Galbraith,1961,1964a). Radicaleconomiststendtodismisstheanalysisofinsularandmasspoverty developedbyGalbraith.Theyregarditasunrealisticandutopiansinceitrequires thestatealigningwiththeneedsofthemajorityofitspopulationratherthanwith theinterestsofthepowerfulbusinessclasses.Galbraith,incontrast,arguedthat,in democraticsocieties,thestatemustbemadetoreflecttheneedsofsocietyand,in doingso,mustcounterthepowerofthelargebusinessfirm.Thisbringsusto Galbraith’slastmajorcontribution,whichisaconsiderationoftherequisiteemancipatoryresponsetothepowerstructureinsociety.

5.AVisionofPoliticalEconomy:Power,theStateandSociety

Galbraith’s(1973b)presidentialaddresstotheAmericanEconomicAssociation criticizedeconomistsforignoringpowerrelationshipsandtherebypromulgating irrelevanttheoriesregardinghowtherealworldworks.Economicthinking removespowerfromtherealmofdiscoursebyassumingthatthemarketmitigates firmpowerandbydenyingitssalience.Yetthefailureofeconomiststorecognize thehistoricalevolutionofthemodernbusinessenterpriseanditsgrowingeconomicpowermeansthatattentionisdivertedawayfromquestionsofgreatsocial urgency.Inthisway,economicsservesapoliticalor‘instrumental’function (Galbraith,1971,Chapter4).Mucheconomicanalysispromotesaviewofthe businessfirmassubordinatetosocietythroughthemarketandthedemocratic process.Indoingso,economicsfunctionslessasanexplanatoryscienceand moreasabeliefsystemthatpromotesaconservativeagenda:‘Economicshas beennotasciencebutaconservativelyusefulsystemofbeliefdefendingthat beliefasascience’(Galbraith,1971,p.59).

Byeschewingthestudyofpowerandchange,economistshavefailedtoaddress pressingsocialtrends.ForGalbraith(1973b),‘inelidingpower–inmaking economicsanonpoliticalsubject–neoclassicaltheory,bythesameprocess,destroys itsrelationwiththerealworld’(p.2).Inaddition,itcontributeslittletocontemporary politicaldebatesbyfailingtoilluminatemanyoftheserioussocialconcernsof modernsociety–war,environmentaldecayand,ofcourse,poverty.

Indeed,Galbraitharguedthattheconventionalwisdomfailstoshedlighton manycontemporaryconcerns,suchas(1)theoverproductionofprivategoodsand theunderproductionofpublicgoods,(2)thesuperfluousnatureofmuchtechnical innovationdirectedatirrelevantcommodities,(3)thefailureofeconomicgrowth toameliorateenduringsocialproblems,(4)theunevendistributionofgovernment expenditure,reflectedinexcessivespendingonthemilitaryandotherformsof socialinfrastructure(e.g.roads)andtherelativeneglectofotherspending (healthcareandeducation),(5)theincreasinglyskewedincomedistribution betweendifferentsectorsandpersonnel,(6)theenduringdistinctionbetween thehigh-wageandlow-wageindustries,(7)theunresponsivenessofthemodern corporationandinternationalinstitutionstopublicpressureandopinion,(8)the problemsofeconomy-widecoordinationand(9)thecontinuingfearofinflation asopposedtodeflation.

Incontrast,Galbraith(1973a,Chapters20–22)arguedthathisanalysisofthe economicpowerpossessedbylargefirmsallowstheseconcernstobevoicedand addressedappropriately.Forexample,hearguedthattheevolutionofthemodern corporationisnotwhollymalign:itencouragestechnologicaldevelopmentand, bysodoing,contributesto(uneven)improvementsinourstandardofliving. ForthisreasonGalbraithmaintainedthatitisbettertolimitthepoweroflarge firmsthantoeliminatethatpowerbybreakingitup.Governmentsshouldseek toencouragethedevelopmentofcountervailingpowerintheprivatesectorof theeconomyby,forexample,supportinglaborunionsandsmallercompetitive businesses.10 AccordingtoGalbraith(1973a)thepowerbetweentheplanning andmarketsystemscanbemademoreequalbyimplementingpoliciesincluding minimumwagelegislation,guaranteedminimumincomes,protectivetariffsand supportforsmallbusinesses.Wheneveritisdifficultorimpossibletodevelop countervailingpower,thegovernmentmustitselfcounterthepoweroflarge corporationsbymakingsurethereisanadequatesupplyofthosethingsthat havesocialvaluebutthatarenotproducedbylargecorporations–forexample publicgoods,acleanenvironment,armscontrol,fullemployment,decent incomestoallworkersandrelativelylowlevelsofinflation.

Inadvocatingastrongroleforthestate,Galbraithhighlightedtheneedfor recognizingthenexusbetweenbigbusinessandthemodernstate.Galbraith (1973a)remarked,paraphrasingMarx,thatthemodernstate‘isnottheexecutive committeeofthebourgeoisie,butitismorenearlytheexecutivecommitteeof thetechnostructure’(p.188).Whilewieldingconsiderablepowerandinfluence motivatesthelargefirmaccordingtoGalbraith,theirintentionsareless MachiavellianthanMarxthought.Themoderncorporationseekstosecurea responsefromdomesticandforeigngovernmentsinordertomitigatetheuncertaintiesthatsurroundaccumulationandproductionandtosupporttheaffirmative andprotectivegoalsofstrategicdecisionmakers.

Thenexusbetweenthetechnostructureandthestatemeansthatpublicspendingwilltendtofollowandfavortheinterestsofthelargecorporation.Elementsof publicspendingthatalignthemselveswiththenarrowinterestsofthetechnostructurereceivetherequisitesanctionfromthatauthority.

Theplanningsystem,itwillbeevident,existsintheclosestassociationwiththe state.Theobviouscoreofthisrelationshipisthelargeexpenditurebythegovernmentforitsproducts.Thispaysfortheproductsofthosecorporations,most notablythelarge,specializedweaponsfirmsthatexistbysellingtothestate. Anditpaysalsoforthetechnicaldevelopmentthatsustainsthecycleofinnovationandobsolescenceandthusthecontinuityofthedemand(Galbraith, 1973a,pp.171–172).

10CountervailingpowerissimilartoJamesMadison’sideaofdividinguppoweringovernmentso thatnobranchofgovernmentornoparticularindividualcangaintoomuchpowerovereveryone else.Asaneconomist,Galbraithfocusesmainlyoneconomicpowerratherthanpoliticalpower, althoughthetwocanneverbeneatlyseparated.Fromthisperspective,thestatemustserve asanotherbranchoftheeconomyandmustcontainthepoweroflargefirmssimilartotheway thejudiciaryconstrainsthepoweroftheexecutivebranchofgovernment.

Thisalsoleadstoananalysisoftheissuesraisedinrecentdebatesonglobalization(seeDunn,2005).Althoughthemultinationalfirmgreatlyimpairsthe sovereigntyofnationalgovernmentsit

isnotbecauseofitstransnationalcharacter;itisbecausetheimpairmentof sovereignty–theaccommodationofthestatetothepurposesandneeds ofthecorporatetechnostructure–istheveryessenceoftheoperationsofthe planningsystem(Galbraith,1973a,p.188).

Whatismore,inrecognizingthedominationofmoderneconomiclifeby largecorporations,andthesymbioticnexusbetweenthemoderncorporation andthestate,theresultantskewingofpublicexpenditureisunderstood.This callsforactiontolimittheclaimsofthemilitary–industrialcomplexandthe technostructureonpublicexpenditure.Thisrequirestakingactioninorderto redresstheimbalanceofpublicexpenditurebyencouragingtheprovisionof moresociallydesirablegoodsandservices.Italsonecessitatessecuringthe independenceofthestatethroughpoliticalreformtoensurethattheregulation ofcorporatepowerbythestateisnotsubjecttoindustrycapture.

Afurtherconsequenceofthebimodalimageofthemoderneconomicsystem isitsinflationarybias.Galbraitharguedthatitisnocoincidencethattheemergenceanddominanceofthemoderncorporationoccursatthesametimethat inflationemergesasamajormacroeconomicpolicyissue.Themoderncorporation hasavestedinterestinmaintaininghighlevelsofeffectivedemand,whichheightensinflationarypressures.Theinflationaryconsequencesofhigherlevelsof demandhavelongbeenrecognized.Keynes(1940,1971)arguedinseveral worksthatthewaytocontrolinflationwastomanagedemandintheeconomy. Thiscouldbedoneeitherdirectly,throughtaxationorreducedspendingor indirectlythroughhigherinterestrates.Forexample,in HowtoPayfortheWar Keynes(1940)suggestedapolicyofforcedsavingsinordertoreducespending temporarilyduringtheSecondWorldWar.Afterthewarthesesavingswould bereleasedandwouldsparkdemandwhenwarspendingwasnolongerstimulatingtheeconomy.Incontrast,themonetaristcounter-revolutionarguedthat inflationisalwaysandeverywhereamonetaryphenomenonand,accordingly, controlofthemoneysupplyisneededinordertocontrolinflation(Friedman& Schwartz,1963).Withlessmoneytherewouldbelesspurchasingpower chasingthesameamountofgoodsandthiswouldtherebyreducetheinflationary pressuresintheeconomy.

Galbraithacceptedneitherthemonetaristsolutiontotheproblemofinflation northefiscalsolutionofKeynes,arguingthatbothfailtoassimilatetheconsequencesofinstitutionalchangeintheindustrialstructureintotheconduct ofmacroeconomicpolicy.Galbraithdidnotthinkthatmonetarypolicyisaneffectivewayofmanagingaggregatedemandandcontrollinginflationbecausethe planningsystemdoesmostoftheinvestingintheeconomyonthebasisof long-termplanningdecisions.Accordingly,‘mostinvestmentwillbeextremely unresponsivetomoderateincreasesintherateofinterest’(Galbraith,1958a, p.234)andtherewillbelittledeclineinspendinginresponsetochangesin monetarypolicy.Whatismore,monetarypolicyworksbyraisinginterest ratesandtherebyimpactingon‘thecostoravailabilityofcreditforcapital’

(Galbraith,1958a,p.181).Largecorporationswillbesomewhatinsulated fromsuchshort-termchangesbecausetheyhaverecoursetoretainedprofitsor internallygeneratedfunds.Theeffectisthusthatanti-inflationarymonetary policydiscriminatesagainstfirmsinthemarketsystem.Smallerfirmswillbe lessinsulatedandsoanothercaseagainstmonetarypolicyisthatitdiscriminates againstthemarketsystem.

However,Galbraith’smainargumentagainstusingmonetarypolicyfor controllinginflationisthat,totheextentthatitdoeswork,itworksinsocially undesirablewaysbyreducingdemandandincreasingunemployment.Thislast argumentalsoholdsagainsttheanti-inflationfiscalpoliciesofKeynes.According toGalbraith,Keyneswasrightthatatightfiscalpolicycancontrolinflation,but whathefailedtoemphasizeisthatitdoessobyimposingunacceptablylarge costsontheeconomy.

Anotheranti-inflationpolicyfrequentlyadvocatedbyeconomistsisgreater competition.Thoseespousingthisviewarguethatthegovernmentshould weakenmonopolypowerandrestoretheefficacyofthemarket.Incontrastto mosteconomists,andagainreflectinghisbimodalviewofthemodern economy,Galbraithrejectsgovernmentpoliciesforpromotingcompetitionas anineffectivewayofreducinginflationarypressures.Somewhatperversely,the pursuitofsuchpoliciesonlyservestoconsolidatethepowerofthelargefirms. Reflectingthepowerofthelargefirm,effortstointroducegreatercompetition arefocusedondismantlingcountervailingpower(e.g.tradeunionsand minimumwagepolices)ratherthanconfrontingtheoriginalpowerofthe largefirm.However,evenifanti-trustpolicydidhelpreduceinflationary pressures,therewouldbealargeloss.Policymakersrisklosingthedynamism, efficiencyanddemandcreationthatcomesfromlargefirmsthatundertake large-scaleinvestmentoverlongtimehorizonsanddrawontechnically sophisticatedresearchanddevelopment,whichyieldsmoreefficientmeansof production.

Rejectingthestandardaccountsofinflation,Galbraith(1952a,1973a,1977b) presentedacost-pushanalysis.Thedevelopmentofpowerblocsmakestheeconomicsystemmoreinflationaryand,thegreatertheeconomicpower,the greatertheforcesintheeconomythattendtoincreaseprices.Inthemarket systemincreasesinwagesandcostsofproductionwillbefought.Incontrast, thepursuitofsuchapolicyintheplanningsystemmightresultinaprotracted labordispute,whichwouldtainttheprestigeofthetechnostructureandundermine thegrowthofthefirm.Inaddition,astheconsumerissubjecttomanagementby thefirm,theeffectofanincreaseinpricesislikelytobeinconsequential.Thisalso contributestotheinflationarybiasoftheindustrialsystem.Finally,highlevelsof demandintheeconomyprovidetheconduitforhigherwagestobepassedonto theconsumerashigherprices,andforpeopleexperiencinghigherpricesto demandhigherwagesfromtheiremployer.Thestageissetforawage–price spiral.

Tocounterthis,Galbraith(1973a,1977b)arguedforthedevelopmentof appropriateinstitutions,suchaswageandpricecontrols–designedtominimize inflation.Controlsarerequired,accordingtoGalbraith,becauseinflationis causedprimarilybythepressuresofhigherincomesonpricesandhigherprices

onincomes.11 Inflationresultsbecausefirmsandunionshaveacquiredpowerover themarket.‘Wagesactonpricesandpricesonwagesascapacityisapproached. Controlspreventthisinterplay.Indoingso,theyallowtheeconomytofunction closertocapacitywithoutpriceincreases’(Galbraith,1958a,p.186).Pricecontrolsameliorateinflationarypressures,allowtheexpansionofaggregate demand,andletususetraditionalmacroeconomicpoliciesfordealingwiththe unemploymentproblem.

Thealternativeisthatapoolofunemployedresourceswillbeneededfordiscipliningwageandpriceclaimsandmaintainingpricestability(cf.Kalecki, 1943).However,thiscureisworsethanthedisease.ForGalbraith,theonly reasonablesolutiontotheinflationproblemisforthegovernmenttopreventthe marketpoweroflaborunionsandlargebusinessesfromcausinginflation.To achievethetwingoalsoffullemploymentaswellaspricestability,Keynesian macroeconomicpolicies,whichexpandeffectivedemand,mustbecombined withsomekindofincomespolicyinordertoaddresstheinevitableinflationary pressuresthatarisewhentheeconomyapproachesfullemployment.This radicalanalysisofinflationechoespost-Keynesianconflicttheoriesofinflation (seeWray,2001),andisahybridofKeynesandKalecki.

Tomany,thecontrolofpricesisananathematothewholestructureofeconomictheory.Controlsinduceneedlessrationingandgenerateanassociated bureaucracyformonitoringcompliance.Similarly,government-administered pricingorinterferenceinthelabormarketisviewedasleadingtoasuboptimal allocationofresources.Accordingly,itisarguedthatthemostefficientwayof allocatingscarceresourcesistounfetterthemarket.Galbraithdisputesclaims suchasthese.

First,hereiteratesthefactthatlargefirmsarenotpricetakers.Rather,firmsin theoligopolisticsectoroftheeconomyarepricemakersand,thus,‘itisrelatively easytofixpricesthatarealreadyfixed’(Galbraith,1952b,p.17).Intheplanning systemthedominantconventionistosetpricesbasedonsomemark-upoverthe costsofproduction.Moreover,themark-upitselfisalsobasedonconventions reflectingtheinterestsandobjectivesofincumbenttechnostructures.Thefact thatthecorporationsetspricestoreflecttheinterestsofthetechnostructure meansthatpricesintheindustrialsystemnolongerfunctionasindicesofscarcity. AsGalbraith(1973a)noted,inthemoderneconomy,‘theroleofpricesisgreatly diminished.Theyaremuchmoreeffectivelyunderthecontrolofthefirm’(p.127). Intheplanningsystempricesplayotherrolesthanpurelyallocativeones.Prices maybeheldconstantoralteredinresponsetochangesingeneralmarket conditions.Anyconstancyofpriceinthefaceofdemandchangesisthusrationalizedasreflectingtheobjectivesanddecisionsoffirmsandthemembersofthe

11Asnotedabove,Galbraithhasbeeninterestedintheissueofcontrollinginflationformostofhis career.HewaseffectivelytheUSpriceczarduringtheSecondWorldWarandhehascontinuously advocatedwageandpricecontrolsinordertokeepinflationincheck.Insomeofhisearliestwritings Galbraith(1941,1952a,b,1955a,1958b)arguedforcontrollingpricesinselectedindustries.In addition,intestimonybeforetheJointEconomicCommitteeofCongresson20July1971he calledforpermanentwageandpricecontrolsintheUSA. TheEconomicContributionsofJohnKennethGalbraith

technostructurerunningfirms.Likewise,anypricechangeswillreflecttheinterestsofthefirmandnotthesovereignwishesoftheconsumer.

Asaresult,controlsonpricesshouldbeviewedasrepresentinganattemptby governmentstoalignpricingconventionssothattheyhavemoresociallydesirable outcomes.Monitoringsuchcontrolsismadeeasier,accordingtoGalbraith,by thefactthatpricesneedtobecontrolledonlyintheoligopolisticsectorofthe economy,sincemarketpowerexistsonlyinthissector.Consequently,only 1000orsofirmsneedtobemonitored.Enforcementisalsoassistedbythefact thatlargeoligopolisticfirmsareallinthepubliceye.

6.Galbraith’sPlaceinEconomicThought

SeveralkeythemesstandoutintheworkofGalbraith.Herecognizestheeconomicpowerheldbylargefirmsandarguesthatsuchpowerisoneofthemain reasonsforthesuccessoftheUSeconomyinthepost-SecondWorldWarera. However,thispoweralsocreatesnumerousproblemsthatmustbeaddressedby thestatetakingonagreaterroleintheeconomy.Thestatemustcounterthe powerofthelargefirmandassistinprovidinggoodsandservicesthatarenot subjecttotheimperativesoforganizationandtechnology,andarethusnot producedbythelargefirm.Thestatemustalsouseitspowerformitigatingmacroeconomicproblemssuchasunemployment,inflationandpoverty.

Inanalyzingthechangingindustrialstructure,anditsconsequencesand policyimplications,Galbraithhasalsosoughttocounterthefalsebeliefsofeconomistsaswellasthepsychologicalpropensitytoacceptgivenideas.Hehasdone thisnotonlybypointingoutthatreceivedviewsareerroneousandserveacertain conservativepurpose,butalsobyattemptingtoofferanalternativetheoretical structure.Hehasdonethiswithwritingthathassoughttocounteraccepted beliefswithgood,clearprose.Inaddition,hehasdonethiswithwitandhumor ashistools,andbygoingovertheheadsoftheeconomicprofessionbygetting involvedinpoliticsandwritingfortheeducatednon-economist.Finally,hehas donethisbyinsistingthateconomicsberelevanttowhatisgoingoninthereal world.Forallthesereasons,theeconomiccontributionsofJ.K.Galbraith deserverenewedattention.

Whatismore,indevelopinghisoverarchingvisionofhowtheeconomy works,andinrecognizingthechanginginstitutionalstructureofmodern economies,Galbraithhasintroducedseveralimportantnotionsandmodesof analysisthatarenowwidelyacceptedbymanyeconomists.

Forexample,Galbraith’sdiscussionoftherelationshipbetweentechnology andorganizationpredatesandparallelsWilliamson’s(1975,1985)recognition oftheimportanceofassetspecificityforthestudyoforganizations(Dunn, 2001,2005).AccordingtoWilliamson,assetspecificityiscriticalinthat,once aninvestmenthasbeenundertaken,thebuyerandsellerbecomelockedintoa transactionforaconsiderableperiod,referredtoas‘expost bilateraldependence’. Incontrast,Galbraitharguesthattheimperativesofmoderntechnologyandthe associatedcommitmentsoftime,capitalandspecializedlaborinanuncertain environmententailthatplanningsupersedesthemarket.‘Planningexists becausethis(market)processhasceasedtobereliable (thefirm)must 188 S.P.Dunn&S.Pressman

TheEconomicContributionsofJohnKennethGalbraith 189

replacethemarketwithplanning’(Galbraith,1967b,p.41).Galbraithmoves beyondthelimitingviewof‘inthebeginningthereweremarkets’towardsa viewthat‘inthebeginningtherewasanabsenceofaneedforextensiveplanning astechnologywasnotthatsophisticated!’

Similarly,Galbraith’semphasisontheimportanceofeducationandhisargumentthathumancapitaldevelopmentisnecessaryforsolvingtheproblemof povertyrepresentsoneoftheearlieststatementsofhumancapitaltheory.Even beforetheworkofBecker(1964)andSchultz(1993)intheearly1960s,Galbraith (1958a,Chapter18)recognizedthateducationwasbothaninvestmentgoodanda consumptiongood.Moreover,helamentedthattheinvestmentcomponentofeducationwasnotgenerallyrecognized,arguingthathumancapitalandknowledge wasadecisivefactorofproductioninamoderneconomy(cf.Hodgson,1999).

AnothersalientaspectofGalbraith’stheoreticalstructureconcernshisanalysisofsavings.Economistshavelongfocusedonthesharpdropinsavingsratesin theUSAandthroughoutmostofthedevelopedworld(Seidman,1990;Walker etal.,1990;Maddison,1992),andhavepointedtorisinghouseholddebtratios asapotentialproblemfacingtheUSeconomyduringtheearlytwenty-first century(Godley,2000).

Galbraithanticipatedsuchconcernsbackinthe1950swhenherecognized that,inordertosustainitsproductionandplanningprocesses,thetechnostructure requiresthatconsumersbeabletobuythegoodsthatareproduced.Accordingly,

Theprocessofpersuadingpeopletoincurdebt,andthearrangementforthemto doso,areasmuchapartofmodernproductionasthemakingofthegoodsand thenurturingofwants(Galbraith,1958a,p.200).

Thismeanslowersavingsratesandhigherlevelsofindebtednessforthe household.Thusitisnosurprise,asStanfield(1983)noted,that

Easiercreditchecks,lowerdownpayments,longerrepaymentterms,andother inducementsforpeopletogofurtherandfurtherintodebtarepermanentand necessaryfixturesoftheconsumersocietydescribedin TheAffluentSociety (p.591).

Suchananalysiscanbemarshalledinexplainingtherecentprecipitousdecline insavingsratesandtheassociatedriseinconsumerdebtandbankruptcies. Moreover,ithelpsinidentifyingtheroleofconsumerdebtinsupportinghigher levelsofconsumptionandaugmentingdemandintheeconomy.Yetthebimodal viewalsohighlightstheincreasinglyprecariousnatureofsuchanexplosionof debt,whichaddstomacroeconomicinstability(cf.Minsky,1982;Godley,2000).

Galbraithwasalsooneofthefirsteconomiststoargueagainstusing traditionaleconomicmeasuresofgrowth(suchasgrossdomesticproductor industrialproduction)inordertoestimateeconomicandsocialwellbeing. Galbraitharguedthatmanyofthegoodsthatgetproducedandsolddonot satisfyimportantneeds;someofthemarejustfrivolous,forexamplecomic books,narcotics,pornography,switchbladeknivesandguns.Allgoodsproduced bytheplanningsystemarecountedaspartofGDP,butcognizanceofthemanagementoftheconsumerbythelargecorporationsuggeststhatallneednotaddress basichumanneedsorimprovethequalityoflifesubstantively.Galbraithnotedthe

190 S.P.Dunn&S.Pressman

perversitythatgoodsthatpollutetheenvironment,thatmanipulateandmanage consumerdemand,andgoodsthatthreatencivicsociety,suchasnuclear weapons,counttowardsGDP,whereassomethingsthatmanypeoplevalue, suchasleisuretime,safestreets,acleanenvironmentandaworldsafefrom nucleardestruction,donotgetcountedinGDP.Moreover,suchtechnicalconsiderationsregardingmeasurementarenotwithoutconsequence.Thebias towardsconsumerismfuelstheemulatoryprocessesthatcharacterizetherat raceandresultsinpeopleworkingharderandharderinordertoconsumemore andmore(Schor,1991).

AnothernotableaspectofGalbraith’sanalysisishisidentificationofthe problemofarisingunderclass,whichreceivedconsiderableattentioninthe USAbeginninginthe1980s(Auletta,1982;Wilson,1987).Thisproblemwas firstanticipatedandanalysedbyGalbraith(1958a,pp.97and327f.)inthe 1950s.Inaddition, ATheoryofPriceControl (Galbraith,1952b)precededboth HicksandOkuninrecognizingthesalienceofclassifyingtheeconomyintofix andflexpricesectors(Colander,1984)(cf.Galbraith,1936).

Notwithstandingsuchcontributions,manymainstreameconomistsreject (andhaveforgotten!)hissystemofthought.TheytypicallyviewGalbraithas moreofasocialtheoristthananeconomist,ortheytendtoseehimasanambitious systembuilderwhopreferstosubstitutegeneralizationforrigorousanalysis.Ona morepersonallevel,economiststendtoregardGalbraithwiththesamedisdain thatGalbraithhasheapedonthemthroughridiculingtheiroutdatedviewsof thefirmandtheirinabilitytoexplainwhatisgoingonintherealworldbecause ofaninfatuationwithunrealistic,formalmodelling.Theresulthasbeenthat ‘Galbraith’sworkonthemoderncorporation,andpublicpolicytowardit,has beenscantilyexploredinthejournals’(Davidson&Weintraub,1978,p.5).

MoreinterestingistherelationshipbetweenGalbraithandtwoheterodox schoolsofthoughtthathaveexpressedagreatdealofappreciationforhiswork: theinstitutionalistsandthePostKeynesians.ItwasnotedearlierthatGalbraith receivedtheVeblens–CommonsawardfromtheAssociationforEvolutionary Economicstohonorhiscontributionstoinstitutionalistthinking(seeGalbraith, 1977b)andthatGalbraithwasinstrumentalinthefoundinganddevelopment ofthe JournalofPostKeynesianEconomics. However,althoughthe Journalof PostKeynesianEconomics hashadasymposiumonGalbraith’stheoryofthe firmandthe JournalofEconomicIssues hashadasymposiumonthetwentieth anniversaryof TheNewIndustrialState (Galbraith,1967b),itwouldnotbe unfairtosuggestthatGalbraith’seconomiccontributionshavealsobeenpretty muchignoredbybothinstitutionalistsandPostKeynesians.

Wewouldarguethatsuchneglectisunwarranted,asGalbraith’ssystemof thoughthasmuchtoaddtothedevelopmentofanalternativetothe conventionalwisdom–somethingtowhichbothoftheseschoolsofthought aspire.Withhisfocusontherelationshipsbetweenpower,thefirmandthe state,theGalbraithiansystemfacilitatestheintegrationoftheeconomics ofKeynes,Kaleckiandtheinstitutionalistsintoacomprehensivevisionofpoliticaleconomy.Whileinstitutionalistshavefocusedontheoriginsandnatureof power,andgenerallyespousedaviewofmacroeconomicsthatiscompatible withPostKeynesianism,theyhavenotsoughttointegratethemintotheiranalysis.

Similarly,whilePostKeynesianshaveacknowledgedthepresenceandroleoffirm power,theyhavebeenreluctanttomovebeyondtheirmodelsofimperfectcompetitionandaggregatedemand,andtoanalysetheimpactoforganizationalpower onwidersocialandeconomicprocesses(Peterson,1989).Galbraith’svisionoffers astartingpointfordevelopingaresearchagendaalongtheselines.Assuch,he shouldbeviewedasafoundationalfigureforintegratinginstitutionalistand PostKeynesianeconomics.Severalfeaturesofthisintegrationstandout.

First,Galbraithsharesmanymethodologicalsimilaritieswithinstitutionalists andPostKeynesians.Forboththeseschools,economictheorymustberealisticand mustdescribethegeneralfeaturesofourrealworldexperience(seeDunn& Mearman,2005).Bothschoolsemploycumulativecausationmodels,where historyandrealindividualbehaviorinteract,ratherthanequilibriummodels basedonoptimizingbehavior.Finally,bothschoolsrejecttheideathateconomic analysismustbeginwithindividualswhoarerationalandwhoknowtheirdesires andpreferences.

Galbraithalsorejectsmuchoforthodoxanalysisbecauseitfailstoexplain realworldphenomena.Instead,headoptsanhistoricalorientationthatrecognizes theimportanceofcumulativecausation.Thehistoricalembeddednessofhis analysisofthefirmanditsevolutionaryimplicationsforsocietywasseen earlier,aswellashisincorporationoftheprocessesofcumulativecausation intohisanalysisofpoverty.Galbraithalsoeschewsmethodologicalindividualism anditsimplicationthatknowledgeofatomisticbehaviorissufficientfor explainingmacroeconomicoutcomes.Instead,headoptsaPostKeynesian–institutionalistviewthatindividualactionsaresociallyconditionedandculturallycontingent.Inthisframework,conventionsandmanufacturedhabitsplayanimportant roleinindividualbehaviorandcanleadtosuboptimalresults.Emulationandconspicuousconsumption,developedandreinforcedbyadvertising,resultinlow savingsrates,highconsumerindebtednessandtheneglectofpublicgoods, myriadeconomicinstitutionscontributetoawage–pricespiral;andeconomic institutionscontributetothepsychicaccommodationtomasspoverty.

Second,Galbraith’sanalysisofthefirmaccordswiththePostKeynesian analysisofuncertainty.Galbraithconsiderstheimpactofuncertaintyonfirm behaviorand,indoingso,laysafoundationforfurthercontributionstothe developmentofaPostKeynesiantheoryofthefirmAsDunn(2001,p.157) arguesPostKeynesianshavetraditionallyfocusedonuncertaintyatthemacroeconomiclevelandhavelargelyneglecteduncertaintywhenitcomestothinking aboutthefirm.However,ashasbeenseen,Galbraitharguesthatmanyofthe organizationalstrategiespursuedbythefirm,includingtheuseoflong-term moneycontracts,helpsreducetheuncertaintyfacedbythefirm.Indoingso Galbraithdevelopsaviewofthemoderncorporationthatisconsistentwith PostKeynesianmonetarytheory,andthusoffertheprospectoffurtherdevelopmentoffers(cf.Davidson,1972).

Third,Galbraith’sbimodalimageoftheplanningandmarketsectorsaccords withaKaleckianviewofthemoderneconomy.Forbothofthesethinkersthe economyisprincipallycharacterizedbyanoligopolisticsector,dominatedby themajorcorporations,andacompetitivesectorwhichcoversagricultureand certaininputmarkets,andisintheserviceofthemoredominantsector.Like TheEconomicContributionsofJohnKennethGalbraith

Kalecki,Galbraithpresentsananalysisofcapitalismwhereorganizationbrings powerinadditiontoincomeandwherethedecisionsofindividualworkers,consumersandhouseholdsareoflimitedsignificance.Inaddition,asCanterbury (1984,p.78)pointedout,Galbraith’snotionoffirmpowerandKalecki’snotion ofthedegreeofmonopolyhavemuchincommon.Ofcourse,classconflictfor GalbraithisdifferentthanclassconflictforKalecki.Thereasonforthisdifference stemsfromGalbraith’sanalysisofthetechnostructure.Thepersuasivepowerand respectabilityofthetechnostructuremeansthatsocialconflicthasbecomemore diffuseandhidden.Moreover,forGalbraiththedivisionbetweentheplanning sectorandthemarketsectorhasmorecontemporaryrelevancethanthe outmodeddistinctionbetweentheownersofthemeansofproductionand workerswhomustlaborfortheirincome(whichhasbeensomewhatusurpedby theemergenceofthetechnostructure).

Fourth,Galbraithoffersanalternativetothestagnationistthesesespousedby somePostKeynesians.Steindl(1945),forexample,integratedMarxistand Kaleckianideasontheadvantagesenjoyedbylargefirmsintheircompetitive strugglewithsmallerenterprisesinordertoexplainwhyincreasingconcentration wasasalientfeatureofadvancedcapitalistdevelopment.Steindl(1952)also arguedthattheemergenceofoligopolyhasstifled(price)competitionandresulted inhigherprices,reducedsales,highermarginsandprofits,aswellasadegreeof excesscapacityatthelevelofthefirmtosmoothvariationsindemand.However, excesscapacityandunderproductionalsocreateapropensityforeconomywidestagnation.Whilethisthesisoffersasuperficiallyappealingexplanationof theGreatDepression,itprovesalesssatisfactoryexplanationfortherisein livingstandardswitnessedoverthetwentiethcentury,especiallyinthepostSecondWorldWarera.ForGalbraithitisthisthatrequiresexplanationandhe seekstoprovidesuchanexplanationbyfocusingonthelargefirmanditsnexus tothestate,technologicaladvanceandeconomicgrowth.

Fifth,likemanyPostKeynesiansandinstitutionalists,Galbraithacceptsthat, inamonetaryproductioneconomy,thelevelofeffectivedemandsetsthelevelof economicactivity.AssuchGalbraith(1973a,p.37)firmlyrejectsSay’sLaw.For Galbraith,thereislittlereasontothinkthatthelevelofeffectivedemandwillautomaticallybeconsistentwithfullemploymentandthepurchaseallofthegoodsthat theplanningsystemisabletofurnish.Indeed,therevisedsequenceisaplanning responsetotheabsenceoffactorsautomaticallyensuringahighandstablelevelof demandforthegoodsproducedbytheplanningsystem.Thisalsoexplainswhythe planningsystemmayseekaprotectiveresponsefromthestate–bybuying (directly)itsgoods(e.g.thedefenceindustries)andlobbyingforpoliciesthat supportthe(general)demandforitsproducts(e.g.bypursuingKeynesian macroeconomicpolicies,engaginginroadbuilding,etc.).However,suchinstitutionalresponsesdonotworkpreciselyanddonotconspiretore-institute Say’sLaw(indeedtheconservativeretrenchmentsawthestateweakenthecountervailingpoweroflabormarketinstitutionsthroughreductionsinthelevelsof aggregatedemand).

Sixth,likeallPostKeynesians,Galbraithrejectsthemonetaristinflation story,whereincreasesinthestockofmoneycauseinflation.Rather,forGalbraith, inflationarisesfromtherealsideoftheeconomy,withincreasesinthestockof

moneybeingcausedbyincomeconflictamongdifferentgroupsinsociety(includingthetechnostructure).Asnotedabove,slowingdowntheeconomyandincreasingunemploymentcancontrolinflation,butGalbraithadvancescontrolsonprices asabettermeansofdealingwiththisproblem–aperspectivesharedbymany PostKeynesians(forexampleCornwall,1977,1994).

Seventh,likemanyinstitutionalists,Galbraithnotedadichotomybetweenthe workingsofthefinancialsystemandtheworkingsoftechnology.Atthebeginning ofthetwentiethcentury,Veblen[1904,1921]distinguishedbusinessactivities fromthetechnicalprocessesofproduction,andthuscapitalistsfromengineers.Capitalists,forVeblen,werepredators,onlyinterestedinmakingprofits. Engineers,whodesignedprocesses,wereconcernedwithproductivityand efficiency.Somewhatnaively,Veblenthoughtthatmachineprocesseswould facilitateagreaterplanningofproductionanddistribution,wouldultimately supersedetheneedforapricesystem,andwouldendthewasteofconspicuousconsumption.SuchconcernsareevidentinGalbraith,whoanalyzedtechnological developmentanditsnexustothebusinessenterprise,aswellastheconsequences ofadualeconomythatresultedfromtheunevendevelopmentoftechnology. However,GalbraithwentfurtherthanVeblen.Healsoaddressedtheimportant issueofdealingwiththeunequalpowerbetweenthosepartsoftheeconomydominatedbythemachineprocessandthosethatarenotamenabletomachine processes.

Eighth,Galbraithacknowledgesandanalyzesthefinancialinstability endemictomoderncapitalism(Galbraith,1955b,1990). TheGreatCrash,1929 (Galbraith,1955b)providesahistoricaldescriptionoftheeventsprecedingand accompanyingaparticularfinancialcrisis,butonewithdevastatingimpact.Its analysisrepresentsastudyinmasspsychologyandcanbeviewedasanembellishmentoftheanimalspiritsandirrationalpsychologyoffinancialinstitutions.ReminiscentofKeynes(1964)andMinsky(1982),itdescribeshowthehuman proclivitiesofgreed,euphoria,frustratedexpectationsandpanicmovefinancial markets,andhowchangesintheeconomyprovokeheightenedexpectationsof returnandleadtoexcess,fraudandeventualcollapse.

Finally,Galbraith’ssystemattemptedtogeneralize TheGeneralTheoryof Employment,InterestandMoney [Keynes,1936],takingintoaccountinstitutional processesthathavechangedthestructureandnatureofeconomicsocietyand alteredtheefficacyofsimpleKeynesianpolicies.LikeKeynes,Galbraith pointedouthowcertaininstitutions,suchasthestockmarketandthemoderncorporation,distortrationalityandeconomicoutcomes.However,GalbraithrecognizedtheneedtomovebeyondKeynesandconsidertheramificationofmodern economicdevelopmentandtheimpactuponanalysis:

[Keynes]wasrighttotheextentthateconomicsisconcernedwiththeproduction ofgoodsandthepreventionofdepressions ... [buth]edidnotseethat,with economicdevelopment,powerwouldpassfromtheconsumertotheproducer. And,notseeingthis,hedidnotseetheincreasingdivergencebetweenproducer orplanningpurposeandthepurposeofthepublic.Andhedidnotseethat–sincepowertopursuetheplanningpurposeisunequallydistributed–developmentwouldbeunequal.Andtherewiththedistributionofincome. Nordidheseethatthepursuitofsuchpurposewouldthreatentheenvironment

andvictimizetheconsumer.Andhedidnotseethatthepowerwhichallowsproducerpurposetodivergefrompublicpurposewouldensurethatinflationwould notyieldtoasimplereversalofthepoliciesthatheurgedforunemploymentand depression.Nordidheforeseetheproblemsofplanningco-ordination,national andinternational.(Galbraith,1973a,p.342).

Insum,thecentralthemesofPostKeynesianeconomics,whichincludea concernforhistory,uncertainty,distributionalissues,andtheimportanceofpoliticalandeconomicinstitutionsindeterminingthelevelofeconomicactivity,are allcentraltenetsoftheGalbraithiansystem.Likewise,thecentralthemesofthe institutionalists–economicpower,howinstitutionsaffectindividualbehavior, andtheimportanceofunderstandingtherealworldbyactuallyexaminingit–areallmajoraspectsofGalbraith’seconomics.Hissystemthusallowsamarriage ofVeblen,KeynesandKaleckiinanupdatedandcomprehensivevisionof themoderneconomy.Itshouldformthefoundationofrenewedeffortsto developanalternativetotheconventionalwisdom.

Acknowledgements

TheauthorswouldliketothankRonStanfieldforhelpandadvice.The CommonwealthFund,aNewYorkCity-basedprivateindependentfoundation, supportedtheresearchundertakenbyStephenDunn.Theviewspresentedhere arethoseoftheauthorsandnotnecessarilythoseofTheCommonwealthFund theirdirectors,officersorstaff.

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Galbraith,J.K.(1934)Branchbankinganditsbearingonagriculturalcredit, JournalofFarm Economics,16(2).

Galbraith,J.K.(1934)SomeaspectsoftheoverseasmarketforCanadianhoney, Scientific Agriculture,December.

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Galbraith,J.K.(1953)Thepoorcountries, Encounter,1,pp.68–72.

Galbraith,J.K.(1954)Countervailingpower, AmericanEconomicReview,44(2),pp.1–6.

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Galbraith,J.K.(1957)Arelivingcostsoutofcontrol?, AtlanticMonthly,199(2),pp.37–41.

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Galbraith,J.K.(1958)Thedaysofboomandbust, AmericanHeritage. (reprintedinGalbraith (1960) TheLiberalHour,pp.82–97(Boston:HoughtonMifflin)).

Galbraith,J.K.(1958) JourneytoPolandandYugoslavia (Cambridge:HarvardUniversityPress).

Galbraith,J.K.(1958)ThemysteryofHenryFord, AtlanticMonthly,201(3),pp.41–47.

Galbraith,J.K.(1958g)RivaleconomictheoriesinIndia, ForeignAffairs,36(4),pp.587–596.

Galbraith,J.K.(1959)Developedeconomicattitudesandtheunderdevelopedeconomy, Public Policy,9,pp.73–83.

Galbraith,J.K.(1959)Heresyrevisited, Encounter,12(1),pp.45–53.

Galbraith,J.K.(1959)Mr.Hunteroncountervailingpower:acomment, EconomicJournal,69(273), pp.168–170.

Galbraith,J.K.(1959)Thepleasuresandusesofbankruptcy, TheReporter (reprintedinGalbraith (1960) TheLiberalHour,pp.138–144(Boston:HoughtonMifflin)).

Galbraith,J.K.(1959)Royaltyonthefarm, TheReporter (reprintedinGalbraith(1960) TheLiberal Hour,pp.151–159(Boston:HoughtonMifflin)).

Galbraith,J.K.(1959)Thesocialbalance, EducationalRecord,40(3),pp.183–188.

Galbraith,J.K.(1960)Theageofthewordfact, AtlanticMonthly,206(3),pp.87–89.

Galbraith,J.K.(1960)Forpublicandpotentbuilding, TheNewYorkTimesMagazine,9October, pp.34,64,68and70.

Galbraith,J.K.(1960)Introduction,in:R.Shaplen(Ed.) Kreuger,GeniusandSwindler (NewYork: Knopf).

Galbraith,J.K.(1960) TheLiberalHour (Boston:HoughtonMifflin).

Galbraith,J.K.(1960)Mr.Nixon’sRemedyforInflation, Harper’sMagazine,February,pp.29–34.

Galbraith,J.K.(1961)Economicpowerandthesurvivalofcapitalism,in:S.Tsuru(Ed.) Has CapitalismChanged? (Tokyo:IwanamiShoten).

Galbraith,J.K.(1961)EdO’Connor, NewYorker,24June(reprintedinGalbraith(1971) AContemporaryGuidetoEconomics,Peace,andLaughter,pp.231–237(Boston:HoughtonMifflin).

Galbraith,J.K.(1961) OnCriticismintheOpenSociety (NewDelhi:UnitedStatesInformation Service).

Galbraith,J.K.(1962)Theapproachtopoverty, DepartmentofStateBulletin,46(1200), pp.1024–1027.

Galbraith,J.K.(1962)Dissentinafreesociety, AtlanticMonthly,209(2),pp.44–48.

Galbraith,J.K.(1962)Economic-development–rivalsystemsandcomparativeadvantage, DepartmentofStateBulletin,47(1201),pp.13–17.

Galbraith,J.K.(1962)Thelanguageofeconomics, Fortune (reprintedinGalbraith(1971) AContemporaryGuidetoEconomics,Peace,andLaughter,pp.32–44(Boston:HoughtonMifflin)).

Galbraith,J.K.(1962)Thepovertyofnations, AtlanticMonthly,210(4),pp.47–53.

Galbraith,J.K.(1963)Introduction,in:G.Steinem(Ed.) TheBeachBook (NewYork:VikingPress).

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Galbraith.,J.K.(1964)Economicsandthequalityoflife, Science,145(3628),pp.117–123. Galbraith,J.K.(1964)ExperimentinIndia, SaturdayReview,15August,pp.20–23.

Galbraith,J.K.(1964)ReflectionontheAsianscene, JournalofAsianStudies,23(4),pp.501–504. Galbraith,J.K.(1965) EconomicPolicySince1945:TheNatureofSuccess (NewYork:Graduate SchoolofBusinessAdministration,NewYorkUniversity).

200 S.P.Dunn&S.Pressman

Galbraith,J.K.(1965)Economicsvsthequalityoflife, Encounter,24(1),pp.31–39.

Galbraith,J.K.(1965)Foreignpolicy:thestuckwhistle, AtlanticMonthly,215(2),pp.64–68.

Galbraith,J.K.(1965)Galbraith’sreply, Encounter,24(6),p.92.

Galbraith,J.K.(1965)U.S.embassygeese, NewYorkTimes,14June,p.32.

Galbraith,J.K.(1966)AgendaforAmericanliberals, Commentary,41(6),pp.29–34.

Galbraith,J.K.(1966)Planningahead–reply, Commentary,42(3),p.14.

Galbraith,J.K.(1966)Thestarvationofourcities, TheProgressive,December(reprintedin Galbraith(1986) AViewfromtheStands,pp.19–25(Boston:HoughtonMifflin)).

Galbraith,J.K.(1966)WilliamF.Buckley,Jr, NewYorkHeraldTribune,16October(reprintedin Galbraith(1971) AContemporaryGuidetoEconomics,Peace,andLaughter,pp.237–240 (Boston:HoughtonMifflin)).

Galbraith,J.K.(1967)Capitalism,socialism,andthefutureoftheindustrialstate, AtlanticMonthly, 219(6),pp.61–67.

Galbraith,J.K.(1967)Interview:thepublicsectorisstillstarved, Challenge,15(3),pp.18–21.

Galbraith,J.K.(1967)Marketplanningandtheroleofgovernment, AtlanticMonthly,219(5), pp.69–79.

Galbraith,J.K.(1967)Thenewindustrialstate:planningandthemoderncorporation, Atlantic Monthly,219(4),pp.51–57.

Galbraith,J.K.(1967) TheNon-potableScotch:AMemoirontheClansmeninCanada (Harmondsworth:PenguinBooks).

Galbraith,J.K.(1967) Planning,RegulationandCompetition:EvidencetotheSubcommitteesofthe SelectCommitteeonSmallBusiness,USSenate,90thCongress,1stSession (Washington,DC: USGovernmentPrintingOffice).

Galbraith,J.K.(1967)Thepolipollutionists, AtlanticMonthly,219(1),pp.52–54.

Galbraith,J.K.(1967)Reviewofareview, PublicInterest,9,pp.109–118.

Galbraith,J.K.(1967)Vietnam–awayoutofVietnam–thoughtsandpossibilitiesforrevisionof Americanpolitics, EuropaArchiv,22(23),pp.851–863.

Galbraith,J.K.(1967)Vietnam:themoderatesolution, ChristianityandCrisis,27, pp.185–190.

Galbraith,J.K.(1968)ThecaseforconstitutionalreformatHarvard, HarvardAlumniMagazine,23 December(reprintedinGalbraith(1986) AViewfromtheStands,pp.109–113(Boston: HoughtonMifflin)).

Galbraith,J.K.(1968)Thefutureoftheindustrialsystem, McKinseyQuarterly,5(1),p.26.

Galbraith,J.K.(1968)Introduction,in:J.Mill(Ed.) TheHistoryofBritishIndia (NewYork: ChelseaHousePublishers).

Galbraith,J.K.(1968) TheTriumph:ANovelofModernDiplomacy (Boston:HoughtonMifflin).

Galbraith,J.K.(1969)1929and1969–financialgeniusisashortmemoryandarisingmarket, Harper’s,239(1434),pp.55–62.

Galbraith,J.K.(1969)Theaffluentsocietyaftertenyears, AtlanticMonthly,223(5),pp. 37–44.

Galbraith,J.K.(1969)TheAmericanambassador, ForeignServiceJournal (reprintedinGalbraith (1971) AContemporaryGuidetoEconomics,Peace,andLaughter,pp.147–159(Boston: HoughtonMifflin)).

Galbraith,J.K.(1969)Berkeleyinthethirties, AtlanticMonthly (reprintedinGalbraith(1971) AContemporaryGuidetoEconomics,Peace,andLaughter,pp.259–270(Boston:Houghton Mifflin)).

Galbraith,J.K.(1969)Thebigdefensefirmsarereallypublicfirmsandshouldbenationalised, TheNewYorkTimesMagazine,16November,pp.50and162–170.

Galbraith,J.K.(1969)Theconsequencesoftechnology, JournalofAccountancy,127,p.44.

Galbraith,J.K.(1969)JohnSteinbeck, AtlanticMonthly,224(5),pp.65–67. Galbraith,J.K.(1969)ProfessorGordonon‘TheCloseoftheGalbraithianSystem’, Journalof PoliticalEconomy,77(4),pp.494–503.

Galbraith,J.K.(1969)Remarksonplanningandmarket, PolitickaEkonomie,17(11), pp.1048–1049.

Galbraith,J.K.(1969)Reply, HarvardAlumniMagazine,24February(reprintedinGalbraith(1986) AViewfromtheStands,pp.113–116(Boston:HoughtonMifflin)).

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Galbraith,J.K.(1970)DwightD.Eisenhower,General, BookWorld,WashingtonPost,28June (reprintedinGalbraith(1971) AContemporaryGuidetoEconomics,Peace,andLaughter, pp.212–216(Boston:HoughtonMifflin)).

Galbraith,J.K.(1970)Economicsasasystemofbelief, AmericanEconomicReview,60(2), pp.469–478.

Galbraith,J.K.(1970)TheNixonadministrationandthegreatsocialistrevival, NewYork,21 September(reprintedinGalbraith(1971) AContemporaryGuidetoEconomics,Peace,and Laughter,pp.86–97(Boston:HoughtonMifflin)).

Galbraith,J.K.(1970)Odysseyofafriend,W.ChambersletterstoW.F.Buckley,Jr,1954–1961, NewRepublic,162(13),pp.17–19.

Galbraith,J.K.(1970)Plainlessonsofabaddecade, ForeignPolicy,1,pp.31–45.

Galbraith,J.K.(1970)RichardNixon, Life,27March(reprintedinGalbraith(1971) A ContemporaryGuidetoEconomics,Peace,andLaughter,pp.216–220(Boston:Houghton Mifflin)).

Galbraith,J.K.(1970)Wage–Pricecontrols–thecureforrunawayinflation, NewYorkTimes Magazine,7June,pp.25and104–105.

Galbraith,J.K.(1970)WhydoyougotoGstaad?, Holiday,January(reprintedinGalbraith(1971) A ContemporaryGuidetoEconomics,Peace,andLaughter,pp.253–259(Boston:Houghton Mifflin)).

Galbraith,J.K.(1970)WinninginNovemberisnotenough, NewRepublic,162(24),pp.13–14.

Galbraith,J.K.(1971)AlbertSpeerwasthemantosee, NewYorkTimesBookReview,10January, pp.2–3and30–31.

Galbraith,J.K.(1971)ThedayNikitaKhrushchevvisitedtheestablishment, Harper’sMagazine, February(reprintedinGalbraith(1971) AContemporaryGuidetoEconomics,Peace,and Laughter,pp.199–207(Boston:HoughtonMifflin)).

Galbraith,J.K.(1971)Doyousincerelywanttoberich?, WashingtonPost,15August(reprinted inGalbraith(1979) AnnalsofanAbidingLiberal,pp.311–317(Boston:Houghton Mifflin)).

Galbraith,J.K.(1971)EastPakistan:wecanhelp–butwithoutarms, NewYorkTimes,19August, p.35.

Galbraith,J.K.(1971)GalbraithanswersCrosland, NewStatesman,22January,p.101.

Galbraith,J.K.(1971)Introduction,in:J.-J.Servan-Schreiber&M.Albert(Eds) TheRadical Alternative (NewYork:Norton).

Galbraith,J.K.(1971)PatternsfromdifficultdecadeinAmericanforeignpolicy, EuropaArchiv, 26(5),pp.159–170.

Galbraith,J.K.(1971)Preface,in:R.A.Butler(Ed.) TheArtofthePossible (Boston:Gambit).

Galbraith,J.K.(1971)TheUnitedStates, NewYork,15November(reprintedinGalbraith(1986) AViewfromtheStands,pp.215–229(Boston:HoughtonMifflin)).

Galbraith,J.K.(1971)Who’smindingthestore?,in:P.Nobile(Ed.) TheConIIIControversy:The CriticsLookattheGreeningofAmerica (NewYork:PocketBooks).

Galbraith,J.K.(1971) TheAmericanLeftandSomeBritishComparisons (London:FabianSociety).

Galbraith,J.K.(1972)Bucklyv.Vidal Esquire,13October,pp.1113–1115.

Galbraith,J.K.(1972)ThecaseforGeorgeMcGovern, SaturdayReview,1July.

Galbraith,J.K.(1972)Competingwithgovernment, NewYorkTimes,17September,p.E10.

Galbraith,J.K.(1972)Contemporarycapitalismandtheproblemofunequalgrowth, Acta Oeconomica,9(2),pp.117–126.

Galbraith,J.K.(1972)EleanorandFranklinrevisited, NewYorkTimesBookReview,19March,p.2.

Galbraith,J.K.(1972)Theemergingpubliccorporation, Business&SocietyReview,1,p.54.

Galbraith,J.K.(1972)Foreword, AmericanEconomicReview,62(2),pp.R7–R8.

Galbraith,J.K.(1972)GalbraithhasseenChina’sfutureanditworks, NewYorkTimesMagazine, 26November,pp.38–9and88–94.

Galbraith,J.K.(1972)Recenteconomicpolicy:thedeeperperspective, SAMAdvanced ManagementJournal,37(4),pp.13–21.

Galbraith,J.K.(1973) AChinaPassage (Boston:HoughtonMifflin).

Galbraith,J.K.(1973)Controlsorcompetition–what’satissue?Comment, ReviewofEconomics andStatistics,55(4),p.524.

202 S.P.Dunn&S.Pressman

Galbraith,J.K.(1973)Conversationwithaninconvenienteconomist, Challenge,16(4),p.28–37.

Galbraith,J.K.(1973)Economics:unequaldevelopmentandthetheoryofsocialaction, ProceedingsoftheRoyalSocietyofMedicine,66(6),pp.559–564.

Galbraith,J.K.(1973)Introduction,in:T.Veblen(Ed.),The TheoryoftheLeisureClass (Boston: HoughtonMifflin).

Galbraith,J.K.(1974)AcrossAustrailiabytrain, TravelandLeisure (reprintedinGalbraith(1979) AnnalsofanAbidingLiberal,pp.221–229(Boston:HoughtonMifflin)).

Galbraith,J.K.(1974)Corporationsintheeighties, AnnalsofPublic&CooperativeEconomics, 45(3/4),p.267.

Galbraith,J.K.(1974)Diplomat, NewYork,21October,pp.130–131.

Galbraith,J.K.(1974)Thehighereconomicpurposeofwomen, MSMagazine,May(reprintedin Galbraith(1979) AnnalsofanAbidingLiberal,pp.36–46(Boston:HoughtonMifflin)).

Galbraith,J.K.(1974)Hindsight, NewRepublic,171(8),p.8.

Galbraith,J.K.(1974)Neurosesoftherich, Playboy,February.(reprintedinGalbraith(1979) AnnalsofanAbidingLiberal,pp.148–152(Boston:HoughtonMifflin)).

Galbraith,J.K.(1974) OfMenandForeignPolicy (SantaBarbara,CA:CenterfortheStudyof DemocraticInstitutions).

Galbraith,J.K.(1974)ThepaintingsofHusain, BostonGlobe,1December(reprintedinGalbraith (1986) AViewfromtheStands,pp.162–164(Boston:HoughtonMifflin)).

Galbraith,J.K.(1974)RichardNixon, BostonGlobe,18August(reprintedinGalbraith(1986) A ViewfromtheStands,pp.393–396(Boston:HoughtonMifflin)).

Galbraith,J.K.(1974)Scotland’sgreatestson, Horizon (reprintedinGalbraith(1979) Annalsofan AbidingLiberal,pp.86–102(Boston:HoughtonMifflin)).

Galbraith,J.K.(1974)Solvingunemploymentwithoutinflation, SocialPolicy,5(3),pp.4–5.

Galbraith,J.K.(1974)Thetechnostructure, NewYorkCertifiedPublicAccountant,44,p.75.

Galbraith,J.K.(1974)Vescoandthejoyofswindling, NewYork,18November(reprintedinGalbraith(1979) AnnalsofanAbidingLiberal,pp.317–322(Boston:HoughtonMifflin)).

Galbraith,J.K.(1974)WhatcomesafterGeneralMotors? NewRepublic,171(18)(reprintedin Galbraith(1979) AnnalsofanAbidingLiberal,pp.73–85(Boston:HoughtonMifflin)).

Galbraith,J.K.(1975)Apothegmsofavarice, Harpers,251(1503),pp.64–65.

Galbraith,J.K.(1975)Capitalism’sfailures:tasksforthedemocraticleft, NewRepublic, 173(7/8),p.18.

Galbraith,J.K.(1975)ThecomingofJ.M.Keynes, Business&SocietyReview,(15),pp.32–38.

Galbraith,J.K.(1975)Theconservative-majorityfallacy, NewYork,22December(reprintedin Galbraith(1979) AnnalsofanAbidingLiberal,pp.47–53(Boston:HoughtonMifflin)).

Galbraith,J.K.(1975)Diplomatsall, TheCPA,45,p.12.

Galbraith,J.K.(1975)TheDowningStreetpapers, NewStatesman,12December,pp.758–759.

Galbraith,J.K.(1975)Theeconomicsofthecurrentanxiety, McKinseyQuarterly,3,p.31.

Galbraith,J.K.(1975) Money:WhenceItCame,WhereItWent (London:Deutsch).

Galbraith,J.K.(1975)Prosandconsofcontrols, Fortune,91(5),p.130.

Galbraith,J.K.(1975)Recessional, HarvardGazette,12June(reprintedinGalbraith(1986) AView fromtheStands,pp.129–136(Boston:HoughtonMifflin)).

Galbraith,J.K.(1975)SeymourEdwinHarris, ReviewofEconomicandStatistics,57(1),vi–vii. Galbraith,J.K.(1975) SocialisminRichCountriesandPoor (AhmedabadBombay:AjitBhagat MemorialTrust;distributedbyCommercePublicationsDivision).

Galbraith,J.K.(1975)Willtheanswerbecontrols, TheListener,30January,pp.130–131.

Galbraith,J.K.(1976)Conservativemajoritymyth, Dissent,23,pp.123–126.

Galbraith,J.K.(1976)Economiclogic–reply, NewRepublic,174(17),p.27.

Galbraith,J.K.(1976)Preface,in:S.Tsuru(Ed.) TheCollectedWorks (Tokyo:Kodansha).

Galbraith,J.K.(1976)Thehallsofivory, NewYorkTimes,30April,p.22.

Galbraith,J.K.(1976)Politicalnovelspastandpresent, NewYorkTimesBookReview,12 September(reprintedinGalbraith(1979) AnnalsofanAbidingLiberal,pp.279–285 (Boston:HoughtonMifflin)).

Galbraith,J.K.(1976)Temptedtosayboob, Fortune,93(4),p.70.

Galbraith,J.K.(1976)Whereinataxcutistermed‘obscene’, NewYorkTimes,3December, p.27.

TheEconomicContributionsofJohnKennethGalbraith 203

Galbraith,J.K.(1977)Capitalism,socialismanddemocracy–Schumpeter,JA, NewSociety, 40(758),pp.74–75.

Galbraith,J.K.(1977)Crimeandnopunishment, Esquire,December(reprintedinGalbraith(1979) AnnalsofanAbidingLiberal,pp.323–330(Boston:HoughtonMifflin)).

Galbraith,J.K.(1977)Economicchoices, Harpers,254(1523),pp.8–10.

Galbraith,J.K.(1977) TheGalbraithReader:FromtheWorksofJohnKennethGalbraith (Ipswich, MA:Gambit).

Galbraith,J.K.(1977)GalbraithianguidetoeconomicfolkwaysofAmericans, Fortune,96(2), p.97.

Galbraith,J.K.(1977)Humblequislings, NewRepublic,177(1),p.7. Galbraith,J.K.(1977)ItStartedwithAdamSmith, NewYorkTimesMagazine,15May, pp.23–24.

Galbraith,J.K.(1977)MyfortyyearswiththeF.B.I., Esquire,October(reprintedinGalbraith (1979) AnnalsofanAbidingLiberal,pp.155–181(Boston:HoughtonMifflin)).

Galbraith,J.K.(1977)Thesevenwondersofthemodernworld, NewYorkTimes,27November, pp.322–323.

Galbraith,J.K.(1977)AveryspecificguidetotheeconomicfolkwaysofAmericanbusinessand businessmen, Fortune,August(reprintedinGalbraith(1986) AViewfromtheStands, pp.230–233(Boston:HoughtonMifflin)).

Galbraith,J.K.(1978)AdvicetoExxon, Challenge,21(4),pp.58–59.

Galbraith,J.K.(1978)AlgerHissandliberalanxiety, AtlanticMonthly,May(reprintedinGalbraith (1979) AnnalsofanAbidingLiberal,pp.303–310(Boston:HoughtonMifflin)).

Galbraith,J.K.(1978)AllWashington’sgoneAVOL voluntarily, NewYorkTimes,4April, p.F3.

Galbraith,J.K.(1978)Defendingthemultinationalcorporation, TheCPAJournal,48,p.64.

Galbraith,J.K.(1978)Defenseofmultinationalcompany, AtlanticCommunityQuarterly,16(2), pp.193–207.

Galbraith,J.K.(1978)Thedefenseofthemultinationalcompany, HarvardBusinessReview,56(2), pp.83–93.

Galbraith,J.K.(1978)FurtheronChurchillandtheChurchillstyle, Esquire,24October(reprintedin Galbraith(1986) AViewfromtheStands,pp.306–309(Boston:HoughtonMifflin)).

Galbraith,J.K.(1978)Theinvestmentbalance, ModernOfficeProcedures,23(6),p.12.

Galbraith,J.K.(1978)Labor,leisure,andthenewclass, ModernOfficeProcedures,23(10),p.10.

Galbraith,J.K.(1978)TheNorthDakotaplan, AtlanticMonthly,242(2),pp.24–25.

Galbraith,J.K.(1978)Onsecurityandsurvival, ModernOfficeProcedures,23(11),p.12.

Galbraith,J.K.(1978)Thepositionofpoverty, ModernOfficeProcedures,23(9),p.12.

Galbraith,J.K.(1978)Productionandpricestability, ModernOfficeProcedures,23(4),p.12.

Galbraith,J.K.(1978)Thetheoryofsocialbalance, ModernOfficeProcedures,23(5),p.12.

Galbraith,J.K.(1978)Thetransitiontonewgoals, ModernOfficeProcedures,23(7),p.12.

Galbraith,J.K.(1978)Thetroublewitheconomists, NewRepublic,178(2),pp.15–22.

Galbraith,J.K.(1978)Writing,typing&economics, AtlanticMonthly,241(3)(reprintedin Galbraith(1979) AnnalsofanAbidingLiberal,pp.285–294(Boston:HoughtonMifflin)).

Galbraith,J.K.(1979) AnnalsofanAbidingLiberal (Boston:HoughtonMifflin).

Galbraith,J.K.(1979)Arepubliclibrariesagainstliberty?, AmericanLibraries,10(8),pp.482–485.

Galbraith,J.K.(1979)Beingadiagnosisofinflation:causesandcures, NewYorkTimes,12January, p.A23.

Galbraith,J.K.(1979)ThegreatWallStreetcrash, NewRepublic,181(15),pp.17–25.

Galbraith,J.K.(1979)Howtogetahead, NewYorkReviewofBooks,26,pp.4–6.

Galbraith,J.K.(1979)Theoriginofthedocument, AtlanticMonthly,244(1),p.50.

Galbraith,J.K.(1979)Socialismforcorporations, WashingtonPost,3October,p.A22.

Galbraith,J.K.(1980)Foreword,in:C.Worswick(Ed.) PrincelyIndia:PhotographsbyRajaDeen Dayal,1884–1910 (NewYork:Knopf).

Galbraith,J.K.(1980)HenryRobinsonLuce–and Fortune magazine,in: WritingforFortune (NewYork:TimeInc.).

Galbraith,J.K.(1980)H.L.Mencken:theBaltimoreoracle, BookWorld,WashingtonPost,14 September,pp.1–3.

Galbraith,J.K.(1980)TwopleasatBerkeley, NewYorkReviewofBooks,27,pp.25–26.

Galbraith,J.K.(1981)BarabaraWard:inmemory, TheEconomist,6June(reprintedinGalbraith (1986) AViewfromtheStands pp.95–97(Boston:HoughtonMifflin)).

Galbraith,J.K.(1981)Theconservativeonslaught, NewYorkReviewofBooks,27,pp.30–35.

Galbraith,J.K.(1981)Theeconomicsofthearmsrace–andafter, BulletinoftheAtomicScientists, 37(6),pp.13–16.

Galbraith,J.K.(1981)GalbraithonGalbraith, Fortune,104(4),p.21.

Galbraith,J.K.(1981)Thelanguageisanalibi, WashingtonPost,27September,p.C8.

Galbraith,J.K.(1981)Themanagementproblemofthe80s, ManagementInternationalReview, 21(1),pp.4–6.

Galbraith,J.K.(1981)ThemarketandMr.Reagan, NewRepublic,185(12),pp.15–18.

Galbraith,J.K.(1981)Marketing’schangingeconomicclimate, MarketingTimes,28(1),p.10.

Galbraith,J.K.(1981)Musingsofa(relative)conservative, NewYorkTimes,31May,p.F3.

Galbraith,J.K.(1981)Theoldleftstrikesback:whathasthenewrightgotright?Notmuch,saysits favoritefoe, CanadianBusiness,54(9),p.133.

Galbraith,J.K.(1981)Apolicydividedagainstitselfcannotstand–themarketandReagan, NewRepublic,185(12),pp.15–18.

Galbraith,J.K.(1981)Upfrommonetarismandotherwishfulthinking, NewYorkReviewofBooks, 28(3),pp.27–31.

Galbraith,J.K.(1981)Theusesofexcusesforaffluence, NewYorkTimesMagazine,31May, pp.10–13.

Galbraith,J.K.(1982)Thebudgetandthebust, NewRepublic,186(11),pp.9–13.

Galbraith,J.K.(1982)Theconfidentspeculators, AtlanticMonthly,249(5),p.100.

Galbraith,J.K.(1982)Recessioneconomics, NewYorkReviewofBooks,29,p.34.

Galbraith,J.K.(1982)Thesecondimperialrequiem, InternationalSecurity,7(3),pp.84–93.

Galbraith,J.K.(1982)Thesocialconsensusandtheconservativeonslaught, MillenniumJournalof InternationalStudies,11,pp.1–13.

Galbraith,J.K.(1982)ThewayupfromReaganeconomics, HarvardBusinessReview,60(4), p.6–12.

Galbraith,J.K.(1982)ThewondersofRobertsonDavies, NewYorkTimesBookReview, 14February,pp.7–8.

Galbraith,J.K.(1983)Theanatomyofpower:interview, Challenge,26(3),pp.26–33.

Galbraith,J.K.(1983)DavidNiven, BostonGlobe,3August(reprintedinGalbraith(1986) AViewfromtheStands,pp.406–408(Boston:HoughtonMifflin)).

Galbraith,J.K.(1983) EconomicsandtheArts:TheW.E.WilliamsMemorialLectureGivenatthe NationalTheatreon18January1983 (London:ArtsCouncilofGreatBritain).

Galbraith,J.K.(1983)EleanorRoosevelt, Esquire,December(reprintedinGalbraith(1986) AView fromtheStands,pp.389–392(Boston:HoughtonMifflin)).

Galbraith,J.K.(1983) EssaysfromthePoortotheRich (Bombay:BharatiyaVidyaBhavan).

Galbraith,J.K.(1983)Fromdripstodigitals, NewRepublic,189(15),pp.34–36.

Galbraith,J.K.(1983)Furtheroneconomicsandthearts, Ethos (reprintedinGalbraith(1986) AViewfromtheStands,pp.144–151(Boston:HoughtonMifflin)).

Galbraith,J.K.(1983)JoanRobinson:awordofappreciation, CambridgeJournalofEconomics, 7(3/4),p.211.

Galbraith,J.K.(1983)Preface,in:A.Trollope, BarchesterTowers (Harmondsworth,UK: Penguin).

Galbraith,J.K.(1984)Corporateman, NewYorkTimesMagazine,22January,p.39.

Galbraith,J.K.(1984)Theheartlesssociety, NewYorkTimesMagazine,2September,pp.20–21 and44–45.

Galbraith,J.K.(1984)Keynes,Roosevelt,andthecomplementaryrevolutions, Challenge,26(6), pp.4–8.

Galbraith,J.K.(1984)MoneyinAmericanfiction, NewYorkTimes,21October(reprintedin Galbraith(1986) AViewfromtheStands,pp.67–74(Boston:HoughtonMifflin)).

Galbraith,J.K.(1984)Readingabouttherich, NewYorkTimesBookReview,21October,pp.1and 54–55.

Galbraith,J.K.(1984)Reaganvs.themilitary, NewYorkTimes,5February,p.E19. 204 S.P.Dunn&S.Pressman

TheEconomicContributionsofJohnKennethGalbraith 205

Galbraith,J.K.(1984)Russia, NewYorker,3September(reprintedinGalbraith(1986) AViewfrom theStands,pp.264–275(Boston:HoughtonMifflin)).

Galbraith,J.K.(1985)Thecompleatpoliticsofarmscontrol:theAmericancontext, Proceedingof theGroupedeBellerive (reprintedinGalbraith(1986) AViewfromtheStands,pp.8–18 (Boston:HoughtonMifflin)).

Galbraith,J.K.(1985)Theconceptofworkasaspeciesoffraud, Parade,10February(reprintedin Galbraith(1986) AViewfromtheStands,pp.42–45(Boston:HoughtonMifflin)).

Galbraith,J.K.(1985)Eulogy:atributetoWeintraub,Sidney, JournalofPostKeynesian Economics,7(4),pp.508–509.

Galbraith,J.K.(1985)Howtogetthepooroffourconscience, Humanist,45(5),p.5.

Galbraith,J.K.(1985)Humanisticeconomics, TheProgressive,49(8),pp.41–42.

Galbraith,J.K.(1985)Let’sbeplainaboutpoliticsandmoney, NewYorkTimes,28November, p.A27.

Galbraith,J.K.(1985)Reagan’s‘facts’–artisticlicense, NewYorkTimes,27September,p.A27. Galbraith,J.K.(1985)Russia’sbigproblem, Fortune,111(3),p.15.

Galbraith,J.K.(1985)Takingthestingoutofcapitalism, NewYorkTimes,26May,p.F1.

Galbraith,J.K.(1986)AjourneytoArgentina, NewYorker,62(9),pp.70–77.

Galbraith,J.K.(1986)Letthepoliticiansrunforeignpolicy, WashingtonPost,24December,p.15.

Galbraith,J.K.(1986) RevolutionsReconsidered (Sackville,NB:MountAllisonUniversity).

Galbraith,J.K.(1986) TheScotch:anexcursionbackwardintime, Reader’sDigest,February (reprintedinGalbraith(1986) AViewfromtheStands,pp.276–284(Boston:Houghton Mifflin)).

Galbraith,J.K.(1986)Theyearofthespy, NewYorkTimes,5January,p.E19.

Galbraith,J.K.(1987)The1929parallel, AtlanticMonthly,259(1),pp.62–66.

Galbraith,J.K.(1987)TheAmericaneconomynow–andwhenthereturnscomein, Business Forum,12(3),pp.8–11.

Galbraith,J.K.(1987)Economicdevelopment:engineofdemocracy, NewYorkTimes,25August, p.A21.

Galbraith,J.K.(1987) AHistoryofEconomics:ThePastasthePresent (London:H.Hamilton).

Galbraith,J.K.(1988)Baseball:socialistasapplepie, NewYorkTimes,7August,p.E23.

Galbraith,J.K.(1988)Coolidge,Carter,Bush,Reagan :nowonderpeopledon’tbothertovote, NewYorkTimes,18December,p.A19.

Galbraith,J.K.(1988)Criticalissuesofthetwenty-firstcentury, VitalSpeechesoftheDay,54(6), p.185.

Galbraith,J.K.(1988)Thefutureofglobaleconomicsystems, AsianFinance,14(12),p.22.

Galbraith,J.K.(1988)Howbusinessesbehave, NewRepublic,198(25),p.42.

Galbraith,J.K.(1988)Interestgroupsbyanyothername, NewYorkTimes,29May,p.E17.

Galbraith,J.K.(1988)Interview:thepoliticalasymmetryofeconomicpolicy, EasternEconomic Journal,14(2),pp.125–128.

Galbraith,J.K.(1988)Timeandthenewindustrialstate, AmericanEconomicReview,78(2), pp.373–376.

Galbraith,J.K.(1988)Tribute,in: TheProceedingsoftheArchibaldMacleishSymposiumMay, 1982 (Landam,MD:UPofAmerica).

Galbraith,J.K.(1989)Friendlyadvicetoashrinkingmilitary, NewYorkTimes,22November, p.A25.

Galbraith,J.K.(1989)Ideologyandeconomicreality, Challenge,32(6),pp.4–9.

Galbraith,J.K.(1989)Alookback:affirmationanderror, JournalofEconomicIssues,23(2), pp.413–416.

Galbraith,J.K.(1990)(Class)warintheGulf, NewYorkTimes,7November,p.A31.

Galbraith,J.K.(1990)GalbraithdefendsGalbraith, Fortune,121(3),p.161.

Galbraith,J.K.(1990)Interview:JohnKennethGalbraith, AuroraOnline,http://aurora.icaap.org.

Galbraith,J.K.(1990)Therushtocapitalism, NewYorkReviewofBooks,37(16),p.51.

Galbraith,J.K.(1990) ATenuredProfessor:ANovel (Boston:HoughtonMifflin).

Galbraith,J.K.(1990)What’swrongwiththispicture?, AmericanHeritage,41(8),pp.57–64.

Galbraith,J.K.(1990)WhichcapitalismforEasternEurope?, Harper’sMagazine,280, pp.19–21.

Galbraith,J.K.(1991)Economicsinthecenturyahead, EconomicJournal,101,pp.41–46.

Galbraith,J.K.(1991)IntributetoDelPaine, Fortune,123(4),p.152.

Galbraith,J.K.(1991)Let’sborrowmoremoney:that’sthewaytoendthisrecession, NewYork Times,16May,p.A23.

Galbraith,J.K.(1991)Reflections–1960, GrandStreet,10(1),p.26.

Galbraith,J.K.(1991)Thestingoftruth, ScientificAmerican,264(5),p.136.

Galbraith,J.K.(1991)Whatsortofcapitalismisbestforformercommunistnations?, UtneReader, 43,pp.106–107.

Galbraith,J.K.(1991)Writingandtyping, NiemanReports,45(1),pp.32–34.

Galbraith,J.K.(1992)Cultureofcontentment, NewStatesman&Society,5(201),pp.14–16.

Galbraith,J.K.(1992)Theeconomichangoverfromabingeofgreed, BusinessandSocietyReview, 81,pp.6–7.

Galbraith,J.K.(1992)Thefunctionalunderclass, ProceedingsoftheAmericanPhilosophical Society,136(3),pp.411–415.

Galbraith,J.K.(1992)Introduction,in:T.H.Eliot(Ed.) RecollectionsoftheNewDeal:Whenthe PeopleMattered (Boston:NortheasternUniversityPress).

Galbraith,J.K.(1992)Toeingthehardline, NewStatesman&Society,5(192),p.14.

Galbraith,J.K.(1992)Theuniversity:reflectionsovertheyears, Academe,78(5),pp.10–12.

Galbraith,J.K.(1992)Whatmonumentsthereligioushavewrought!, NewChoicesforRetirement Living,32(8),p.26.

Galbraith,J.K.(1993)Theautonomouspoweroforganization,in:J.Brauer&M.Chatterji(Eds) EconomicIssuesofDisarmament:ContributionsfromPeaceEconomicsandPeaceScience, pp.43–46(NewYork:NewYorkUniversityPress).

Galbraith,J.K.(1993)Countervailingpower:memoirandmodernreality,in:C.Kerr& P.Staudohar(Eds) LaborEconomicsandIndustrialRelations:MarketsandInstitutions, pp.431–434(Cambridge:HarvardUniversityPress).

Galbraith,J.K.(1993)Foreword,in:S.Tsuru(Ed.) Japan’sCapitalism,CreativeDefeatandBeyond (Cambridge:CambridgeUniversityPress).

Galbraith,J.K.(1993)Foreword,in:A.Gregory(Ed.) TheGildedAge:TheSuper-richofthe EdwardianEra (London:Cassell).

Galbraith,J.K.(1993)Introductiontothe AmericanJournalofAgriculturalEconomics’ 75th anniversaryissue, AmericanJournalofAgriculturalEconomics,75,p.1.

Galbraith,J.K.(1993)RaisingKeynes, WashingtonMonthly,25(12),p.46.

Galbraith,J.K.(1993)Recession?Whyworry? NewYorkTimes,12May,p.A19.

Galbraith,J.K.(1993)ThereturnofKeynes, NPQ:NewPerspectivesQuarterly,10(2),p.10.

Galbraith,J.K.(1994)Theautonomousmilitarypower:aneconomicview,inM.Chatterji, H.Jager&A.Rima(Eds) TheEconomicsofInternationalSecurity:EssaysinHonourof JanTinbergen,pp.9–13(London:MacmillanPalgrave).

Galbraith,J.K.(1994)Capitalism’sdarkshadows, WashingtonMonthly,26(7/8),p.20.

Galbraith,J.K.(1994)Falseeconomies, NewStatesman&Society,7(290),p.24.

Galbraith,J.K.(1994)Thegoodlifebeckons, NewStatesman&Society,7(287),pp.14–16.

Galbraith,J.K.(1994)Thegoodsocietyconsidered–theeconomicdimension, JournalofLawand Society,21(2),pp.165–170.

Galbraith,J.K.(1994)The‘livingindustry’andtheenvironment, EPAJournal,20(3/4),p.41. Galbraith,J.K.(1994) TheWorldEconomySincetheWars:APersonalView (London: Sinclair–Stevenson).

Galbraith,J.K.(1995)Blamehistory,nottheliberals, NewYorkTimes,19September,p.A21.

Galbraith,J.K.(1995)Ourforkedtongue, NewYorkTimes,6February,p.A17.

Galbraith,J.K.(1996)Foreword:theindebtedsociety,in:J.Medoff&A.Harless(Eds) The IndebtedSociety:AnatomyofanOngoingDisaster (Boston:Little,Brown).

Galbraith,J.K.(1996)Thegoodsociety:theeconomicdimension,in:P.Arestis&M.Sawyer(Eds) Employment,EconomicGrowth,andtheTyrannyoftheMarket:EssaysinHonourofPaul Davidson,Vol.2(Aldershot:EdwardElgar).

Galbraith,J.K.(1996)Interview:JohnKennethGalbraith,in:D.C.Colander&H.Landreth(Eds) TheComingofKeynesianismtoAmerica:ConversationswiththeFoundersofKeynesian Economics (Cheltenham,UK:EdwardElgar).

Galbraith,J.K.(1997)Globalisationandthepoliticsofresistance:preface, NewPoliticalEconomy, 2(1),pp.5–9.

Galbraith,J.K.(1997)Theimperativesofconsumerdemand,in:M.Casson(Ed.) Culture,Social NormsandEconomics:InternationalLibraryofCriticalWritingsinEconomics,Vol.83 (Cheltenham:EdwardElgar).

Galbraith,J.K.(1997)Mr.Galbraith’sPrinciple, AcrosstheBoard,34(6),p.14.

Galbraith,J.K.(1997)Thenewinternationalism:thefactandtheresponse, UNChronicle,34(3), p.62.

Galbraith,J.K.(1998)Evadingtheobvious, NewYorkTimes,12October,p.A19.

Galbraith,J.K.(1998)JohnMaynardKeynes:fromretrospecttoprospect, JournalofPost KeynesianEconomics,21(1),pp.11–13.

Galbraith,J.K.(1998) LetterstoKennedy (Cambridge,MA:HarvardUniversityPress).

Galbraith,J.K.(1998) TheSociallyConcernedToday (Toronto&Buffalo:UniversityofToronto Press).

Galbraith,J.K.(1998)ToamarketPollyanna, Civilization,5(6),pp.61–69.

Galbraith,J.K.(1999)Theaffluentsociety40yearson, Dollars&Sense,(226),p.49.

Galbraith,J.K.(1999)Challengesofthenewmillennium, FinanceandDevelopment,36(4), pp.2–5.

Galbraith,J.K.(1999)Thecommitmenttoinnocentfraud, Challenge,42(5),pp.16–20.

Galbraith,J.K.(1999)Theepicyears, WashingtonMonthly,31(3),p.42.

Galbraith,J.K.(1999)Freemarketfraud, Progressive,63(1),p.54.

Galbraith,J.K.(1999)HowKeynescametoAmerica,in:L.Tarshis,O.F.Hamouda&B.B.Price (Eds) KeynesianismandtheKeynesianRevolutioninAmerica:AMemorialVolumeinHonour ofLorieTarshis,pp.8–17(Cheltenham,UK:EdwardElgar).

Galbraith,J.K.(1999)Aliberal’sdebttoCanadians, Maclean’s,112(31),p.40.

Galbraith,J.K.(1999)Peacethroughpatience,notairpower, NewYorkTimes,15April,section4, p.17.

Galbraith,J.K.(1999) TheUnfinishedBusinessofOurCentury (BrynMawr:AmericanCollege).

Galbraith,J.K.(1999/2000)Whydiplomatsclamup, NiemanReports,53/54(4/1),pp.189–190.

Galbraith,J.K.(2000)Foreword:thesocialleftandthemarketsystem,in:B.K.Gills(Ed.) GlobalizationandthePoliticsofResistance (Basingstoke:Macmillan).

Galbraith,J.K.(2000)Preface,in:B.Kreisky,M.P.Berg,J.Lewis&O.Rathkolb(Eds) The StruggleforaDemocraticAustria:BrunoKreiskyonPeaceandSocialJustice (NewYork: BerghahnBooks).

Galbraith,J.K.(2001)Economicdelusion,politicaldisaster, NewYorkTimes,11March,section4, p.15.

Galbraith,J.K.(2001) TheEssentialGalbraith (Boston:HoughtonMifflin).

Galbraith,J.K.(2001)Whathappenedtothegoodsociety?InterviewwithJohnKennethGalbraith, Challenge,44(4),pp.5–13.

Galbraith,J.K.(2002)Theclumsymultinational, HarvardBusinessReview,80(9),p.128.

Galbraith,J.K.(2002)Foreword–globalization:whatitisandwhattodoaboutit, Annalsofthe AmericanAcademyofPoliticalandSocialScience,581,pp.6–7.

Galbraith,J.K.(2003)Afterword:aJapanesesocialinitiative–therelevantview,in:J.M.Harris& N.R.Goodwin(Eds) NewThinkinginMacroeconomics:Social,Institutional,andEnvironmentalPerspectives (Cheltenham,UK:EdwardElgar).

Galbraith,J.K.(2003)Whathasthenewrightgotright?:notmuch,saysitsfavoritefoe, Canadian Business,76(17).

Galbraith,J.K.(2004)Innocentfraud, AcrosstheBoard,41(2),p.10.

Galbraith,J.K.&Baker,J.F.(1975)Interview:JohnKennethGalbraith, PublishersWeekly,18 August,pp.10–12.

Galbraith,J.K.&Basco,S.(2003)OnBush,greed,andGod’sminister:JohnKennethGalbraith speaksout, TomPaine.Com,4April.

Galbraith,J.K.&Black,J.D.(1935)ThequantitativepositionofmarketingintheUnitedStates, QuarterlyJournalofEconomics,49(3),pp.394–413.

Galbraith,J.K.&Black,J.D.(1936)Theproductioncreditsystemof1933, AmericanEconomic Review,26(2),pp.235–247. TheEconomicContributionsofJohnKennethGalbraith

208 S.P.Dunn&S.Pressman

Galbraith,J.K.&Black,J.D.(1938)Themaintenanceofagriculturalproductionduringdepression: theexplanationsreviewed, JournalofPoliticalEconomy,46(2),pp.235–247.

Galbraith,J.K.&Blanton,K.(1996)Interview:aconversationwithJohnKennethGalbraith, Boston Globe,28April(Cityedn),p.A97.

Galbraith,J.K.&CanadianBroadcastingCorporation(1965) TheUnderdevelopedCountry (Toronto:CanadianBroadcastingCorporation).

Galbraith,J.K.&Conway,L.(1997)Interview;theKenGalbraith(andBillBuckleyShow), Nieman Reports,51(4),pp.53–55.

Galbraith,J.K.&Davis,W.A.(1995)Interview: TheLioninWinter:theHarvardprof’slatest lesson:howtoagewisely, BostonGlobe,24October,p.55.

Galbraith,J.K.&Dietrich,M.(2003)Interview:J.K.Galbraith:liberalpoliticsandtheeconomics ofthemodernbusinessfirm, NewPoliticalEconomy,8(3),pp.385–400.

Galbraith,J.K.&Dunn,S.P.(2002)TheoriginsoftheGalbraithiansystem:StephenP.Dunnin conversationwithJ.K.Galbraith, JournalofPostKeynesianEconomics,24(3),pp.347–65.

Galbraith,J.K.&Evans,F.(1987)Interview:aconversationwithJohnKennethGalbraith, Business Forum,12(3),pp.12–17.

Galbraith,J.K.&Holton,R.H.(1955) MarketingEfficiencyinPuertoRico (Cambridge:Harvard UniversityPress).

Galbraith,J.K.&Karier,T.(1992)Interview:JohnKennethGalbraithlooksbackattheReagan–Bushera, InTheseTimes,10–23June,pp.18–19.

Galbraith,J.K.&Kaur,H.(1998)Interview:agentler,kinderapproach–theGalbraithway, BusinessTimes,12(51),p.4.

Galbraith,J.K.&Kunimatsu,T.(1999)Interview:Galbraithsayscapitalismwillprevail, Daily Yomiuri,10January,p.1.

Galbraith,J.K.&Laurence,M.(1968)The Playboy interview:JohnKennethGalbraith, Playboy, June,pp.63–178,138,164–174.

Galbraith,J.K.&Lewis,A.(1966)Interview:theworldthroughGalbraith’seyes, NewYorkTimes Magazine,18December,pp.25,88–92.

Galbraith,J.K.,Macy,R.M.&Malenbaum,W.(1937)Farmmortgageloanreplacement, Journalof FarmEconomics,19(4),pp.764–782.

Galbraith,J.K.&McClaughry,J.(1973)Interview:Galbraithandhiscritics, Business&Society Review,8,pp.12–16.

Galbraith,J.K.&McCracken,P.W.(1983) Reagonomics:Meaning,Means,andEnds (NewYork: FreePress).

Galbraith,J.K.&MacNeil,R.(1992)Interview:conversationwithJohnKennethGalbraith, MacNeil/LehrerNewsHour,1July(transcript4368),pp.12–16.

Galbraith,J.K.&Menshikov,S.(1988) Capitalism,CommunismandCoexistence:FromtheBitter PasttoaBetterProspect (London:HamishHamilton).

Galbraith,J.K.&Navasky,V.S.(1967)Interview:GalbraithonGalbraith, NewYorkTimesBook Review,25June,pp.2–3.

Galbraith,J.K.&Olsen,W.(1987)Interview:AmericawillfeelthecrunchofReganrevolution, Tribune,Business,pp.1–6.

Galbraith,J.K.&Peterson,G.M.(1932)Theconceptofmarginalland, JournalofFarmEconomics, 14(2).

Galbraith,J.K.&Pressman,S.(1989)Interview:conversation, ReviewofPoliticalEconomy,1, pp.381–386.

Galbraith,J.K.&Solo,C.S.(1953)PuertoRicanlessonsineconomicdevelopment, TheAnnalsof theAmericanAcademyofPoliticalandSocialScience,285,pp.55–59.

Galbraith,J.K.&UniversityofLondon.(1967) ABeginner’sGuidetoAmericanStudies: An AddressGivenontheOccasionoftheOfficialOpeningoftheInstituteofUnitedStatesStudies, UniversityofLondon,on12thMay1967 (London:UniversityInstituteofUnitedStatesStudies).

Galbraith,J.K.&Wallace,M.(1978) AGuidetoToday’sEconomy (NewYork:Encyclopedia Americana/CBSNewsAudioResourceLibrary).

Galbraith,J.K.,Grether,E.T.,Mason,E.S.,Neal,A.C.,Sumner,J.D.&Heflebower,R.B.(1947) Contentandresearchusesofpricecontrolandrationingrecords, TheAmericanEconomic Review,37(2),pp.651–666.

TheEconomicContributionsofJohnKennethGalbraith

Galbraith,J.K.,Higgins,B.H.,Woytinsky,W.S.&Brownlee,O.H.(1948)Discussion, American EconomicReview,38(2),pp.443–451.

Galbraith,J.K.,Jarrett,H.&Future,R.F.T.(1958) PerspectivesonConservation;Essayson America’sNaturalResources (Baltimore:JohnsHopkinsPress).

Galbraith,J.K.,Kuh,E.&Thurow,L.C.(1971)TheGalbraithplantopromotetheminorites, NewYorkTimesMagazine,22August,pp.9,35and38–39.

Galbraith,J.K.,Ulmer,H.,Weidenbaum,M.J.&MurrayL.(1976)Thecaseforandagainstnational economicplanning, Challenge,19(1),p.30.

Galbraith,J.K.,Fergenson,P.E.&Fergenson,L.R.(1989)Galbraithonmarketingandthe marketplace:aninterview, ReviewofBusiness,11(3),p.29.

Gauhar,A.&Galbraith,J.K.(1983)North–Southdialog:aninterviewwithJ.K.Galbraith, Third WorldQuarterly,5(2),pp.263–269.

Levine,D.&Galbraith,J.K.(1970) NoKnownSurvivors:DavidLevine’sPoliticalPlank (Boston: Press).

Moraes,F.R.,Galbraith,J.K.&Howe,E.(1974) JohnKennethGalbraithIntroducesIndia (London:Deutsch).

Randhawa,M.S.&Galbraith,J.K.(1968) IndianPainting:theScene,Themes,andLegends (Boston:HoughtonMifflin).

Rudenstine,N.,Galbraith,J.K.&Thomson,J.C.J.(1995)Rudenstine,GalbraithandThomson Talks, NiemanReports,49(3),p.37.

Samuelson,P.A.&Galbraith,J.K.(1975)Economicpolicy–whereisitleading?, BostonUniversity Journal,23(1),pp.30–36.

Voorhies,E.C.,Galbraith,J.K.&Todd,F.E.(1933) EconomicAspectsoftheBeeIndustry, GianniniFoundationofAgriculturalEconomics,PaperNo.39,BulletinNo.555(Berkeley: AgriculturalExperimentStation).

Voorhies,E.C.,Galbraith,J.K.&Todd,F.E.(1933) HoneyMarketinginCalifornia,Giannini FoundationofAgriculturalEconomics,PaperNo.38,BulletinNo.554(Berkeley:Agricultural ExperimentStation).

Yadin,Y.,Maeda,Y.&Galbraith,J.K.(1962) GuildhallLectures (Manchester:GranadaTV NetworkLimited).