John Kenneth Galbraith
John Kenneth Galbraith
• (1908- 2006)
• Born in Ontario
• Considered as
“America’s Great
Liberal Economist.”
• Intellectual heir
to John Maynard
Keynes.
No perfect competition
• Powerful cooperation's set the price of goods.
Counter Prevailing Power
• Counter prevailing power (1950s) Complicity
between big powerful cooperation (market price
setting capacity). Trade Union also had highest
union density and powerful consumers (retailers
trying to get cheapest goods for their
consumers).
• They all have equal power and all is good as long
as they have balance.
• When corporations become more powerful, you
end up with high prices, high profits and low
wages.
Decision Making Power
• The real decision making power lies with
executives in a company rather than
shareholders.
• Managers make decisions that are more
directed to their own self interest.
• http://www.accounting-degree.org/scandals/
Private affluence and Public Squalor
Redistribution of Economy opportunity
Use Fiscal policy for growth during recession
Positive Impacts
• Spending Priorities of government are
changed to improve social balance (public
priorities serving the common good).
• Bigger the corporations are, the more
powerful government should be.
• Corporate power requires regulation to
protect public interests.
Negative Impacts
• He produced no robust economic theories
with formulae.
• Model only works when government is truly
neutral.
• Large governments increasing bureaucracy.