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.