JOHN KENNETH
GALBRAITH
The Economic Legacy
Edited by
Stephen P. Dunn
Volume I
The Large Firm, Keynesianism, Price Control
and Economic Development
f l Routledge
j j ^ ^ Taylor & Francis Croup
LONDON AND NEW YORK
CONTENTS
VOLUME I THE LARGE FIRM, KEYNESIANISM,
PRICE CONTROL'AND' ECONOMIC DEVELOPMENT
Acknowledgements xix
Chronological table of reprinted articles and chapters xxiii
General introduction 1
Books by John Kenneth Galbraith 19
Introduction 21
PARTI
The emergence of the large firm 29
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1 The quantitative position of marketing in
the United States 31
J. K. GALBRAITH AND J. D. BLACK
2 Monopoly power and price rigidities 47
J. K. GALBRAITH
3 Rational and irrational consumer preference 61
J. K. GALBRAITH
4 Monopoly and the concentration of economic power 68
J. K. GALBRAITH
5 The defense of business: a strategic appraisal 95
JOHN KENNETH GALBRAITH
CONTENTS
PART 2
Early Keynesianism 107
6 The maintenance of agricultural production during
the depression: the explanations reviewed 109
JOHN K. GALBRAITH AND JOHN D. BLACK
7 Fiscal policy and the employment-investment controversy 124
J. K. GALBRAITH
8 Public works policy and unemployment _ 136
J. K. GALBRAITH
PART 3
Price control 147
9 Defense financing and inflation potentialities 149
ALVIN H. HANSEN
10 The selection and timing of inflation controls 159
J. K. GALBRAITH
11 Some additional comments on the inflation symposium 165
ALVIN H. HANSEN
12 Price control: some lessons from the first phase 169
J. K. GALBRAITH
PART 4
A Theory of Price Control: defence and debate 177
13 Reflections on price control 179
J. K. GALBRAITH
14 The disequilibrium system 191
J. K. GALBRAITH
15 The strategy of direct control in economic mobilization 207
J. K. GALBRAITH
16 Review of 'A Theory of Price Control' 216
G. C. ALLEN
VI
CONTENTS
17 Market structure and stabilization policy 218
JOHN KENNETH GALBRAITH
18 Galbraith on market structure and stabilization policy 234
ROBERT SOLOMON
19 Galbraith on market structure and stabilization
policy: comment 242
JOHN KENNETH GALBRAITH
20 A comment on market structure and stabilization policy 244
ALLAN H. MELTZER
21 A comment on market structure and stabilization
policy: reply 249
JOHN KENNETH GALBRAITH
PART 5
A Theory of Price Control: critical commentaries 251
22 Galbraith and the theory of price control 253
DAVID COLANDER
23 The theory of price controls: John Kenneth
Galbraith's contribution 264
STEPHANIE LAGUERODIE AND FRANCISCO VERGARA
PART 6 •
The economics of war 293
24 Germany was badly run 295
J. K. GALBRAITH \
25 Recovery in Europe 308
JOHN KENNETH GALBRAITH
26 Professor Despres on "Effects of strategic bombing
on the German war economy" 332
PAUL A. BARAN AND J. K. GALBRAITH
Vll
CONTENTS
PART 7
Economic development 337
27 Puerto Rican lessons in economic development 339
J. K. GALBRAITH AND CAROLYN SHAW SOLO
28 The underdeveloped country: lectures I-V 345
JOHN KENNETH GALBRAITH
29 A positive approach to economic aid 378
JOHN KENNETH GALBRAITH -
30 Galbraith on economic development 390
JOHN ADAMS * 8j
31 Galbraith and the problem of uneven development 400
JIM PEACH
VOLUME II AMERICAN CAPITALISM, AVARICE AND
AFFLUENCE
Acknowledgements ix
Introduction 1
PART 8
American Capitalism: defense and debate 7
32 Review of American Capitalism: The Concept of
Countervailing Power 9
JOAN ROBINSON
33 American Capitalism 12
ADOLPH A. BERLE, JR.
34 Competition, monopoly and countervailing power 19
WALTER ADAMS
35 Errors in the concept of countervailing power 41
SIMON N. WHITNEY
36 Countervailing power 61
JOHN KENNETH GALBRAITH
Vlll
CONTENTS
37 The economist plays with blocs 67
GEORGE J. STIGLER
38 Competition and countervailing power: their roles
in the American economy 76
JOHN PERRY MILLER
39 Discussion 86
DAVID MCCORD WRIGHT
40 A critique of countervailing power 96
ARTHUR SCHWEITZER
41 Notes on countervailing power 119
A. HUNTER * $
42 Mr. Hunter on countervailing power: a comment 135
JOHN KENNETH GALBRAITH
PART 9
Countervailing power: critical commentaries 139
43 Countervailing power revisited 141
ARTHUR SCHWEITZER
44 Countervailing power and consumer prices 159
PAUL W. DOBSON AND MICHAEL WATERSON
45 Dominant retailers and the countervailing-power hypothesis 174
ZHIQI CHEN
PART 10
Money and speculation 195
46 The days of boom and bust 197
JOHN KENNETH GALBRAITH
47 The balance of payments: a political and
administrative view 207
JOHN KENNETH GALBRAITH
48 1929 and 1969: financial genius is a short memory
and a rising market 218
JOHN KENNETH GALBRAITH
IX
CONTENTS
49 The stock market boom and crash of 1929 revisited 234
EUGENE N. WHITE
50 John Kenneth Galbraith's contributions to the theory
and analysis of speculative financial markets 253
CHARLES G. LEATHERS AND J. PATRICK RAINES
51 J. K. Galbraith and the nature of modern money 273
PAUL DAVIDSON AND STEPHEN P. DUNN
PART 11
The Affluent Society and social imbalance 303
52 How much should a country consume? 305
JOHN KENNETH GALBRAITH
53 The social balance 314
JOHN KENNETH GALBRAITH
54 Economics and the quality of life 321
JOHN KENNETH GALBRAITH
PART 12
The Affluent Society: reviews and reactions 337
55 The Affluent Society: a review article 339
RUTLEDGE VINING
56 Economics of affluence 348
CYRIL A. ZEBOT
57 The consumer and Madison Avenue 361
HARRY G. JOHNSON
58 The non sequitur of the "dependence effect" 370
F. A. VON HAYEK
59 Social imbalance: where do we stand? 374
CAMPBELL R. MCCONNELL
60 The Affluent Society after twenty-five years 394
J. R. STANFIELD
61 Rereading The Affluent Society 411
ROBERT HEILBRONER
CONTENTS
VOLUME III THE NEW INDUSTRIAL STATE, THE BIMODAL
VIEW AND REACTION TO 'MOVEMENT CONSERVATISM'
Acknowledgements ix
Introduction 1
PART 13
The New Industrial State: Reith Lectures 11
62 The new industrial state, the Reith Lectures: Lecture 1 13
JOHN KENNETH GALBRAITH
63 The modern corporation, the Reith Lectures: Lecture 2 22
JOHN KENNETH GALBRAITH
64 Control of prices and people, the Reith Lectures: Lecture 3 31
JOHN KENNETH GALBRAITH
65 The role of the state, the Reith Lectures: Lecture 4 40
JOHN KENNETH GALBRAITH
66 The bearing on socialist development, the Reith Lectures:
Lecture 5 48
JOHN KENNETH GALBRAITH
67 The cultural impact, the Reith Lectures: Lecture 6 58
JOHN KENNETH GALBRAITH
PART 14
The New Industrial State: defence and debate 67
68 The new industrial state or son of affluence 69
ROBERT M. SOLOW
69 A review of a review 78
JOHN KENNETH GALBRAITH
70 A rejoinder 88
ROBERT M. SOLOW
71 Galbraith, Solow, and the truth about corporations 90
ROBIN MARRIS
XI
CONTENTS
72 The truth further refined: a comment on Marris 99
ROBERT M. SOLOW ,
73 The close of the Galbraithian system 104
SCOTT GORDON
74 Professor Gordon on 'The close of the Galbraithian system' 114
JOHN KENNETH GALBRAITH
75 "The Galbraithian system": rejoinder 124
SCOTT GORDON i.
76 Economics as a system of belief 128
JOHN KENNETH*GALBRAITH
77 Discussion 145
E. GOLDSTON AND H. DEMSETZ
78 Power and the useful economist 156
JOHN KENNETH GALBRAITH
79 Time and The New Industrial State 169
JOHN KENNETH GALBRAITH
80 Discussion 175
B. BLUESTONE, R. M. SOLOW AND F. M. SCHERER
81 A look back: affirmation and error 183
JOHN KENNETH GALBRAITH
»
PART 15
The New Industrial State: reviews and reactions 187
82 Professor Galbraith's "New Industrial State" 189
IRVING KRISTOL
83 Galbraith and consumer sovereignty 196
MAURICE ZINKIN
84 Is "The New Industrial State" inevitable? 204
J. E. MEADE
85 Review of The New Industrial State 225
ROBIN MARRIS
Xll
CONTENTS
86 A Galbraith reappraisal: the ideologue as gadfly 233
BOB FITCH
87 Professor Galbraith and American Capitalism 243
RALPH MILIBAND
88 Planning within the firm 256
JOSEPH L. BOWER
89 Advertising in the affluent society 271
HAROLD DEMSETZ
90 Where is the new industrial state? 280
HAROLD DEMSETZ * Ij,
91 Thorstein Veblen and the new industrial state 292
CHARLES G. LEATHERS AND JOHN S. EVANS
PART 16
Economics and the Public Purpose: the bimodal view 307
92 Contemporary capitalism and the problem of unequal growth 309
J. K. GALBRAITH
93 The bimodal image of the modern economy: remarks
upon receipt of the Veblen-Commons Award 319
J. K. GALBRAITH
94 The defense of the multinational company 330
JOHN KENNETH GALBRAITH
PART 17
Economics and the Public Purpose: reviews and reactions 345
95 Galbraith redux 347
JAMES TOBIN
96 Review of Economics and the Public Purpose 358
BARBARA R. BERGMANN
97 Minus the spark 362
KENNETH E. BOULDING
XU1
CONTENTS
98 Four reviews of John Kenneth Galbraith: Economics
and the Public Purpose 364
MURRAY L. WEIDENBAUM, CHARLES H. HESSION, BARBARA
DECKARD, HOWARD SHERMAN AND CAREY C. THOMPSON
PART 18
Mature Keynesianism and the rise of 'movement
conservatism' 375
99 Recent economic policy: the deeper perspective 377
JOHN KENNETH GALBRAITH
100 Solving unemployment without inflation 387
JOHN KENNETH GALBRAITH
101 The conventional wisdom of J. K. Galbraith 390
MILTON FRIEDMAN
102 The market and Mr. Reagan 414
JOHN KENNETH GALBRAITH
103 The way up from Reagan economics 419
JOHN KENNETH GALBRAITH
104 The social consensus and the conservative onslaught 427
JOHN KENNETH GALBRAITH
105 The good society considered: the economic dimension 442
JOHN KENNETH GALBRAITH
VOLUME IV THE NEW INDUSTRIAL STATE:
METHODOLOGY, DEVELOPMENTS AND REAPPRAISALS
Acknowledgements ix
Introduction 1
PART 19
Methodology 9
106 The language of economics 11
JOHN KENNETH GALBRAITH
XIV
CONTENTS
107 On Post Keynesian economics 21
J. K. GALBRAITH
108 Ideology and economic reality 25
JOHN KENNETH GALBRAITH
109 Economics in the century ahead 34
JOHN KENNETH GALBRAITH
PART 20
Methodology: critical commentaries 41
110 Galbraith on economics as a system of professional belief 43
WARREN J. SAMUELS '
111 The realist approach of John Kenneth Galbraith 57
STEPHEN DUNN AND ANDREW MEARMAN
112 John Kenneth Galbraith and original
institutional economics 77
JAMES RONALD STANFIELD AND MARY WRENN
PART 21
The theory of the firm: developments 97
113 Uncertainty, market structure and performance:
Galbraith as conventional wisdom 99
RICHARD E. CAVES
114 Uncertainty, market structure, and performance:
the Galbraith-Caves hypothesis and managerial
motives in banking 119
FRANKLIN R. EDWARDS AND ARNOLD A. HEGGESTAD
115 Supply contracts in the Galbraithian planning system 137
K. J. BLOIS
116 Discretionary expenditures and profit risk management:
the Galbraith-Caves hypothesis 149
LOUIS N. CHRISTOFIDES AND FRANCIS TAPON
117 Uncertainty, market structure and performance:
the Galbraith-Caves hypothesis revisited 165
LOUIS N. CHRISTOFIDES AND FRANCIS TAPON
XV
CONTENTS
118 Comment on "Uncertainty, market structure and
performance: the Galbraith-Caves hypothesis revisited" 173
FRANKLIN D. EDWARDS AND A. A. HEGGESTAD
PART 22
The theory of the firm: reappraisals 177
119 Galbraith and the theory of the corporation 179
JAMES K. GALBRAITH
120 Galbraith, Sraffa, Kalecki, and supra-surplus capitalism 195
E. RAY CANTERBERY
121 Galbraith, uncertainty and the modern corporation 207
STEPHEN P. DUNN
PART 23
The revised sequence 233
122 Advertising and inter-industry competition:
testing a Galbraithian hypothesis 235
RONALD P. WILDER
123 The dependence effect, consumption and happiness:
Galbraith revisited 249
AMITAVA KRISHNA DUTT
124 Galbraith on advertising, credit and consumption:
a retrospective and empirical investigation with
policy implications 276
DOUGLAS J. LAMDIN
125 Galbraith and the management of specific demand:
evidence from the tobacco industry 294
STACEY J. ANDERSON AND STEPHEN P. DUNN
PART 24
The economic legacy of John Kenneth Galbraith 319
126 Market power: the missing element in
Keynesian economics 321
WALLACE C. PETERSON
XVI
CONTENTS
127 The legacy of John Kenneth Galbraith 332
RICHARD PARKER
128 Sisyphus as social democrat: the life and legacy of
John Kenneth Galbraith 339
J. BRADFORD DELONG
129 The corporate crisis 344
JAMES K. GALBRAITH
130 Memorializing John Kenneth Galbraith: a review of
his major works, 1908-2006 353
LALL RAMRATTAN AND MICHAEL SZENBERG
Index 376
xvn