The Economic Legacy
Edited by Stephen P. Dunn
Volume I The Large Firm, Keynesianism, Price Control and Economic Development
fl Routledge jj^^ 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 > 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
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