Heterodox Economists: John Kenneth Galbraith

In 'The Affluent Society,' John Kenneth Galbraith examines the economic and social landscape of post–World War II America. He argues that while the private sector has become incredibly wealthy, the public sector remains underfunded and neglected, leading to significant social and economic disparities. Galbraith critiques the 'conventional wisdom' that prioritizes economic growth and consumer spending over public investment in essential services like education, healthcare, and infrastructure. He introduces concepts such as the 'dependence effect,' where consumer demands are created by the process of satisfying them, and advocates for policies to eliminate poverty, invest in public schools, and enhance public amenities. The book is a seminal work in the field of public policy and political economy, offering a prescient and insightful analysis of the contradictions of affluent societies.

In 'The New Industrial State', John Kenneth Galbraith argues that large corporations have supplanted traditional market mechanisms with planned economies, using techniques like advertising and vertical integration. He introduces the concept of the 'technostructure', a group of technical and specialized staff who make key decisions within corporations, often prioritizing stability over profit maximization. The book explores the convergence of corporate and state interests, particularly in sectors with high technological content.