Economics and the Public Purpose

Professor Galbraith now completes the analysis of the modern Western economy which he began in the Affluent Society and continued in the New Industrial State, and puts forward an eloquent proposal for refom. In the first part of the book he describes the economy from its smallest parts - the housewife, small retailer, craftsman and professional man - to its largest - the vast 'mature' corporation. He then demonstrates that these realities are not accurately reflected - are indeed purposefully distorted - in the mirror held up by the accepted neo-classical economics. The power which in theory is exercised by the market for the public good is in fact exercised by the large corporation for its own purposes - its growth and perpetuation as well as profit uneveness in development, to the inequality in income, to the envionmental and other problems of the consumer society, to the modern industry crisis, and the persistent inflation. Professor Galbraith's general theory of reform argues taht power to plan must be rescued from the corporations and restored to the public. The state must assume full responsibility over those industries which provide for basic human needs such as shelter, health and transportation - needs which are mainfestly not being properly met at present. His arguments for a 'New Socialism' are practical as well as lucid. Economics, he argues, is about power, and power is achieved by politics. This book, therefore, is written not only for professional colleagues and students but for a much wider public; and its disarming elegance and wit make it far more accessible to such a public than is expected with works of so much depth and importance.