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Oldie but Goodie 2009-09-23

Reviewer: John N. Schear

I had the pleasure of reading this book for the first time in 1966. It was a tad old then; however, it was quite meaningful for the day. I bought it again and reread it but this time I had a visitor with me. Professor Galbraith (JKG) made a visit to the campus in 1966 and I along with two members of the Economics School visited a small Mexican restaurant for lunch. I can still see his reaction to the lunch. Each of us had two specials each. The special consisted of tacos, beans and rice with a Carta Blanca to wash it down. When the waiter (owner) brought the bill it was $7.04 (USD) and JKG was astonished since he was so used to spending considerably more in Boston. He mentioned The Affluent Society in a funny sarcastic manner. After lunch we returned to school and at the prescribed 8 p.m. he gave his speech and included excerpts from an excellent book: The Affluent Society.

This is book is must read for anyone who cares about our history and especially when considering all the wonderful things that are going on today. JKG, the liberal that he was, is probably spinning in his grave when he sees what is going on with our economy today.

Worthwhile Read --- But Rather Outdated (4.5 Stars) 2009-09-02

Reviewer: Rufus Burgess

"We are here in one of the contexts where circumstance has marched far beyond conventional wisdom. We have seen how general are the efforts to join the New Class and how rapid is its expansion. We are not here establishing a new economic and social goal but identifying one that as already widely if but tacitly accepted." --- JKG

'The Affluent Society' by John Kenneth Galbraith is a study of how modern nations have mostly eliminated absolute poverty and why the conventional wisdom is preventing human progress. It is only by defeating conventional wisdom that greater human happiness may be obtained.

Galbraith begins with a lucid examination of the history of economic theory. How the original economists, Smith/Ricardo/Malthus, were quite dismal about the plight of the masses. Ricardo's Iron Law of Wages states that any gain in wages will result in greater competition for land. Malthus believed that any increase in the food supply would be eliminated by an increase in population. In both cases the laborer was forced to accept their fate and know that nothing could be done. Even Marx, who's economic theory was based off of Ricardo, believed that laborers were helpless as long as a capitalist system remained. The classical understanding of economics was government intervention inherently hurt the people it intended to help.

Then came Keynes! With the great advancements in wealth due to capitalism and Keynesian economics it was finally possible to extend economic security to the masses. Nevertheless, conventional wisdom has resisted. People focus on production, specifically within the private realm, even though it is no longer the most pressing need. The country needs to focus on full employment. There needs to be a social balance between private and public production.

Galbraith ends the books with a proclamation: We need to invest in human capital above all else. Anything that obstructs this and can be dealt with by the government should be dealt with by the government. We should greatly increase spending on education. We should eliminate rural and urban pockets of poverty (Slums/Appalachia). We should do everything reasonable to eliminate perpetual poverty.

What this will mean in the long run is the creation of a 'New Class'. This New Class, today's white collar middle class, will not perform meaningless toil. They will find meaning in their work and a higher level of happiness. All the while the proletariat and peasant classes will slowly, but surely, be eliminated. No Marxist revolution is conceivable if everyone in society is comfortable.

Sidenote: Most of what Galbraith discusses in the middle of the text is exceptionally outdated. His thoughts on inflation turned out to be justified but also rather pessimistic. Paul Volker showed that monetary policy does have the political will power to stop inflation. His fear that American consumers may eventually grow tired of frivolous goods also proved to be pessimistic. Changing American values have continually kept pace with expanding production. (Although his view on consumer debt turned out to be strikingly clairvoyant).

Finally, Galbraith's writing style is... different. On a technical level his writing is as good as any other economist. He perfectly blends theory with accessibility. It would be easy to argue that Paul Krugman's writing style is largely an imitation of Galbraith. But his humor is another story. He constantly tells exceptionally dry, hokey jokes throughout his work. Only the wonkish will enjoy them.

Wonderfully entertaining 2009-08-29

Reviewer: Will S.

It is rare that someone is both an excellent economist and a gifted writer at the same time. J.K. Galbraith was such an economist-writer. This little book is excellent, in the intelligence and forcefulness of its economic arguments, and in the elegance and simplicity with which they are explained. And that is not even to speak of the colorful examples Galbraith uses, and even the occasional joke. Considering that it was written over 50 years ago (!) it is unbelievable that one can still read this work and feel its relevance even today. Production is still an end rather than a means to our society; the public sector remains underfunded, underappreciated, and intellectually under attack, while private entities that have filled the void are in some cases failing miserably; inequality continues to grow in the developed world...

Sure, there are times when the book goes a little too far in its conclusions, but this should be seen as a work challenging the "conventional wisdom" (coined by Galbraith in the Affluent Society), and therefore it had to say controversial things.

Overall, I highly recommend this book to anyone.

Breaking convention in the pursuit of wisdom 2009-08-09

Reviewer: T. Rodgers

In this book, Galbraith speaks of broad strokes while we can only hope for small change. He talks about a government that modifies the very engine of production - the intake and the RPM, in order to best serve the people. This reads like brazen statements, in a world where we can't even get a modestly sensible health care system through the Corporate censors.

This book ignores the politics and machinations that limit progress, and argues the core - the philosophical base - of liberal economic policy, something you don't find enough of. It also happens to make a strong case, to be sure.

The crux of the book, and the primary application of the term Galbraith (arguably) coined - 'Conventional Wisdom' (to mean: accepted knowledge that is not true and holds back real progress) - is the fallacy of how production is measured, and the error of using the measure of production as a measure of society itself.

Limits to productivity, Galbraith argues, was the limiting factor to man's advance according to 19th century economists -- Malthusian Theory for example. Now, we have mastered productivity, and rather then scale or broaden the gains, we choose to manufacture new wants to the detriment of our society.

Galbraith writes with an elegance you rarely find. His writing can touch on every emotion and every point is arrived at with precise reasoning.

This is the type of book where you can get a wealth of knowledge prima facie, but get even more once you analyze the possibilities. It's a book that will make you think and may well affect how you think.

Highly recommended.

Eerily Correct for Our Times 2008-11-16

Reviewer: Metaldiva

This is a book that is slammed over and over again. It is called liberal blathering by many a rabid laissez faire fans. Galbraith was a contemporary of JFK, who admired his way of thinking. TO question consumerism for any reason has been shouted down by most of the 2000-2006 NeoCons and now we are paying for it, literally.
Metaldiva Sez: Please revisit this, most of the copies are a buck or less and just read. FUNNY how everything old is new again.