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Product details
File Size: 3642 KB
Print Length: 571 pages
Publisher: Princeton University Press; 1st Princeton Ed edition (April 29, 2015)
Publication Date: April 29, 2015
Sold by: Amazon Digital Services LLC
Language: English
ASIN: B00UW1J422
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I like his ideas about the excesses of capitalism and the war industry. If he were around today I bet he would be writing about ways to create socially responsible corporations.
If only the present Federal Reserve Chairman as well as the past and Furture Chairpersons could read and understand this book, the economic turmoils could be muted. This is the primer for all who engage in managing the ship of state. Withouth this knowledge only the cycles of collapse will endure.
Whether you agree with his political views or not, John K. Galbraith is always a pleasure to read. If you are interested in "economic philosophy", you cannot go wrong with any of his books.
The order was placed at the same time as another book which arrived 2 weeks quicker despite being shipped at the same time. More effort might have been made to keep me informed. Other than that the book arrived it was in good condition and was what I wanted.
Not an excellent economist. Galbraith's style and ease of readability is almost second to none but there is little substance in this book. I would recommend Mises, Rothbard, or Hayek to any interested in economics. I will say this however, you can't know what you disagree with, nor why you do, if you don't read their work.With that said though the rating I gave was low I do think it is a necessary purchase and read so that one can make themselves familiar with many of the flawed arguments they will come into contact with.A biased or selective reader is a limited in knowledge.
BOOOOOORING.I'm a basic bitch. Sorry.
This is a superb book. It is a book, however, that has become dated. Its datedness should not dissuade potential readers. The datedness of "The New Industrial State" has only changed the books relevance and importance. When the book was first published in 1967, it accurately described how the then modern corporation functioned, its power structure, and the motivations of individuals who guided the decision making and development of the corporation. This book should be understood to be part of a publication trilogy, starting with Galbraith's "Affluent Society," "The Industrial State," and "Economics and the Public Purpose." In my opinion "The Industrial State" is the apex of the series. It is however, the most technical of the three books. The "Affluent Society" being the most accessible. For economic academia the book was revolutionary, because it radically challenged microeconomic and macroeconomic textbook accounts of markets and market adjustments. Microeconomics was challenged on several fronts. The most important being the motivation of the `power brokers' of the (then) modern corporation, what Galbraith called the "technostructure." The technostructure is a complex and imperfectly defined "collective" of (especially) "technical" and "specialized" staff members at the midrange management level. It was the decision making of the technical and specialized staff members who really determined the development direction of the (then) modern corporation. This is revolutionary because the motivation of these staffers, or technostructure, was not one of profit, but instead "identity" with the group/staff and corporation and (marginal) "adaptation" of the company's goal toward their own. At a macroeconomic level Galbraith argues that it was not his beloved Keynesian interventionism which stabilized the post-WWII economy, but the massive capital contracts the U.S. government had with industrial capital (e.g. steel, rubber, chemical, etc.), mainly though the Pentagon and NASA. These contracts allowed for industrial companies to build inventories without worrying about sales or the business cycle. Galbraith argued, the (then) modern corporation is mainly concerned with its own stability and longevity. Stability and longevity required the corporation to become as enormous as possible. The enormity of the corporation's size required "planning" become its primary development activity. The planning goes on (1) between technical and specialized staffers and midrange and upper-management, e.g. human resource planning for internal consistency; (2) for research and development and technological growth; (3) for price stability, marketing, and reliability in demand, establishing external stability and consumer relevance; (4) for balance within the corporation, via collective bargaining with worker unions and predictability of payroll costs; and (5) for contracts with the State. Small business and entrepreneurial corporations far outnumbered the several 100 enormous corporations. The actual economic and business activity was dominated by the minority big/enormous corporations. This meant the American system was dual in institutional structure. One sector where big business predominated and the dynamics of "planning" ran supreme. The other where small business and the dynamics of the profit motivate ran supreme. This was a situation that businessmen well understand, but that policy economists and politicians failed to appreciate the full relevance and policy implications. In its fortieth anniversary publication, the institutional structure of the American economy has radically transformed. The technostructure is still necessary, but its power has been greatly, perhaps absolutely, diminished. Technological shifts and socioeconomic policy shifts have moved history and the world beyond Galbraith's "The New Industrial State." However, the book's importance has not been diminished, but merely shifted. The book's importance is no longer in describing the institutional structure of American capitalism, but understanding from were the now current system evolved. To draw a Darwinian metaphor, "The New Industrial State" is the missing link between the "just-in-time" production corporation and the entrepreneurial capitalists of Adam Smith (1776) thru Karl Marx (1867). "Just-in-time" production corporations contract significant portions (if not all) of their production from subcontractors. The prevailing role of the "planning" of The New Industrial State has been demoted. The corporation does not have to plan because a subcontractor can almost always be found, the subcontractors planning is only as long as the contract with a Wal-mart, or some other mega-corporation. This institutional shift toward "just-in-time" production does not make the technostructure obsolete, but it does diminish their power role within the corporation. It will be Galbraith's "The New Industrial State" which will allow us to fully understand the "Post-Industrial State." The "New Industrial State" should receive a wide and new generation of readers. It is an important book to understand a previous era, and a specific relationship between citizens, workers, business, and the public sector, a type of symbiotic embeddedness between each group. It is also an important book to understand how that specific relationship has be reconfigured, generating a type of disembeddedness between citizens/workers and business/public sector. "The New Industrial State" helps us understand why big moneyed lobbyists have come to dominate Washington, and how it could be, and was, different.
John Kenneth Galbraith (1908-2006) was a Canadian-American economist, who taught at Harvard University, served as U.S. Ambassador to India (1961-1963), and wrote a number of bestselling books, such as American Capitalism,The Affluent Society (A Mentor Book),Economics & The Public Purpose,The Great Crash 1929,The Age of Uncertainty (which was a TV series on the BBC), etc.He wrote in the Foreword to this 1967 book, "I must again remind the reader that this book had its origins alongside 'The Affluent Society.' It stands in relation to that book as a house to a window. This is the structure; the earlier book allowed the first glimpse inside."In the first chapter on "The Imperatives of Power," he states that "Technology... leads to planning," and ultimately "will require the firm to seek the help and protection of the state." This is because the state can absorb the major risks, and guarantee a market for the product. (Pg. 20) Thus, in the areas of the most exacting and advanced technology, "the market is most completely replaced," and "The fully planned economy ... is warmly regarded by those who know it best." (Pg. 31)He invents the term "Technostructure" for the loose organization of those who bring specilialized knowledge, talent or experience to group decision-making. (Pg. 71) Mature corporations are run by this technostructure. He then opines that decentralization in Soviet-style economies does not involve a return to markets, "but a shift of some planning functions from the state to the firm." Rather than both Soviets and U.S. returning to the market (which they have "outgrown"), "There is measureable convergence to the same form of planning." (Pg. 108) (Obviously, this was written before 1989-1991.)He asserts that "Much of what is believed to be socially important is, in fact, the adaptation of social attitudes to the goal system of the technostructure." (Pg. 163) The technostructure favors prevention of losses, over profit maximization (which "invites risk of loss"). (Pg. 168-169) He further argues that "Firms spend money to take business away from each other; all cannot succeed so the result is a standoff. The only consequence is that prices are higher and profits are lower than if by some act of government or industrial statesmanship the struggle were curbed." (Pg. 203-204)He argues passionately that where there is a conflict between industrial and aesthetic priorities---e.g., defending the landscape against lumbermen---only the state can rule that "some patterns of consumption...are inconsistent with aesthetic goals." He concludes ironically, "That one must pause to affirm that beauty is worth the sacrifice of some increase in the Gross National Product shows how effectively our beliefs have been accommodated to the needs of the industrial system." (Pg. 350)There is much more in the book, of course; though more than 50 years old, Galbraith's arguments remain challenging and thought-provoking, and will be of considerable interest to modern progressives.
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