The New Industrial State by John Kenneth Galbraith

Description

“The New Industrial State” is a book written by economist John Kenneth Galbraith, first published in 1967. In this influential work, Galbraith examines the structure and dynamics of modern industrial economies, particularly focusing on the role of large corporations in shaping economic activity.

Galbraith argues that traditional economic theories, which emphasize the primacy of the market and the role of competition, fail to adequately explain the workings of contemporary industrial societies. Instead, he introduces the concept of the “technostructure,” which refers to the network of managers and experts within large corporations who exercise significant control over production, distribution, and consumption.

According to Galbraith, the technostructure operates independently of market forces and government regulation, exerting considerable influence over economic decision-making. He contends that these large corporations dominate key sectors of the economy, effectively shaping consumer preferences and controlling the flow of goods and services.

“The New Industrial State” challenges conventional views of economic theory and offers a provocative analysis of the modern industrial economy. Galbraith’s ideas have had a lasting impact on the field of economics, influencing debates about the role of government, the nature of competition, and the relationship between corporations and society.

While some critics have questioned Galbraith’s characterization of the modern economy, “The New Industrial State” remains a seminal work that continues to be studied and debated by economists, policymakers, and scholars interested in understanding the dynamics of contemporary capitalism.