Lars P. Syll — Galbraith’s History of Economic Thought

Some history if you have time this long Labor Day weekend in the US marking the end of summer and vacation season and the return to business as usual on Tuesday. So expect light posting over the weekend.

Video series.

Galbraith fully acknowledged the successes of the market system in economics but associated it with instability, inefficiency and social inequity. He advocated government policies and interventions to remedy these perceived faults. In his book Economics and the Public Purpose (1973) he proposed the extension of the planning system used in the industrial core of the economy to the wider market economy. He argued for a new socialism, with more steeply progressive taxes, public housing, medical care and transportation, public support of the arts and the conversion of some corporations and military contractors into public corporations.

He was the most read social scientist of his era. Galbraith's association with the U.S. Democratic Party and his criticism of fellow economists, who promoted individualistic free-market economics that he perceived as a false social reality, occasioned strong responses. He was of the opinion that "Wealth is the relentless enemy of understanding".

In the midst of the Watergate scandal in the summer of 1973 Galbraith was called by Adrian Malone of the BBC and asked if he would be interested in doing a television series on the history of economic or social ideas. Galbraith had been thinking of retirement but quickly accepted Malone's proposal. At an early point they settled on the title "Age of Uncertainty" to reflect the sharp contrast between the great certainty in 19th century economic thought with the much less assured views in modern times.

As discussions about the series continued a further theme was developed: that what people believe about the workings of markets and their relationships to the state shapes history through the laws that are enacted or discarded. It was therefore decided that the treatment of these themes would loosely fall into two parts, ideas followed by their consequences.

Metropolis The Age of Uncertainty 11 John Kenneth Galbraith

1. 
   
2. The Prophets and Promise of Classical Capitalism
3. The Manners and Morals of High Capitalism
4. The Dissent of Karl Marx
5. The Colonial Idea
6. Lenin and the Great Ungluing
7. The Rise and Fall of Money
8. The Mandarin Revolution
9. The Fatal Competition
10. The Big Corporation
11. Land and People
12. The MetropolisDemocracy, Leadership, Commitment
13. Weekend in Vermont (three one hour programmes in which Galbraith discusses economics, politics and international relations with guests such as Henry Kissinger, Georgy Arbatov and Edward Heath). These interviews are not covered in the book.

Lars P. Syll’s Blog
Galbraith’s History of Economic Thought

Lars P. Syll | Professor, Malmo University

Also

The problem with New Keynesianism is 1) it contradicts Keynes, 2) the model is an oversimplification, 3) the assumptions are too unrealistic to make the model representation, and 4) it involves the fallacy of composition in its demand for microfoundations.

The History of ‘New Keynesianism’ (short text with quotes and comment, no video)