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The New Industrial State
576 pages, 2007
With searing wit and incisive commentary, John Kenneth Galbraith redefined America's perception of itself in The New Industrial State, one of his landmark works. The United States is no longer a free-enterprise society, Galbraith argues, but a structured state controlled by the largest companies.
Advertising is the means by which these companies manage demand and create consumer needs where none previously existed. Multinational corporations are the continuation of this power system on an international level. The goal of these companies is not the betterment of society, but immortality through an uninterrupted stream of earnings. First published in 1967, The New Industrial State continues to resonate today.
In The New Industrial State, John Kenneth Galbraith introduces the concept of 'technostructure'. He argues that large corporations are controlled by a group of specialized individuals who manage the company's operations. This shift in power from individual owners to a collective group of professionals is a key theme in the book. It's worth exploring how this concept applies to today's corporate world.
Galbraith suggests that in modern industrial societies, planning by large corporations often replaces the traditional market forces. He believes that these corporations have the power to shape consumer demand and control market trends. This is a fascinating perspective to look into, especially if you're interested in economics or business.
The New Industrial State also delves into the role of advertising in shaping consumer behavior. Galbraith argues that corporations use advertising to create demand for their products, rather than simply responding to existing consumer needs. This is a great point to research further, especially if you're into marketing or consumer psychology.
Galbraith also explores the relationship between the industrial system and government. He suggests that the government often serves the interests of the industrial system, rather than the other way around. This is a thought-provoking perspective that encourages readers to see the dynamics between politics and economics in a new light.
In the book, Galbraith emphasizes the importance of education in an industrial society. He believes that a well-educated workforce is essential for the smooth functioning of the technostructure. This is a key takeaway for anyone interested in the role of education in society and its impact on the economy.
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Galbraith's 'The New Industrial State' is a monumental piece of work that has reshaped our understanding of the modern corporate world.
Robert L. Heilbroner - Economist, HistorianGalbraith's 'The New Industrial State' is a profound exploration of the economic and social issues of our time.
Paul Samuelson - Economist, AcademicGalbraith's 'The New Industrial State' is a thought-provoking critique of the modern corporate system.
Milton Friedman - Economist, Statistician