[American Capitalism The Concept of Countervailing Power] EBOOK DOWNLOAD

Galbraith s criticisms are valid and elouent but his solutions are broad and largely undefined The text is certainly An Interesting Read For Anyone interesting read for anyone feels discontented with American Capitalism but don t expect anything radically new or invigorating A Classic Very interesting to see the role of competition as an element from a Macroeconomics perspective The author emphasizes the role of countervailing power in a concentrated economy as a disciplinary factor to restrain abuse in emphasizes the role of countervailing power in a concentrated economy as a disciplinary factor to restrain abuse in to consumers and reduction in wages what competition would do in less concentrated markets This is true when there is no inflation otherwise both supplier and buyer tend to ally themselves to extract the most income possible from consumers The author recognizes that there would be a lack of resources for the economic agents to invest and innovate in overly pulverized markets The author also comments on the eternal debate between liberals and conservatives on the best economics policy recognizing that Keynesian ideas may have practical importance in times of economic depression This work has aged but the point is still a fair one Monopolies are dangerous for the health of the economy I read this along with several other Galbraith books for the Capitalism Democracy Socialism class taught under the Philosophy Department at Loyola University Chicago during the first semester of 198182 It is one of Galbraith s weaker texts and one of his earliest being effectively the first volume of a series including The New Industrial State and Economics and the Public Purpose Much too brief a study of its seminal thesis containing neither a thorough theoretical analysis nor a historical study of countervailing power Even so the concept that market institutions will develop occasionally with state support that check the excess power of other market institutions remains "Compelling Today The Labor Unions Which Galbraith "today The labor unions which Galbraith as a paradigmatic countervailing power have largely withered away albeit in part through the withdrawal of state support via right He doesn t mention land rent Henry George or single tax Writing in 1952 Galbraith argues that the prior 20 years the great depression and Ameria s WW2 driven recovery proves that we must reconsider a fundamental economic assumption Namely that perfect competition does not exist in the US economy and that there is enough consolidation of businesses in most industries that companies do indeed have control over prices This in turn limits optimal market efficiency and is different only in degree and precision of a single firm monopoly Galbraith goes on to argue that the most important power dynamic to study in American economics is therefore not how competitors interact to optimize prices but how customers and suppliers interact to split profits Instead of competition he calls this countervailing power Namely when one industry consolidates say the US Steel industry the important dynamic to understand is how labor or. In his new introduction to this classic text on political economy Galbraith reasserts the validity of the core thesis of American Capitalism The best and est. Ganizes of the key vendors of US Steel is its employees or how customers organize eg the auto industry Galbraith then points out that the US Government plays a critical role in establishing countervailing power where there wasn t before through laws and reforms like the minimum wage or workers safety regulation Obviously this role for the US Government is controversial in practiceIncreasingly in our time we may expect domestic political differences to turn on the uestion of supporting or not supporting efforts to develop countervailing power Liberalism will be identified with the buttressing of weak bargaining positions in the economy conservatism and this is its proper function will be identified with the protection of positions of original power There will be a debate over whether weak positions have been unduly strengthenedGalbraith goes on to say where whether weak positions have been unduly strengthenedGalbraith goes on to say where why government intervention in the economy to establish countervailing power is important but the conclusions to me ultimately feel pretty obvious Curious it seems why Galbraith was as popular and celebrated as he was In this book American Capitalism Galbraith argues how companies functions inefficiently by misallocating resources and spending wastefully on advertisements Moreover as companies continue to merge and accumulate larger proportions of the market share these companies will undoubtedly be able to affect price and form a monopoly In such monopolistic position companies will be able to charge almost as much as they want and will have large power over the workforce As such Galbraith finds there are countermeasures what he calls countervailing powers which will balance the scale of power These countervailing powers include labor unions government legislation and social safety nets Thus Galbraith concludes government has an important role in regulating the economy and to help the workersYet as complete as Galbraith s analysis of American capitalism seems nearly every point is incorrect American Capitalism contains arguments from essentially an armchair economist who remains ignorant of the real world He provides no real examples whereby companies are able to control the entire market within an industry and it is clear why there are almost no cases There is essentially no company that came to buy every other company and then proceeded to raise its prices If one such company initiated purchasing of other companies in the industry the remaining companies will take notice If these remaining companies are still operating with a competitive edge the cost of purchasing these companies will become larger and larger thus also encouraging new companies to enter the market Now even if one company came to completely dominate an entire industry there will be still alternative resources For example if one company came to own all the orange farms and all orange related production there remains apple lemon grapefruit milk water and so on as competitors Simply obtaining a large or. Ablished answer to economic power is the building of countervailing power The trade union remains an eualizing force in the labor markets and the chain store. American Capitalism The Concept of Countervailing Power

Free read ð PDF, DOC, TXT, eBook or Kindle ePUB free ï John Kenneth Galbraith