John Kenneth Galbraith - Economics in Perspective: A Critical History
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Galbraith gives students and professional economists alike the history behind current economic concepts. He outlines the ethical judgments that remain from the household economies of the Greeks to modern capitalism.
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American Capitalism: The Concept of Countervailing Power
A Theory of Price Control
Economics and the Art of Controversy
The Great Crash, 1929
The Affluent Society
The Liberal Hour
Economic Development
The Scotch
The New Industrial State
The Triumph
Indian Painting (with Mohinder Singh Randhawa)
Ambassador's Journal
Economics, Peace and Laughter
A China Passage
Economics and the Public Purpose
Money: Whence It Came, Where It Went
The Age of Uncertainty
Almost Everyone's Guide to Economics
The Nature of Mass Poverty
Annals of an Abiding Liberal
A Life in Our Times
The Voice of the Poor
The Anatomy of Power
A View from the Stands
Economics in Perspective: A Critical History
Page iii
Economics In Perspective
A Critical History
John Kenneth Galbraith
HOUGHTON MIFFLIN COMPANY BOSTON 1987
Page iv
Copyright 1987 by John Kenneth Galbraith
All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, except as may be expressly permitted by the 1976 Copyright Act or in writing from the publisher. Requests for permission should be addressed in writing to Houghton Mifflin Company, 2 Park Street, Boston, Massachusetts 02108.
Library of Congress Cataloging-in-Publication Data Galbraith, John Kenneth, date. Economics in perspective. Includes bibliographical references and index. 1. Economics History. 2. Economic history. I. Title. HB75.G274 1987330'.0987-3644 ISBN 0-395-35572-9
PRINTED IN THE UNITED STATES OF AMERICA
P 10 9 8 7 6 5 4 3 2 1
Page v
For Eric Roll, friend of fifty years, whose guidance on these matters will be evident to all. And, out of enduring affection, for Freda Roll.
Page vii
To Acknowledge
All writers are more in debt to friends than they usually know. My obligation is especially great, and without doubt even greater than I realize. Two of my Harvard colleagues, Robert Dorfman and Henry Rosovsky, gave me help on particular points, and Professor Dorfman read the entire manuscript through in an earlier form. Therese Horsey managed my office affairs while I was writing it and absorbed a myriad of distractions that would otherwise have engaged my time or aroused my temper. Eric Roll, Lord Roll of Ipsden, my friend for many, many years, to whom this book is dedicated, has been an enduring source of ideas on all these matters.
But special in all respects is my debt to two beloved allies. Edith Tucker typed and then retyped these pages and did the infinity of research and checking that was required. I once asked her if she was not tired of the task; with great skill she evaded the question.
Andrea Williams, my partner in all writing enterprises for nearly thirty years, read and reread the manuscript and, as ever, persuaded me to the clarity of expression and rules of grammar from which I too often lapse. To her, my exceptional word of thanks.
And, finally, my love and thanks go to Catherine Galbraith, who over the three years of this writing gave me the encouragement, affection and, above all, the tolerance for which all writers yearn and which only the fortunate are accorded.
Page ix
Contents
I. A Look at the Landscape
1
II. After Adam
9
III. The Enduring Interim
20
IV. The Merchants and the State
31
V. The French Design
46
VI. The New World of Adam Smith
57
VII. Refinement, Affirmation and the Seeds of Revolt
73
VIII. The Great Classical Tradition, 1: Around the Margins
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330'.09