Galbraith, John Kenneth

GALBRAITH, JOHN KENNETH

John Kenneth Galbraith (1908–) was one of the more influential economists of the post–World War II era. Galbraith was an economic advisor to many Democratic party candidates and officeholders, with his influence peaking as advisor to President John F. Kennedy (1961–1963). Kennedy rewarded Galbraith with an ambassadorship to India, a country in which he had a personal interest.

John Kenneth Galbraith was born in southern Ontario, Canada, on October 15, 1908 to a Scottish farming family. He attended the Ontario Agricultural College, which at the time was part of the University of Toronto but is now the University of Guelph. He graduated with distinction in 1931, having studied agricultural economics. He then moved to Berkeley and studied agricultural economics at the University of California, where he received his Ph.D. in 1934. His dissertation was on public expenditures in California counties, a subject that presaged his career in public service.

As soon as he graduated, Galbraith began his career teaching at Harvard University, where he remained, albeit with interruptions, until he retired in 1975. Galbraith became a citizen of the United States in 1937. He worked in the Department of Agriculture for President Franklin Roosevelt (1933–1945) and was a proponent of the New Deal. During World War II, he served in the Office of Price Administration and Civilian Supply. John S. Gambs said Galbraith was "virtually the economic czar of the United States" until he left the position in 1943. As a result of his experience during the war, Galbraith published The Theory of Price Control in 1953.

Galbraith worked for the Office of Strategic Services after the war ended, studying the effectiveness of the strategic bombing of Germany. He was one of the founders of Americans for Democratic Action, a liberal interest group, in 1947. He worked as a speech writer for Senator Adlai Stevenson (1835–1914) during his presidential campaigns, then chaired the Democratic Advisory Council during the presidency of Dwight D. Eisenhower (1953–1961). In 1960, he campaigned for the successful presidential candidacy of John F. Kennedy.

Having visited India in 1956 and finding the country fascinating, Galbraith was rewarded for his efforts in the Kennedy campaign by an appointment as U.S. Ambassador to India. He held the post from 1961 to 1963. Galbraith's political leanings were decidedly toward liberal causes and candidates of the Democratic Party. He was an outspoken critic of the U.S. involvement in Vietnam, and campaigned for anti–war candidates Eugene McCarthy (1916–) in 1968 and George McGovern (1922–) in 1972. In 1976, he worked for the presidential campaign of Congressman Morris Udall and in 1980, for the presidential campaign of Senator Edward Kennedy.

Galbraith was a thoughtful educator and an observant writer. He published over twenty books, two novels, coauthored a book on Indian painting, and wrote memoirs, travelogues, and political tracts. In 1977 he collaborated on the writing and narrated a Public Broadcasting System television series, "The Age of Uncertainty." His first major book, American Capitalism: The Concept of Countervailing Power was published in 1952. In it Galbraith argued that the growth of economic power in one area breeds countervailing power from those who must bargain with the powerful. For example, powerful manufacturers are counterbalanced by the rising power of organized labor. Galbraith's view was that the government had a role in supporting the countervailing powers for the good of the economy.

Of all his writings and publications, three stand out as major works of economic thought. The Affluent Society was published in 1958, and put forth the proposition that economic progress is impeded by the more–is–better mentality. Galbraith further postulated that progress could be extended by putting affluence to better use than purchasing goods propped up by artificial techniques such as advertising and salesmanship. He also argued in support of the view that culture and history have a significant role in economic life. The Affluent Society was a best seller, and served to place Galbraith in the forefront of economic thought.

The second of Galbraith's three important works was The New Industrial State, published in 1967. In it he argued for a concept, which he called revised sequence. Revised sequence simply means that the order of control and economic power is reversed in certain situations. Normally price competition is the dominant force controlling the economy. In instances where businesses control consumers through advertising and salesmanship, the forces controlling the economy are reversed. It is this revised sequence that is at the core of Galbraith's economic thinking, explaining distortions in the economy, which he saw as stemming from this reversal of control. The New Industrial State was also a best seller and proposed a plausible explanation of the power structure in the American economy.

The third book in Galbraith's trilogy of economic thought was Economics and the Public Purpose, and it continued the thinking from his earlier works. In this book, however, Galbraith goes on to argue the conventional economic model produces an "imagery of choice" that obscures the true sources of power within the economy. This situation prevents policymakers and citizens from understanding the true sources of decisions and the true seats of power, making the establishment of sound economic policy problematic. Galbraith believed any economic model should pass the "test of anxiety," or the ability of the economic system to allay fears and anxiety within the populace. It was Galbraith's contention that conventional economic systems did not meet that test.

Following his years in public service, Galbraith returned to Harvard University. He continued even in semi–retirement to critique conventional economic thought. He continued to propose "there must be, most of all an effective safety net [of] individual and family support for those who live on the lower edges of the system. This is humanely essential. It is also necessary for human freedom. Nothing sets such stern limits on the liberty of the citizen as the total absence of money."

Topic overview

There must be, most of all an effective safety net [of] individual and family support for those who live on the lower edges of the system. This is humanely essential. It is also necessary for human freedom. Nothing sets such stern limits on the liberty of the citizen as the total absence of money.

john kenneth galbraith

FURTHER READING

Bowman, John S., ed. The Cambridge Dictionary of American Biography. New York: Cambridge University Press, 1996.

Encyclopedia of World Biography. Detroit: Gale Research, 1999, s.v. "Galbraith, John Kenneth."

Galbraith, John Kenneth. The Affluent Society. Boston: Houghton, 1958.

——. A Life in Our Times. Boston: Houghton Mifflin, 1981.

Who's Who. New York: St. Martin's Press, 1998, s.v. "Galbraith, John Kenneth."

Kretsler, Harry. "Intellectual Journey: Challenging the Conventional Wisdom." Conversations with History. Berkeley: Institute of International Studies, University of California, 1986. Available from the World Wide Web @ (http://globetrotter.berkeley.edu/convresations/Galbraith)