The failure of John Kenneth Galbraith

Glenn Reynolds takes the statist economist to task:

The large-scale operations hit their zenith at mid-century, with American business revolving around huge entities like General Motors and IBM. Economists like John Kenneth Galbraith began arguing that big corporations were protected from failure by their size, and that the kind of massive organization and information-processing available to these huge concerns meant that smaller businesses couldn't possibly compete. Bigger was better, and the managerial class "technostructure" that ran these big corporations would be the real source of power, without having to worry about crude things like profits.



This turned out not to be the case. Even as Galbraith's book was appearing, the seeds of change were taking root.

The text book world of microeconomics describes reality a lot better than Galbraith.TechCentralStation