Eric Alterman defends the late democratic socialist economist John Kenneth Galbraith from being criticized by Andrew Sullivan:
In the first place, there is the obvious point that, in terms of intellectual accomplishment, a no one and a nothing like Sullivan lacks the knowledge and training even to assess Galbraith's theories, much less pronounce them to be "on the wrong side of truth."
Sullivan might not have a Ph.D in economics but one wonders whether Galbraith ever understood the basics of microeconomics.Galbraith's central hypothesis that markets don't work and big corporations can set prices immune from competition was always a laughable assumption.In the Galbraith world, GM world get bigger and bigger like some monopoly.Check out this
chart GM vs.the S&P 500.The neo-classical world of microeconomics, taught in a typical economics class in college today, is much closer to
reality than the Marxist journalism of John Kenneth Galbraith.Wal-Mart,Cisco Systems,and Google all came along after Galbraith famously wrong theories were espoused.To add insult to injury these aren't known are "union" firms and somehow their employees have made a lot of money off the stock.Anyone can criticize Galbraith because is was so wrong.Here's a quote from Comrade Galbraith praising the
Soviet economic system"The Soviet system has made great material progress in recent years. ... One sees it in the appearance of solid well-being of the people on the streets. ... Partly the Russian system succeeds because, in contrast with the Western industrial economies, it makes full use of its manpower."
In other exciting, related Cambridge/Galbraith economic news concerning the unique and declining state of
MassachusettsA majority of people who moved out of Massachusetts last year report they are very satisfied with life in their new state and would not move back, a Boston Globe poll has found.
Seventy-three percent of those surveyed said they live in a home that is bigger than their home in Massachusetts was. Fifty-four percent said their standard of living is higher now.
The top reason people gave for leaving Massachusetts was a better job, followed by the cost of housing, family ties, and the weather. In a separate set of questions, 50 percent of those surveyed said the cost of housing was a ''major factor," and a better job was cited as a ''major factor" by 39 percent.
How ironic,the place where Galbraith lived and was respected is the only state in America to lose population the last couple of years.
