An economic theory for the world we know - James K Galbraith

An extremely important piece by economist James K. Galbraith appears in his monthly Mother Jones space, "The Econoclast."

"The Predator State" tells you everything you already knew about corporate evil, but it becomes a system or "model" here under Galbraith's pen. I have not seen this elsewhere. In a page and a half it brings together ... Well, if I had that many words I could tell you. Since I don't, I won't spoil it by trying. I'll just tell you to read it and give you a taste:

"Today, the signature of modern American capitalism is neither benign competition, nor class struggle, nor an inclusive middle class utopia. Instead, predation has become the dominant feature – a system wherein the rich have come to feast on decaying systems built for the middle class. The predatory class is not the whole of the wealthy ... but it is the leading force. And its agents are in full control of the government under which we live."

By "model" and "system," I mean this is not simply a rehash of grievances or a litany of new outrages. This is an explanatory tool for what has happened and what is likely to happen. Economists like systems, and we will hold on to a good explanatory model long after all evidence in support of it has been discredited. Witness Supply Side, or the New Classical economics of Academia. In Galbraith's exposition we have a system for which the evidence is mounting every day.

I have been critical of Galbraith (James K.) in the past for not completing the loop of his thought. In this case he has completed it perfectly, and the accomplishment is a great benefit to us all.

The text of this issue is not yet up on the Internet where I can find it. When and if it shows up in a legitimate format, I'll amend this post with a link to it.

AND HERE IS THAT LINK: Mother Jones and the Econoclast