The Economics of Innocent Fraud: Truth for Our Time

Galbraith, John Kenneth

ISBN 10: 0713998202 / ISBN 13: 9780713998207

Published by Allen Lane, London, 2004

About this Item

78pp First UK edition.

Seller Inventory # 077056

Bibliographic Details

• Title: The Economics of Innocent Fraud: Truth for Our Time
• Publisher: Allen Lane, London
• Publication Date: 2004
• ISBN 10: 0713998202
• ISBN 13: 9780713998207
• Binding: Hardcover
• Edition: First Edition.
• Condition: Very Good
• Dust Jacket Condition: Good+
• Seller catalogs:
  • Economics

About this title

Synopsis

John Kenneth Galbraith, lifelong critic of unbridled corporate power and one of the most renowned economists of the twentieth century, delivers a scathing polemic on today economics, politics and public morality.,Sounding the alarm on the gap between conventional wisdom and reality, Galbraith distils years of expertise in t

Review

John Kenneth Galbraith has been immersed in economics for most of his long and remarkable life. The purpose of this extended essay is to illuminate examples of "innocent fraud" or the gulf between perception and reality in the modern American economic system--a system he had a hand in creating during his tenure in FDR's administration. Though tackling serious subjects, the book sparkles with wit and sly understatement. "A marked enjoyment can be found in identifying self-serving belief and contrived nonsense," he writes, clearly enjoying himself.

The dominant role of the corporation in modern society is one such form of innocent fraud, and he explains how managers hold the real power in our system, not consumers or shareholders as the image would suggest. Despite the "appearance of relevance for owners," capitalism has given way to corporate bureaucracy--"a bureaucracy in control of its task and its compensation. Rewards that verge on larceny."

He also explains how the public realm is effectively controlled by the private sector. The arms industry is but one example of this: "While the Pentagon is still billed as being of the public sector, few doubt the influence of corporate power in its decisions." He also looks at the financial world which "sustains a large, active, well-rewarded community based on compelled but seemingly sophisticated ignorance," and in particular the Federal Reserve System, "our most prestigious form of fraud, our most elegant escape from reality." In essence, Galbraith says that the Fed, for all of its power and prestige, effectively does nothing. And he has little problem with this: "Let their ineffective role be accepted and forgiven."

Both a guide to the present and an aid to shaping the future, this slim, satisfying book is a font of wisdom, conventional and otherwise, from a respected elder statesman in the twilight of his life. --Shawn Carkonen