http://www.allshakespeare.com/affluent-society
The Affluent Society 
Introduction
The Affluent Society (1958), John Kenneth Galbraith’s most broadly influential book, stands out among works of economic analysis for its accessible writing style, which makes complex economic concepts and arguments understandable to the popular reader. Galbraith’s phrase ‘‘conventional wisdom,’’ a key concept introduced in The Affluent Society, has entered common parlance so pervasively that it is now used to describe a variety of concepts not necessarily related to economic theory. 

Galbraith asserts that the conventional wisdom of economic thinking in the United States is based in nineteenth-century European economic theory and is no longer suited to the unprecedented phenomenon of mass affluence achieved by American society in the twentieth century. He criticizes the overemphasis on high rates of production as a measure of economic prosperity, suggesting that other factors may be of greater importance. He further asserts that economic theory must take into account the importance of advertising in artificially creating high rates of consumption to support high rates of production. 

Galbraith’s central concerns in reassessing the American economy include: the nature of American affluence; the relationship between production, consumption, and advertising; the abiding issue of poverty and economic inequality; and changing factors in such economic concerns as employment, inflation, and consumer debt. He ultimately advocates a greater emphasis on sales tax over property tax; greater government expenditure on such public services as education and health care; and a national goal of expanding the ‘‘new class’’ of citizens able to pursue work they find inherently enjoyable. 
Author Biography
John Kenneth Galbraith is one of the most influential economists of the twentieth century. His more than forty books bridge the gap between academic economic theorists and the common reader, with witty, insightful, and accessible bestsellers such as American Capitalism (1952), The Affluent Society (1958), and The New Industrial State (1967). He is credited with having coined key phrases now in common parlance, most notably, ‘‘conventional wisdom.’’ His works include memoirs, novels, and art history books as well as the economic treatises for which he has made his name. Galbraith is a liberal who, in addition to writing and teaching, has played an active role in American politics. He has held various government posts... 
American Affluence and Conventional Wisdom
Asserting that the United States in the twentieth century is an anomaly in world history due to its unprecedented affluence, Galbraith states that economic theory up to this point is based primarily on societies characterized by poverty and is, therefore, inadequate to addressing the economic condition of the United States in the twentieth century. He introduces the concept of conventional wisdom, which refers to the generally accepted ideas within any given society. Galbraith asserts that conventional wisdom is based primarily on tradition and does not accommodate changes in society and so must be viewed with skepticism.
Henry Charles Carey
Henry Charles Carey (1793–1879) was an American economist and sociologist, who is considered to be the founder of the American school of economics. His major works include: Essay on the Rate of Wages (1835), Principles of Political Economy (1837–1840), Principles of Social Science (1858–1860), and The Unity of Law (1872). Galbraith refers to Carey as one of the three ‘‘distinctly American figures’’ in the history of economic theory. Of these three, Galbraith notes, Carey was the exception in that his views were optimistic as to the economic future of society. In contrast to earlier theorists, Galbraith observes, Carey argued that wages had increased over time. 
Conventional Wisdom
Perhaps the most widespread and lasting impact of The Affluent Society is the entrance of Galbraith’s phrase ‘‘conventional wisdom’’ into common parlance. The effect of conventional wisdom on attitudes about the economy is a key theme in this book. Galbraith explains that the conventional wisdom about the economy stems from nineteenth- century economic conditions and is, therefore, no longer relevant to the American economy in the twentieth century. However, he observes that many people in positions of power have a ‘‘vested interest’’ in the conventional wisdom in that it serves to maintain the status quo. 
Stylistic Flourish
Throughout The Affluent Society, Galbraith makes use of stylistic flourish to make his points more entertaining and understandable to the general reading public. Robert Lekachman explains, in an introduction to John Kenneth Galbraith and His Critics (1972), by Charles H. Hession, ‘‘As even casual readers and severe critics of Galbraith usually attest, the man writes a lovely English prose— witty, supple, eloquent.’’ The use of figurative language and Biblical reference, for example, demonstrates Galbraith’s frequently praised talent for word play and for coining catchy, original phrases.
The Industrial Revolution
The Industrial Revolution was not a political revolution but rather a conglomeration of signifi- cant historical changes that took place in the economic, social, and political spheres of European culture over the course of the nineteenth century. The changes most commonly associated with the Industrial Revolution were in the transition from primarily agrarian economies, employing farm labor, to primarily industrial economies, employing factory labor.
Critical Overview
‘‘Galbraith may well be the most famous economist of the last half century,’’ observes James Ronald Stanfield, in John Kenneth Galbraith (1996). Galbraith’s celebrity status with the popular reading public may be indicated by his appearance in a February 16, 1968, Time magazine cover story, entitled ‘‘The Great Mogul.’’ David Reisman, in Galbraith and Market Capitalism (1980), sums up Galbraith’s widespread influence in stating that he has ‘‘succeeded . . . in stimulating more popular discussion of economic, social and political questions than has any other intellectual of his generation.’’ 
Essays and Criticism
Galbraith's Place in the History of Economic Theory <30469>
Brent has a Ph.D. in American culture, specializing in film studies, from the University of Michigan. She is a freelance writer and teaches courses in the history of American cinema. In the following essay, Brent discusses Galbraith’s place in the history of economic theory. 
To appreciate the significance of The Affluent Society to economic theory, it is useful to place the work of Galbraith within the broader history of economics as a field of inquiry. Galbraith is associated with the American Institutionalist school of economic theory, which arose in the early twentieth century. Below is a brief overview of the history of economic theory, beginning in the late-eighteenth century, and a brief discussion of Galbraith’s influence on the conventional wisdom of attitudes about the role of the economist in American society and culture. 
The Heresies of John Kenneth Galbraith <30470>
In the following essay, Karier discusses how Galbraith’s progressive economic ideas, as expressed in The Affluent Society and other works, are ‘‘heretical’’ to followers of the free market doctrine. 
One of the less-recognized accomplishments of the New Deal was its displacement of scores of entrenched bureaucrats, following twelve years of Republican administrations. Believers in balanced budgets and free markets were out, while believers in jobs programs and government regulation were in. In this atmosphere of change, many liberal reformers were swept into the federal government, including a young Harvard professor named John Kenneth Galbraith. With a degree in agricultural economics from Berkeley, Galbraith was employed by the Agricultural Adjustment Administration in the summer of 1934. 
Rereading The Affluent Society <30471>
In the following essay, Heilbroner analyzes The Affluent Society thirty years after its initial publication and finds that it can serve as a model for ‘‘widening the scope of considerations to which the economic scenarist must pay heed.’’
The Affluent Society was written to awaken American public opinion from its complacent worship of mindless economic growth. It succeeded in its purpose beyond all expectation. Almost immediately upon publication in 1958 the book leaped onto the best-seller list, where it remained for twenty-eight weeks. It was considered of such special importance that the Elmo Roper organization conducted a poll of ‘‘businessmen/trustees’’ and economists—the latter selected randomly from the membership list of the American Economic Association, along with an undesignated number of ‘‘unusually prominent’’ representatives of the profession—asking for their opinions with respect to its findings.
Compare and Contrast
1950s: Following the communist victory, a rapid transformation takes place, and the Industrial Revolution belatedly makes its way to China. 

Today: Some consider the age of the Industrial Revolution to have passed into the Information Age—in which advances in computer and information technology have transformed the conditions of labor and production. 

1950s: During this post-war period, the United States enjoys an era of booming economic prosperity. 

Today: Although the United States continues to enjoy a period of economic prosperity characterized by the lowest unemployment rates in decades and many average Americans profit from stock market investments during the late... 
Topics for Further Study
Galbraith frequently refers to the effect of the depression on American ideas about economics. What economic conditions led to the stock market crash of 1929? What effect did it have on the American society and the American economy? What governmental policies were instituted in response to the depression? To what extent were these policies effective? 

Galbraith makes frequent reference to the status of the American economy during World War II. Learn more about the impact of the war on the American economy. What effect did the war effort have on employment rates, inflation, and consumer spending? To what extent did these changes persist in the post-war era? 
Media Adaptations
Galbraith contributed to the television series, The Age of Uncertainty, broadcast by the British Broadcasting Corporation (BBC) in 1977. 
What Do I Read Next?
In An Inquiry into the Nature and Causes of the Wealth of Nations (1776), economist Adam Smith (whom Galbraith describes as ‘‘one of the founding trinity of economics’’) puts forth the first systematized theory of political economy. 

In his Essay on Population (1798), Thomas Robert Malthus (whom Galbraith describes as ‘‘one of the founding trinity of economics’’) offers his theory of the relationship between population growth and economic stability. 

In Principles of Political Economy and Taxation (1817), David Ricardo (who is also described by Galbraith as ‘‘one of the founding trinity of economics’’) outlines his highly influential theories of trade and taxation
Bibliography and Further Reading
Beckerman, W., ‘‘The Economist as Modern Missionary,’’ in Economic Journal, March 1956. 

‘‘The Great Mogul,’’ in Time, February 16, 1968, p. 24. 

Hession, Charles H., John Kenneth Galbraith and His Critics, New American Library, 1972, pp. x, 95. 

McFadzean, Sir Frank, The Economics of John Kenneth Galbraith: A Study in Fantasy, Centre for Policy Studies, 1977, pp. vii, 1. 

Pratson, Frederick J., Perspectives on Galbraith: Conversations and Opinions, CBI Publishing Company, Inc., 1978, pp. ix–xiii, 49–50, 54. 

Reisman, David, Galbraith and Market Capitalism, New York University Press, 1980, p. 6.