Characters
Henry Charles Carey
Henry Charles Carey (1793–1879), an illustrious figure in the realm of American
economic thought, staked his claim as the harbinger of the American school of
economics. His seminal contributions include the insightful Essay on the
Rate of Wages (1835), the comprehensive Principles of Political
Economy (1837–1840), the transformative Principles of Social
Science (1858–1860), and the pioneering The Unity of Law (1872).
Galbraith paints Carey as one of three quintessentially American icons in
economic theory, lauding his uniquely hopeful vision regarding society's
economic trajectory. Diverging from the more somber musings of his
predecessors, Carey boldly contended that wages had climbed over time. Yet,
Galbraith critiques that despite his daring optimism, Carey remained a fringe
figure in economic discourse, with his writings languishing in obscurity,
forgotten by history.
Henry Ford
Henry Ford (1863–1947), the visionary entrepreneurial pioneer, forever altered
the landscape of industry with the founding of the Ford Motor Company. His
revolutionary introduction of the assembly line heralded a new era of
production efficiency. Galbraith highlights Ford as an epitome of the celebrity
status early industrialists garnered solely through business prowess,
transcending educational or intellectual pedigree. In contrast, Galbraith
observes that contemporary America no longer bestows such glory upon business
magnates unless they excel in other fields.
Henry George
Henry George (1839–1897) stood as a fervent advocate for tax reform, his
economic philosophies encapsulated in the influential Progress and
Poverty (1879). This work, subtitled ‘‘An Inquiry into the Cause of
Industrial Depressions and of Increase of Want and Increase of Wealth,’’ paints
a bleak portrait of economic evolution. Galbraith enlists George among a trio
of monumental American economic thinkers, alongside Veblen, dubbing them
prophets of pessimism. Despite proffering solutions, George foresaw ongoing
poverty, escalating inequality, and deepening insecurity, a vision often echoed
by advocates in tones of frustrated radicalism.
Herbert Hoover
Herbert Hoover (1874–1964) served as the thirty-first president of the United
States, steering the nation through the initial tumultuous years of the Great
Depression from 1929 to 1933. Initially celebrated for his humanitarian
achievements during and post-World War I, Hoover's star dimmed as he struggled
against the economic maelstrom, culminating in electoral defeat by Franklin D.
Roosevelt. Galbraith notes Hoover's adherence to the prevailing notion that
maintaining a balanced federal budget was paramount for economic recovery, a
stance that proved inadequate in the face of widespread financial turmoil.
John Maynard Keynes
John Maynard Keynes (1883–1945), the architect of Keynesian economics, penned
the groundbreaking The General Theory of Employment, Interest and
Money (1935–1936), advocating for mass employment as a linchpin of
economic stability and prosperity. The 1930s saw Keynes's theories ignite a
paradigm shift in economic ideology, establishing him as the most influential
economist of the twentieth century. Galbraith, profoundly swayed by Keynes's
insights, frequently references his work in The Affluent Society,
underscoring the transformative impact of Keynesian thought in redefining
conventional economic wisdom.
Thomas Robert Malthus
Thomas Robert Malthus (1766–1834), a cornerstone in the edifice of economic
theory, carved his niche with an unyielding focus on population growth's
implications for economic stability. His pivotal treatise, An Essay on the
Principle of Population (1798), cast a somber outlook, predicting
inevitable poverty as a universal condition. Galbraith aligns Malthus with
Smith and Ricardo as part of the venerable "founding trinity" of
English-speaking economic theory, emphasizing Malthus's role in sowing seeds of
pessimism across the discipline, all while offering no remedy to the plight of
the impoverished multitudes.
Alfred Marshall
Alfred Marshall (1842–1924) stood as a seminal figure in the development of
neoclassical economics, with his magnum opus, Principles of Economics (1890), leaving an indelible mark on the prevailing...
(This entire section contains 1735 words.)
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economic doctrines. Galbraith acknowledges Marshall's profound influence on conventional economic thought.
Karl Marx
Karl Marx (1818–1883), the German-Jewish visionary, reshaped the landscape of
political and economic history with the formulation of Marxist theory. His
landmark works, including the pioneering The Communist Manifesto
(1848) co-authored with Friedrich Engels, and Das Kapital, reverberate
through modern political movements. Galbraith frequently invokes Marx in The
Affluent Society, highlighting his enduring impact on contemporary
ideology.
John Stuart Mill
John Stuart Mill (1806–1873) emerged as a titan of economic theory and
Utilitarian philosophy, championing women's suffrage and co-founding the first
women's suffrage society in 1867, later known as the National Union of Women’s
Suffrage Societies. His seminal pamphlet, The Subjection of Women
(1869), continues to resonate. Galbraith credits Mill as a foundational
influence in the tapestry of American economic theory.
J. P. Morgan
See John Pierpont Morgan
John Pierpont Morgan
John Pierpont Morgan
John Pierpont Morgan (1837–1913) reigned as a formidable titan of American
industry during the dawn of the twentieth century. His banking powerhouse, J.
P. Morgan and Company, which emerged in 1895, quickly ascended to global
prominence. Morgan wielded dominion over the vast railroad network sprawling
across the United States and presided over one of the world's most influential
railway enterprises. His masterful orchestration of mergers and consolidations
in pivotal industries crowned him leader over colossal corporations like United
States Steel, General Electric, and the International Harvester Company.
Morgan's vast industrial dominion embraced banks and insurance firms. Galbraith
ranks Morgan amidst a cadre of American industrial giants of that era,
highlighting how these business leaders became akin to celebrities, their
ventures inseparably linked to their illustrious identities. Yet, Galbraith
notes a shift in perception, as modern-day business magnates no longer
captivate public attention as they once did.
David Ricardo
David Ricardo
David Ricardo (1772–1823) stands as a pioneering English economist whose work
laid the groundwork for economics as a rigorous scientific discipline in the
early nineteenth century. Celebrated for his "Iron Law of Wages," Ricardo
posited that the wages of the common people would perpetually linger at
subsistence levels. Galbraith includes Ricardo, alongside Smith and Malthus, as
part of the "founding trinity of economics," and lauds him as "the man who
first gave economics its modern structure." Like Malthus, Ricardo adhered to
the somber belief that widespread poverty was an inescapable reality of
economic systems—a sentiment that seeped into the conventional wisdom of
nineteenth-century economic thought, persisting into the early twentieth
century. Though Ricardo's theories dominated the financial discourse through
the mid-nineteenth century, they encountered competition from Karl Marx's
theories, which offered a remedy for widespread poverty.
John D. Rockefeller
John D. Rockefeller
John D. Rockefeller (1839–1937) carved his legacy as a commanding force in
American industry with the establishment of the Standard Oil Company. His
formidable business maneuvers spearheaded the enactment of the Sherman
Anti-Trust Act of 1890, a response to monopolistic practices. As years
advanced, Rockefeller embraced philanthropy, channeling around $500 million
into founding institutions like the University of Chicago in 1892, Rockefeller
University in 1901, and the Rockefeller Foundation in 1903. Galbraith paints
Rockefeller as an exemplar of the capitalist notion that wealth begets wealth,
thus deepening the economic chasm between rich and poor. Rockefeller's fierce
business strategies were justified by the "survival of the fittest" ideology,
suggesting that financial triumph naturally came at the expense of many.
Franklin Delano Roosevelt
Franklin Delano Roosevelt
Franklin D. Roosevelt (1882–1945), the thirty-second president of the United
States, held the helm from 1933 to 1945. His New Deal initiatives aimed to
rescue the nation from the mire of the Great Depression, ignited by the stock
market crash of 1929. Initially, economic orthodoxy dictated that a balanced
national budget was key to stability, a belief that propelled Roosevelt into
office in 1932. However, as the Depression waned, Roosevelt's policies evolved,
prioritizing unemployment reduction as the crucial antidote to the economic
crisis, reflecting a shift in prevailing economic thought.
Adam Smith
Adam Smith
Adam Smith (1723–1790), a luminary of the Scottish Enlightenment, profoundly
shaped political economy and social philosophy. His opus, An Inquiry into
the Nature and Causes of the Wealth of Nations (1776), introduced the
first comprehensive theory of political economy. During his lifetime, Smith
enjoyed international acclaim for his impact on social science and economic
theory. Galbraith places Smith alongside Ricardo and Malthus as part of the
"founding trinity of economics," and hails him as "the first great figure in
the central economic tradition." Smith was the inaugural influential economist
to propose that humanity's economic condition could scarcely surpass
subsistence, a notion Galbraith dubs "the most despairing dictum in the history
of social comment."
Herbert Spencer
Herbert Spencer
Herbert Spencer (1820–1903) was a towering intellectual of the Victorian era,
whose ideas spanned biology, psychology, philosophy, and sociology. A staunch
advocate for individualism, Spencer's chief work was The Synthetic
Philosophy (1896). Although Charles Darwin later provided a more precise
evolutionary theory, Spencer had earlier proposed a rudimentary version and
swiftly acknowledged Darwin's superiority. Spencer coined the term "survival of
the fittest" to encapsulate the essence of "natural selection," applying
evolutionary concepts to social and economic spheres, thus birthing Social
Darwinism. Galbraith discusses Spencer in the context of Social Darwinism's
influence on American economic thought.
John Strachey
John Strachey
John Strachey (1901–1963), a British Socialist and Labour Party politician,
wielded considerable influence through his Marxist writings. Galbraith
describes him as "the most articulate contemporary English Marxist" of the
early twentieth century.
William Graham Sumner
William Graham Sumner
William Graham Sumner (1840–1910), a prominent American economist, emerged as a
staunch proponent of Social Darwinism. His seminal work, Folkways
(1907), further cemented his reputation. Galbraith regards Sumner as the "major
prophet" of Social Darwinism in the United States.
Frank Taussig
Frank Taussig (1859–1940) was a distinguished American economic theorist, whose
groundbreaking concepts on international trade left a profound mark on American
policy during the era of President Woodrow Wilson. Galbraith hails Taussig as
"the leading figure in the central tradition" of American economic thought,
underscoring his pivotal role in shaping economic discourse.
R. H. Tawney
R. H. Tawney (1880–1962) stood as a towering figure in the realm of English
economic history. A stalwart socialist within the British Labour Party
throughout the tumultuous 1920s and 1930s, Tawney was not only a thinker but
also a fervent social reformer, whose visionary ideas found life during his
time. His penetrating works, The Acquisitive Society (1920) and
Religion and the Rise of Capitalism (1926), became cornerstones of
economic literature. In his reflections, Galbraith brings Tawney into
discussions about the balance between high production levels and their impact
on social welfare.
Thorstein Veblen
Thorstein Veblen (1857–1929), an illustrious American economic theorist, rooted
his ideas in the principles of Social Darwinism. His seminal work, The
Theory of the Leisure Class (1899), introduced the enduring concept of
"conspicuous consumption." Galbraith, in his commentary, paints Veblen as a
"prophet of gloom," alongside George, due to his bleak economic forecasts.
Veblen's theories suggest that economic inequality is woven into the very
fabric of human society, presenting a stark view that "there is no hope for
change" from this entrenched structure.