One of the most profound and enduring influences of The Affluent Society is the introduction of Galbraith's term "conventional wisdom" into everyday language. This book delves deeply into how these ingrained beliefs shape our perceptions of the economy. Galbraith articulates that such conventional wisdom is rooted in the economic landscapes of the nineteenth century, rendering it obsolete for understanding the twentieth-century American economy. Yet, he notes, those in power often have a "vested interest" in preserving these outdated ideas, as they help maintain the current power dynamics.

Galbraith further argues that economists are similarly invested in conventional wisdom, as it forms the bedrock upon which economic theories are constructed. Throughout his work, Galbraith champions two critical assertions regarding conventional wisdom. Firstly, he urges both economists and the public to move beyond these antiquated beliefs to develop a more accurate perspective of today's economic realities. Secondly, he highlights how conventional wisdom frequently acts as a smokescreen, disguising economic policies that actually contradict this so-called "wisdom." In Galbraith's view, conventional wisdom is akin to a widespread illusion that must be dispelled to achieve a clearer understanding of the economy's true state.

The Affluent Society

In his insightful work, The Affluent Society, Galbraith captures the essence of America's booming economic landscape during the mid-twentieth century. This period, he contends, marks an extraordinary era of widespread prosperity that had yet to be seen in history. Galbraith challenges the notion that traditional economic theories, designed for societies teetering on the edge of subsistence, fit this new era of abundance in America.

He boldly proclaims that, in light of this newfound wealth, economic instability has faded into a relic of the past. The specter of financial calamity, Galbraith insists, no longer haunts the lives of individuals or the corridors of industry. Thus, neither the everyday citizen nor the corporate giants need fear the looming shadows of economic ruin.

Galbraith contends that the United States basks in unparalleled wealth, yet he firmly acknowledges the persistent shadow of economic disparity. He challenges the prevailing mindset that downplays the gravity of this inequality, suggesting it is a habit that society must break. Instead, Galbraith is convinced that poverty must remain a central focus of the nation's economic agenda.

He passionately argues for channeling significantly more tax revenue into public services, aiming to alleviate the burdens of poverty. Galbraith is particularly invested in ensuring that children from impoverished backgrounds gain access to essential public services like education, health care, and adequate nutrition, all crucial for breaking the cycle of poverty inherited from their parents.

In Galbraith’s discourse, a recurring motif emerges: the traditional obsession with high production rates as a hallmark of economic vitality. He highlights the almost reverential status this belief holds within American economic ideology, asserting it as a significant barrier that needs dismantling. Galbraith presents a repertoire of arguments to unravel the myth that robust production figures are the cornerstone of economic well-being.

He draws attention to a spectrum of historical and contemporary economic scenarios that, in his view, reveal production's secondary role. Instead, Galbraith suggests that this preoccupation with output binds the public's perception, leading them to neglect other crucial elements like the value of public services and the essential nature of job satisfaction.

In dissecting the intricate dance between production and consumption, Galbraith shines a light on what he perceives as a deeply ingrained error in the accepted beliefs about the U.S. economy. Typically, it is believed production levels are guided by a society’s inherent need for goods, mirrored by consumption patterns. Yet, Galbraith underscores a critical oversight by economists: the formidable role advertising...

Galbraith challenges the conventional wisdom that affluence primarily grants the luxury of working fewer hours each week. He contends that the most cherished reward of prosperity is not necessarily reduced work hours but the pursuit of fulfilling employment. According to him, the yearning for enjoyable work outweighs the wish for less work. He highlights the emergence of a new class of workers who have the privilege of engaging in jobs aligning with their personal interests.

While acknowledging the significance of income for job satisfaction, Galbraith emphasizes that interest and pleasure are at least equally vital. He identifies access to higher education as the key factor for joining this new workforce. Education, he argues, is the gateway that permits individuals to embark on careers filled with enjoyable work. Galbraith makes a compelling case for increased investment in public education, suggesting it would enable a growing number of people to find occupations that they genuinely enjoy. In his eyes, there is no justification for an affluent society to withhold such opportunities.