In This Review

American Capitalism
American Capitalism
By John Kenneth Galbraith
Houghton, 1952, 217 pp

Competition on the classical model does not exist in many major industries in the United States. There are great concentrations of private power. Yet the economy performs well, production expands, and few liberals cry for nationalization or detailed government regulation. To explain these paradoxes, Professor Galbraith sets forth the concept of countervailing power--the organization by labor, suppliers, retailers or others of means of sharing in the power and economic advantages accruing to oligopoly. Inflation is the great danger; it emasculates countervailing power and inspires attempts at centralized control. A stimulating and important book.