Countervailing power
Encyclopedia
Countervailing power is the theory of political modification of markets, formulated by American economist
John Kenneth Galbraith
in his 1952 book American Capitalism
.
In the classic liberal economy, goods and services are provided and prices set by free bargaining.
Modern economies give massive powers to large business corporations to bias this process, and there arise 'countervailing' powers in the form of trade unions, citizens' organizations and so on, to offset business's excessive advantage.
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
John Kenneth Galbraith
John Kenneth Galbraith
John Kenneth "Ken" Galbraith , OC was a Canadian-American economist. He was a Keynesian and an institutionalist, a leading proponent of 20th-century American liberalism...
in his 1952 book American Capitalism
American Capitalism
American Capitalism - The Concept of Countervailing Power is a book by John Kenneth Galbraith, written in 1952.Not as well-known as some of his other works, it contains a critique of the view that markets, left to their own devices, will provide socially optimal solutions. Galbraith agrees with F. A...
.
In the classic liberal economy, goods and services are provided and prices set by free bargaining.
Modern economies give massive powers to large business corporations to bias this process, and there arise 'countervailing' powers in the form of trade unions, citizens' organizations and so on, to offset business's excessive advantage.