Galbraith’s Antidote to Economic Dogma

Years ago, I came across a quote by John Kenneth Galbraith in Tom Butler-Bowdon’s 50 Economics Classics—a brilliant book, by the way, and an accessible introduction to fifty foundational works that most of us are unlikely to ever read cover to cover. Galbraith’s point was simple: “Where the market works, I’m for that. Where the government is necessary, I’m for that… I’m in favor of whatever works in the particular case.”

I find myself thinking about this often, especially during the shrill debates that keep erupting between self-identified capitalists and socialists, libertarians and liberals, or the big-market versus small-market camps. These labels get endlessly thrown around in arguments that are completely devoid of nuance and context—and, more importantly, devoid of any real comprehension of the historical conditions under which these economic logics, ideologies, and systems actually arose.

Here’s the full quote:

I react to what is necessary. I would like to eschew any formula. There are some things where the government is absolutely inevitable, which we cannot get along without comprehensive state action. But there are many things — producing consumer goods, producing a wide range of entertainment, producing a wide level of cultural activity — where the market system, which independent activity is also important, so I react pragmatically. Where the market works, I’m for that. Where the government is necessary, I’m for that. I’m deeply suspicious of somebody who says, “I’m in favor of privatization,” or, “I’m deeply in favor of public ownership.” I’m in favor of whatever works in the particular case