Sport of Kings
The Affluent Society - John Kenneth Galbraith, 1958

Galbraith’s main argument is that as society becomes relatively more affluent, so private business must “create” consumer demand through advertising, and while this generates artificial affluence through the production of commercial goods and services, the public sector becomes neglected. He points out that while many Americans were able to purchase luxury items, their parks were polluted and their children attended poorly maintained schools. He argues that markets alone will underprovide (or fail to provide at all) for many public goods, whereas private goods are typically “overprovided” due to the process of advertising creating an artificial demand above the individual’s basic needs. This emphasis on the power of advertising and consequent overconsumption may have anticipated the drop in savings rates in the USA and elsewhere in the developing world.

    1. Timestamp: Monday 2012/04/30 2:40:16