American Capitalism

On page 66 he sets out the conclusions which result from the abandonment of competitive behaviour in favour of oligopoly or crypto-monopoly: "The producer now has measurable control over his prices.

One can as well suppose that prices will be an umbrella which efficient and incompetent producers will tacitly agree to hold at a safe level over their heads and under which all will live comfortably, profitably and inefficiently.

Galbraith highlights the role of "Countervailing Power" in dealing with market failure & outlines its operation at the micro, and at the macro levels.

He concluded that Countervailing power was legitimate and welcome as the alternative of state control would be much less palatable to the business community.

Without countervailing power, Galbraith concluded (p181): "private decisions could and presumably would lead to the unhampered exploitation of the public, or of workers, farmers and others who are intrinsically weak as individuals.