John Kenneth Galbraith interview from Common Dreams Newscenter:
- “We can’t say how serious this is yet, and anyone who makes such a prediction is suspect,” he says, eschewing the giant soundbite dangling in front of him. “I can only say I hadn’t expected to see this problem on anything like the magnitude of the last few months – the separation of ownership from management, the monopolization of control by irresponsible personal money-makers.” Time and again as we talk, the author of American Capitalism and of The New Industrial State, the chronicler of The Affluent Society, returns to the same two points. His first is that the large modern corporation, as manipulated by what he calls the “financial craftsmen” at Enron and elsewhere, has grown so complex that it is now almost beyond monitoring.
Second, and consequently, these new entities “have grown out of effective control by the owners, the stockholders, into nearly absolute control by the management and the individuals recruited by management”. And in the process, he insists, this latter group has “set its own compensation, either in the form of salaries which can get to fantastic levels, or of stock options”.
“That was the achievement of Roosevelt and the New Deal. Public attitudes were never quite the same again.” But then Galbraith leapfrogs 70 years and a dozen presidencies to the massive Bush tax cuts of 2001 to reinforce his point that nothing very much has changed. “It is still politically safe to be very rich,” he says, citing what he calls the “imaginative developments” of the Bush administration as a prime example.
“Assuming they will not be in power indefinitely, they are taking the interesting step of enacting tax legislation not for the immediate future but for all of a decade hence. We not only legislate for the affluent, we do it for their permanent advantage.” And suddenly, once more, the impish delight of the phrasemaker bursts through. “How’s that?” he asks with the sly chuckle of an iconoclast 93 years young.