Study Notes on The Affluent Society by Galbraith

The Role of the State in the Good Society

Acceptance of the Market System

  • The good society acknowledges and accepts the basic market system and its managers.

Limitations of the Market System

  • Despite its acceptance, there are areas where the market system does not perform effectively, leaving responsibilities to the state.
Key Responsibilities of the State

  • Housing:

    • The market system does not provide good low-cost housing, which is essential.
    • It is deemed a public responsibility to ensure adequate housing for all.
    • The presence of homeless or poorly housed individuals contradicts the ideals of a good society.

  • Health Care:

    • Health care is also recognized as a public responsibility across civilized nations.
    • No individual should suffer from illness or death due to poverty.
    • Britain is noted for its leadership in providing healthcare.
Additional State Functions

  • The state is responsible for various essential functions, including:

    • Parks and recreational facilities.
    • Police services.
    • Libraries.
    • Support for the arts.
    • These services are critical, especially for the underclass, rather than simply for the affluent.

  • Often, those who criticize state services are individuals who can afford to provide similar services for themselves.

Long-Term Responsibilities of the State

  • Beyond immediate market needs, the good society requires attention to activities that extend beyond the market's typical time horizon.

    • Scientific Research:
    • The government should support scientific endeavors, including medical research, which often require long-term investment.
    • Markets typically seek short-term returns, while significant advancements necessitate public investment.
    • Historical industrial achievements, such as advancements in agricultural productivity, air transport, and electronics, have relied on substantial public investments.

  • Environmental Responsibilities:

    • Acknowledgment of the need for investment and regulation aimed at protecting and improving the environment for future generations is crucial.
    • The good society must prioritize ecological considerations and planetary health.