Critical Text message About "the Dependence Effect” by Ruben K. Galbraith

 Critical Textual content About the Dependence Effect by David K. Galbraith Essay

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With this text,  Galbraith criticizes the neoclassical theories about product demand and the consumer sovereignty in the market. His basic target is to fight against those affirmations depending on " standard wisdom” and all the faults developed as a result of them. He insists that the new world with new realities needs fresh ideas and theories that must adjust to the world they are living in because, in two hundred years, society and its particular economy change radically. The neoclassical cost effective theories agree that the costumer is the entity that guidelines the market because it is he and his wants those who create the demand of a product. Galbraith refuses this, quarrelling that it is certainly not the consumer who spontaneously produces his desires: it is the same entity of production one that creates the wants sometime later it was sells and satisfies these people. For Galbraith it is difficult to defend production as an entity that satisfies desires when that same creation is creating the wants that will later meet. The production isn't satisfying whatever because if this had not came up with the want to begin with, it would not be satisfying it. The buyer, by himself, under no circumstances had the urgency of the want that he is rewarding. Galbraith states his theory of " the production like a creator of wants” promoting on two economists: Steve Maynard Keynes and Wayne Duesenberry.  The first one says that emulation plays an essential role about want creation: " One particular man's consumption becomes his neighbor's wish”[1], because of this the same method that fulfills one's need, creates this same want upon another person; hence the more that a want is content, the more which it grows. Duesenberry goes slightly farther than this: he states the basic interpersonal goal of modern society is a constant advancement a higher standard of living. � This means that, because of this " high standard of living” that society takes almost as if it had been part of their moral framework, man is usually evaluated by products this individual possesses also because of the frequent production of newer and higher normal commodities; gentleman needs to acquire more to maintain his reputation. Although Duesenberry does get a little bit far, his discussion implies that production satisfies and creates the costumer's would like. But more active than the emulation, being a link among production and wants, is a modern advertising and salesmanship. For Galbraith, it is extremely hard that these two can be reconciled with the consumer created wishes because their basic function is exactly to create the wants. Every new customer product has to be introduced in the market with an advertising advertising campaign that is more likely to provoke the on the customer. And the cost of these promotions is incredibly excessive; producers use absurd amounts of money in advertising, therefore " Is actually a new breakfast time cereal or perhaps detergent a great deal wanted if so much should be spent to compel inside the consumer the sense of want? ”[2] This shows perfectly for what reason it is absurd to keep on following the conventional wisdom's affirmations: if producers spend billions advertising a product, if they may have salesmen pressuring the equation and then comes the emulation factor that affects the item from the outside, it is easily noticed that those products are not while urgent because they seem to seem because if they were, they wouldn't need so many help to find a buyer; " A male who is famished need hardly ever be told of his requirement of food”[3]. Advertisement for food is usually not needed every time a man can be dying of hunger; it is just needed for individuals products (Marx's " commodities”) that are far away from staying really natural, urgent and that man would not even know that he wishes them. The idea to which Galbraith arrives to is that welfare is not greater within a society having a higher level of creation than in another with a lower one. This is due to the higher the level of production gets, it produces a higher level of want creation which usually requires a level of00 want fulfillment, and this is called by...


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