Whatever Happened to the Affluent Society? Or, the Dynamics of Consumer-Driven Capitalism Revealed

Abstract

Abstract: This article is an exploration of the ways in which affluence undermines itself, based on a reexamination of two influential books: John Kenneth Galbraith’s Affluent Society (1958) and Tibor Scotivsky’s Joyless Economy (1976). Galbraith’s book offered blueprints for the reform of both the American economy and the discipline of economics based on his understanding that the affluent society was driven increasingly by the consumer rather than the producer. The essay explores the strengths and weaknesses of Galbraith’s analysis based on an account of the course of American public policy in the decades since he wrote. He had advocated for an expansion of public goods; what emerged instead was an expansion of transfer payments. Scitovsky’s account of consumer behavior sought to explain why rising income led to dissatisfied—joyless—consumers. Expanding on his approach, I identify the dynamic of consumer demand that acts to undermine the condition of affluence itself.