Semester 2, Seminar 1

Despite the fact that I still don't understand economics this seminar was really interesting and we got into a good discussion about our reading; The New Industrial State by John Kenneth Galbraith.

These are the notes I made after reading chapter 7 'The Corporation' and doing some research.

• The United States is no longer a free-enterprise, Galbraith believes that the state is controlled and structured by large corporations.
• Advertising is the means by which these companies manage demand and create consumer 'need'.
• The goal of these corporations is not to better society but to gain the highest earnings.

• The corporation's purpose is to do business - they use capital from several other persons as this allows them to undertake tasks beyond the financial reach of any single person.
• Persons who share capital with larger corporations are given an element of power. It ensures them a vote on significant affairs and defines responsibilities.

Jenni wrote her seminar paper on the book, here are the notes I made from her paper and our discussion afterwards:

• Corporate leaders control everything
• A techno-structure is a group of specialised workers
• Corporations are soul-less unlike individuals
• Larger companies can ask small businesses to match their prices or lose their jobs!
• Competition is good

There are three parts to a successful company:

1. Machines/technology should replace workers
2. People are needed who understand the technology so that it works
3. Co-ordination and communication is needed between specialists to find out whether every one's skills are relevant, if they're not then they are fired (not needed)

We discussed how parts one and two contrast each other. First Galbraith says that the machines should replace the workers (one machine is better than ten workers) but then he continues to say that however people are needed to ensure that the machines work! Does he want people or not!?
Although I do suppose having people there to work the machines does not mean you have to have ten of them - it would still work with one which does mean that he is eliminating the nine workers not needed.

The goals of a corporate company is most importantly to survive - to have security. Security becomes before growth and profit.

Large companies and the Government decide for us through advertising (the bigger the company the more power) - small companies are not counted. They're often so small in comparison to the large companies that they cannot afford to change the market - only survive in it.

We finished the seminar talking about the control that large companies have over society and how they also have a huge influence on the media. I do not think it's fair that large companies have so much control and do not think about the affect their having on individuals. Recently I heard the saying that if big corporate companies stay with individuals through the lean times, you will be remembered in better economic times. I think this is a good ideal - to stick with your customers through tough times.