ECONOMIC ANALYSIS: A STUDY IN UNCERTAINTIES

UNDERLYING ALL WORK IN ECONOMIC ANALYSIS IS THE CONCEPT OF THE ECONOMIC ALLOCATION OF LIMITED RESOURCES. IN DISCUSSING THE POSITION OF PRODUCTION IN THE UNITED STATES, JOHN KENNETH GALBRAITH, DECLARES THAT NOT ENOUGH ATTENTION IS PAID TO INCREASING THE LABOR FORCE, TO INCREASING CAPITAL FORMATION, OR EVEN TO TECHNOLOGICAL IMPROVEMENT. GALBRAITH'S CENTRAL THESIS IS THAT WE ARE NO LONGER IN AN ECONOMY OF SCARCITY, WHERE THE TASK IS TO ALLOCATE LIMITED RESOURCES TO THE PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES, BUT IN AN ECONOMY OF AFFLUENCE WHERE MAN'S ELEMENTARY NEEDS FOR FOOD, CLOTHING AND SHELTER ARE SATISFIED AS A MATTER OF COURSE, AND ALL THE VAST RESOURCES OF ADVERTISING AND SALESMANSHIP ARE MARSHALLED IN THE EFFORT TO CREATE NEW WANTS SO THAT THE PRODUCTION MACHINE MAY CONTINUE TO FUNCTION AND EXPAND. IF THIS ANALYSIS IS ACCEPTED, THEN THE DOCTRINE THAT THE MARKET ECONOMY AUTOMATICALLY BRINGS ABOUT THE MOST EFFICIENT ALLOCATION OF RESOURCES SUFFERS A SEVERE BLOW. PROFESSOR HORACE M. GRAY OF THE UNIVERSITY OF ILLINOIS HAS MADE SOME STATEMENTS WHICH SEEM TO IMPLY THAT THE TECHNIQUES AND PROCEDURES OF PUBLIC INVESTMENT ARE NEITHER TO BE JUDGED OR SHACKLED BY THE CONCEPTS OF PRIVATE ENTERPRISE.

Media Info

  • Monograph Title: ECONOMIC ANALYSIS IN HIGHWAY PROGRAMMING, LOCATION AND DESIGN: WORKSHOP CONFERENCE PROCEEDINGS, SEPTEMBER 17, 1959
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201863
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Aug 26 1970 12:00AM