Books: Where the Power Lies

THE NEW INDUSTRIAL STATE by John Kenneth Galbraith. 427 pages. Houghton Mifflin. $6.95.

Who really runs the U.S. economy? Not the same kind of people who did a few years ago, says that fashionably sardonic Harvard economist, John Kenneth Galbraith.

The modern corporation has become just too large for any individual to swing much power. The entrepreneur, like the father of a bee, "accomplishes his act of conception at the price of his own extinction." Shareholders cannot even pretend to power because ownership of stock has become so diffuse. Big capitalists and bankers have lost influence because the typical corporation generates its...

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