ABSTRACT
Galbraith's intention is to construct a model which faithfully reflects the main features of twentieth-century industrial capitalism. Small and middle-sized enterprises are not characteristic; they typify an earlier period and so are excluded. Until the appearance of The New Industrial State, economists had unanimously agreed that all firms in a capitalist economy, even monopolies, operate in a market. Galbraith readily admits that the price of bigness is a loss of efficiency. This does not worry him since it is more than made up by superior productivity. After having secured its autonomy by a minimum level of earnings, the next most important goal of the technostructure is to achieve the greatest possible rate of growth. The difficulty is that Galbraith sees corporate goals as being defined from within the corporation, subject to the motivations of the technostructure, while in reality, the goals of the corporation are determined from without.
