Galbraith: The Dependence Effect Flashcards
What are the two main propositions in Galbraith’s Theory of Consumer Demand?
- The urgency of wants does not diminish as more are satisfied.
- Production exists to satisfy wants.
What is Galbraith’s main critique of these two propositions?
He argues they are false under modern capitalism because wants are no longer independent—they are created by the same system that satisfies them.
What is The Dependence Effect?
It’s the idea that modern production creates the very wants it claims to satisfy, especially through advertising and marketing. Our desires are no longer authentic or independent.
How does advertising create wants, according to Galbraith?
Advertising generates desire for things people wouldn’t otherwise want, shaping preferences and needs artificially through persuasion, image, and emotional appeal.
Why does Galbraith say production “fills a void of its own creation”?
Because the needs that production fulfills are manufactured by the system itself—people are made to feel they need things they didn’t naturally desire.
What is associative advertising?
It’s a form of advertising that links products with emotions, values, or lifestyles (e.g., luxury, success, freedom) rather than with the product’s actual function.
What are non-market values, and why are they important?
Non-market values include things like beauty, community, love, creativity, and education — values not created or exchanged in the marketplace. Galbraith argues they’re being crowded out by consumer values.
How are we manipulated by advertising?
By being bombarded with messages that create artificial needs, make us feel inadequate without products, and constantly link happiness to consumption — often without critical awareness.
