HCJ Seminar Paper The New Industrial State

John Kenneth Galbraith’s book – ‘The New Industrial State’ was written in 1967 and the general themes of the book surround the issue of product, capitalist societies and of businesses and corporations.

Galbraith writes about how the use of risks within traditional small businesses become less relevant compared to the rise and continuous growth of large corporations in the industrial region. He goes on to state that the advantages the large associations have in securing longer contracts with labourers and suppliers reduce the relevance of risk taken by smaller businesses becomes practically ineffective in their way of gaining supply and demand. He also writes that the influence of politics is another key factor in securing stable situations and conditions which are ideal for the continuous growth and planning in the markets of production.

Despite some sectors of the economy still dominated by small firms, Galbraith argues that long-term planning needed for produce involves advanced technology which includes the theory of risk. One result of this is that competition is no longer a relevant explanation of the industrial sector because the overwhelming power of advertising from larger corporations is more significant and appealing to the produce of the smaller businesses.

He goes on to argue throughout the book that the industrial system is controlled by the structure of the industry rather than the actual share holders of the respective companies. The structure itself is not there to create or increase the profit made but rather to maintain the stability and life of the corporations, and to a further extent to gradually increase its stature over a larger scale, expanding where they see fit.

The main aim of the company’s structure is to keep control over the business and it prefers using profits made to borrowing from banks, so therefore, the money given to share holders is decreased so that the company does not risk losing its own self-funding. Also, the companies of the industrial system use a program of fixing and stabilising prices to make sure that long-term planning is sufficient.
A central theory of the book is the revised sequence, which is chapter 19, the chapter I will be looking to talk about in detail. The main idea of the economy is that markets that are in competitions which one another are, at the end of the day, controlled by their customers and the will of their customers. This is referred to as the ‘Accepted Sequence’ whereas the revised sequence is the opposite in contrast, where companies use advertising to gain control over their customers. So in modern terms, just as an example, a big branch like “Sainsbury’s” would have control over its customers through the power of advertising, whereas smaller businesses would have to rely on their customers’ interests and demands to provide a service suitable enough to survive in the industry.

But, the revised sequence is only relevant to the industrial system, and not the market system. So “Sainsbury’s” would not apply to the revised sequence because the revised sequence is not relevant to the market system where competition in prices remains the sole main part of control for them, and it is seen as a means to gain social power amongst their consumers.
“The consumer is, so to speak, the king...each is a voter who uses his votes to get things done” - Paul Samuelson, Economics.

To me this quote is from Samuelson is a brief explanation of the “Accepted Sequence” that the customers have control and gain control over the company by requesting what they want to see done. To refer to the consumer as a king is overwhelming, however in the industry, companies and businesses must see their consumers as kings because that is who they want to attract and build their corporation with, attracting them, especially within the smaller firms.

However, it could be argued that Galbraith wants the readers to realise that regardless of who controls the companies, whether it be the structure itself or the consumer, the consumer should always be regarded highly in this type of industry because they are the main sources in the term ‘supply and demand’

“The mature corporation has readily at hand the means for controlling the prices at which it sells as well as those at which it buys. Similarly, it has a means for managing what the consumer buys at the prices which it controls.” – Galbraith goes on further to talk about the planning and that the use of technology is the main reason for the planning process. He also states that the time committed to the planning and technology, as well as the decreased effectiveness of the market for products and skills contributes to the long-term planning of the techno structure of the company.

“It is possible that people need to believe that they are un-managed if they are to be managed effectively. We have been taught to set store by our freedom of economic choice; were it recognised that this is subject to management; we might be at pains to assert our independence. Thus we would become les manageable”
In my view, this from Galbraith toward the end of chapter 19, “The Revised Sequence” sums up as a whole both consumers and the industrial system and its competitive nature between both.

Markets within the system compete to attract the most amounts of consumers; however consumers compete to get the best from their chosen or designated market. To me, the companies fight for the economy and use advertising to obtain the most economic profit from their consumers in what we call the Revised Sequence. However, the Accepted sequence is different and responds significantly to the requests and desires of their consumers. Consumers control firms in the accepted sequence, but due to the backlog and power of their economic state, maybe it is the larger companies who have a stronger techno structure to progress and expand.

Newington CC vs Belnor CC 08/05/2011

After last weeks disappointing result, Messenger wanted to revamp his side with a win against new yearly opponents Newington.

Nickells, Grover, Edwards Jnr, Bishenden and Green were all left out, and big names Elkin, Josh Mitchell, Paul Gilbert, Mark Forshaw and former Sunday captain Robbie Merriman were selected, adding a stronger batting line up to this week's match.

Despite overcast conditions, the track was hard, and dry, perfect conditions for the batsmen and with a little grass on top meaning suitable for the bowlers in the later overs.

Messenger won the toss and elected to bat. A great start.

The start got even better after Forshaw and Moody scored some early runs, Forshaw hitting three 4s in two overs, and Moody contributing with one of his own. But in typical Belnor fashion, where there's hope, there's a collapse and collapse is exactly what we did. Forshaw playing at a wide ball getting thin connection and scooping the ball in the air straight to slip.

Shortly after, Merriman, pushed up the order from 7 to 3, looked to playing some nice, crisp cricket shots but in classic fashion attempted and sweep and misjudged the ball, his leg stump being skittled, and he fell for a duck. Moody remained solid but struggled to add to his score, and it was the usual of openers of Moody and Malhotra who looked to restore the innings but Malhotra fell with no score and Moody shortly followed for just six. Those two have scored 11 runs between them in two games, a total which will keep Messenger thinking in games to come.

The extravagant James Elkin was expected to score big, but failed in doing so, swiping at a ball and seeing his stumps rattled by the swing of opposing skipper Lance Morgan.

It was a similar situation for Messenger again. Coming in at 7 and seeing his side fail to start big at 45-5.

Messenger and Gilbert though battled hard and took their side to 87-5 at drinks. But, it was not long before another wicket fell. Gilbert falling for 21 being stumped, and Messenger being caught superbly at mid-wicket for 19.

Mitchell and Mummery fell cheaply but a powerful 22 from Lee Edwards and 7* from Shaun Edwards took the away side to a final total of 118. A disappointing total but competitive nonetheless.

Belnor started well but not well enough. Newington were 40-2 off 6 overs at tea, Mummery taking both hauls.

At tea, Messenger brought off Lee and Mummery and brought on S. Edwards and Mitchell for some added experience combined with the youth of spin.

It worked! It was inspirational! Edwards taking 5-16 off 8 overs and Mitchell finishing with 3-38 off 7.3 overs. Stockbury were bowled out for 91, with Paul Gilbert taking 5 catches behind the stumps.

A great first win for Messenger's Belnor side, but concerns will be raised over his shaky batting line up, especially the inconsistent opening order.

Belnor CC 118 all out off 25.3 overs

Newington CC 91 all out off 21.3 overs

BELNOR CC WON BY 27 RUNS

Belnor CC vs Stockbury CC 01/05/2011

A new Sunday season, but results and performances remaining effectively the same.

Belnor went into this 2011 Sunday season under new leadership, with 19-year-old Gareth Messenger taking the reins in his first full year in charge against a young, vibrant Stockbury side.

Messenger made many changes from the usual Sunday 1st XI with many key faces missing for the first week, James Elkin and Paul Gilbert just two of the six names unavailable.

Debuts were given to Leo Grover and Messenger's university housemate Finn Nickells, whilst loyal servant and socorer Stuart Bishenden and Shaun Edwards Jnr were given run outs to start the year.

On a poor pitch, Messenger lost the toss and his side were put into bat. Not a great start to the highly expected day, and things were to get even more worse shortly after when opening batsman Barry Moody fell for a duck on just the second ball of the game. Fellow opener Manu Malhotra fell for just 5 and Grover on his debut shortly followed without scoring.

The ever-resilient Alan Green worked hard for his 19 and was supported well by Nickells, but a mix-up among the two resulted in Nickells being run out for 11, despite looking relatively solid. Belnor's day seemed to be plummeting quite easily, especially when Edwards Jnr received a blow to the head whilst batting, forcing him to a retire off the field and a trip up the A & E, meaning not only were Belnor down a man in the field, but they had lost their wicket-keeper for the day.

Messenger came in at 7 and despite scoring only 9, used up a tidy 20 balls in trying to stabilise an innings before he was cleaned bowled. Vice captain Eddie Mummery scored a quickfire 12, including a huge 6 to square leg but himself and Lee Edwards were dismissed quickly, leaving Belnor's first Sunday innings of 2011 at a poor 103.

Stockbury started brightly with danger-man Hal Pearson at the crease and the game looked to be shortly over. But, the pace of Lee Edwards caught him off guard and he was bowled for just 6. Time for inspiration it seemed, and it came in the form of Mummery. Taking three wickets in a short space of time to reduce Stockbury to 28-4. One of these wickets courtesy of a fantastic one-handed catch from Nickells at slip, after he fumbled the ball three times.

It was all set up for an intriguing tie, but never write off Stockbury. A stable 25* from opener George Cornah and a hard-hitting 53* from Emery coming in at 6 took the tie past Belnor and the Tigers' season started with a defeat.

Belnor CC 103/9 off 24.5 overs

Stockbury CC 104/4 off 23.1 overs

STOCKBURY CC WIN BY 6 WICKETS