The Predator State
| Company type | Book |
|---|---|
| Industry | Publishing |
| Founded | 2008 |
| Founder | James K. Galbraith |
| Products | Non-fiction book |
The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too is a 2008 publication by economist James K. Galbraith. It presents the argument that American public institutions have been co-opted to benefit private profit, with corporate elites acting as "predators" who manipulate the state not out of ideological motives but to enhance their own financial interests.
Background
When writing this book, Galbraith held a professorship in economics at the University of Texas at Austin. His earlier works included Created Unequal: The Crisis in American Pay (1998). In 2006, after a final discussion with his father, the distinguished economist John Kenneth Galbraith, he was inspired to explore the theme of "corporate predation."
The manuscript was finalized in the period following Hurricane Katrina and prior to the 2008 financial crisis. Galbraith connects these two events to systemic breakdowns caused by political antagonism toward public services and policies favoring deregulation. He argues that deregulation, disguised as adherence to free-market ideals, permitted financial predators to act without restraint, thereby playing a direct role in triggering the economic collapse.
Content
The book is structured into three main parts. The first section questions the notion of free markets as a cultural myth rather than a sincerely held belief among its proponents. The second section examines the predator state concept, where economic inequality arises from private interests greedily capturing wealth instead of being merely an outcome of economic expansion. The final part proposes strategies to leverage private sector advantages while preventing excessive dominance by corporate elites.
Galbraith challenges the prevailing story that US economic prosperity is a product of deregulation, instead attributing it to public institutions established during the New Deal, including programs like social security and Medicare. The text criticizes American conservatives for promoting smaller government rhetoric while simultaneously increasing expenditures and endorsing "free trade agreements" that actually undermine genuine free trade. It also takes issue with liberals for accepting free-market doctrines such as balanced budgets and minimal government involvement without sufficient scrutiny. Galbraith’s goal is to "liberate the liberal mind."
He contends that traditional political labels such as "conservative" or "liberal" are less significant than the underlying struggle between wealthy predators and society at large. These predators advocate for privatization during periods of economic growth to acquire assets but invoke "too big to fail" protections during downturns, using political influence to secure state guarantees and escalate government debt.
Reception
In the Journal of Economic Issues, L. Randall Wray commends the book as exemplary "political economy," likening it to Galbraith’s earlier work The New Industrial State and Veblen’s The Theory of the Leisure Class. He praises its lucid writing style and compelling arguments.
Roger Lowenstein’s review in the New York Times acknowledges Galbraith’s provocative approach but notes that many claims remain unverified, concluding that while it lacks economic sophistication, it raises critical questions about a troubled system.
Wan Lixin from the Shanghai Daily points out the book’s distinctive perspective, emphasizing its encouragement of independent thought rather than presenting definitive solutions. Lixin particularly appreciates Galbraith’s insight that conventional indicators like GDP growth fail to account for future generations’ welfare, exposing free markets’ inadequacy in long-term planning.
A review by Publishers Weekly describes it as "engaging and thought-provoking," though occasionally disjointed with ambiguous or contradictory conclusions.
USA Today recognized The Predator State as one of 2008’s top business books.
Editions
Simon and Schuster's Free Press imprint released several editions of the book throughout 2008 and 2009. Additionally, a Chinese-language version was issued by a publisher based in Beijing. In 2009, an audiobook narrated by William Hughes became available, followed by the launch of an ebook format in 2014.
Further reading
- Friedman, Benjamin M. (6 November 2008) "A Challenge to the Free Market" New York Review of Books
External links
- Official website: The Predator State (archived)
- Excerpt from the book in The Texas Observer, originally published on 5 September 2008