Capitalism Quote by John Kenneth Galbraith
“In the market economy the price that is offered is counted upon to produce the result that is sought.”
About This Quote
Source Book: The Affluent Society, John Kenneth Galbraith, 1958
Markets allocate resources by responding to price signals, which guide production toward desired outcomes.
In simple terms: Prices guide production toward goals.
Key Takeaway
Understand and use price signals.
Themes
economics
markets
resource allocation
Mood
analytical
pragmatic
Type
economic
educational
When to use this quote
- business strategy
- personal budgeting
- policy making
- investment decisions
Key Concepts
price mechanism
incentives
supply and demand
Questions to Reflect On
- How do price signals affect your decisions?
- When might prices mislead?
A Different Perspective
Prices may not reflect social costs or equity concerns.
![“Neither Italian fascism nor German national "socialism" have anything in common with such a [Soviet socialistic] society, primarily because private ownership of factories, plants, lands, banks, means of transportation, etc., remain untouched there, and, therefore, capitalism in Germany and Italy…” quote by Joseph Stalin](https://sms4smile.com/quotes/img-quotes/411/joseph-stalin-1734_capitalism_neither-italian-fascism-nor-german-natio_1430.jpg)
