Galbraith asserts that the classical economy theories were only true in the past millenniums and argues that those were the days when the society lived in poverty. The current civil society has advanced from the poor lifestyle to affluence and as a result, a completely new economic theory has developed. The businesses have developed and they are turning from local to global marketing, most of the business ventures are forced to put in place a frame work of operation that embraces accountability and global recognition otherwise they would greatly degrade their technique.
There are many small organisations that have come together to fight for fare trade that would ensure corporate responsibility. Galbraith argues that as the society becomes more affluent, the trends in economic theory should also change towards generating consumer demand artificially. Business ventures have to advertise so as to create that need in their customers and produce commercial goods and services; this has brought about neglect to the public sector (Galbraith & Galbraith 2007). Galbraith asserts that with the wealth around, many people for example Americans may tend to purchase luxurious items while their backyard was polluted and their children attended poorly managed schools. He also argues that the presence of the market alone would under supply or totally fails to provide for a lot of consumer goods to the general public while private commodities would be characteristically over provided due to the advertising process which effectively creates an artificial demand above the individual's fundamental requirements.
Galbraith advocates for regulated consumption of certain products by imposing greater consumption taxes with grounds that would be a better form of taxation compared to labour and land taxes. Legislating the corporate responsibility to meet the expectations of multi-national democracy. These regulations need the intervention of bodies like European Union, national governments and other non-governmental organisations. The increasing influence of TNCs on the global market is posing a threat to some governments and small businesses and hence it should be tamed to attain global responsibility (Galbraith & Galbraith 2007).
TNC Power and Globalization
Most of the trans-national corporations have resulted in abuse of human rights (in terms of salaries and goods) since they have attained sudden domination and unexplained powers over the political and economic scene. The need for decentralized power and the complicated relationship of the regulation and influence that is typical for today's economy pose a challenge to the accountability and responsibility of advertisements and the safeguarding of the human rights (Galbraith & Galbraith 2007). Globalization is the major motivation factor to the emergence of the trans-national corporations and multinational business ventures as the major players in the international stage. Since these corporations have high economic capabilities, they tend to override their ability and operations to influence or manipulate political and ec