Conventional economists routinely evaluate the merit of economic policies by determining how much the results diverge from those of a competitive market. But once one recognizes the shortcomings of such an approach, how does one distinguish between good economic policies and bad ones? Galbraith again serves as an example.

Any economic argument should not only be believable, it should also hold up over time. "The enemy of the conventional wisdom is not ideas but the march of events." Similarly, "For being right, one may perhaps conclude it is better to have the support of events than of high scholarship." By this criterion (admittedly his own), Galbraith is worthy of a very high score.

In 1952, Galbraith described the inability of centrally planned economies to contend with the wide variety of consumer goods and services necessary to support a modern economy. The problem is largely resolved in the United...