Galbraith’s The 1929 Parallel juxtaposed the economic situation of 1987 with the great crash of 1929, identifying how indicators of the same ‘euphoric speculation’ that caused disaster in 1929 could be seen in the market of 1987 as well. He observed a similar pattern in the dynamics of speculation, arguing that the majority was too over-optimistic and over-speculative on the performance of economy. Considering the numerical evidence on the ‘unrestrained speculation’ in the stock market, Galbraith questioned the illusion of the 1987 economic prosperity and gave warning on the possibility of collapse. However, the friendly memorandum offered by Mr. Galbraith was thought by the Times’ editors to be too alarming, and The 1929 Parallel was refused to be published. The refusion for publication by New York Time has its own reasons, and undeniably, Galbraith’s comments on the contemporary economic outlook harmed multiple parties.
For the financial institutions who experienced unprecedented growth through issuing new stock and earned higher capital gains would be unwilling to accept the termination of the boom. For the poor, his comment broke the strong pecuniary commitment to the belief in the unique personal intelligence that tells them there will be more to come. For the government, Galbraith’s critique certainly threatened the position of the politicians and officials who had ensured the public that the economic prosperity was the result of good governance. Nevertheless, it is the euphoric speculation would eventually lead to the economy crisis but rather than the comments from an economist. Hiding the truth would by no means resolve the problem. As Galbraith pointed out, the crash of the stock market would eventually lead to a series of uncontrollable repercussions.
Not only would the overall economy experience recession, but investment and consumption on durable and nondurable goods would also experience dramatic declines, eventually leading to a decrease in the employment rate. However, it is the role of the media to warn people involved in speculation and tell them the truth behind the speculative euphoria. The media should not be a tool manipulated by any party, but should be an unbiased revealer of fact. The reputation and reliability of the media is built through the investigation of the facts of an event.