lectam6

TReading: D&Z 4

The Contemporary Elite

The Corporation:

Cornerstone of the Contemporary Elite

Power in America has shifted from those who control the economic resources of society
to those who have control over technological and organization expertise.

Power has thus shifted to positions in organizations which control technology and resources.

The growth of this technological and managerial elite is due to the corporation.

Corporations have become the most powerful people in America!!!

This may sound weird since corporations aren't people but institutions, but you are wrong.

For all intents and purposes, corporations are people and are entitled to the rights associated with personship (except voting).

Corporations were declared to be persons in:

Bank of Augusta v. Earle (1839)

Some argue that they are "superpersons". They are permitted to issue stock and thus disperse their ownership.
Stock owners have "limited liability" for corporate decisions. In effect, they are only liable up to the investment in their stocks.
How are corporations held accountable/ responsible?
How does this situation reflect "hyperpluralism"?

According to Dye and Zeigler, the contemporary elite in America comes from the boardrooms across America. Rather than thinking that power is dispersed throughout the economic system (as market capital theory suggests), D &Z argue that economic power is concentrated in a relatively small number of large corporations and banks. The power is wielded not by the masses, owners, stockholders, etc. but by the managers of these large-scale enterprises.
According to D & Z, the 50 largest corporations control nearly 60% of all industrial assets
and the 50 largest banks control two-thirds of all banking assets.
The power of these elites is further magnified by the system of interlocking directorates in which top elites typically hold several corporate directorships simultaneously.

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