1 The Power of the Rich Black Hole of the Social Sciences? H.J.Krysmanski, Left Forum, New York City, March 2006

2 Between 1979 and 2003 the share of overall income received by the bottom 80 percent of taxpayers fell from 50 percent to barely over 40 percent. The main winners from this upward redistribution of income were a tiny, wealthy elite: More than half the income share lost by the bottom 80 percent was gained by just one- fourth of 1 percent of the population, people with incomes of at least $ 750,000 in (Recent study by the IRS) H.J.Krysmanski, Left Forum, New York City, March 2006

3 Wealth in Capitalist Societies Types of wealth Mechanisms of power Effects The (super)-rich Class relations Functional elites Economic capital Wealth in terms of money Capital accumulation in financial markets Profiting by putting pressure on income distribution and social standards Power of large creditors vis a vis indebted states Redistribution in favor of large creditors, milking of tax payers Turning financial power into socio-cultural capital Filling elite positions, pushing interests, defining reality Lobbyism Influencing political decisions, legislation H.J.Krysmanski, Left Forum, New York City, March 2006

4 Wealth in terms of money (ct‘d) Corruption Influencing decision-making, destroying the democratic process Foundations Sponsoring biased socio- cultural projects, eroding the realm of public goods Buying private security, hiring mercenaries Privatization of foreign policy and internal security systems Capital accumulation through production and services Controlling all options of development Social inequality between owners and wage-earners Exploitation Industrial wealth Global outsourcing of production and services Pressuring unions Types of wealth Mechanisms of power Effects H.J.Krysmanski, Left Forum, New York City, March 2006

5 Extorting public services for private investors Privatization of public servicesEroding the welfare state, footloose markets City planning dependent on real estate owners, urban sprawl Private profiting in real estate Redistribution of wealth through rent, mortgage payments etc. Expropriation of farmers in developing countries Increasing social distances between the classes Conspicuous consumption Favoring networking among the rich Real estate property Consumptive wealth Industrial wealth (ct‘d) Types of wealth Mechanisms of power Effects H.J.Krysmanski, Left Forum, New York City, March 2006

6 Cultural capital Internalized cultural capital Elitism and cronyism Privatization of knowledge Reproducing the power elite via elite education Mythologizing meritocracy Legitimizing the power of capital by cultural means Defining cultural heritage Selective preservation of culture Control of public access by representation Demonstrating elitism, distance, power Symbolizing social status Control of upward mobility Re-ified cultural capital Incorporated cultural capital, titles etc. Types of wealth Mechanisms of power Effects H.J.Krysmanski, Left Forum, New York City, March 2006

7 Social capital Resources based on stable social networks Mutual support in attaining privileges, benefits etc. Preserving elite status Reproduction of power elites Exclusion of outsiders Informal power structures, erosion of democracy Types of wealth Mechanisms of power Effects H.J.Krysmanski, Left Forum, New York City, March 2006

8 Conspicuous consumption Demonstration of status Mutual guarantee of privileges Privilege to fill elite positions Control of cultural heritage Network of foundations etc. Capital accumulation through production and services Capital accumulation through financial transactions Economizing real estate Outsourcing production Dependency of debt-ridden states on major creditors etc. Lobbyism Corruption Public responsibilities vs. privatization Privatizing internal and external security etc. Conversion of financial power into social and cultural capital Private control of public sphere Control of cultural experience Mythologizing plutocracy De-temporalization etc. Mechanisms of Valorization Mechanisms of Privatization Mechanisms of Distribution Mechanisms of Informatization Mechanisms of power H.J.Krysmanski, Left Forum, New York City, March 2006

9 Functional & Knowledge Elites (millions) Political Elites (ten thousands) Corporate & Financial Elites (thousands) The SUPERRICH (hundreds) Mechanisms of Privatization Mechanisms of Valorization Mechanisms of Distribution Mechanisms of Informatization Actors H.J.Krysmanski, Left Forum, New York City, March 2006

10 Functional & Knowledge Elites Political Elites Corporate & Financial Elites The SUPERRICH 200 million – 50 billion $$ 10 million – 200 million $$ 100 thousand – 10 million $$... and more 100 thousand – 3 million $$ Mechanisms of Privatization Mechanisms of Valorization Mechanisms of Distribution Mechanisms of Informatization Net- worth H.J.Krysmanski, Left Forum, New York City, March 2006

11 Functional & Knowledge Elites Political Class Corporate & Financial CEOs CLUBS MICRO- NETWORKS Think tanks Elite media Elite universities Foundations Elite institutions Commissions Planning groups Pol. directorates Lobbyists Business councils Interl. directorates Superlawyers Fixers Think tanks Elite universities Interlocking directorates Discussion groups Foundations Mechanisms of Privatization Mechanisms of Valorization Mechanisms of Distribution Mechanisms of Informatization The Sovereign H.J.Krysmanski, Left Forum, New York City, March 2006

12 A global power elite? H.J.Krysmanski, Left Forum, New York City, March 2006

13 Some Visuals H.J.Krysmanski, Left Forum, New York City, March 2006

14 Universitè tangente H.J.Krysmanski, Left Forum, New York City, March 2006

15 trustees $ members $ ideas, members ideas testimony, reports reports appointees $ $ $ Corporate Community / Upper Class Government Foundations Think Tanks Policy Discussion Groups Blue Ribbon Commissions Task Forces Universities Policy Formation Network (William Domhoff) H.J.Krysmanski, Left Forum, New York City, March 2006

16 ‘Eastern Establishment’: Council on Foreign Relations Trilateral Commission, Brookings Institution Ultra-conservative Groups: Hoover Institution Heritage Foundation Big Business Moderate Conservatives: Business Roundtable Business Council American Enterprise Institute etc. Policy planning network H.J.Krysmanski, Left Forum, New York City, March 2006

17 H.J.Krysmanski, Left Forum, New York City, March 2006

18 H.J.Krysmanski, Left Forum, New York City, March 2006

19 H.J.Krysmanski, Left Forum, New York City, March 2006

20 H.J.Krysmanski, Left Forum, New York City, March 2006