How powerful are the rich? The answer is ambiguous, but they are certainly more powerful than average Americans think. Robert Reich, a former secretary of labor under the presidency of Bill Clinton, stated, “The richest four hundred Americans have more wealth than half the population of the United States.” In Who Rules America? The Triumph of the Corporate Rich, the author G. William Domhoff offers insights into the system by which the corporate community, which comprises the corporate rich, operates. Many questions arise from analyzing the wealthy community: who belongs to the exclusive group? How did these corporate rich achieve their success? What specific influence do they cast to the society? As the answers to these questions are revealed throughout his narrative, Domhoff attempts to convince the readers that the rich possess a great influence on the government and society by dominating the political realm by means of strong interlocks and an incredible sums of money. …show more content…
One misconception is that the amount of income is the sole factor that determines how wealthy a person is; since there is a federal poverty line, one would naturally question where the “wealth line” lies. In actuality, there is no specific number that qualifies a person as a member of the opulent community. However, individuals who constitute the group, such as “the owners and top-level managers of large companies,” do share similar characteristics in that they all possess political, social, and economic connections. In particular, the board of directors, who hold a great deal of power in the corporations more often than not serve in multiple companies, creating what is known as interlocks, which strengthen the economic relationships within the corporate community. Subsequently, the community are closely linked, perpetuating their power in the
The film “Inequality for all” directed by Jacob Kornbluth, begins with Robert Reich asking students three questions to consider in a lecture when talking about the uneven distribution of wealth. First, what is happening regarding the distribution of wealth? He then inquires to why this is happening. Last of all, he asks the students if the distribution of wealth is a problem in America. He addresses these questions as well as many others in his lecture on the growing divide between America’s rich and poor. Robert Reich is an economist, author, and educator as well as public policy professor who served in the Ford, Carter and Clinton administration. He has dealt with this particular topic for over three decades and continues to spread his political views as a professor at the University of Berkley. Furthermore, he talks about the widening gap between the wealthy and the poor/middle class. He goes beyond the obvious facts to show us why this is happening and uses statistical data to display this growing problem. He gives concerning evidence that wages are declining, and that America’s weakening economy is based on consumerism.
William Domhoff, explains how the power in the United States is controlled by a certain group of powerful people. The owners and top-level managers in large income-producing properties are far and away the dominant power figures in the United States. He begins to explain how corporate entities come together and form a “corporate community” that dominate Washington D.C. As a result of their ability to organize and defend their interests, the owners and managers of large income-producing properties have a very great share of all income and wealth in the United States. Even though the wealthy exercise a great deal of power, it is false to say the lower social class is powerless. When the working class organize into unions have the power structure through sit-ins, demonstrations, social movements, and forms of social disruption. In the excerpt, he explains that due to Pluralism, it may seem that there is no one dominant power group but we later on find that to be false. Domhoff begins to explain how the power elites dominate government stating that, “Lobbyists from corporations, law firms, and trade associations play a key role in shaping government on narrow issues of concern to specific corporations or business sectors.” In conclusion, he identified the corporate rich and their power elite as the dominant organizational structure in American society. He gives the reasons that they determine who sits high positions in Congress, how the wealth is
By using the points listed previously, it is evident that a small portion of the population control what policies are implement in America and hold most of the nation’s wealth. I believe this two factors, the wealth one possesses and the amount of control an individual has, are interconnected. America has become a nation where money can get you anyway because it significantly increases the amount of opportunities available to the individual. Many people can attest to the presence of this class, including individuals from Kansas City who participated in a cross-section study with detailed interviews. The citizens of Kansas City referred to these people as “big rich” or “blue bloods” (pg
Sklar provides vivid illustrations of the astronomical wealth of America’s richest class. Sklar opens her article with the following fact from the CIA World Factbook, “‘Since 1975, practically all the gains in household income have gone to the top 20 percent of households’” (308). This is a disturbing fact especially for a country that prides itself on equality. A truly equal society would reflect nationwide prosperity throughout all levels. Next, Sklar writes about the Forbes 400, the wealthiest people in America. Sklar states that the minimum net worth to get on the list is $...
The division of wealth is unevenly distributed throughout society’s so called social ladder. The “haves,” those who run corporations or have major influence on government decisions, control the majority of the wealth and resource available to achieve that wealth. Their major purpose it to build on that wealth no matter what the consequence may be. Those decisions sometimes negatively impact the lives of the “have nots,” people who, like us, have minimal if any influence on corporate spending and decisions.
Divisions within the social stratum is a characteristic of societies in various cultures and has been present throughout history. During the middle ages, the medieval feudal system prevailed, characterized by kings and queens reigning over the peasantry. Similarly, in today’s society, corporate feudalism, otherwise known as Capitalism, consists of wealthy elites dominating over the working poor. Class divisions became most evident during America’s Gilded Age and Progressive era, a period in time in which the rich became richer via exploitation of the fruits of labor that the poor persistently toiled to earn. As a result, many Americans grew compelled to ask the question on everyone’s mind: what do the rich owe the poor? According to wealthy
Inequality exist and is high in America because the amount of income and wealth that is distributed through power. In America the income distribution is very inequality and the value of a person wealth is based on their income with their debts subtracted. “As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers)” (Domhoff, 2011). In contrary the poor do not get ahead and the rich get more. Americans are judged and placed in class categories through their home ownership which translates to wealth. Americans social class is often associated with their assets and wealth. “People seek to own property, to have high incomes, to have interesting and safe jobs, to enjoy the finest in travel and leisure, and to live long and healthy lives” (Domhoff, 2011). Power indicates how these “values” are not distributed equally in American society. Huge gains for the rich include cuts in capital gains and dividends and when tax rates decrease for the tiny percent of Americans income is redistributed. Taxes directly affect the wealth and income of Americans every year.
With each class comes a certain level in financial standing, the lower class having the lowest income and the upper class having the highest income. According to Mantsios’ “Class in America” the wealthiest one percent of the American population hold thirty-four percent of the total national wealth and while this is going on nearly thirty-seven million Americans across the nation live in unrelenting poverty (Mantsios 284-6). There is a clear difference in the way that these two groups of people live, one is extreme poverty and the other extremely
For a few people to amass great wealth in a society is the highest expression of civilization. This is the base argument of Andrew Carnegie’s “The Gospel of Wealth” (1889) however he also explains the importance of philanthropy from those in the upper class, arguing that the wealthy entrepreneurs of society have a responsibility to distribute their excess wealth in a manner that proves to benefit society as a whole while avoiding wasting it on frivolous expenditures. Although claiming that the income gap between social classes has played an important role in society, Carnegie believes that the incredibly uneven distribution of wealth can be mitigated by the upper and lower classes working together to gain a mutually beneficial outcome. With an extending argument, Carl Becker seeks to explain in his article “Ideal Democracy” (1941), what his idea of the ideal democracy is, which he defines as “of the people, by the people, for the people” (148). However arguing that in today’s society, it is defined more so as “of the people, by the politicians, for whatever pressure groups can get their interests taken care of.” (148).This paper will serve to analyze the relative strengths and weaknesses of each text’s argument and supporting material. In doing so we will touch on the rhetorical strategies and structure that each text employs, while connecting them together through comparison. Becker argues that democracy has changed over time, while Carnegie extends this argument by stating the change will be beneficial to the human race.
Domhoff, G. W. (1990). The power elite and the state: How policy Is made in America. Hawthorne, NY: Aldine de Gruyter.
The American upper class controls our governing bodies, our social institutions, our policy-making process, and everything else in between. Ask yourself: when has a poor black woman from inner-city Houston ever navigated the detours and roadblocks that pervade the journey up the American class system? Contrarily, what proportion of American legislators, lobbyists, and lawyers come from upper-middle and upper class families? One element absent from Domhoff’s book was a discussion on social capital. I believe that an acknowledgement of how networking amongst members of the upper class increases the social capital of American elites, and how such a consequence can prove critical in maintaining class parameters and ensuring they remain in place for generations to come. Cutting off communication opportunities between classes is quite possibly the greatest cause of classism in America. It is not that Domhoff neglected a discussion on social capital as his ideas more or less all consummate the idea; I just wish he would have incorporated a discussion of the term directly in his
Economics of Reich “Why the Rich are getting Richer and the Poor, Poorer” written by Robert Reich, describes as the title says, why the rich are getting richer and the poor, poorer. In Reich’s essay, he delves into numerous reasons and gives examples of each. It makes one wonder if the world will continue on the path of complete economic separation between the rich and the poor. One very important factor Reich examines in his essay is that large corporations are always trying to find the edge, whether that is new technology or cheaper wages. One may ask, how does that affect me?
The richest people who seem to keep getting richer have been walking into their wealth since the day they have been born. It has been proven by how the companies have been popping up around the world, how the companies are being bribed by governors trying to make their state seem more economically powerful. “Philips, Sony, and Toyota factories are popping up all over—to the self congratulatory applause of the nation’s governors and mayors, who have lured them with promises of tax abatements and new sewers, among other amenities.” (Paragraph 17) People are born into their jobs, and are doomed for their economic boats. IN other countries such as China, it has been proven that the families with the moneys are the ones with the money, are the ones with the economic power. “Many wealthy Chinese and western residents moved their money abroad and some actually left the colony. By 1971, the Cultural Revolution in China had ended in failure and conditions in Hong Kong calmed,” (Lannom) such as Gloria Lannom states, yet it took a while for Hong Kong to rebuild its economic standings because of this
In American society, there is a large disparity of wealth between the rich and the poor. This wealth disparity has far reaching effects into the areas of politics, education, culture, and more. By using their wealth to dominate politics, education, and culture, the rich perpetuate the exclusion of the poor into the substandard position of poverty.
...top positions in the governmental and business hierarchy from communal principles and beliefs. Majority come from the upper third of the salary and professional pyramids, their upbringings were from the same upper class, some attended the same preparatory school and Ivy League universities. Also, they belong to the same organizations. The power elite have the power to control programs and actions of important governmental, financial, legal, educational, national, scientific, and public institutions. The ones in power influence half of the nation’s manufacturing, infrastructures, transportation, banking possessions, and two thirds of all insurance possessions. The occupants take essential actions that could affect everyone’s’ life in American society. Rulings made in meetings of significant corporations and banks can influence the rates of inflation and unemployment.