Elites, Variations of Power and the Monetary Power Complex

1. Elites, Variations of Power and the Monetary Power Complex H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

2. Wealth and Power in Capitalist Societies Mechanisms of power Types of wealth Typen des Reichtums Effects Functional elites The (super)-rich Class relations Economic capital Profiting by putting pressure on income distribution and social standards Wealth in terms of money Capital accumulation in financial markets Umverteilung zugunsten großer Kreditgeber, ‚Melken‘ der Steuerzahler Power of large creditors vis a vis indebted states Filling elite positions, pushing interests, defining reality Turning financial power into socio-cultural capital Lobbyism Influencing political decisions, legislation H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

3. Wealth and Power in Capitalist Societies Mechanisms of power Types of wealth Effects Influencing decision-making, destroying the democratic process Wealth in terms of money (ct‘d) Corruption Sponsoring biased socio-cultural projects, eroding the realm of public goods Foundations Buying private security, hiring mercenaries Privatization of foreign policy and internal security systems Controlling all options of development Capital accumulation through production and services Industrial wealth Social inequality between owners and wage-earners Exploitation Pressuring unions Global outsourcing of production and services H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

4. Wealth and Power in Capitalist Societies Mechanisms of power Types of wealth Effects Opening public services for private investors Industrial wealth (ct‘d) Privatization of public services Eroding the welfare state, footloose markets City planning dependent on real estate owners, urban sprawl Real estate property Private profiting in real estate Wealth-redistribution through mortgage payments etc. Expropriation of farmers in developing countries Increasing social distances between the classes Consumptive wealth Conspicuous consumption Favoring networking among the rich H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

5. Wealth and Power in Capitalist Societies Mechanisms of power Types of wealth Effects Cultural capital Internalized cultural capital Elitism and cronyism Privatization of knowledge Reproducing the power elite via elite education Mythologising meritocracy Legitimizing the power of capital by cultural means Re-ified cultural capital Defining cultural heritage Selective preservation of culture Control of public access by representation Demonstrating elitism, distance, power Incorporated cultural capital, titles etc. Control of upward mobility Symbolizing social status H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

6. Wealth and Power in Capitalist Societies Mechanisms of power Types of wealth Effects Social capital Mutual support in attaining privileges, benefits etc. Resources based on stable social networks (i.e. dynasties etc.) Preserving elite status Reproduction of power elites Exclusion of outsiders Informal power structures, erosion of democracy H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

7. Mechanismsof Monetary Power The Power ofInformatization • Conversion of financial power into social and cultural capital • Private control of public sphere • Digital (counter-)revolution, de-temporalization etc. •Capital accumulation through production + services • Capital accumulation through financial deals• Economizing real estate•Dependency of debt-ridden states on major creditors etc. •Lobbyism •Corruption• Definition of equality and justice • bottom to top re-distribution strategies The Power ofDistribution The Power ofValorization • Conspicuous consumption • Demonstration of status• mutual guarantee of privileges• Privilege to fill elite positions• Control of cultural heritage• Network of foundations etc. The Power ofPrivatization H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

8. Elites of monetary power Informatization 100 Thsd – 3 Mill $$Functional & Knowledge Elites(millions) 100 Thsd – 10 Mill $$ ... and morePolitical Elites(tens of thousands) 10 Mill – 200 Mill $$… and moreCorporate & Financial Elites(many thousands) Distribution Valorization 200 Mill – 50 Bill $$The Superrich(a few thousands) Privatization H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

9. Power Elite & Functional Elites Informatization Functional & Knowledge Elites Political Elites Corporate & Financial Elites Distribution Valorization The Superrich Privatization H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

10. The Monetary Power Complex Informatization Functional & Knowledge ElitesToday’s stage of ‘finance capitalism’ was made possible by the ‘scientification’ and ‘informatization’ of all aspects of societyPolitical ElitesPolitical elites experiment with new models of bottom to top distribution of wealth that do not endanger the social consensusCorporate & Financial ElitesCorporate and financial elites, serving an ultra-rich clientele, explore and create new opportunities for capital accumulation etc. The SuperrichThis has profoundly changed how power in general and monetary power in particular are exercised – or, in other words, how the money elite implements the ancient rule that ‘money is what money does’ Distribution Valorization Privatization H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

11. The New Sovereign Informatization Think Tanks Elite mediaElite universitiesDiscussion groupsFoundations CommissionsPlanning groups Political DirectoratesLobbyists Business councils Interlocking direc-toratesSuperlawyersFixers Functional&KnowledgeElites CLUBS MICRO-NETWORKS Corporate&FinancialCEOs Distribution Valorization PoliticalClass Think Tanks Elite mediaElite universitiesDiscussion groupsFoundations Privatization H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

12. A Global Power Elite? H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

13. Universitè tangente H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

14. Corporate Community / Upper Class trustees $ trustees $ $ Universities Foundations $ trustees $ members $ ideas $ Think Tanks Policy Discussion Groups PolicyFormationNetwork(William Domhoff) ideas,members Blue Ribbon CommissionsTask Forces testimony,reports testimony,reports appointees reports Government H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

15. Policy planning network Big Business Moderate Conservatives:Business RoundtableBusiness CouncilAmerican Enterprise Instituteetc. Ultra-conservative Groups:Hoover Institution Heritage Foundation ‘Eastern Establishment’:Council on Foreign RelationsTrilateral Commission, Brookings Institution H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

16. http://www.theyrule.net/

17. http://www.mediachannel.org/

18. http://en.wikipedia.org/wiki/Mark_Lombardi H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

19. http://www.fas.at/business/en/galery/05.htm H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009