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 Typen des Reichtums 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 Umverteilung zugunsten großer Kreditgeber, ‚Melken‘ der Steuerzahler Turning financial power into socio-cultural capital Filling elite positions, pushing interests, defining reality Lobbyism Influencing political decisions, legislation Types of wealth H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

3 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 Wealth and Power in Capitalist Societies H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

4 Opening public services for private investors Privatization of public services Eroding the welfare state, footloose markets City planning dependent on real estate owners, urban sprawl Private profiting in real estate Wealth-redistribution through 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, Knowledge and Power, Heidelberg, June 2009 Wealth and Power in Capitalist Societies

5 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 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. H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009 Types of wealth Mechanisms of power Effects Wealth and Power in Capitalist Societies

6 Social capital Resources based on stable social networks (i.e. dynasties etc.) Mutual support in attaining privileges, benefits 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 Types of wealth Mechanisms of power Effects Wealth and Power in Capitalist Societies

7 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 + 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 Conversion of financial power into social and cultural capital Private control of public sphere Digital (counter-)revolution, de- temporalization etc. The Power of Valorization The Power of Privatization The Power of Distribution The Power of Informatization Mechanisms of Monetary Power H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

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

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

10 Functional & Knowledge Elites Today’s stage of ‘finance capitalism’ was made possible by the ‘scientification’ and ‘informatization’ of all aspects of society Political Elites Political elites experiment with new models of bottom to top distribution of wealth that do not endanger the social consensus Corporate & Financial Elites Corporate and financial elites, serving an ultra-rich clientele, explore and create new opportunities for capital accumulation etc. The Superrich This 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’ The Monetary Power Complex Informatization Valorization Distribution Privatization H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

11 Functional & Knowledge Elites Political Class Corporate & Financial CEOs CLUBS MICRO- NETWORKS Think Tanks Elite media Elite universities Discussion groups Foundations Commissions Planning groups Political Directorates Lobbyists Business councils Interlocking direc- torates Superlawyers Fixers Think Tanks Elite media Elite universities Discussion groups Foundations The New Sovereign Informatization Valorization Distribution 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 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, Knowledge and Power, Heidelberg, June 2009

15 ‘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, Knowledge and Power, Heidelberg, June 2009

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