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 SocietiesTypen des Reichtums Mechanisms of power Effects

The (super)-rich Class relationsFunctional 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

FoundationsSponsoring 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 capitalInternalized 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 capitalResources 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

InformatizationMechanismsof 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

PrivatizationH.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

PrivatizationH.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 ElitesPolitical 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 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’

The Monetary Power Complex

Informatization

Valorization

Distribution

PrivatizationH.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

11

Functional&

KnowledgeElites

PoliticalClass

Corporate&

FinancialCEOs

CLUBS MICRO-

NETWORKS

Think Tanks Elite media

Elite universitiesDiscussion groups

Foundations

CommissionsPlanning groups

Political Directorates

Lobbyists

Business councils Interlocking direc-toratesSuperlawyersFixers

Think Tanks Elite media

Elite universitiesDiscussion groups

Foundations

The New Sovereign

Informatization

Valorization

Distribution

PrivatizationH.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

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trustees $

trustees $

trustees $

members $

ideas,members

ideas

testimony,reports

testimony,reports

reports appointees

$

$

$

Corporate Community / Upper Class

Government

Foundations

Think Tanks

Policy Discussion Groups

Blue Ribbon CommissionsTask Forces

Universities

PolicyFormationNetwork(William Domhoff)

H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

15

‘Eastern Establishment’:Council on Foreign RelationsTrilateral Commission, Brookings Institution

Ultra-conservative Groups:Hoover Institution Heritage Foundation

Big Business Moderate Conservatives:Business RoundtableBusiness CouncilAmerican Enterprise Instituteetc.

Policy planning network

H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

16

http://www.theyrule.net/

17

http://www.mediachannel.org/

18

H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009

http://en.wikipedia.org/wiki/Mark_Lombardi

19

http://www.fas.at/business/en/galery/05.htm

H.J.Krysmanski, Knowledge and Power, Heidelberg, June 2009