Corporate Elites Essay, Research Paper

Elitist theory holds that the majority of political power is held by a relatively small and wealthy group of people, which share similar principles and interests. Most members of this group are born into affluent families. The majority of top leaders in the United States come from this privileged group. The power elite utilizes a variety of resources to dictate public policy. These individuals tend to hold top management positions within big corporations. These corporations are used as a powerful tool to dominate the political arena. Corporations are granted immense power, which they use, to protect their own interests, as well as, shape the interests of ordinary citizens. “The leadership role that business has in the economy gives executives of large corporations an unusual kind and degree of influence over governmental policy making.” (Lindblom 1993:p91)

The economic control of corporations plays an essential role in public policy. Depending on how they choose to play the game, large corporations dictate to economic conditions. Politicians must accommodate corporate interests to protect our sensitive economy. These accommodations can be called “corporatism”. Big businesses receive a privileged position by donating huge amounts of money and support to politicians and their political parties. This monetary support buys access into the system. This access, known as corporate welfare, can be achieved in the forms of favored rates on goods and commodities, higher interest bond issues, tariff protections, emergency funding, tax breaks and incentives, guaranteed investments, and weak safety standards. The rewards are endless, and they must be worth something because corporations spend a tremendous amount of money to obtain them.

Corporations have existed as early as the eighteenth century. The framework of the constitution protects corporations through its’ interpretation of property rights. Our constitution was founded on a principle that the rights of people with property have to be privileged. It is true that the framework defended the rights of people, but rights were distributed, even more so, to people who owned property. The framers of the constitution were hardly democratic. They represented their own, personal, privileged, economic interests. Our founding fathers had a direct interest to establish a government that would protect their holdings and investments. The guiding light of the constitution, that still exists today, is class’ interest. Privileged powers are protected by, and set a side for, the power elite.

In the United States, affluence and power is attained by wealth and social status. Unavoidably, this power is passed onto the common citizen. “The power elite is composed of men whose positions enable them to transcend the ordinary environments of ordinary men and women; they are in positions to make decisions having major consequences. Whether they do or do not make such decisions is less important than the fact that they do occupy such pivotal positions; their failure to act, their failure to make decisions, is itself an act that is often of greater consequence than the decisions they do make. (Mills, 1956: p.73) Corporations exercise their power to protect their own interests. In doing so, they effect the economical, social, and political make-up of society. This power is unique, and is reserved for only a few.

The United States is admired for its’ ideals of equality and opportunity. One can view our system as “a multitude of groups and associations that organize openly and freely, to compete with each other for the advancement of such purposes as their members may wish.”(Miliband, 1969:p58) Yet, in reality, the United States is a far cry from being democratic. The problem is that groups do not compete on a level playing field. Large corporations enjoy a massive superiority compared to smaller businesses, small interest groups, grassroots organizations, and individual voters. It is the tightly woven relationship between big business and government that prevents true democracy. Economic influence is a magic wand used by large corporations to get their wishes granted.

According to Ralph Miliband,” businesses control the key areas of economic life which makes it extremely difficult for governments to impose upon it policies to which it is firmly opposed.” (1969:p59) In other words, corporations dictate policy whether government likes it or not. Business decisions have a yielding effect on the state of the economy. Choosing to disinvest, downsize, relocate, or, decrease production, often has a negative impact on the economy. According to Lindblom, a poor economy will negatively affect voters more than anything else, and therefore, politicians must be quick to respond to it. Politicians must pay special attention to the business community. (p.91) For, if business is government’s customer, then is business always right?

Miliband suggests, that in abstract, the array of powers and influences utilized by business are combated by the equated powers and influences obtained by government. (p.61) In reality, government has minimal resources for self-protection. Big corporations are the backbone of government. Without corporate donations, politicians would not be able to effectively secure positions in government. The success of a political campaign highly depends upon efficient funding. As politicians except huge contributions to enhance their chances of winning, corporations contribute money to enhance their personal interests. Perhaps corporations should not be regarded with a negative connotation. Rather, the system itself should be blamed for encouraging these corrupted relationships.

Lindblom suggests that the relationships between businesses and government are reciprocal. These relationships lend to the idea that government makes certain choices that benefit corporations, with hopes to assist the economy. Many choices made by government are favored towards the large corporations. However, these very decisions persuade corporations to reciprocate decisions that benefit the economy. For, it is when the economy is on hard times, that citizens scrutinize their representatives. As already stated, corporations can choose to negatively impact the economy by decreasing productivity, mobilizing outside of the country, downsizing, and, in turn, lead the United States into a recession. To guard their prominent positions, politicians are forced to represent the interests of corporations.

Corporations will continue to play an integral role in our political system because so much emphasis is placed on the economy. Free enterprise and public policy are indivisible. One cannot be separated from the other. Instead, society must come to terms with the idea that politics is business, business is dirty, and therefore politics is a dirty business. This is not to say that the ordinary citizen always loses. Certain policies that deal with issues, such as health and the environment, manage to defeat big business. One example, used by Lindblom, is the National Clean Air Act of 1990. Despite the major efforts of corporations, policy reforms were initiated that hindered big businesses, to benefit the environment.

The privileged position that corporations receive makes sense. These groups participate more. They are more actively involved in the process than any other group. Large corporations utilize their resources to fund interest groups, form special relationships with politicians, and are more informed than the ordinary citizen. Their access places them into a unique position, whereas, large corporations are able to browbeat government. Out of fear, government is forced to share decision-making with corporate bullies. As long as this relationship continues, democratic policy-making will be an impossible goal to attain. Corporate giants will continue to interfere with policy initiatives that fight pollution, encourage equality, heighten safety standards, and improve our overall quality of life. For money runs this country, and the one with the most money usually wins.

REFERENCES

1. Lindblom, Charles E. and Woodhouse, Edward J., The Policy-Making Process

(1993) New Jersey, Prentice Hall. Pp.90-103

2. Miliband, Ralph., Imperfect Competition, in Public Policy, The Essential Readings

Stella Z. Theodoulou and Matthew A. Cahn, (1995) New Jersey, Prentice Hall

Pp.58-65

3. C. Wright Mills, The Power Elite, in Public Policy, The Essential Readings

Stella Z. Theodoulou and Matthew A. Cahn, (1995) New Jersey, Prentice Hall

Pp.72-85