The Divine Right of Capital: Dethroning the Corporate Aristocracy

Author: Marjorie Kelly, William Greider
List Price: $17.95
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ISBN: 1576752372
Publisher: Berrett-Koehler Pub (January, 2003)
Sales Rank: 45,981
Average Customer Rating: 4.21 out of 5

Customer Reviews

Rating: 5 out of 5
How capitalism and democracy should work
The Divine Right of Capital expands on a theme that many Leftist writers allude to but rarely explore in depth: the correlation between the profit motive and the co-optation of our democracy by private corporate interests.

Inspired by the work of Thomas Paine -- who in an earlier era helped build support for the American Revolution by communicating to ordinary people in clear, uncluttered prose -- Marjorie Kelly makes her case for the democratization of capital in an accessible manner, making this a highly readable book.

The work challenges our basic assumptions. Why are balance sheets constructed to highlight the rate of return from a shareholder perspective only? The author points out that accounting practices could easily be changed to create a more balanced view of the company's value to society. It could measure things such as the value of its employees, the amount of financial support corporations may have siphoned off the public trust, the depletion of natural capital, etc.

Kelly explains that such exercises are rarely taken because shareholders make infinite demands on capital, in much the way that Monarchs declared perpetual domain over land and people in an earlier time. The author refers to writings by Jefferson and other revolutionaries to support her case that the colonists were concerned about limiting the power of corporations even while they were struggling to overthrow the King: corporate charters were usually awarded during this era for limited time periods and were often revoked when companies misbehaved.

Regrettably, corporations later used their power to petition the courts and eventually claimed status as "persons", leading to numerous abuses of power (such as the relatively recent argument that corporate campaign contributions are equivalent to free speech and are therefore protected); these abuses unfairly skew the democratic process in favor of big money. This is just one of many reasons why Kelly believes that citizens must reclaim their rights and cast off the corporate aristocracy.

Could it be that in the wake of the Enron scandal -- which so compellingly shows how deeply corporate money and political power are connected -- the people will demand the kind of change that Kelly advocates? If so, they would do well to consider some of the ideas in this outstanding book.


Rating: 5 out of 5
Highly Recommended!
In The Divine Right of Capital, Marjorie Kelly has written a thoughtful, somewhat revolutionary book questioning the basic paradigm of corporate capital: maximizing shareholders' earnings. She compares stockholders who own corporate wealth to feudal European aristocracy as she contends that the current system bestows riches on owners - who add little value to the company - while the employees do all the work. She focuses on this argument despite recent history, during which managers have extracted more value from companies than owners. Her book is a fascinating, clearly written and cogently argued attack, although she repeats some of the central points. Kelly covers the six principles that uphold the economic aristocracy and the six qualities needed to shift to the economic democracy she advocates. While we from getAbstract don't agree with Kelly's philosophy, we suspect that her lively book will intrigue economists, academics and others who like to contemplate the way whole systems function, whether for good or ill.


Rating: 5 out of 5
Essential reading
As much information as I absorb about our state of government, there are still some very broad assumptions which pass under my radar. This book shines a brilliant light on issues that are critically important for ANYONE who wishes to consider themselves 'informed'.

The most basic mythology exposed: that those who speculate have superior & perpetual rights over those who earn by labor. The bias in our mass media & legal institutions is so outrageous that at first it's difficult to accept just how deeply we are being bluffed.

I am now on my second reading. If you only read one nonfiction book this year (instead of the Wall Street fiction & PR positioned as fact) do yourself a huge favor & buy this book.

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