https://jacobin.com/2021/04/take-me-to-your-leader-the-rot-of-the-american-ruling-class
And podcast
https://thedigradio.com/podcast/the-ruling-class-with-doug-henwood/
~~ recommended by dmorista ~~
Introduction by dmorista:
On August 31, Collectivist Action posted the latest Paul Street article here at The Class Struggle. In that article, Street warned and provided futher analysis about what he sees as the increasing and immediate danger of fascist political moves inside the U.S. That was in the article “Only Fools Count on Capital to Stop Late Fascism” (< https://ongoingclassstruggle.
Henson does an excellent job of looking at the changes in the U.S. ruling class and the changeover to the general milieu of parasitic Finance Capitalism that the latter day rulers operate in now. Scams, Swindles, the hollowing out of viable business operations by asset strippers, endless rounds of seizure of public assets by private operations, and other financial manipulations are now the main purview of the American rulers. Henson does not extoll the virtues of the WASP ruling class, who directed the industrialization of the U.S.; versus the current much more diverse set of rulers who have presided over its deindustrialization and financialization. He does look at the changes in motivations and actions of the overall rulers. These machinations, along with the wholesale movement of U.S. productive capital investments to a variety of overseas locations, most notably China, have left the U.S. significantly weakened. So seriously weakened, in fact, that the survival of the society in any sort of recognizable form appears less and less likely.
Those who prefer to listen to a podcast can do so at, “The Ruling Class with Doug Henwood”. That audio covers the same material. Go to the link for the interview at The eDig, at < https://thedigradio.com/
The two selections noted in the Introduction are excerpted here below. To read the entire article go to the Jacobin website at < https://jacobin.com/2021/04/
Excerpt from Article, “Take Me to Your Leader: The Rot of the American Ruling Class”, April 27, 2021, Doug Henwood, Jacobin
Back in the George W. Bush years, I began thinking the US ruling class had entered a serious phase of rot. After a round of tax cuts skewed toward the very rich, Bush and his cronies launched a horribly destructive and expensive war on Iraq that greatly damaged the reputation and finances of the United States on its own imperial terms.
The president and his cronies seemed reckless, vain, and out of control. Bush adviser Karl Rove dismissed the critiques of “the reality-based community,” with its conclusions drawn from “the judicious study of discernible reality.” Instead, Rove asserted, “We’re an empire now, and when we act, we create our own reality.” One waited in vain for the grown-ups to appear on the scene and right the imperial ship, but, if they existed at all, they were too busy celebrating their tax cuts and pumping up the housing bubble to bother.
After that bubble burst, creating the financial crisis and the Great Recession, the smooth and cerebral Barack Obama seemed like a stabilizing force. That’s not what many of his more fervent supporters expected of his presidency; they were hoping for a more peaceful and egalitarian world, but they got neither. Facing the greatest economic crisis since the 1930s, one like that depression driven in large part by Wall Street, Obama was not about to do anything on the scale of the New Deal. There was the early and underpowered stimulus package, but beyond that, there would be no major reregulation of finance and no programs of public investment, income security, or redistribution. Unlike the Franklin Roosevelt administration, or even John F. Kennedy’s, for that matter, there was little political ferment around the White House, even though the Democratic policy elites came out of the same Ivy League circles as their ancestors.
The disappointments of the Obama years prepared the way for Donald Trump. Throughout the 2016 presidential campaign, many people (including sometimes me) thought the establishment would somehow keep Trump from winning. Hillary Clinton, the product of Wellesley College and Yale Law School, would stop the vulgarian who cheated his way into Wharton from entering the Oval Office. But her brand of status-quo politics failed to inspire.
Trump was not the bourgeoisie’s favorite candidate. He had support from provincial plutocrats but not from the executive suite at Goldman Sachs. When he took office and immediately began ransacking, one wondered if the deep state would rein him in. Maybe the CIA would even arrange a malfunction in Air Force One’s fuel line. But it was not to be. Tax cuts and deregulation made capital forget all their reservations about Trump, and the stock market made 128 fresh daily highs — on average, one every six days — between inauguration and the onset of the coronavirus crisis. It took his encouragement of an attack on the US Capitol for the big bourgeoisie to complain openly — 99 percent of the way through his time in office.
Fish rots from the head, they say, and it’s tempting to think the same about US society. We’ve always had a brutal ruling class — more brutal at certain times (the years of slavery and Jim Crow) than others (the New Deal). But despite the brutality, there was usually a great economic and cultural dynamism. That now seems long past, and I’m not just talking about the era of Trump and the coronavirus. Something has gone badly wrong at the top of this society, and all of us are suffering for it.
One doesn’t want to idealize the ruling classes of the past. For all of history, their wealth and status have depended on exploiting those below them — and they’ve never shied away from extreme measures if they feel that those things are threatened. But the present configuration of the American ruling class is having a hard time performing the tasks it’s supposed to in order to keep the capitalist machine running. It’s not investing, and it’s allowing the basic institutions of society — notably the state but also instruments of cultural reproduction like universities — to decay.
Capitalists have long been driven by shortsightedness and greed. But it feels like we’ve entered what Christian Parenti calls the necrotic phase of American capitalism.
Lest anyone misunderstand, this isn’t an argument for a better elite or a “true” meritocracy; it’s ultimately an argument for a different society, one not dependent on the rule of plutocrats and their hired hands.
A core concept of Marxism is class struggle, but the tradition exhibits a strange dearth of investigation of the ruling class. When I first started getting interested in elite studies, I asked the Marxist political scientist Bertell Ollman whose writing he liked on the issue. He thought a moment and said, “Marxists don’t write about the ruling class.” When I asked why not, he said, “They think it’s obvious.”
You could say the ruling class is the capitalist class, of course, but what does that mean? CEOs of Fortune 500 companies? Their shareholders, to whom they allegedly answer? What about the owner of a chain of franchised auto parts stores in the Midwest? The owner may be able to get his congressperson on the phone — a senator might be harder — to get a tax break slipped unobtrusively into a larger bill, but what influence does he have over larger state policy? Are car dealers part of the ruling class? If so, what about new versus used? And what about someone like Henry Kissinger, a man who started as a clever functionary and ended up shaping US foreign policy in much of the 1970s, and who still has an influence over how diplomats and politicians think? How about less grand politicians and high government officials? Are they employees of the ruling class or its partners — or shapers, even? It’s not at all obvious.
Before proceeding, I should say I’m not taking seriously the idea that there is no ruling class — that there are voters in a democracy who may be divided into interest groups but none are dominant. Yes, the constrained democracy we live under is a lot better than a dictatorship would be; elections do act as a limit on elite power. But that’s a long way from the popular self-government socialists dream of. Nor am I taking seriously conceptions of a ruling class that center on PC-obsessed, organic-food-eating urban elites. That set has some influence, especially among the liberal wing of the consciousness industry, but it doesn’t shape the political economy.
I’d say the ruling class consists of a politically engaged capitalist class, operating through lobbying groups, financial support for politicians, think tanks, and publicity, that meshes with a senior political class that directs the machinery of the state. (You could say something similar about regional, state, and local capitalists and the relevant machinery.) But we shouldn’t underestimate the importance of the political branch of the ruling class in shaping the thinking of the capitalists, who are too busy making money to think much on their own or even organize in their collective interest.
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We once had a coherent ruling class, the White Anglo-Saxon Protestants (WASPs), who more or less owned and ran the United States from its founding through the 1970s. Based largely in the Northeast, with offshoots in the Upper Midwest, WASPs went to the same elite schools and colleges, belonged to the same clubs, married out of the same pool, and vacationed in the same favorite rural retreats. There were Southern WASPs, descendants of the slave-owning gentry, but they never had the social weight of their northern relatives — though they did rule their region and enjoy an outsize role in Congress for decades.
Visiting crew team at the Groton School on the Nashua River. (National Archives at College Park)
At the rank-and-file level, men worked in genteel law firms and brokerages or as executives in old-line manufacturing firms, and women did volunteer work for museums and charities and maintained the social relations that kept the group functioning together as a class. At the high end, WASPs played a role in government far out of proportion to their numbers, most notably in foreign policy. The Council on Foreign Relations (CFR), target of innumerable conspiracy theories generated from left and right for its prominent role in shaping imperial policy, traces its origins to the end of World War I, when a delegation of British and American diplomats and scholars decided to preserve the transatlantic comity of the war years and form a council whose purpose was, in the words of Peter Gosse’s official history, “to convene dinner meetings, to make contact with distinguished foreign visitors under conditions congenial to future commerce.” The CFR didn’t begin to influence policy until the 1930s, when its fellows and members helped plot the takeover of the British Empire, a concern of the Franklin Roosevelt administration.
That special identification with England has been foundational to WASP identity from the first. But it took waves of fresh immigration from Southern and Eastern Europe, people with strange customs and sometimes dangerous politics, for the formation to come to energized self-consciousness as a class, beginning in the 1880s. That decade brought the obsession with finding one’s old-stock roots, the first country clubs, the founding of the Social Register, and, quite importantly, the opening of the Groton School by Endicott Peabody, which shaped generations of the wellborn as well as the children of arrivistes who wanted to learn the ways of the wellborn. Peabody’s vision was one of “Muscular Christianity,” popular among elites of the time, who were worried about a loss of manliness in an increasingly urban society — austere, disciplined, athletic. FDR said that the influence of Peabody and his wife meant more to him than “any other people next to my father and mother.”
Coming out of World War II, elite WASPs like Averell Harriman (son of a robber baron) and Dean Acheson (son of the Episcopal bishop of Connecticut, who learned how to row crew from Harriman at Groton), supplemented by recruits like George Kennan (son of a Milwaukee lawyer) and John McCloy (a poor kid from Philly who learned the ways of the elite at an early age and got certified with a Harvard Law degree), shaped what would become the US empire. Their skill can’t be denied; that empire has had a long and successful run, though it now looks to be coming unglued. (The competitive pressures of having the USSR as rival, and having socialism as a plausible alternative to capitalism in the twentieth century, did bring out some of the talent in the upper crust.)
McCloy, despite being a recruit, earned the title of “chairman of the American establishment” for having run postwar Germany and becoming a name partner of the law firm that represented the Rockefellers, Chase, and Big Oil (from which he took a break to run the young World Bank, which he kept safe for Wall Street). At one point, he was simultaneously chair of Chase, the Ford Foundation, and the Council on Foreign Relations and partner at the elite law firm Milbank, Tweed, where he basically ran US Middle Eastern policy.
Cast into political exile in the Eisenhower years, the WASPs returned with the status-anxious John F. Kennedy, desperate for the approval of a stratum suspicious of Irish Catholics. Kennedy, who was denounced by WASP columnist Lucius Beebe as “a rich mick from the Boston lace curtain district,” went to Choate and Harvard to learn the manner of the upper orders. As president, he brought back the older patrician crew and added the notorious McGeorge Bundy, another Groton product, who would be one of the most enthusiastic promoters of the Vietnam War, a disaster that pretty much ended that caste’s dominance of foreign policy.
John F. Kennedy at Harvard University, circa 1939.
Fresh from helping wreck Southeast Asia, Bundy went on to run the Ford Foundation, where, among other things, he applied counterinsurgency techniques developed in Vietnam to the urban crisis of the 1970s. Bundy’s strategy, as Karen Ferguson recounts in Top Down: The Ford Foundation, Black Power, and the Reinvention of Racial Liberalism, was to split off the “natural” leadership of the black community and incorporate it into the ruling class, then encourage the separate development of black schools and cultural institutions on an apartheid model, because the broad population just wasn’t advanced enough to join white society. The Italian elite theorists would have been proud of him.
As the twentieth century rolled on, WASP predominance eroded in spheres other than foreign policy. The 1970s saw a mini genre of “decline of the WASP” books and articles crop up, as Jews, Eastern and Southern European ethnics, and even blacks and Latinos began to permeate cultural, political, and business elites. At the same time, the old-line manufacturing companies, headquartered not only in New York but also in outposts of the WASP archipelago like Pittsburgh and Cleveland, fell to Japanese competition and squeezed profits. Inflation and multiple generations of inheritance ate away at old WASP fortunes. And the deregulation of Wall Street that began in the mid-1970s turned the genteel world of white-shoe investment banking (and associated law firms) into a ruthlessly competitive one. Gone were the days when a well-bred young man could pop out of Yale and into a quiet job as a bond salesman.
To use the language of finance theory, the transaction replaced the relationship. All those old WASP ties of blood and club were replaced by principles of pure profit maximization. Firms that had dealt with the same investment bank for decades shopped around to find out who could give them the best deal. The stable world of the immediate postwar decades, in which the same companies dominated the Fortune 500 and trading on the New York Stock Exchange, was transformed by a massive wave of takeovers and business failures.
This new competitive structure destroyed the WASP dominance at the same time that it created fresh fortunes: oil and natural resources in the South and the West, and takeover artists like Henry Kravis and Carl Icahn. At the center of the turbulence was the investment banking firm of Drexel Burnham Lambert, which, though it bore a pedigreed name — the firm’s founder, Anthony Drexel, was a partner of J. P. Morgan and a member of Philadelphia’s aristocracy — had turned into a machine for borrowing lots of money and powering a fresh generation of arrivistes. But with the aristocracy in decline, the new arrivals had little to be assimilated into, unlike in Peabody’s days. Instead, the 1980s brought us stylized remnants of the old order like The Official Preppy Handbook, a guide to dressing and acting like the aristocracy, and Anglophilic clothing designed by Ralph Lauren (born in the Bronx as Ralph Lifshitz).
Though always a major part of American life, money was about to take a starring role. It’s hard to believe now, but when Forbes compiled its first list of the 400 richest Americans in 1982, there were just over a dozen billionaires among them, and the minimum price of entry was $100 million, or $270 million in 2020 dollars. Oil and real estate tycoons were prominent among them. Now, tech and finance dominate the list, and the fortunes are far larger — the minimum price of entry in 2020 was $2.1 billion. The five richest 2020 members were worth $520 billion; in 1982, the top five were worth $11 billion, or $26 billion in current dollars. A 2015 study of the Forbes list over the years found a decreasing prominence of inherited wealth and a rise in self-made fortunes — though the new arrivals were more likely to depart the list than the pedigreed.
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