Review:  Stratificaton
Chapter 6: The Upper Class
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Sociological Stratification
Chapter 6:  The Upper Class
Link The Upper Class:  Social Power
Link The Upper Class:  Economic Power
Link The Upper Class:  Political Power
Link        Campaign Financing
Link        The Public Policy Process
Link        Lobbying
blank                Gates' Lobbying
Outline on
The Upper Class:  Social Power
Review of Stratification
Review of Class Analysis
Table of Nine Classes in the Modern Industrialized Nations ( Primarily the US )
The Convergence of Occupation, Bureaucratic & Property Divisions of Class Categories
The make-up of the Upper Class is often defined at any of 5 levels as a % of the population
The top      0.5 %             the 1.4 mm richest people in families in Am  ( of 285 mm in 200 )
                   1 %                     2.9
                   5 %                     14
                   10%                    29
                   20%                    57
The Upper Class ( & the Corporate Class ) is largely "invisible" 
      when compared to the Upper Class in other countries, or in the past
      1.  US had no real Upper Class at first:  The European Upper Class did not come to Am
      2.  Other groups attract more attention in the media:  e.g. celebrities, sports stars, politicians
      3.  Most conflict in society is NOT w/ the Upper Class it is among people of similar class
      4.  Most conflict is based on race, class, religion, gender, etc.
      5.  The govt mediates conflict, so a lot of conflict is w/ the govt
      6. Only a few Business Leaders ( Corp Class ) attract public attention 
            & almost no Upper Class members
      7.  Wealth is no longer primarily stored in property, mansions, & other "real wealth,"
            instead it is stored in "commercial paper"
Does the Upper Class have  class unity & class consciousness? 
       Many (Domhoff, Mills, Baltzell) say YES
       There are uniting social practices & forces which maintain unity of action & mind
      1.  Common “we” feeling created from common school & clubs
           Men's Clubs: Bohemian, Knickerbocker, Somerset, etc., serve as gatekeepers & networks
      2.  In-group marriage
      3. Distinctive style of life:  schools, arts, charities, clubs
      4.  Common social circles, i.e. networks
Domhoff (1970) believes there are five indicators of Upper Class membership:
       1. Listed in Social Register
       2. Males attend exclusive prep schools
       3. Males belong to exclusive social clubs
       4. Females attend prep school or belong to social clubs
       5. Father was millionaire or $100 G corporate exec or lawyer
But how much unity can the Upper Class ( .5% = 1.4  mm .... 20% = 57 mm )  have?
Baltzell shows that Upper Class unity does exist, but it mostly occurs at a local level
Upper Class unity does not mean there is a conscious conspiracy
       to economically & culturally dominate society
The argument is that the social practices described above build unity as well as social forces
What social forces build class unity & consciousness?
      1  Economic forces:  preservation of wealth
      2.  Economic forces;  pursuit of income:  profit
      3. Preservation of the status quo of political /govt system to maintain a stable business environment
      4.  Preservation of stratification:  nationally & globally
      5.  Preservation of values/ culture which supports hierarchy & "worship of wealth"
Does the Upper Class still dominate society today? 
Many changes have reduced power of the Upper Class:
      1. Managers seem to dominate corps. (will examine this later)
      2. Fed govt. has regulated big biz
      3. Upper Class has less influence in govt.
      4. Upper Class is less unified
Domhoff is an advocate of position that Upper Class continues to dominate:
Upper Class cannot completely dominate in a society of widely competing interests, 
      but it is the major influence
Upper Class must work together if it expects to dominate: 
     even industry & Upper Class members cannot get all they want
The Managerial Thesis holds that the Corporate Class has slowly taken power from the Upper Class
Managerial Thesis:  Mgrs & "new money" now control corporations & so dominate society
Outline on
The Upper Class:  Economic Power
Table of Nine Classes in the Modern Industrialized Nations ( Primarily the US )
The Convergence of Occupation, Bureaucratic & Property Divisions of Class Categories
The make-up of the UC is often defined at any of 5 levels as a % of the population
Conclusion on Income Inequality:
In 1991, the upper 1/5
      - has a share of income that is about the same as the rest of the population
      - earns on average about $ 100 k while the average of the total population is about $ 38 k
      - earns on average about 2.6 times the average of the total population 
      - the upper 5 % has a 20 % share of the income & earns on average $ 141 k 
      - the distribution of wealth is more unevenly distributed than income
 
 
 

 
Conclusions on Wealth Inequality:
        - Wealth is much more unequally distributed than income
        - The top fifth earns 49 % of the income & owns 85 % of the wealth
        - The bottom fifth earns 3.7 % of the income & owns -1.5 % of the wealth, i.e. they are in debt
         - The wealthiest 10 % own 90 % of all stocks, bonds & trusts
        - The next richest 40 % of the population owns 12 % of all stock
        - 50 % of the population owns no stock
        - The wealthiest of top 1 % now controls 39 % of the wealth
 
 
 

 
In 1992 families in the top 5%  earned over $100,000
The top 1% gained 63% in income in the 80s
How is UC economic power maintained? 
Power lies in the ownership of the means of production
In the past this meant mostly land ownership related to agriculture
Then ownership developed directly into ownership of the proto-industriies of the extraction of natural resources:  mines, forestry, etc.
Then during the Early Industrial Age ( 1300 - 1700 ) factory ownership developed
During the 1800's ownership developed around commercial paper ( stocks, bonds, trusts )
But the amount of power of the Upper Class ( & the Corp Class ) goes beyond this simple ownership
In theory, stockholders control corporations.  In practice a small number of stockholder have power
Few family owned corporations exist today
Because of the wide diversification in stock ownership, 
5 to 10 % ownership is often enough to dominate a corporation
US Senate Committee on Govt. Affairs in 1978 (SCGA) examined  corporate ownership
& found that 13 of top 122 corps were controlled by one family
Type of Corporation             Upper Class % as Corporate Directors
     Top 20 industrials                              54
     Top 15 banks                                    62
     Top 15 insurance                               44
     Top 15 transportation                        53
     Top 15 utilities                                   30
     Top 201 corps                   44  (all Directors & Top Officers)

While this representation is far above their 1% representation in the economy, 
     this still does not represent the total of their dominance
If 44 % of all Directors & Top Officers are from the Upper Class ( old money ),
       then 64 % must represent the Corporate Class
A small % ( less than 1 % ) is made up of Labor, Civic Organizations, & other "public interests"
Outline on
The Upper Class:  Political  Power
Table of Nine Classes in the Modern Industrialized Nations ( Primarily the US )
The Convergence of Occupation, Bureaucratic & Property Divisions of Class Categories
The make-up of the UC is often defined at any of 5 levels as a % of the population
The Fed Govt spends approximately 25 % of US yearly income ( GDP )
The Influence of the Fed Govt on society is great. 
The Influence of the Upper Class, the Corporate Class & to a lesser extent, the Upper Middle Class 
     on all levels of govt. is great
Link Domhoff & others have shown that the President's Cabinet
      is usually dominated by the Upper Class 
The laws & traditons of Campaign Financing allow those w/ money & power 
      to have a greater influence, thus in the US, the Upper Class, the Corporate Class, 
     & the Upper Middle Class have disproportionate influence on govt. compared to the General Public
The laws & traditons of  the Public Policy Process allow those w/ money & power 
      to have a greater influence, thus in the US, the Upper Class, the Corporate Class, 
     & the Upper Middle Class have disproportionate influence on govt. compared to the General Public
The laws & traditons of  the Lobbying Process allow those w/ money & power 
      to have a greater influence, thus in the US, the Upper Class, the Corporate Class, 
     & the Upper Middle Class have disproportionate influence on govt. compared to the General Public
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Table 6 - 2   The Upper Class Origins of the Govt. Elite
Kerbo0306
Position in Govt.
% of Upper Class
Domhoff Study, 1998
Cabinet
1932 - 1964
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Secretaries of State
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63 %
Secretaries of Defense
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62 %
Secretaries of the Treasury
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63 %
Mintz Study, 1975
All Cabinet
1897 - 1973
66 %
Democratic Cabinet
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60 %
Republican Cabinet
blank
71 %
Dye Study, 1995
Top Govt. Elite
1970
6 %
Top Military Elite
1970
9 %
Dye's govt. elite includes the cabinet & an extended list of top executive govt. & congressional officeholders
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Outline on
Campaign Financing
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The laws & traditons of Campaign Financing
      allow those w/ money & power to have a greater influence,
      thus in the US, the Upper Class, the Corporate Class, & the Upper Middle Class
      have disproportionate influence on govt. compared to the General Public
 
 
 
 
During the 1950's  C. Wright Mills said little on campaing financing
   because this process  was relatively less important during the Cold War Era
Today campaign financing is a major method of influence
Examples of the race for the President political spending
Examples of Senate race political costs
Early in our democracy, all politicians financed their own campaigns
Nixon was found guilty in the Watergate hearings (1972 election), 
      so election reform was passed in 1974
The 1974 reforms merely changed the route of the flow of the $$$
Possible Campaign Reforms Proposed in 1997--not passed--would have limited soft money
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Outline on
The Public Policy Process
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Summary of the Public Policy Process:
     Congress passes laws
     Lobbyists, industry, government agencies, the Public, et al offer "advice" ( Lobbying & Influence )
     Signed or vetoed, or line-item vetoed by President
     Law given to appropriate government agency for implementation
     Agencies make draft rules:  printed in Fed Register for public approval: 
               Industry & Interest Group lobbying has influence
     Agencies review public comments & write final rules: 
               Industry & & Interest Group lobbying has influence
     Agencies implement rules
     During implementation, rules must be interpreted and decisions must be made: 
               Industry & & Interest Group lobbying has influence
     Courts interpret laws & rules
The Upper Class directly shapes Government Policy:
This policy is the least recognized by public, but is the area where public could have great influence
Several types of Policy are "routine" in that they are specified in the Constitution or Law 
       & occur regularly
Fiscal Policy is perhaps the most visible Govt. Policy
Fiscal Policy is the most open to the democratic process
     & thus highly influenced by the Upper Class, the Corporate Class & the Upper Middle Class
Fiscal Policy includes primarily Fed law on taxing & spending
Monetary policy is "insulated from politics" which results in almost no input 
     from the general public & great power by the President
Broad policy issues:  unemployment:  “insulated from politics” by independent boards
Domhoff on Government Policy
      1. The Upper Class, the Corporate Class & the Upper Middle Class 
            provide most of the $ in the political process
      2. to fund think-tanks, foundations, university research, etc.
      3. this info is funneled into the policy process as evidence/data
      4. and directly to the government to influence the policy making process
      5. and to the media to influence policy & public opinion
The Policy Formation Process is seen as increasingly important in our information age society
There are many "Players' or actors in The Policy Formation Process, that Lobby
     & produce Policy Documents
      Corporations
      The Upper Class (i.e. those w/ personal fortunes)
      Foundations
      Universities  ( granting agencies )
      Policy Planning Groups ( think tanks )
      Govt. Commissions, Councils, etc.
      National News Media
      Executive Agencies, President, Congressional Committees, Courts
Miscellaneous Interest Groups  & The General Public ( & organized publics )
     have input through letters, phone, email, direct contact: spontaneous or "solicited"
Examples of Policy Planning Groups
University Boards are influenced/staffed by the Upper Class
Prof. / researchers understand the political implications of their work
Blue Ribbon Panels:  “independent,” temporary committees to examine special problems: 
     riots, CIA, energy
The Media is often said to be liberal:  becoming increasingly centralized and big money oriented
There are many processes for transferring money in the Policy Formation Process
      Gifts ( donations to politicians & the other players, gifts to universities, etc. )
      Endowments
      Grants
      Contracts
      Direct financing of projects
There are many process for transferring information in the Policy Formation Process
      Research findings
      Personal research reports
      Policy recommendations
      Reports & news items
      Govt. reports
      Think tank reports
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Outline on
Lobbying
There are many "Players' or actors in The Policy Formation Process, that Lobby
      & produce Policy Documents
          Corporations
          The Upper Class (i.e. those w/ personal fortunes)
          Foundations
          Universities  ( granting agencies )
          Policy Planning Groups ( think tanks )
          Govt. Commissions, Councils, etc.
          National News Media
          Executive Agencies, President, Congressional Committees, Courts
Miscellaneous Interest Groups  & the General Public ( & organized publics ): 
      have input through letters, phone, email, direct contact: spontaneous or "solicited"
Congressional Lobbying is a high stakes, risky "business" ( 8000 registered in mid 90s )
The Environmental Movement developed  lobbying & political tactics for Interest Groups, NGO's, etc.
Industry has attempted to keep the Environmental Movement
     out of the rule making & implementation processes by limiting public access to rule making
In the rule making process, a person must show standing
After Reagan's governmental downsizing of the government, 
      agencies & commissions are often ill equipped & underfunded
      when it comes to implementing policy
Most govt agencies are ill equipped to handle public comment
      [ this is a place where social scientist are useful in govt. ]
Most govt. agencies are heavily lobbied at all stages of the implementation process
      & thus try to find "legal peace" among conflicting parties rather than doing what they believe is right
The policy implementation is a slow, minutely focused,  incremental process
Salvage logging example:  lobbyists lobbied over the definition of a dead tree
Example:  Microsoft is involved in accusations of monopolistic practices.
      For the first time, the company "became involved in politics" 
      by contributing $$$ to the Republican Party 
Review:  Stratificaton
Chapter 6: The Upper Class
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