In his work “Who Rules America?”, G. William Domhoff provides us with a revealing look at

class domination. He defines social and economic class status; the corporate world and it`s

power and the intertwining between the corporate community and the upper class.

To gain insight how one class can dominate the other we must define the terms social class and

power. “They (social scientists) begin with a crucial analytical distinction between economic

classes, which consist of people who have a common position in the economic system, such as

‘business owners’ or ‘employees’ and social classes, which consist of people who interact with

each other, develop in-group social organizations, and share a common lifestyle” (Domhoff, 4).

According to the author the most dominate social class in America is the upper class. This group

can be defined as less than one percent of the population yet owns 34.3 percent of all marketable

assets. As a group this class is very private, elite and secretive. They attend selected schools; they

are members of private clubs and possess the most wealth in America.

The upper class consists of networks which are created through social circles, alumni groups

and club memberships. “This network-based way of thinking about a social class as a duality of

persons and groups fits well with earlier definitions of social class” (Domhoff, 6). This group`s

networks are the basis for shared interests. In an ideal world no class or group has power over

another. For this reason those who have the power always refute. According to social scientists

power has two dimensions; which are collective and distributive power. As the author states “The

second dimension of power concerns the ability of a group or social class within a community or

nation to be successful in conflicts with its rivals on issues of concern to it” (Domhoff, 13). What

Domhoff suggests is that a group has power over others when it wins or is successful in

achieving its goals and objectives over other groups who may oppose it. There are three indicators of power; who benefits, who governs and who wins? Wealth

ownership by the upper class satisfies who benefits? “This does not mean that wealth and

income are the same thing as power. Instead, high income and possession of great wealth are

simply visible signs that a class has power in relation to other classes” (Damhoff, 16). This is not

to say that the upper class having wealth is the same as power, but rather has dominance over

other groups.

Two other indicators of power, who governs, and who wins? introduces us to a new class, the

corporate community and its relationship to the upper class. This relationship as Domhoff

explains answers the final two indicators. “Building on the structural economic power of the

corporate community and the status power of the upper class ... is the final step on the path to

corporate and class domination of the federal government” (Domhoff, 19). The corporate

community has influence on the federal government in different aspects. It includes policy

planning, opinion shaping and candidate selection. They try to control the public agenda.

Corporations in America began as jointly owned companies by wealthy families in the textile

industry in the late eighteenth and nineteenth centuries. As Mark Achbar indicates in his

documentary, “The Corporation”, he states, “The early corporations were chartered corporations

generally created for a specific purpose” (Achbar). Over time as the wealthy owners accumulated

more companies there evolved business trusts. These trusts monopolized or controlled entire

industries like financial companies and railroads. “Between 1895 and 1904 they were

transformed by a massive merger movement that included hugh industrial corporations for the

first time” (Domhoff, 27). As the power and influence of these trusts grew the government in

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1890 passed the Sherman Antitrust Act outlawing trusts. As Domhoff explains “When trusts were

outlawed by the Sherman Antitrust Act of 1890, which was coincidently followed by a major

depression and many strikes by angry workers, the stage was set for industrialists to resort to the

legal device called a corporation”(Damhoff, 27). Corporations are legal entities owned by

shareholders whose sole objective is to maximize profits for its owners. It has several advantages

for its owners, limited liabilities and legal protections as it is considered an individual or person

under the fourteenth amendment. Corporations are global superpowers like two headed giants.

They have a “Corporate Agenda” to take over the world. They can buy and sell property but they

have no moral conscience. Corporations are designed by law to protect and concern for only their

shareholders. They have no public control over them and they create great wealth and harm.

They are considered as legal person with limited liability (Achbar).

The structure of a corporation plays a key role in defining the corporate community. “The

board of directors is the official body of the corporation” (Domhoff, 28). This group oversees the

high level executives who run the corporation on a daily basis. Board members and high level

executives form the corporate community. There are two types of boards in a corporation; inside

and outside directors. The inside board members are generally company executives, the outside

board members may include members of other large corporations or wealthy members of the

upper class. The relationship of the corporate community and the upper class according to

Domhoff is closely intertwined (Domhoff, 55). Many wealthy stockholding families in the upper

class continue to be involved in the direction of major corporations. Professional managers of

middle-level origins are assimilated into the upper class both socially and economically. This is

3 accomplished, similar to the upper class, by exclusive private educations, social club

memberships and being part of the corporate interlocutory networks.

One core difference between the upper class and the corporate class that helps to define the

relationship is pointed out by Domhoff. “... members of the upper class are capitalists who strive

to make a profit by investing their funds, not corporate managers who have to deal with the day-

to-day problems of keeping an organization together.”(Domhoff, 81). In other words the upper

class has their assets working for them as opposed to corporate executives working for assets.

“...the upper class and the corporate community are closely related. In terms of their wealth, their

social contacts, their values, and their aspirations for their children, successful managers become

part of the upper class as they advance in the corporate hierarchy (Domhoff, 83). This

relationship is based on the capitalistic goal for a corporation to return profits at all costs. The

corporate managers main responsibility is to succeed at that goal. in doing so they are rewarded

economically and socially. Corporate executives are compensated economically at levels placing

them at the top of wage earners in the country. From a social standpoint they have access to the

clubs, organizations and schools of the upper class. The ultimate reward is becoming a member

of the upper class.

The power of the elite is a part of our lives even though they are denied by Americans. They

dislike the idea of class being rooted in the colonial and revolutionary history (Domhoff, 1). All

the evidence and the comparison done by the author proves that we are living in a class

dominated nation.

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Works Cited

Domhoff, William G. Who Rules America? . New York : McGraw-Hill , 2010. Print.

Achbar, Mark and Jennifer Abbott and Joel Bakan . The Corporation . Documentary .

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