The Rise of the Managerial Class: Power Without Ownership in Modern Capitalism

Beyond the headlines of corporate wokeness lies a subtler but equally powerful transformation: the rise of the managerial class. Unlike traditional owners or shareholders, this elite group of executives and bureaucrats commands influence through control rather than capital.

They often own minimal shares but leverage their positions to build reputations, secure lucrative future roles, and shape both corporate and governmental agendas. A striking example is the Food and Drug Administration's role in controlling access to experimental treatments, highlighting how administrative agencies—the so-called 'fourth branch' of government—exercise soft power insulated from electoral politics.

Within corporations, CEOs frequently select board members, undermining independent oversight and enabling what is known as 'board capture.' This dynamic reduces accountability and allows managers to pursue agendas that may diverge from shareholder interests or public good.

The managerial class also enjoys lateral mobility among sectors—moving between corporate, nonprofit, and government roles—further consolidating influence. This network of power shapes policy, culture, and economic outcomes, often beyond the reach of democratic control.

Understanding the managerial class is key to grasping the complexities of modern capitalism and the challenges it poses for accountability and governance.

For more insights, consult the comprehensive discussions available in recent bestseller critiques and economic analyses. 1 4