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285 pages, Hardcover
First published January 1, 1941
"I am well aware that the conclusions reached in this book will be displeasing to most of those who read it. . . But truth is a function, not of belief, but of evidence."Burnham hotly disputes the generally held belief that there are fundamentally only two ways of running a modern state: socialism and capitalism. If you throw out one, you inevitably get the other. He spotted a mongrel sneaking in, what he called managerialism, that neither held 'profit' as dogma, nor advertised itself as producing a 'free, classless society'. In particular, when capitalism, which he saw having begun its demise during WWI, does become extinct, he gives lengthy proofs of why it absolutely will not be replaced by socialism.
"A capitalist is one who, as an individual, has ownership interest in the instruments of production; who, as an individual, employs workers, pays them wages, and is entitled to the products of their labor.”His example is mildly amusing. If you can't control who enters your house, then in no meaningful sense are you the owner of that house. Burnham's point is that capitalists who have lost control of their businesses to professional managers, in no meaningful way can be said to own the business. Effectively, the managers do.
“Ownership means control; if there is no control, then there is no ownership.”
"[M]ass unemployment is the most intolerable of all the difficulties that any economy can face, sufficient, by itself, to guarantee the collapse of an economic system. . . Experience has shown that there is not the slightest prospect of ridding capitalism of mass unemployment."Throughout the book Burnham is humble about his aims. He is only trying to produce a tentative theory to explain current events; he is not making judgements about what is good or bad. He also doesn't try to give a full account of what the effects of managerialism will be either on individuals or the economy. All he points out is that, unlike capitalism, managers, especially state managers, have no need to generate a profit, so can make decisions that would bankrupt a private company. This must have implications, but Burnham is quiet on exactly what they will be.
“The chance to build up vast aggregates of wealth of the kind held by the big bourgeois families no longer exists under the conditions of contemporary capitalism."As I read the book, I kept forgetting that it was written over eighty years ago in a very different era. Given that, it is a remarkable work, well worth the time to read because of what it says about our current situation.