What do you think?
Rate this book
The Divine Right of Capital: Dethroning the Corporate Aristocracy
Wealth inequity, corporate welfare, and industrial pollution are the symptoms of our sickened economy, Marjorie Kelly suggests. The underlying illness is shareholder primacy. In The Divine Right of Capital, she shows that the corporate drive to maximize shareholder profits at any cost is not only out of step with democratic and free-market principles, but is detrimental to the long-term health of individual companies and the economy as a whole. Kelly offers a far-reaching solution to rebuild corporations in a way that serves all.
200 pages, Hardcover
First published October 1, 2001
22 people are currently reading
401 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 18 of 18 reviews
December 31, 2007
First off, I should mention that Marjorie Kelly is one of two Minnesotans (the other is Paul Wellstone) in Robert Shetterly's stunning Americans Who Tell the Truth portrait collection.
As for this particular book: those who think "shareholders" are an important and necessary economic force are in for a shock. She's pretty convincing that their economic gains are a sure sign that workers, neighbors, and other stakeholders are getting screwed. What I took away from this book is that shareholders are (often inadvertent) parasites. Here's an excerpt:
Employees might be shouldering a crushing workload, doing without raises for years on end. Still we will say, "the corporation did well."
We do not see rising employee income as a measure of corporate success. Indeed, gains to employees are losses to the corporation. And this betrays an unconscious bias: that employees are not really part of the corporation. They have no claim on the wealth they create, no say in governance, and no vote for the board of directors. They're not citizens of corporate society, but subjects.
Investors, on the other hand, may never set foot inside "their" companies, may not know where they're located or what they produce. Yet corporations exist to enrich investor alone. In corporate society, only those who own stock can vote - like America until the mid-1800s, when only those when owned land could vote. Employees are disenfranchised.
We think of this as the natural law of the free market, but it's more accurately the result of the corporate governance structure, which violates free-market principles. In a free market, everyone scrambles to get what they can, and they keep what they earn. In the construct of the corporation, one group gets to keep what another earns.
Essential reading.
As for this particular book: those who think "shareholders" are an important and necessary economic force are in for a shock. She's pretty convincing that their economic gains are a sure sign that workers, neighbors, and other stakeholders are getting screwed. What I took away from this book is that shareholders are (often inadvertent) parasites. Here's an excerpt:
Employees might be shouldering a crushing workload, doing without raises for years on end. Still we will say, "the corporation did well."
We do not see rising employee income as a measure of corporate success. Indeed, gains to employees are losses to the corporation. And this betrays an unconscious bias: that employees are not really part of the corporation. They have no claim on the wealth they create, no say in governance, and no vote for the board of directors. They're not citizens of corporate society, but subjects.
Investors, on the other hand, may never set foot inside "their" companies, may not know where they're located or what they produce. Yet corporations exist to enrich investor alone. In corporate society, only those who own stock can vote - like America until the mid-1800s, when only those when owned land could vote. Employees are disenfranchised.
We think of this as the natural law of the free market, but it's more accurately the result of the corporate governance structure, which violates free-market principles. In a free market, everyone scrambles to get what they can, and they keep what they earn. In the construct of the corporation, one group gets to keep what another earns.
Essential reading.
August 6, 2011
In many ways, this is a significant book with many good ideas. And I agree with most of what the author says.
But I gave the book only three stars, mainly because it seems to contain wishful thinking for the most part. In the ten years since its publication, the nation has moved toward strengthening the corporate aristocracy, not dethroning it.
The kind of revolution Kelly talks about may occur sometime, but probably not during my lifetime (which may be less than twenty years) or even during the lifetime of my children. Maybe my grandchildren will see the changes she calls for. But maybe not.
In spite of my mediocre rating, I recommend the reading of this book. Even if much of what she says about solutions are "pipe dreams," still it is important to consider well Kelly's analysis of the current economic situation in the U.S. (and the rest of the "developed" world).
The whole point of the book is that just as in the past European society eradicated the idea of the divine right of kings, so now we need to get rid of the idea of the divine right of capital.
Further, just as the Western world has moved to political democracy, now there must be a move toward economic democracy.
I certainly would like to see ratification of her proposed constitutional amendment: "Equality of rights under the law shall not be denied or abridged on account of race, sex, or wealth" (pp. 168-9).
But, again, the chances of such an amendment being adopted and enforced are slim indeed.
But I gave the book only three stars, mainly because it seems to contain wishful thinking for the most part. In the ten years since its publication, the nation has moved toward strengthening the corporate aristocracy, not dethroning it.
The kind of revolution Kelly talks about may occur sometime, but probably not during my lifetime (which may be less than twenty years) or even during the lifetime of my children. Maybe my grandchildren will see the changes she calls for. But maybe not.
In spite of my mediocre rating, I recommend the reading of this book. Even if much of what she says about solutions are "pipe dreams," still it is important to consider well Kelly's analysis of the current economic situation in the U.S. (and the rest of the "developed" world).
The whole point of the book is that just as in the past European society eradicated the idea of the divine right of kings, so now we need to get rid of the idea of the divine right of capital.
Further, just as the Western world has moved to political democracy, now there must be a move toward economic democracy.
I certainly would like to see ratification of her proposed constitutional amendment: "Equality of rights under the law shall not be denied or abridged on account of race, sex, or wealth" (pp. 168-9).
But, again, the chances of such an amendment being adopted and enforced are slim indeed.
May 28, 2007
The first half of this book is Great. It compares the economic and political positions and privileges of today's stock-owners to the aristocracy of earlier centuries, and compares today's un-invested laborers/employees to yesterday's feudal serfs. The thesis is an interesting and fresh interpretation. The second half isn't as compelling to me; it takes up the "what we should do about this" angle. Since I have no power to change policies in stocks and corporate structure in my current position, I couldn't pay attention. Still, recommended.
October 23, 2021
A crap piece of scholarship. The subtitle should be the title.
Now. I'm all for reducing the power of the corporate aristocracy. The problem is Kelly is a simpleton with a political agenda. He is not looking for ”dethroning the corporate aristocracy”, but rather only the ones that he desires. The Government, the biggest and most deadly of them all, is supposed to take over. And, of course, the NGOs, like the ones through which Kelly is leeching tax money, they should remain, as they are Halal in Kelly's gospel.
Now. I'm all for reducing the power of the corporate aristocracy. The problem is Kelly is a simpleton with a political agenda. He is not looking for ”dethroning the corporate aristocracy”, but rather only the ones that he desires. The Government, the biggest and most deadly of them all, is supposed to take over. And, of course, the NGOs, like the ones through which Kelly is leeching tax money, they should remain, as they are Halal in Kelly's gospel.
April 12, 2022
Sometimes, when you ask, "Why are things the way they are" The answers coming back are not particularly compelling, nor convincing. Marjorie Kelly picks corporations apart and puts them back together in a different pattern.
We do have the Partnerships Act, can always go down that route instead of incorporating under the Companies Act.
We do have the Partnerships Act, can always go down that route instead of incorporating under the Companies Act.
July 23, 2019
Would you like more market regulation and welfare state ... or more deregulation and tax breaks? One of the few books I’ve found that explains BOTH of these “more of the same” policy solutions AT THE SAME TIME.
This entire review has been hidden because of spoilers.
January 24, 2022
Makes a good point but repeptitive
December 8, 2010
I didn't actually finish this book, but I got through enough of it. LEft the last 30 pages un read because they didn't seem necessary. I like the general premise. Kelley's idea is to change our indicators so we can alter what society values and how we measure success. This is inspiring, and for me a significant part of a change that needs to take place in economic models and accounting standards before we see a mroe equitable society. However, her solutions were less than inspiring. Many of my classmates had profit sharing and commission type schemes confused with actual indicator change.
February 16, 2008
I'll get my criticism out of the way first: the book was repetitive in parts and needed more meat to hang on its bones. That being said, this is a must read for all of us as a primer to discussing economic justice. This isn't the end of the discussion by any means, but it's a great beginning. This might be the vision of an economy that we should build out of the ashes of the current "civilization". Hats off to Marjorie Kelly for this ground-breaking work.
February 20, 2012
Reading The Divine Right of Capital now. It is as much or more relevant today than it was in 2001 when it came out. It explains much about underlying assumptions in our systems that imbue corporations and wealth-holders with the same powers as feudal aristocracies and kings.
Highly recommended & very readable.
Highly recommended & very readable.
March 7, 2012
If you, sort of, instinctively support the "Occupy Movement" but can't quite articulate why, READ THIS BOOK. First published in 2001, it is even more realevant today. This is the how-to book for "Dethroning the Corporate Aristocracy" and replacing it with an Economic Democracy that is more inline with American values.
May 25, 2015
I confess I didn't finish this book. But, I got the gist after just a few chapters and pretty much agree with her premise. Just not sure what to do about it, and I wasn't crazy about the way it was written, so couldn't get myself to keep reading. But, she's right!
September 22, 2007
What the mainstream media won't tell you about corporations, ceos and recent corporate scandals.
June 21, 2011
The arguments were interesting but pretty underdeveloped. I'd like the author to have directly addressed the obvious attacks/critiques from her opponents' camp.
July 11, 2012
Made me rethink everything I knew about the economy.
March 2, 2013
Thorough historical research on the corporation and the emergence of capital as a force out of proportion in our particular variety of a market-based democracy.
November 28, 2015
Mostly just read the first half. Very thought-provoking, especially in the context of politics and economy. Bit drawn out, though.
October 19, 2020
Holy… Wow!
This is an extremely 1) well though out and 2) well researched book that also happens to be a training manual for revolutionaries.
This is an extremely 1) well though out and 2) well researched book that also happens to be a training manual for revolutionaries.
Displaying 1 - 18 of 18 reviews