The Managerial Revolution: What is Happening in the World

by James Burnham

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We are now in a position to understand the central historical meaning of the first two world wars of the twentieth century. We might put it, over-simplifying but not distorting, in this way: The war of 1914 was the last great war of capitalist society; the war of 1939 is the first great war of managerial society. Thus both wars are transitional in character, are wars of the transition period between capitalist and managerial society. In both wars we find both capitalist and managerial elements, with the former predominant in the war of 1914, the latter immensely increased in the war of 1939.

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Nazi Germany eliminated unemployment within a couple of years from Hitler’s ascension to power.

Nazi Germany’s elimination of unemployment is, in and by itself, a sufficient proof that Germany has left the basis of capitalism and entered the road of a new form of society. Everyone knows and many have stated that it is not by virtue of the capitalist elements remaining in German culture that unemployment has been got rid of, but through the introduction of noncapitalist methods.

all reliable accounts and by common experience, Nazi Germany inspires in millions of persons a fanatical loyalty. This, too, never accompanies decadence: the subjects of a decadent regime tend to be characterized by indifference, cynicism, or at most a dogged and rather weary devotion to duty.

A further striking outward sign is the fact that the outstanding political, military, and economic leaders of Germany are much younger, averaging probably a generation younger, than the leaders of France and Britain. To carry on the new war, England and France had to rest on the old men who had been leaders in the first world war and were none too young even then. In Germany, there are new men and, comparatively, young men. This difference symbolizes well the fact that the social systems of England and France at the outset of the second world war were remnants of the past, Germany’s a start toward the future.

This evidence corresponds also with the underlying longer-term facts. The managerial developments did not begin in Germany with Hitler. Rather is Hitler’s rise to power a phase of the basic managerial developments and a political expression of the fact that during these last eight years Germany has been turning the corner from the down-road of decadent capitalism, with managerial intrusions, to the up-road of early managerial society, with capitalist remnants.

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Unquestionably the Nazis were glad to avoid war. What had they to lose from the peaceful extensions? The Nazis would have gone on by peace; so long as the aims were reached, peace, or only minor fighting, was preferable. Finally, in 1939, capitalist France and England realized that the continuation of the process meant their death and that the process was going to continue. They had tried all means to avoid war, to hide from themselves what was happening. But Munich was of no more use than threats. Desperately, if any war was ever entered upon desperately, they took the field. The Nazis would still have been willing to win without fighting—why not?—or to fight only the easy Polish war. They thought, no doubt, that the announcement of the Soviet Pact might head off major war. And, after conquering Poland, Hitler again tried for a deal. But the issue for England and France was now plainly national and social survival, and they took the plunge. Germany had, of course, to accept the challenge.

The day of a Europe carved into a score of sovereign states is over; if the states remain, they will be little more than administrative units in a larger collectivity. Any attempt to redivide Europe would collapse, not in the twenty years it took the Versailles system to collapse, but in twenty months.

With the completion of the first phase of the war, Germany was naturally willing to have the war end. Again, why not? With the Continental base consolidated, England by itself would be economically and socially helpless, and would have to gravitate into the general European orbit. Therefore, after France’s surrender, Hitler again offered peace and throughout the summer of 1940 was clearly trying for a deal with England harder than he was trying to conquer her by military means.

From the time of Mein Kampf onward, Hitler has recognized that a deal between Germany and England would be much more advantageous to the European super-state of the future than to have England conquered by Germany. With a deal, in which England would necessarily be subordinate, the tendency would be for the British Empire to keep attached to the European central area. In the course of the military conquest of England, most of the Empire tends to drop off to the spheres of th...

Thus the second phase of the war, really a second war, goes on as I write. In this phase, with most of the strategic European base consolidated, the effect is to wreck capitalists and capitalist institutions abroad—in the first instance, the British Empire, greatest and most typical capitalist institution. Interestingly enough, this phase thus begins before the task of reduc...

The general outcome of the second war is also assured. It is assured because it does not depend upon a military victory by Germany, which is in any case likely. The hopelessness of the position of the British capitalists has been shown from the beginning of the second world war by the fact that they have absolutely no peace plans (“war aims”). During the first year and a half of the war, their spokesmen did not even pretend to be able to formulate war aims. If they finally make some sort of statement, it will be empty of all meaningful content. They cannot have war aims (peace plans) because there is no possible solution on a capitalist basis. England, no matter with what non-European allies, cannot conceivably hope to conquer the European Continent; and could no longer run the Continent if she could conquer. Revolutions on the Continent, even if they should get rid of the Hitler regime, cannot benefit England. Nor could they repartition Europe into independent, fully sovereign states. The same general result would follow them as a Hitler military victory: the consolidation of t...

But the consolidation of the European central area does not end the world political process. There remain the contests with the other sections of the managers—with Russia as we have already seen, and the struggles among the European, the Asiatic, and the American centers for their respective shares in the rest of the world. Though the perspective of these wars stretches into the future, their first actions are already beginning, over-lapping the second phase of the second world war. By the end of 1940 it was clear that the focus of the war was shifting, that the result of the European struggle was in fundamentals decided and that a new, third, phase was beginning wherein the mighty opponents of the future—the three political structures based on the three central areas—were undertaking their first trials of strength. The voice of Chamberlain, Churchill, Bevin, and England was giving place to that of Roosevelt and the United States. These wars of the developing super-states will not end with the end of this ...