Corporate power

Corporate capitalism is a term used in social science and economics to describe a capitalist marketplace characterized by the dominance of hierarchical, bureaucratic corporations.

A large proportion of the economy of the United States and its labour market falls within corporate control. In the developed world, corporations dominate the marketplace, comprising 50% or more of all businesses. Those businesses which are not corporations contain the same bureaucratic structure of corporations, but there is usually a sole owner or group of owners who are liable to bankruptcy and criminal charges relating to their business. Corporations have limited liability and remain less regulated and accountable than sole proprietorships.

Corporations are usually called public entities or publicly traded entities when parts of their business can be bought in the form of shares on the . This is done as a way of raising capital to finance the investments of the corporation. The shareholders appoint the executives of the corporation, who are the ones running the corporation via a hierarchical chain of power, where the bulk of investor decisions are made at the top and have effects on those beneath them.

Corporate capitalism has been criticized for the amount of power and influence corporations and large business interest groups have over government policy, including the policies of regulatory agencies and influencing political campaigns (see corporate welfare). Many social scientists have criticized corporations for failing to act in the interests of the people, and their existence seems to circumvent the principles of democracy, which assumes equal power relations between individuals in a society.

Thomas Jefferson, one of the founders of the United States democratic system, said "I hope we shall take warning from the example and crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial of strength, and to bid defiance to the laws of their country."Franklin D. Roosevelt, in an April 29, 1938 message to Congress, warned that the growth of private power could lead to fascism:

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