The financial oligarchy is what? Methods of domination of financial oligarchy

Financial institutions, mainly banks, with the development of the economy occupy the status of co-owners of industrial enterprises, trade, transport and others through the acquisition of shares and bonds. Owners of enterprises, in turn, acquire ownership of shares and bonds of banks, which are directly related to them. This leads to the formation of an intertwining of capitalist capital and industrial. As a result, a new type of capital - financial.

Interweaving of capitals - formation of personal unions

The interweaving of banking and industrial capital leads to the formation of personal ties between the owners of industrial monopolies and the founders of banks. Some people dominate the largest monopolistic industrial enterprises, over banking institutions, over other companies from the branches of the capitalist economy. The phenomenon was called the "financial oligarchy". This is not an isolated situation in a country. The scale of interweaving of material funds is of an international nature.

The oligarchy in the world

The financial oligarchy is a phenomenon that is clearly manifested in many countries of the world. Consider Germany, in which on the eve of World War I six banks had representatives in senior positions in 344 companies from the industrial sector, 407 representatives in the government and 751 representatives in the public sector. The number of managing banks included at least 51 industrialists. Union lasted a long time. The financial oligarchy of the United States had a different format. A narrow group of four hundred people, which included industrialists and bankers, held about 705 leading positions in 250 companies, which owned 42% of the country's total capital.

In each of the capitalist countries, all the vital branches of the economy and the vast majority of social wealth are under the management of the union of influential bankers and industrialists. Management of capitalist monopoly is the financial oligarchy. This is not an exact definition, but in a literal translation the phrase is interpreted as "the rule of the few".

The financial oligarchy is a phenomenon widespread and characteristic of most countries of the world, including Russia. Due to the fact that Russian capital is the youngest of all European countries, he was forced to take advantage of foreign capital in the pre-revolutionary period. External loans are actively used today both as a subsidy and as a form of assistance to private production. Russia's interest in loans led to the attractiveness of the state for Western European groups. Thus, the financial oligarchy of the country is concentrated for the most part abroad and closely interacts with foreign capitalists.

The situation in the economy

The reign of a few is reflected in all branches of the state's activity, including on the economy. The financial oligarchy, whose definition depends on the direction of its influence, is reflected in the economy in the format of the "participation system". The essence is based on the possession of a group of people by the main joint-stock company, which heads the concern. This same company, having controlling shares in its possession , has power over "subsidiaries", in which there are also trusted capitals. The financial oligarchy and methods of its domination allow the financial tycoons to manage huge sums of other people's money.

Formation of the oligarchy

In the United States, the oligarchy includes 8 financial groups, in England the reins of government belong to several hundred people, in France 200 well-known families run, in Italy - just under 150. The financial oligarchy is a complex administrative structure, the formation of which is given great importance. Strengthening the structure is promoted by industry alliances and cultural associations, membership in the orders and all sorts of clubs. The integrity of the ideological society makes it possible to extend power from the sphere of production to the superstructure. It is social life that submits to such subjective associations as the financial oligarchy. Value is given even to such moments as the education of technical personnel and the cultivation of the intelligentsia.

Adoption by society

To adopt a narrow government apparatus, the society forms artificial public opinion with the help of popular media. A peculiar psychological basis is formed, which subordinates entire states to the rule of the elite. The political ruling class maintains its authority through ideological influence. This is not only the media, mentioned above, the influence on society is provided by schools, assistance in everyday life. Thus, people occupying managerial positions, but not supporting revolutionary sentiments, automatically become a link in the ruling apparatus.

The financial oligarchy is a large-scale phenomenon

The financial oligarchy actively uses the principles of the actual monopoly, while receiving huge and constantly increasing revenues from the organization of joint-stock companies, from the issue of shares with bonds, from the provision of state loans and large-scale government orders. Concentrated in its strongest hands, financial capital constantly collects tribute from the public and is to some extent the top of the monopoly bourgeoisie.

Forms of governance of the world community

The financial and industrial elite exercises constant control over making decisions not only in the field of economic policy, but also in the social sphere. It unites the economic power of the monopolies and the state bourgeois power into a single whole. Programs of state and monopoly regulation are designed to eliminate conflicts in capitalism, serve, in the end, to the interests of powerful people.

One of the few phenomena in the world that embraced all countries at the same time is the financial oligarchy. What it is, you will be able to understand, if you evaluate the scale of its influence on the world society. The elite, in whose hands the entire fixed capital of the country is concentrated, actively conducts the internationalization of any activity and strengthens integration processes, systematically develops international industrial and banking monopolies. This forms the emergence of financial groups of international level. This strengthens the intertwining of the interests of oligarchs from different countries of the world, which contributes to the formation of an incredibly strong power.

Changes in the structure of the oligarchy in the process of evolution

The financial oligarchy in Russia, in America, in other countries of the world changes with time as state-monopoly capitalism develops and as a result of the evolution of the format of capitalist ownership. Even in periods of prevalence of imperialism, the oligarchy of the financial industry was built primarily on the basis of the institution of the family and the dynasty. Examples include the Rockefeller and Dupont groups, Mellon and Peugeot, and others. Concentration of production and an increase in the volume of fictitious capital combined with a competitive struggle between monopoly unions brought the regional principle of the formation and strengthening of the oligarchy's position to the forefront. The trend was intensified in the post-war period of 1939-1945. Here on the dominant position in the world came the following financial groups: Chicago and California, Boston and Bavarian, others. Against the backdrop of growing competition already in the 50-70's. The family-dynastic principle of forming financial groups is revived and activated. Example: the Getty and Hunt empire, Turn and Taxis, Kulman-Stum. In this time period, the introduction of the world's largest managers into the structure of the financial oligarchy was recorded. The dominance of the financial-type oligarchy has exacerbated and continues to exacerbate the contradictions not only between the proletariat and the bourgeoisie, but also the conflicts between the developing states and the developed.