Jump to ratings and reviews
Rate this book

Power, Inc.: The Epic Rivalry Between Big Business and Government--and the Reckoning That Lies Ahead

Rate this book
The world's largest company, Wal-Mart Stores, has revenues higher than the GDP of all but twenty-five of the world's countries. Its employees outnumber the populations of almost a hundred nations. The world's largest asset manager, a secretive New York company called Black Rock, controls assets greater than the national reserves of any country on the planet. A private philanthropy, the Bill and Melinda Gates Foundation, spends as much worldwide on health care as the World Health Organization. The rise of private power may be the most important and least understood trend of our time. David Rothkopf provides a fresh, timely look at how we have reached a point where thousands of companies have greater power than all but a handful of states. Beginning with the story of an inquisitive Swedish goat wandering off from his master and inadvertently triggering the birth of the oldest company still in existence, Power, Inc. follows the rise and fall of kings and empires, the making of great fortunes, and the chaos of bloody revolutions. A fast-paced tale in which champions of liberty are revealed to be paid pamphleteers of moneyed interests and greedy scoundrels trigger changes that lift billions from deprivation, Power, Inc. traces the bruising jockeying for influence right up to today's financial crises, growing inequality, broken international system, and battles over the proper role of government and markets.Rothkopf argues that these recent developments, coupled with the rise of powers like China and India, may not lead to the triumph of American capitalism that was celebrated just a few years ago. Instead, he considers an unexpected scenario, a contest among competing capitalisms offering different visions for how the world should work, a global ideological struggle in which European and Asian models may have advantages. An important look at the power struggle that is defining our times, Power, Inc. also offers critical insights into how to navigate the tumultuous years ahead.

449 pages, Kindle Edition

First published February 1, 2012

49 people are currently reading
549 people want to read

About the author

David Rothkopf

19 books122 followers
David Rothkopf is the internationally acclaimed author of Superclass: The Global Power Elite and the World They are Making (Farrar, Straus and Giroux, March 2008), now available in over two dozen editions worldwide, and Running the World: The Inside Story of the National Security Council and the Architects of American Power (PublicAffairs, 2005), hailed by The New York Times as "the definitive history of the National Security Council." His next book, on the tug of war between public and private power worldwide and its consequences, is due out from Farrar Straus & Giroux late this year.

Rothkopf is President and CEO of Garten Rothkopf, an international advisory firm specializing in transformational trends especially those associated with energy choice and climate change, emerging markets and global risk. He is a visiting scholar at the Carnegie Endowment for International Peace where he chairs the Carnegie Economic Strategy Roundtable. He was formerly chief executive of Intellibridge Corporation, managing director of Kissinger Associates and U.S. Deputy Under Secretary of Commerce for International Trade Policy.

Rothkopf has also taught international affairs and national security studies at Columbia University's School of International and Public Affairs and Georgetown's School of Foreign Service, has lectured widely and is the author of over 150 articles for leading publications worldwide.

Ratings & Reviews

What do you think?
Rate this book

Friends & Following

Create a free account to discover what your friends think of this book!

Community Reviews

5 stars
61 (28%)
4 stars
84 (39%)
3 stars
48 (22%)
2 stars
15 (7%)
1 star
4 (1%)
Displaying 1 - 28 of 28 reviews
Profile Image for Markus.
29 reviews2 followers
June 17, 2019
With Power, Inc., Rothkopf attempts to add to the public debate on the power of big business an historical perspective, but the discussion on the evolution of the modern corporation is incoherent and anecdotal at best. The book's great insight is the highly original idea that, on an abstract level, the relationship between states and big corporations can be understood in terms of public and private forms of power. However, Rothkopf never successfully reflects on what these three "P"s – public, private, power – may actually mean and how they could be employed to reach an analysis of historical transformations. As a result, Rothkopf's historical narrative fails to create any analytical clarity about the nature of these powers, and how one may be more legitimate than the other.

Rothkopf comes across as a critic of the increasingly "unconstrained" corporate power, particularly in the United States. No doubt, his historical investigations yield some good anecdotal illustrations of the exercise of different forms of power and influence by transnational corporations. However, the book also constructs a highly simplistic juxtaposition between the state and big business as being in a zero-sum battle for power. Rothkopf never really considers the possibility that governments and corporations may be deeply interconnected and dependent on each other as centres of societal power - and that neither one of these forms of power can meaningfully be called public. This dubious juxtaposition also leads to considerable analytical confusion, for instance, when Rothkopf addresses the deep connections between Wall Street banks and the Clinton and Bush Administrations, when he discusses the highly uneven power balance between nation-states, divided into "major powers" and "semi-states", or when he admiringly describes the success stories of Singapore and the United Arab Emirate, whose governments have adopted such liberal globalising policies that have, for all practical purposes, only fostered the power of global corporations.

The book's simplistic outlook and analytical confusion are particularly disappointing because, in Superclass, his previous, much more coherent work of non-academic non-fiction, Rothkopf described the highest echelons of global power and usefully transcended the artificial dichotomy between business and political elites. Its central idea, that there is a global superclass of the super-rich and super-influential that networks globally, connects culturally and moves flexibly between public and private positions in its exercise of power, was a significantly more provocative thesis than the one presented in Power, Inc. Readers who, despite its weaknesses, find Power, Inc. inspirational, would be well advised to go back to Superclass to find a more memorable and thought-provoking discussion on the nature of global power in the 21st century.
60 reviews2 followers
May 11, 2012
Everyone who has a political position, an interest in business, or an interest in his or her economic well being should read this thought-provoking book. Power, Inc. has downsides, such as some repetitiveness. Yet the information conveyed is well worth these annoyances.

Rothkopf traces about 800 years of the relationship of corporations and governing bodies, including churches, states, and semi-states. He starts in Sweden where the first corporation that still exists today had its beginnings. Governing bodies have gone from allowing businesses to form, to initially defining a legal status for corporations, spawning corporations that served governmental purposes, setting standards for their operation, and finally losing control over corporations that became large enough to effectively sidestep many of the limits and taxes placed on them by the countries where they originated and/or do business.

Currently, the majority of successful governments are some form of democracy. China is an obvious exception. The degrees to which these successful countries have social programs (strong educational programs and “a safety net”) varies widely. Rothkopf looks at the varieties of government and social programs, and how they impact businesses within their boundaries. He challenges readers to develop a broader perspective on what aspects of a government allow business to succeed, and how governments can best manage corporations’ impacts on their nation, its people, and the world.

Almost no matter what your perspective when you began reading this book, you will find something here to prod you to reconsider.
Profile Image for Jim.
Author 4 books57 followers
September 7, 2012
David Rothkopf's Power Inc. is an outstanding primer on the evolution of the relationship between states and corporations. Starting in 13th century Sweden with the foundation of a state mining company, Stora, and continuing through the present day, Power Inc. demonstrates how the corporation, which was once an instrument of the state, has, thanks to the legal developments of corporate immortality, limited liability, and artificial personhood, transcended national boundaries, eroded state sovereignty, and taken on many of the political functions states once performed. Because these corporations, by design, act without regard to public interest, Rothkopf suggests that what's' needed is a new kind of capitalism that can harness the productive power of the corporation while restraining its most rapacious impulses and steering at least part of its force toward public goods. At 360 pages plus notes, Power Inc. can't be comprehensive, but it is a fine place to start for anyone who wants to understand where we are, how we got here, and which direction we should go if we want to maintain our status as citizens, not just consumers.
Profile Image for Kathleen.
94 reviews2 followers
May 23, 2012
scary stuff about public vs private interests and how this has been part of who we are since man first began sitting around a fire. gives insight into why people feel strongly about each side. well written for the lay person, but so depressing to see that maybe there is little hope, and "survival of the fittest" is totally about who dies with the most toys.
Profile Image for Stephen.
1,943 reviews140 followers
June 19, 2014
Historians of western civilization are used to viewing its late medieval and early modern period through the lens of a church versus state battle; the reformation owes as much to the desire for German princes to be free of the Roman pontiff’s command as it does belief in theological purity. Concurrent with the battle between Crown and cathedral, however, was another war; one between the crown and commerce. In Power, Inc, Alexander Rothkopft gives a history of the modern world, of the economic tides that eventually created polities greater than many states: corporations. The history, which covers economic entanglement in wars of the period as well as the evolution of Law, doubles as a plea for sharper control of corporations by the government.

Although Rothkopf draws on a variety of examples throughout the work, his anchor is the Stora corporation. Granted a charter in 1347, what began as a copper-mining operation turned Sweden into a power to be reckoned with during the Thirty Years War, but outlived its beneficiary by continuing to adapt to the modern world long after Sweden had been overshadowed once again by Germany, France, and England. Although the economic forces unlocked by the scientific and industrial revolutions were initially used primarily for the benefit of the king, governments soon lost control; the developing rule of law in modernizing country soon triumphed over the king's will, but instead of protecting all parties the law in America eventually became the faithful servant of corporations. Granted fictional personhood, and all the rights (but none of the responsibilities) thereof, corporations became 'super citizens' whose globetrotting power now rivals the majority of nations. Loyal to none and increasing free of legal restraints (courtesy of globalization), their might has prompted nation-states to adopt their methods But countries are not businesses, and if maximizing economic profitability becomes the standard for good governance we will be in a bad way, riven even more by inequality and utterly beholden to economic titans.

Power is organized smartly, linking a breadth of information; this is a lesson in the rise of the rule of law from military might and kings as well as the tale of the global economy's transition from medieval marketplaces to fiendishly complex financial markets. The golem-like creation of corporations delivers appropriate horror, but Rothkopf sees the battle between states and corporations as one sided, with corporations cast as the villains and governments diminished victims. Although he mentions the revolving door that sees corporate executives occupying seats within the government 'overseeing' the businesses they once worked for, and will again when they are out of office, the way government is used to increase the power of corporations -- through subsidies, or through legislation that smothers smaller businesses but leaves the big-business beasts intact -- are absent altogether. Sterner regulation, even when applied through global bodies, will only lead to more of the same.

Power, Inc doesn't quite live up to its name in giving an account of people being pawns between government and business, but it does offer a look as to how corporations are becoming utterly lawless in the global era.

Related:
No Logo and The Shock Doctrine, better anti-corporate books by Naomi Klein
Profile Image for James.
127 reviews4 followers
August 19, 2012
Although, the author seems to indicate that the book is leading to a comparative view of the leading alternative capitalist models v. the Anglo-American model, the book is truly about the rise of the modern nation-state and the modern corporation (or the struggles between public and private power). Very well researched, the author examines the core conflicts that arose in the development of corporations and the attempts to develop the state. The creation first of royal charters and then the modern corporation tracks along the movement from feudal monarchies, to more limited monarchies and finally, at least in the West, the broader democratic societies. Along the way, we see extreme examples of corporations acting as quasi-sovereign states: the British East India Company, for example, to a more modern version of out-sourcing and contracting of private armies in Iraq by the US Government (in which the contractors both usurped US sovereign powers (claiming they could not be sued as they were an "arm" of the US Government) and simultaneously asserted their private powers (by claiming to not be subject to UCMJ since they were civilians). The inspiration for the book was, of course, the 2008 collapse of the US, and thus the world, financial system. In which, the de-regulatory trend under way in the US since the 1970s, lead to the socialization of private losses, while allowing the private profits to be retained as private. While the model developed among the Rs, the Ds have also not been shy of drinking the kool-aid, which has only served to expand the private power over the public state. Given the billions of dollars to be raised and spend in the 2012 election cycle, both parties are heavily dependent upon private players to raise this amount, working again to solidify and hold private interests and power above the public.
2 reviews
December 16, 2013
It's a rich man's world! Have we arrived yet? I welcome the author's impartial contribution to the debate on the important issue of the roles of government and big business in modern society. I particularly liked the specific referencing of legal case precedents in one part of the book. I also really like the author's idea of weaving a corporate history through the book, although at times it seemed like an historical supplement to a corporate annual report. While the book is, for the most part, fairly objective, the author is not afraid to call a spade a spade in the world of commerce or give his opinion of other books. I strongly dislike authors telling me their opinion of another book when they reference it. For instance, I do not share Mr. Rothkopf's opinion of "The World is Flat" by Thomas Friedman. I would have rated "Power Inc." much higher but the delivery of the content was ruined by a long-winded narrative style full of parenthetical remarks and asides. I doubt that many will remember much of this soporific book when they wake up after reading it. There are several words and phrases and a sentence structure that are repeated far too often. The clarity and memorability of the book is substantially weakened by the frequently interrupted sentences and the employment of Jeopardy style guessing game sentences whose answer is the last word. "Doomed to Repeat" by Bill Fawcett, "Ruling the Waves" by Deborah Spar and even "Critical Path" by Buckminster Fuller are far more memorable and clear. Without substantial blue pencil revision, I can recommend this book only to bored board directors with insomnia or interested parties with gallons of coffee.
Profile Image for Marty.
67 reviews
May 20, 2012
I finally finished this book on the day it was due! It was a long hard slog. I would not have even bothered to finish it except that I was entranced by the ideas presented. Rothkopf discussed his ideas about the balance of power between private interests (corporations) and public interests (national government) from an historical perspective. He begins in the eleventh century with the forming of one of the earliest corporations that is still in existence- originally a copper mine in Sweden. He explains how the growth of private economic activity helped resolve the battle then raging between the church and nation states. At that time, private enterprise worked with nation-states to finally win freedom from the power of the church. As private interests grew in power, they outgrew the boundaries of individual nations and followed their own agendas, often in opposition to the agendas of national governments. He brings the discussion to the present day and current efforts of nation-states to constrain the power of international corporations. He describes different forms this rivalry is taking around the world and how it impacts the public good, for better or worse. I would have given this book 5 stars because I enjoyed the content so much, but I spent an inordinate amount of time rereading paragraphs and going back to previous pages to extract the meaning from the disorganized and dense writing.
Profile Image for JodiP.
1,063 reviews2 followers
July 7, 2012
This was a great read on the history of the state and the emrgence of corporate power. I believe I read this author's book on the National Security Agency a few years ago. I absolutely lvoed the deep hisory of this work, which went bakc to the founding of the Stora mining company in 1180 orso. Fortunately, I'd just read Tuchman's "A Distant Mirror" so much of the followeing history made even more sense. I got up on July 4th, determined to go back to bed around 5:30, but picked this up and read the last 60 or so pages. I do wish he cold have fleshed out in even greatere detail the various "capitalisms" that are being tried out. Even so, it's a good primer on curretn economic and governance issues, and made me despair a bit more about our current state of affairs. The debate seems locked in a non-pertinent polarization of small vs big government when it should really be about what role government and corporations should play. As I read about contries such as UAE investing so much in education and infrastructure, I justshook my head at thits country. It will be a long, shambling decline, and many Americans will be the last to notice.
Profile Image for Terry Earley.
953 reviews12 followers
May 26, 2012
I heard just a snippet of an interview on Diane Rehm show:
http://thedianerehmshow.org/shows/201...

Big business is as big a threat to our economy as "big government". Rothkopf explains why.

This was an important followup to Rothkopf's last book, "Superclass". it is a must read for those who are convinced that big business needs a free hand in the world market. Somehow, the market will magically "regulate" itself. Walmart, Exxon, Goldmann Sachs, --and if they still had a share of the game, Enron, want you to believe that.

The balance has shifted, and there is a reason why Wall Street had much to do with the 2008-2008 financial disaster and was then a major beneficiary of the various bailouts.

You will be surprised by this book. well worth the time.
Profile Image for Michael Beaton.
69 reviews25 followers
July 7, 2014
This is an excellent book with expansive survey of the development of the notion and fact of corporations. Beginning at the beginning it is an interesting angle to read the history of something so essential to our current world.
In some critical way the story of corporation, and its power, and its relationship to the state... another "idea" that was just gaining foothold in those days... is necessary to the fraught questions we are wrestling with today. Hobby Lobby? Citizens United? Health Care? Global Economy? War? Peace?
All these and more are central to the question of what is a corporation and why.


A good, simple review of the book: http://www.businessweek.com/articles/...
21 reviews
April 7, 2012
This book is a very thorough history of the power struggle between all the structural elements of governance, religions, and economies. The historical perspective is very thorough and well worth the read. The book can be slow at times, but does ebb and flow. I expected a more thorough suggestion for forward progress from our current situation, but the author knows history too well to make a prediction like that. Nonetheless, I would highly recommend this book to anyone interested in how we got where we are, which should be everyone.
Profile Image for Susan.
27 reviews6 followers
June 26, 2018
This is a great book for explaining the conflict between corporations and governments through history. I listened on CD. It has a great history of the corporation, which was all new to me, and extraordinarily helpful in understanding the place of corporations in today's politic.

I cannot speak to the accuracy of the information, as I am not a historian.

The other thing I learned was about governments, states, non-states and other forms into which people around the world are organized or have been organized. Like feudalism and many pre-nation forms of organization. It is good to see the sweep of history in this way. Not sure which way is progress to be honest.

The end is a summary of what corporations should do to improve the world, really the options available. It is been a while since I listened to this book, but wanted to add it here because I felt it was useful in analyzing the current political and military situation.
14 reviews
March 22, 2018
Excellent

An excellent read highlighting the effects of globalization, subsequent evolution in markets, impacts to government and policies, and ideas of what the future should look like.
1,383 reviews13 followers
June 13, 2012
This historical treatment (with much of its focus on the 19th century and prior) examines the development of the relationship between government and the corporation. Rothkopf's analysis is mostly at the macro level - how does government relate to very big business and vice versa - and does not talk about individual businesses and how they relate to the public sector in individual communities. His "go to" example is a Swedish copper company named Stora Kopparberg, incorporated in the 11th century and still in existence. He spends some time looking a potential variations on what he calls "American capitalism" that he sees as potential for a future which involves greater balance between public and private entities.(He argues that the pendulum that has operated over the centuries has currently swung more to the corporate side.) The book is interesting but more theoretical than practical.
296 reviews1 follower
October 21, 2016
I really was surprised by this book. I think when I started it that it would be a little out-there and conspiracy-minded. Maybe it was the title or the cover but I found it to be a really interesting analysis of a power struggle that has existed for a long time that is almost invisible to many political and historical analyses. I read this after "Why the West Rules-For Now" and this was a great folow-up. Both made me think less of Sapiens by Harari.
Profile Image for Melissa.
514 reviews
July 29, 2016
This author knows his stuff. Almost too much stuff. I loved his ideas but found it hard to keep trudging through chapter after chapter of history but the knowledge was there so it was worth it to push on. After this book you will have more talking points about corporate power then you ever thought was possible.
5 reviews
October 9, 2012
Exceptional book. Must reading for anyone interested in the how today's economies came to be. Tells the story of the historical interaction between government and business. Filled with interesting stories, the author does an excellent job of weaving the history of how our economy came to be and what the future holds for us.
Profile Image for Patrick.
59 reviews
June 5, 2014
This is an excellent and very detailed history of the interplay between public and private power over the last 1000 years or so. It is a must read for anybody who is serious about understanding not only the past and present but where we may be heading in the future as well.
Profile Image for Brian Katz.
330 reviews20 followers
April 28, 2012
Very interesting read about Power, the church, the state and private enterprise and how all of these groups have fought for Power over the centuries.
Profile Image for Carrie.
21 reviews2 followers
December 28, 2012
Some interesting perspectives but often dry and hard to follow.
Profile Image for Luke Lanciano.
10 reviews1 follower
March 29, 2013
Excellent historical overview of the rise of private power, and the coming challenges of integrating this new loci of power into a rules-based, legitimate global social framework.
Profile Image for Christopher Mitchell.
360 reviews7 followers
January 18, 2015
Lots of history and ruminating on the proper balance between public and private spheres - a very good take on the long view to better understand today's problems and trends.
Displaying 1 - 28 of 28 reviews

Can't find what you're looking for?

Get help and learn more about the design.