The Managerial Revolution

The Managerial Revolution: What is Happening in the World is a book written by James Burnham in 1941. It discusses the rise of managers and technocrats in modern industrial societies, arguing that they would replace the traditional capitalist class as the rulers of the economic system, though mechanisms such as economic planning.

Themes
The book explores the transformation of capitalism into a managerial society where the control and administrative decisions are made by a new class of managers, rather than the traditional capitalists or the owners.

Description of capitalism:
 * 1) Individual Ownership: Capitalists own the factories, resources, and tools required for production.
 * 2) Profit Motivation: The primary goal of economic activity in capitalism is to generate profit for the owners.
 * 3) Market Competition: Enterprises compete in relatively free markets where prices and production are determined by supply and demand.
 * 4) Labor as a Commodity: Workers sell their labor to capitalists and are paid wages, which are generally less than the value of the goods and services they produce.
 * 5) Decentralized Decision-Making: Economic decisions are made by individual owners and consumers based on market signals rather than centralized planning.

Predictions on post-capitalism:


 * 1) End of Traditional Capitalism: Burnham argues that traditional capitalism, characterized by private ownership and control by owners, is being supplanted by a new form of economic organization where control rests with a managerial elite.
 * 2) Rise of the Managerial Class: A new class of managers—administrators, bureaucrats, and executives—emerges as the primary controllers of economic resources, replacing the old capitalist class.
 * 3) Technological and Organizational Changes: The complexity and scale of modern industry necessitate this shift, as advanced technologies and large-scale organizational structures require specialized management skills that traditional capitalists cannot provide.
 * 4) Decline of Property Rights: The significance of private property rights diminishes in this new order, as the management of resources becomes more crucial than ownership.
 * 5) Political Implications: The managerial revolution leads to changes in government structure, favoring a more centralized and bureaucratized form that aligns with managerial needs.
 * 6) Global Perspective: Burnham views this shift as a global phenomenon, not confined to any single nation, affecting capitalist, fascist, and socialist states alike.
 * 7) Future Predictions: He predicts that the managerial societies will likely evolve into more authoritarian structures, as managerial elites consolidate power to manage economies and societies efficiently.

Reception
The book has been influential in various fields, including political science and economics, and continues to be relevant in discussions about corporate governance and economic power dynamics. It was most famously reviewed by George Orwell in his essay Second Thoughts on James Burnham written in 1946, Orwell finds the central premise of the book fascinating, but lists a range of critisms, including problems with the practical war predictions of Burnham.