Adolf A. Berle: Capitalism

Adolf A. Berle was American diplomat. Explore interesting quotes on capitalism.
Adolf A. Berle: 28   quotes 1   like

“Where such a separation is complete one group of individuals, the security holders and in particular the stockholders, performs the function of risk-takers and suppliers of capital, while a separate group exercises control and ultimate management. In such a case, if profits are to be received only by the security holders, as the traditional logic of property would require, how can they perform both of their traditional economic roles? Are no profits to go to those who exercise control and in whose hands the efficient operation of enterprise ultimately rests? …Furthermore, if all profits are earmarked for the security holder, where is the inducement for those in control to manage the enterprise efficiently? When none of the profits are to be received by them, why should they exert themselves beyond the amount necessary to maintain a reasonably satisfied group of stockholders.”

Adolf A. Berle

1967, p. 303
The Modern Corporation and Private Property. 1932/1967

Exercises

“The property owner who invests in a modern corporation so far surrenders his wealth to those in control of the corporation that he has exchanged the position of independent owner for one in which he may become merely recipient of the wages of capital… [Such owners] have surrendered the right that the corporation should be operated in their sole interest…”

Adolf A. Berle

Source: The Modern Corporation and Private Property. 1932/1967, p. 355

Wealth

“The Russian revolution was nominally based on Communist dogma; but its significant struggle was to find some instrument by which a vast backward country could be mauled into industrialization. The capitalist revolution in which the United States was the leader found apter, more efficient and more flexible means through collectivizing capital in corporations.”

Adolf A. Berle

Source: The 20th century capitalist revolution. 1954, p. 23

Country

“[Corporations must manifest in this area a conscience, or be required to] accept direction from the conscience of the government. This conscience must be built into institutions so that it can be invoked as a right by the individuals and interests subject to the corporate power… For twentieth-century capitalism will justify itself not only by its out-turn product, but by its content of life values.”

Adolf A. Berle

Source: The 20th century capitalist revolution. 1954, p. 113-114; as cited in Prashker (1954)

Life

“Major corporations in most instances do not seek capital. They form it themselves.”

Adolf A. Berle

Source: The 20th century capitalist revolution. 1954, p. 40

“[The communist state has thus far proved itself a] brutal, blunt, and fumbling instrument, [while elsewhere capitalism has been evolving its own”

Adolf A. Berle

Source: The 20th century capitalist revolution. 1954, p. 24; as cited in : Louis Prashker, "The 20th Century Capitalist Revolution (Book Review)." in: St. John's Law Review: Vol. 29: Iss. 1, (1954), p. 178-181