Archive for the ‘the man’ Category
will trade associations exacerbate growing economic inequality in the united states? a guest post by howard aldrich
Howard Aldrich is the Kenan Professor of Sociology at UNC-Chapel Hill. This post examines an important question at the intersection of economic and political sociology, the role that trade groups have in American politics. This post originally appeared on Howard Aldrich’s blog and is reposted with permission.
An essay prepared for a special section of the Journal of Management Inquiry gave me an opportunity to reflect on potential social changes in the US resulting from major political changes over the past three decades. I believe a long-term decline in class consensus within the American business elite (Mizruchi, 2013) has raised the relative power of trade associations, compared to the powerful peak business associations of a bygone era, paving the way for more narrow self-interested actions and diminishing the influence of other kinds of interest associations. The worldview of the incoming president and his cabinet officials will facilitate this development, I believe.
Historically, business managers and owners could attempt to exert influence at four different levels in the system. First, they could get involved as individual executives, contributing money, lobbying officials and agencies, and so forth. Second, representatives of their organizations could do the same, especially through board interlocks with other firms in different industries, through which could diffuse general business practices as well as practices aimed at producing public goods (Davis & Greve, 1997; Galaskiewicz, 1985). Third, firms could participate in specific industries’ trade associations that favored policies and practices they favored (Ozer & Lee, 2009). Fourth, and perhaps most important, a handful of peak associations sat above the previous three levels, cutting across firms and industries, and claiming to speak for the business community as a whole. For example, the now-defunct CED (Committee for Economic Development) advertised itself as offering “reasoned solutions from business in the nation’s interests.”
I recently had the pleasure of spending a weekend in New York. I spent some of my time exploring the Bushwick neighborhood to see the cutesy shops, art galleries, and organic grocery store. I wandered into an art gallery and saw about five people sitting in a circle reading a novel. The gallery owner then greeted me and I played with her dog.