Thursday, May 20, 2010

Politics: The Concept of the Corporation Chapter 2

Is this a political document? Is Drucker writing to convince a certain segment of the country that his view of the corporation is right? Is he trying to thwart the remaining inclinations towards the New Deal. I’ve been impressed with the extent to which the writers in Forbes and Fortune are clearly trying to establish a more open framework for business and to discredit the New Deal reforms. They link government coordination of production to fascism and argue that such processes ultimately destroy all freedom.

Yet Drucker is clearly not a pure capitalist. He is not arguing that the independent structures must maximize their return on investment and do all within their power to do so. They act independently, he argues, and that will bring about the necessary result. Obviously, the companies of 1946 simply cannot do all the analysis that they would need to do to absolutely maximize their returns. This will be the interesting story that unfolds as software develops. Does software help capitalists be capitalists?

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