[PEN-L:7038] Fwd: question for PENL, LBO etc

Michael Perelman michael at ecst.csuchico.edu
Tue Jan 16 20:51:50 PST 2001


Interesting, I find in my notes several other instances of this subject, but all more than 2 decades old. I think Means was the first to make this calculation.

Gardiner Means. 1931. "The Growth in the Relative Importance of the Large Corporation in American Life." American Economic Review, 21, pp. 10-42, p. 10 "Between 1909 and 1927 the assets of the 200 largest [corporations] increased more than twice as fast as the assets of other non-financial corporations .... If recent rates of growth were to continue, 80% of non-financial wealth would be in the hands of 200 corporations by 1950."

Castells, Manuel. 1980. The Economic Crisis and American Society (Princeton Princeton University Press). 144: He give concentration ratios. 1968. 1.5 million firms. 94% of the firms (with less than $1 million worth of assets) owned only 9% of total capital. .1% of all (with assets greater than $250 million) owned 55% of all assets. Largest 200 corporations held 60% of manufacturing assets in 1969; they held 68% in 1950 (mistake?) Top 100 corporations in 1969 held 48% of assets; only 40% in 1950. According to Gardener Means, in 1962 50 industrial firms holding 26% of capital, 20 corporations, 25% of capital; 10 corporations, 18%; 5, 12%. Largest 500 corporations. take 80% after tax profits; 50, 1/2; 10, 30%" see Charles Anderson, The Political Economy of Social Class. 144: Banking concentration. 1970, 50 largest commercial banks, 48% of banking assets; (39% in 1960). 6 NY banks, 1/6 of all assets in 1971. ##

Dugger, William M. 1985. "The Shortcomings of Concentration Ratios in the Conglomerate Age: New Sources and Uses of Corporate Power." Journal of Economic Issues, 19: 2 (June): pp. 343-53. 345: Although concentration ration may not be increasing, concentration of corporate power is. Corporations with assets greater than $250 million are less than 0.1% of all tax returns in 1980, yet account for 2/3 of corporate income. In manufacturing, largest 200 corporations increased their share of assets form 53% in 1955 to 61% in 1982. They increased their share of value added from 30% in 1947 to 44% in 1977. Census Bureau's multiple industry companies in 1977 represented more slightly more than 0.5% of all companies surveyed by the Bureau, but they accounted for 49% of all employees, 57% of total payrolls, 52% of sales and receipts.

david landes wrote:


>
>
> A query from Doug
> Orr>----------------------------------
>
> >Please respond to dorr at ewu.edu, not
> to the list.
> >Thanks,
> >Doug Orr
> >
> > In Heilbroner's old principles book
> he had a great chapter on "the real
> >world," which came before any
> discussion of theory. I still
> structure
> >my courses that way. One piece that I
> got from the last edition of that
> >book is hopelessly out of date, but I
> still use it because it is so
> >effective.
> >
> > Lots of books have the breakdown of
> businesses into proprietorships,
> >partnerships, and corps and give
> numbers of firms and size of sales,
> and
> >then note that corps dominate sales.
> What Heilbroner did was to focus
> >on the control of decision making by
> focusing on the ownership of assets
> >by type of business and demonstrated
> that in 1982 3600 corps with assets
> >over $250 million owned 80% of all
> tangeble assets in the US economy.
> >3600 out of 19.5 M firms means that
> 0.02% of firms own and control 80%
> >of the economy. This makes students
> take notice.
> >
> > So my question is: where do I go to
> get data to update these numbers?
> >I have found numbers of businesses
> and sales by type from the IRS in the
> >Stat Abstract 99. I have been able to
> find Total Assets for partnerships,
> >also from the IRS in Stat AB, but I
> assume this includes tangible and
> >financial assets. For corportations,
> I can get both tangible and financial
> >assets broken out. I have found
> nothing on asset holdings of any type
> >for proprietors.
> >
> > Obviously, I need to go beyond the
> Stat Ab., but knowing where to start
> >would be a great help. So any
> thoughts you have would be great.
> >
> >Thanks for any help you can give.
> >
> >Doug Orr
> >dorr at ewu.edu
>
> ---------------------------------------
> Get your FREE download of MSN Explorer
> at http://explorer.msn.com

--

Michael Perelman Economics Department California State University Chico, CA 95929

Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu



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