Economist Branko Horvat stated: "... it is now well known that capitalist development leads to the concentration of capital, employment and power. It is somewhat less known that it leads to the almost complete destruction of economic freedom."[2]
Activists argue that capitalism leads to a significant loss of political, democratic and economic power for the vast majority of the global human population, because, they believe, capitalism creates very large concentrations of money and property at the hands of a relatively small minority of the global human population (the Elite or The Power Elite), leading, they say, to very large, and increasing, wealth and income inequalities between the elite and the majority of the population.[3] Corporate capitalism and inverted totalitarianism are terms used by the aforementioned activists and critics of capitalism to describe a capitalist marketplace – and society – characterized by the dominance of hierarchical, bureaucratic, large corporations, which are legally required to pursue profit without concern for the social welfare. Corporate capitalism has been criticized for the amount of power and influence corporations and large business interest groups have over government policy, including the policies of regulatory agencies and influencing political campaigns. Many social scientists have criticized corporations for failing to act in the interests of the people; they claim the existence of large corporations seems to cir vent the principles of democracy, which assumes equal power relations between all individuals in a society.[4] As part of the political left, activists against corporate power and influence support a decreased income gap and improved economical equity.
The rise of giant multinational corporations has been a topic of concern among the aforementioned scholars, intellectuals and activists, who see the large corporation as leading to deep, structural erosion of such basic human rights and civil rights as equitable wealth and income distribution, equitable democratic political and socio-economic power representation, and many other human rights and needs. They have pointed out that, in their view, large corporations create false needs in consumers and, they contend, have had a long history of interference in, and distortion of, the policies of sovereign nation states through high-priced legal lobbying, and other almost always legal, powerful forms of influence peddling. Evidence supporting this belief includes, in their view, invasive advertising (such as billboards, television ads, adware, spam, telemarketing, child-targeted advertising, guerrilla marketing), massive open or secret corporate political campaign contributions in so-called "democratic" elections, corporatocracy, the revolving door between government and corporations, regulatory capture, Too Big To Fail (also known as Too Big to Jail), massive taxpayer-provided corporate bailouts, socialism/ communism for the very rich and brutal, vicious, Darwinian capitalism for everyone else, corporate welfare, and, they claim, seemingly endless global news stories about corporate corruption (Martha Stewart and Enron, among many other examples). Anti-corporate-activists express the view that large corporations answer only to large shareholders, giving human rights issues, social justice issues, environmental issues [and other issues of high significance to the bottom 99% of the global human population] virtually no consideration.[5][6]
David Schweickart wrote that, in capitalist societies,
"ordinary people are deemed competent enough to select their political leaders-but not their bosses. Contemporary capitalism celebrates democracy, yet denies us our democratic rights at precisely the point where they might be utilized most immediately and concretely: at the place where we spend most of the active and alert hours of our adult lives."[7
]
Thomas Jefferson, one of the founders of the United States, said "I hope we shall crush ... in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country".[8] Franklin D. Roosevelt, in an April 29, 1938, message to Congress, warned that the growth of private power could lead to fascism:
[T]he liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism — ownership of government by an individual, by a group, or by any other controlling private power.[9][10][11]
[...] Statistics of the Bureau of Internal Revenue reveal the following amazing figures for 1935: "Ownership of corporate assets: Of all corporations reporting from every part of the Nation, one-tenth of 1 percent of them owned 52 percent of the assets of all of them."[9][11]