The Managerial Revolution by James Burnham Summary

The Managerial Revolution argues capitalism is being replaced by "managerialism" – a system where bureaucrats and administrators (not capitalists or workers) control economies through state and corporate power. Burnham cites 1940s trends in Nazi Germany, Soviet Russia, and FDR’s New Deal as evidence of this global shift.

This book suits political science students, history enthusiasts, and readers analyzing socioeconomic systems. Its insights into bureaucracy, power structures, and post-capitalist transitions remain relevant for understanding modern corporate governance and state-led economies.

Yes – despite outdated Cold War examples, Burnham’s framework helps decode modern tech oligopolies, government-corporate alliances, and the professional-managerial class’s growing influence. Critics note his underestimation of capitalism’s adaptability, but the core thesis sparks debates about power consolidation.

Managerialism replaces capitalist ownership with control by technical experts who coordinate production through state and corporate institutions. Unlike traditional capitalists, managers derive power from administrative expertise rather than private property.

Burnham rejected socialism as a viable successor to capitalism, arguing centralized planning naturally empowers bureaucrats (managers), not workers. He viewed Soviet communism and Western New Deal reforms as parallel paths to managerial dominance.

Critics argue Burnham overstated capitalism’s demise, underestimated market resilience, and oversimplified managerial motivations. His conflation of Nazi Germany with Soviet Russia also drew scrutiny for ignoring ideological differences.

The managerial class includes corporate executives, government planners, and technical specialists who control production through institutional roles rather than ownership. Burnham saw them as a new ruling elite displacing traditional capitalists.

Burnham cited state-controlled economies in 1940s Germany, Russia, and the U.S. New Deal as proof of managerialism’s rise. He argued World War II accelerated this transition by expanding government economic oversight.

This book laid groundwork for his later geostrategic analyses like The Machiavellians and The Struggle for the World. While abandoning Marxism, Burnham retained a focus on elite power dynamics and historical inevitability.

Tech monopolies' fusion with regulatory bodies, the growth of administrative states, and corporate ESG initiatives reflect managerialism’s blend of public-private coordination – though updated for digital globalization.

1. “Capitalism is dead, but socialism is not the heir” – Burnham’s thesis that managers, not workers, inherit power.
2. “The state is the prime coordinator” – Emphasizes bureaucracy’s role in managerial systems.

While both analyze change, Burnham’s work is a macro-historical theory of power, whereas Cheese focuses on individual adaptability. They share themes of systemic shifts but differ in scope and audience.