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The capitalist cabal

posted by Jason Kottke   Oct 21, 2011

An analysis by complex systems theorists at the Swiss Federal Institute of Technology reveals that a “super-entity” of just 147 companies that controls 40% of the wealth among the world’s transnational corporations. And even worse is how tightly integrated these companies are…large pieces tightly coupled is a recipe for economic disaster.

John Driffill of the University of London, a macroeconomics expert, says the value of the analysis is not just to see if a small number of people controls the global economy, but rather its insights into economic stability.

Concentration of power is not good or bad in itself, says the Zurich team, but the core’s tight interconnections could be. As the world learned in 2008, such networks are unstable. “If one [company] suffers distress,” says Glattfelder, “this propagates.”

“It’s disconcerting to see how connected things really are,” agrees George Sugihara of the Scripps Institution of Oceanography in La Jolla, California, a complex systems expert who has advised Deutsche Bank.

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