Corporatocracy: New Abutment of the Economy and Politics of the United States of America

In the age of globalization the real economic and political power is shifting from the governmental institutions to the giant global business entities. This phenomenon is corporatocracy. This study focuses on the investigation of the corporatocracy in the United States of America (US) as a new abutment of the governance of political and economic system of the US that is performed by corporations. There are two approaches to the phenomenon. According to the first, corporations have positive effect on the economic and political developments in the US. While according to the second one, corporations bring negative consequences for the economy and politics. This thesis is explaining the existence of corporatocracy in the US and respective growth of inequality in the income distribution of the country. There is a significant correlation between the income inequality and market capitalization of the firms in the US. Thus the research finds that as firms get larger, income distribution worsens in the US. So on one aspect, which is the income distribution, corporatocracy has a negative effect on the US society. Keywords: Corporatocracy, Economy and Politics of the US, Income Inequality