NCJ Number
78314
Date Published
1978
Length
27 pages
Annotation
This paper examines certain historical forms of white-collar crime in the United States to demonstrate that such crime is often a necessary and useful part of capitalist growth.
Abstract
White-collar crime is committed primarily by the bourgeoisie and petty bourgeoisie in their struggles to advance profits. Because the primary function of the capitalist state is to protect the bourgeois class, various forms of white collar crime are permitted to exist if they do not threaten this class's interests. Early bourgeois tycoons such as Pierpont Morgan and Commodore Vanderbilt exploited the Civil War to make enormous profits with total disregard for the law. Few were punished or even admonished for their profiteering because they provided war materials vital to the North's victory and advanced the interests of the emerging industrial bourgeoisie. The development of the railroad also illustrates the symbiotic relationship of the early bourgeoisie and the state. Railroad construction involved thefts of millions of acres of public land, threats and bribery to force citizens to vote for bond issues, and profits gained through deliberate cost overestimates. However, the railroads generated new prosperity as businesses were created or expanded and workers were provided with jobs. Antitrust measures developed when the laissez faire capitalism of the robber barons produced monopoly and economic stability and a more orderly society to promote the steady growth of capital was desired. Presidents such as Teddy Roosevelt continued to support big business interests, and much antitrust legislation was unenforceable. The scandal over Lockheed's questionable methods of procuring Government contracts provides a contemporary illustration of the collusion between state and bourgeoisie to promote white collar crime. The state remains an ardent defender of defense corporations because they are vital to bourgeois imperialism, as evidenced in other disclosures of illegal corporate payments to public officials. White collar crime has been an integral part of capitalism, and the bourgeoisie continue to respect the shrewdness shown by these transgressors. The paper includes 33 references. (Author abstract modified)