The Prince of Capitalism

In 1999, Alistair McAlpine published a management book titled The New

Machiavelli: The Art of Politics in Business. The publishers blurb for the
book runs, Ignore the latest buzz about the kinder, gentler world of new
age, team-based management. Its dog-eat-dog out there, and the sooner you
realize it, the better. The New Machiavelli mines Machiavellis The
Prince for the timeless rules and stratagems that can help todays business
rulers survive and prosper in the jungle of greed and treachery that is
commercefail to read it at your peril. Books like these are increasingly
common: there is one recently published called Machiavelli for Moms
(How to properly govern and manipulate your children!) and another
titled The Princessa: Machiavelli for Women (How women can use
Machiavellis advice to take what you want from the world!)

Given your reading and our discussion of The Prince, evaluate the
application of Machiavellis teachings to domains outside of politics. What
moral questions does this extension raise for you and why? Do you believe
Machiavellis advice is appropriate for these areas? Why or why not?

The Prince of Capitalism

The nature of politics is reflected in modern business affairs, and therefore, the moral and
amoral principles explicated by Machiavelli appertain across domains. However, there are
major differences in modern societys ideas of morality in comparison to the societal beliefs of
the Machiavellian era. Consequently, the applicability of these principals will most definitely
vary in practice.
In todays economy, Machiavellis idea of power over principalities is best understood as
power over capital. To start or be in business, you must have capital; capital is money, and as
everyone knows, money is power. (Donald Trump, known for his wealth, running for President)
To acquire capital and power, you must inherit capital, build capital over time, or use someone
elses capital. If you are without capital, you have no power as a player in todays economic
battlefield and will soon find yourself at the mercy of the power players.
In order to survive or maintain the quality of lifestyle that capital provides, it is important that
you do all you can to maintain, protect, and grow your capital and power.
If you find yourself without capital and power, just as Machiavelli describes kings such as
Romulus, Cyrus, and Theseus, you must be an opportunity warrior with a purpose and passion
for power because there is nothing harder to undertake, nothing more likely of failure, nothing
more risky to pull off, than to set oneself up as a leader who plans to found a new system of
government or business (page 19). If you are fortunate to have inherited capital or built it over
time, you must monitor expenses and calculate risks meticulously in order to preserve your
capital and maintain your lifestyle. Machiavelli says, He ought, if he is wise, not to mind being
called miserly. Furthermore, in modern times nobody has succeeded on a large scale except
those who have been thought miserly; the others came to nothing. (page 49)
Machiavellian principles on the use of troops and on building reputations with the populace are
most relevant in todays business and corporate structures. Business owners and managers
have the power to decide whether to in-source or out-source their products and services. They
can utilize their own employees and equipment, or employ suppliers, respectively. In-sourcing
requires using your own resources for investments into equipment and additional employees.
Though risky and time consuming, long term costs will be lower thus generating more profits,
capital, and power. Out-sourcing, on the other hand, reduces capital expenditure risk, but you
are subject to quality issues and other companies infringing upon your products or procedures.
Machiavelli explains that he who has no desire to be the victor would use suppliers and that a
wise ruler will rely on his own forces. (page 43)
Machiavellian ideals are most applicable to the relationships of owners and managers with
other employees in questioning whether its better to be loved or feared. He describes men as
being devoted as long as you serve their interest, but as soon as you need help they turn
against you. Moreover, men are less nervous of offending someone who makes himself
loveable, than someone who makes himself frightening. Therefore, it is best to be feared but
with care that if you do not inspire love not to provoke hatred. (page 52)
Moral questions Machiavelli poses, such as cruelty and killing, are in most cases out of the
question for todays business leaders because prison time or lawsuits remain riskier than
almost any investment. You should seem compassionate, trustworthy, sympathetic, honest,
religious, and, indeed, be all these things. However, imitating both the fox and the lion and
using others integrity to your advantage multiplies your chances of success. (page 54-55)