The USA - a PLUTOCRACY / Oligarchy
Is the USA an oligarchy? Explore how wealth-driven political influence, corporate lobbying, and billionaire donors impact US democracy and social equity.
OLIGARCHY IN THE U.S.A. - Extreme Wealth & Power As A Threat To Democracy
Discover the critical reality of shifting political power in America and learn how we can stand up for democracy. Our political guide offers you in-depth information on widening economic inequality, the influence of money in politics, and the erosion of democratic representation.
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"We've become, now, an oligarchy instead of a democracy. I think that's been the worst damage to the basic moral and ethical standards to the American political system that I've ever seen in my life." - Jimmy Carter.
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General Information
When a country becomes dominated by a rich, powerful elite, these groups can sway government policy to serve their own interests.
Six of the world's top 20 economies are run by oligarchs. Since the end of World War II, oligarchy has been on the rise, with a significant increase since 1985.
In 2025, 33 oligarchs either have served or are currently serving as heads of state or government. The overwhelming majority, 82%, were in the Global South, where corruption has been allowed to run rampant. All but one were run by men.
Examples include China’s Xi Jinping, Russia's Vladimir Putin, Indonesia’s Prabowo Subianto, Turkey’s Recep Tayyip Erdoğan, and Saudi Arabia’s Mohammed bin Salman.
Terrifyingly, an estimated 48% of today’s global GDP is generated by oligarch-run countries.
Oligarchs have been able to take advantage of, thrive, and profit from a world that has become more unstable and unequal. They have now become a normalised feature of our global economy and international order.
The rapid rise of oligarchs is preventing global cooperation on key issues such as climate change, environmental protection, plastics, a fossil fuel phase-out, global tax reform, financial transparency, and health equity.
What Is An Oligarchy?
Historically, an oligarchy is a government where political power is concentrated in the hands of a small elite group of individuals or families. The word is derived from ancient Greek words which mean "few" and "to rule".
This minority yields enormous control over the country and is primarily self-serving. Rather than using their great wealth to serve the public's best interests, their focus remains on protecting their own position and increasing their wealth and influence even further.
Many oligarchs come into power through family lineage, corporate control, military dominance, religious status, or extreme personal wealth.
Oligarchs can use their influence in many ways:
- Direct Rule - Leaders have absolute power over decision-making and policies. This approach is riskier, as they are in the spotlight, must separate themselves from their business interests, and are accountable to voters.
- Campaign Funding - Oligarchs donate large sums of money to political parties and candidates to ensure politicians who best serve their interests are more likely to win elections.
- Lobbying - By hiring professional lobbyists and lawyers, wealthy elites can push for laws, tax cuts, and regulations that benefit their businesses, often at the expense of people and the planet.
- Market Control - Acquiring key industries, such as energy, mining, and banking, allows a small group of individuals to control market prices and stifle out competition.
- Philanthropy - Often used to polish their public image, wealthy elites will donate large sums of money to universities, museums, and think tanks. This often earns them seats in the boardroom, giving them even further control. Private foundations let them store money for years, turning it into a tool for financial management rather than for public good.
- Media Control - In a dangerous new trend, rich individuals have bought out newspapers, TV networks, and social media organisations, allowing them to change content rules, shape public opinion and suppress critical reporting. (Elon Musk's purchase of X in 2022). This is a huge threat to both freedom of speech and democracy.
Oligarchy vs Democracy In The U.S.A
The U.S. operates as a democracy, with voting rights, freedom of speech, and civic participation. The increasing dominance of strong oligarchic tendencies in recent decades has led many critics to label the nation a functional oligarchy. In this sense, participatory rights coexist alongside wealth-based political power.
A 2014 study by Professor Martin Gilens and Professor Benjamin Page concluded that the U.S. is officially dominated by a rich and powerful elite. This was the first scientific study to debate whether the U.S. is still a democracy.
They report “that economic elites and organised groups representing business interests have substantial independent impacts on US government policy, while average citizens and mass-based interest groups have little or no independent influence.”
The slide into oligarchy is gradual, and although Trump has certainly made the transition easier, it was happening long before his time. Decades of policies and politics in favour of corporations and the super-rich have resulted in a country with deeply ingrained systemic inequalities.
Social issues typical of an oligarchic state are visible across the U.S. The wealth gap in the United States is at its highest level in over a century. Between 2000 and 2024, the richest 1% captured 41% of new global wealth; the poorest half received just 1%.
Roughly 12% of the U.S. population, 37 to 41 million people, live below the poverty line. This is exacerbated by low, stagnated wages and high costs of living, which keep them trapped in a cycle of poverty.
Famously, the U.S. is the only wealthy, industrialised nation that does not provide universal health coverage. High healthcare costs lock out millions from seeking medical attention. Roughly 8-10% of Americans are completely uninsured. The country ranks last among high-income countries for overall health system performance.
The U.S. Supreme Court is frequently accused of enabling an oligarchic regime and supporting the interests of the super rich. The landmark 1976 Buckley v. Valeo decision set the foundation for modern campaign financing, effectively ruling unlimited expenditures as free speech.
The 2010 Citizens United v. Federal Election Commission decision further upheld this narrative, protecting dark money in politics under the First Amendment. By doing so, the court handed economic control to massive corporate entities, rather than elected officials, who are merely their puppets.
The world's first trillionaire Elon Musk contributed an unprecedented $288 million to help elect Trump and other Republican candidates during the 2024 election. In return, he gained unabated access to the U.S. government as Senior Advisor to the President and head of the Department of Government Efficiency.
Musk was not the only one. In 2024, just 100 billionaires poured a staggering $2.6 billion into the election. This is not democracy.
“Right now, we’re getting a view into just how the ultra-rich have bought themselves a seat—if not a couch—in the Oval Office. Elon Musk, Mark Zuckerberg, and Jeff Bezos are a few examples of the wealthy elite who not only cozied up to President Trump to influence policy, but have also benefited under his administration. Trump has had over a dozen billionaires in this administration — the wealthiest in history.” - Oxfam America.
During his second term, President Trump has introduced his “Big Beautiful Bill”, which is set to reduce the taxes of the 0.1%, the countries top-earners, by $311,000 each.
At the other end of the spectrum, the bill cut vital safety-net programs and gave households earning less than $15,000 tax increases! It also removed more than 10 million people from Medicaid and is set to leave millions of families without food assistance.
The Federal Trade Commission and the Consumer Financial Protection Bureau have been weakened to breaking point. These offices protect ordinary citizens and work to prevent excessive corporate and monopoly power.
Self-Enrichment By Trump & His Family
A key characteristic and motivation of an oligarchy is self-enrichment. No U.S. president has personally benefited from their position quite like Donald Trump.
In 2025, his revenues exceeded $2.2 billion from his cryptocurrency projects, hotels, golf courses, watches, colognes, Bibles, and foreign interests.
He has successfully and effectively transformed the American presidency into his own personal business. If he can put his face on it and sell it, he will.
Trump has even found a way to monetise social media by launching Truth Social, his own social media business. For a $100,000 monthly fee, users can access his posts before anyone else.
Federal oversight of his blatant profiteering is nonexistent.
In January 2026, Trump even filed a lawsuit against his own government agency, the Internal Revenue Service and the Treasury. It was a $10 billion case denouncing their actions regarding his tax return leak in his first term.
The result granted him and his family complete immunity from past tax audits and created a $1.8 billion fund to compensate those who believe the department unfairly targeted them (Trump allies). The fund has since been abandoned.
As president, Trump controlled these agencies. Critics say that he manipulated the judicial process to gain personal tax immunity.
Typical of an oligarchy, Trump’s enrichment extends to his family, who have amassed great wealth in the first two years of his second term. His cabinet's unusually high number of billionaires and wealthy individuals is another clear indicator of oligarchic influence.
The Role Of Big Tech
Big Tech and Silicon Valley are increasingly playing a dangerous central role in cementing a modern US oligarchy. Their massive wealth and control of digital infrastructure let them directly influence elections, politicians, and policy.
Tech leaders now have unlimited funds to back amenable candidates and super PACs. They then push for deregulation across artificial intelligence, data privacy, and environmental laws.
Elon Musk, Peter Thiel, and Mark Zuckerberg have unprecedented influence over political administrations. On top of excessive sway over national and global markets, they also control the digital, algorithmic, and AI infrastructures used to relay public communication.
Flight Oligarchy - Bernie Sanders Campaign
“We must resist the rule of the super-rich. It’s time for bold action to reduce inequality, rein in the influence of billionaires and big corporations, and restore real voice, choice, and power back where it belongs—with the people.” - Oxfam America.
In early 2025, independent progressive Senator Bernie Sanders launched his high-profile fight against oligarchy. It plunged the issue into the headlines and has drawn an enormous amount of support from the public and other influential figures such as Alexandria Ocasio-Cortez, Elizabeth Warren, Greg Casar, and musician Neil Young,
Sanders has given a voice to those protesting income inequality, corporate influence, and the political power of billionaires, which have become commonplace in today's America.
His campaign drew in tens of thousands of supporters who both oppose Trump’s dismantling of the federal government and the feeble and fragmented response by the Democratic Party.
Sanders advocates for common-sense policies such as Medicare for All, a wealth tax, strengthening labour rights, fair wages, curbing corporate power, and reforms to campaign finance laws.
The path towards total oligarchy can still be stopped. The 1% are just that. The 99%, when united, are a far more powerful force.
"Oligarchs are waging a war on the working class, and they are intent on winning. But this is what I know: The worst fear that the ruling class in this country has is that Americans come together to demand a government that represents all of us, not just the wealthy few." - Bernie Sanders.
We must stand up and fight for democracy, equality, and prosperity for everyone.
Author: Rachael Mellor, 27.08.26, latest update 28.08.26, licensed under CC BY-SA 4.0
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