It is not just a dystopian or academic speculation that suggests the United States has become an oligarchy.
Concerns about an American Oligarchy have grown as Donald Trump enters his second term.
The main reasons for this are the increasing wealth inequalities, deregulation and consolidation of power by a small group of extremely wealthy individuals.
Joe Biden’s farewell speech warned against the dangers posed by a few privileged individuals controlling enormous economic and political power. This warning resonated across all political parties.
It is worth asking if the US has truly become an oligarchy, or if the concern is exaggerated.
What is an Oligarchy? What is an oligarchy?
Aristotle, in Ancient Greece described “oligarchy”, as a system of rule whereby the wealthy ruled by their wealth.
Russia and Hungary are modern examples of oligarchic systems where the business elites influence government policies directly, usually through coercion or corruption.
The situation in the US is much more complicated. In the US, unlike Russia where billionaires are not in control of government.
They exert an enormous amount of influence, however, through their lobbying efforts, donations to campaigns, and the control they have over industries like finance, technology and media.
As political scientist Jeffrey Winters explains, this system is an “oligarchy civil”, in which wealthy people use their wealth to influence the rules, rather than directly govern.
An oligarchy’s core is economic dominance that translates into political power. Many of these characteristics are evident in the US, from the billionaire-funded campaigns for political office to the deregulations of industries which benefit the wealthy elite.
Even though elections are still held, wealth is increasingly dictating policy, which puts the country into a dangerous position, between democracy and the oligarchic regime.
Power shifts and wealth inequality
Extreme wealth inequality is a key indicator of oligarchy, and the figures in the United States are shocking.
Only 2.5% of American wealth is owned by the poorest 50% of Americans.
The gap between the two is larger than any time in recent U.S. History and reflects levels more commonly seen in feudal than in democratic societies.
The concentration of wealth gives a few individuals immense power. They can shape policies, influence elections and in some cases dictate the agenda of governments.
Citizens United, the ruling that allows for unlimited spending by corporations and individuals in campaigning, only makes things worse.
What is the result? The result?
This divide will likely widen under Trump’s second term.
He has a deregulation-focused economic policy, he favors tax cuts for the rich, and he favours protectionist policies in trade. All of these policies benefit the billionaire elites, at the expense and middle class and workers.
It is not a question of whether or not wealth affects politics, but rather how well democracy functions when the financial power is distributed so unequally.
The oligarchic nature of Trump’s second presidency
Trump’s presidential tenure has been marked by an unmatched alliance of political and economic power. The second term of Trump’s presidency is not any different. His Cabinet and advisory group are composed by three major factions.
The conservative mainstreamers, such as Treasury Secretary Scott Bessent, National Economic Council director Kevin Hassett and others, are aiming to keep economic stability.
They have, however, largely adopted Trump’s protectionist position, supporting tariffs, deregulation, and ensuring Wall Street interest remain protected.
The America Firsters are led by Stephen Miller and Peter Navarro. They push aggressive nationalism, such as high tariffs and strict immigration restrictions, along with economic isolationism.
They share Trump’s vision to reformulate America’s foreign and economic policy by implementing protectionist policies that favor certain industries, while restricting international competition.
The tech titans like Elon Musk and David Sacks are also a part of the mix. They all want to eliminate government regulation while consolidating corporate dominance in key industries.
Musk has gained significant influence as the leader of DOGE, a newly-created agency that aims to reduce federal bureaucracy.
The three groups are not always in agreement, but together they indicate a change towards an economic system that concentrates power into the hands of wealthy individuals.
Recent reports suggest that the net worth of Trump’s administration may be as high as $20 billion.
Silicon Valley: the “new oligarchic” class?
The 21st century version of oligarchies is based on technology and data controls.
Silicon Valley’s billionaires wield a huge influence on commerce, information and national security.
Amazon, Meta and Tesla are just a few of the companies that control large, centralized digital ecologies. This allows them to influence public policy and discourse.
Trump’s close ties to tech moguls has solidified their power. Musk and Zuckerberg were given the best seats at Trump’s inauguration as a symbol of their political status.
The argument that America is becoming “a tech oligarchy”, however, is flawed.
Silicon Valley, unlike Russia, is full of competition.
Amazon and Google are battling for supremacy in cloud computing, AI and social media.
This division, however, does not change the fact that billionaires in tech have more economic and political influence today than they ever had before.
Trump’s protection of billionaires
Trump’s decision to axe Biden’s global tax reform was one of the clearest examples of his favoring of oligarchic interest.
This initiative was originally intended to establish a minimum 15% corporate tax rate globally, as a way of curbing multinational tax avoidance, and ensuring that companies such as Amazon and Meta pay their fair share.
Reform was more than just a revenue-raising measure; the goal was to limit billionaires’ and corporates’ ability to use global tax laws for their own benefit.
The aim was to stop multinational corporations from shifting their profits into tax havens and starving countries of essential public funds for infrastructure, healthcare, education, and healthcare.
Trump’s refusal of the deal wasn’t a shock, but rather an intentional move designed to increase the wealth of America’s billionaires.
He dismantled the global framework to ensure that American technology giants can continue to use offshore loopholes as a shield for their fortunes.
The US continues to be a wealth-hoarder on a unprecedented scale, while European nations struggle with maintaining financial stability.
Without global coordination, the billionaire-backed companies will continue to consolidate their economic and political influence, further widening the gap between ultra-wealthy citizens and the rest of the population.
It is one reason why the US stock exchange has done so well in the last few decades, compared to other emerging markets.
Are we at risk in America of becoming an oligarchy full-blown?
The US is still a democracy with flaws, but the increasing concentration of power and wealth poses an unavoidable threat.
As the line between democracy, and oligarchy becomes increasingly blurred.
Even though elections may continue to take place, democratic governance is undermined when candidates backed by billionaires dominate the political scene and policies favor corporate interest over public welfare.
Money’s unrestrained influence in politics has undermined the public’s trust. Meanwhile, regulatory agencies are being dismantled for elite benefit.
The current trend will continue to see corporate lobbying dictating legislation, increasing wealth inequality, and a weakening of political accountability. America won’t be “approaching” the oligarchy, but will fully embrace it.
The fight for democracy continues. The U.S. will either fully submit to the oligarchic system or take a stand against its dominance. This depends on pressure from public opinion, reform of policy, and renewed commitments to economic justice.
Unchecked however, warning signs of a future where ultra-rich people no longer influence the politics, but control them, are becoming more and more evident.
This article Is America becoming an Oligarchy? This deep dive on wealth, power and influence of Trump’s America could be updated as new information becomes available
