What Exactly is an “Oligarchy”?

Tech billionaires Mark Zuckerberg, Jeff Bezos, Sundar Pichai, and Elon Musk  Donald Trump's second inauguration (Image Source)

You may be hearing the word “oligarchy” thrown around a lot during Trump’s second term, but what is an oligarchy?

Well, as defined by the Merriam-Webster dictionary, oligarchy is “government by the few” or “a government in which a small group exercises control especially for corrupt and selfish purposes”. In practice, this means an oligarchy is a system where an extreme minority, or “the few”, hold outsized control of the government and its institutions. In the modern day, “the few” tends to refer to the ultrawealthy.

A Clear Example

Former Russian President Boris Yeltsin (Image source)

In our modern world, the word oligarchy can best be seen through the example of Russia. Russia used to belong to the Soviet Union, a socialist country ruled by a communist party. This meant the economy was state-controlled and centrally planned. In other words, the government controlled the means of production (factories, farms, etc.) and directly made decisions as to what to produce, distribute, trade etc. Once the Soviet Union collapsed, the new capitalist President of Russia, Boris Yeltsin, decided to undergo a process known as “shock therapy.” Shock Therapy involved the rapid privatization of the economy. For the purposes of this blog post, what must be understood is that previously state-owned entities, such as oil fields and refineries, were quickly sold into the private sector. In practice, this meant former Soviet Officials used their wealth and connections to buy up and concentrate control over key industries, handing over control of the economy to a small class of ultra wealthy business owners, or oligarchs. These oligarchs, thanks to their immense wealth, were able to essentially control the Russian state and government to their own benefit, further consolidating their power. As Putin has risen and cemented his dictatorial rule, he has had to hold these oligarchs in check. And, theoretically, if Putin took actions that drastically hurt these oligarchs, they could, thanks to their economic power, cause economic issues that would drastically hurt the Putin regime. 

Why is this term being thrown around today?

The discussion around whether or not the United States is an oligarchy has been around for quite some time, especially in left-leaning circles. This is because, as a capitalist country, the United States has always had to balance the power of corporations with the powers of the government. This has been especially true since the Citizens United Supreme Court decision in 2010. This ruling, which allows for super PACs to donate money to campaigns without disclosing their own donors, combined with relaxed lobbying laws means that the wealthy in the United States can influence politicians rather easily. The wealthy can, through campaign donations and lobbying, incentivize politicians to make decisions that benefit them, even if the broader American population will not benefit. This, of course, is not seen as an oligarchy by many, as there is still a level of separation between the government and corporate America. In the new Trump term, however, that separation has been blurred. In his farewell address, Joe Biden warned that America could become an oligarchy as wealthy tech entrepreneurs fueled the Trump campaign. This debate has intensified as many of these people, such as Elon Musk and Mark Zuckerburg, were present at Trump’s inauguration. But, the main driver in this debate is Elon Musk and a new body called the Department of Government Efficiency, or DOGE. 

Elon, DOGE, and the Descent Into Oligarchy

Upon entering office, Donald Trump created the Department of Government Efficiency and appointed tech billionaire Elon Musk to lead it. Despite the name, DOGE is not a department. It is an advisory body/team which makes recommendations to President Trump. Of course, this team has essentially been given a free pass to cut whatever government spending it wants to in the name of efficiency and shrinking the government, a long-time goal of the conservative movement. Proponents claim that making the government smaller will allow the private sector to boost economic growth and will reduce wasteful government spending. The main worry, however, is that Elon Musk (a billionaire), will use the ability to cut spending as a way to benefit his own businesses at the expense of the American people. This is especially true as the President has yet to challenge DOGE decisions, leaving it up to the courts to challenge the body. 

Elon Musk at Trump’s inauguration (image source)

If you ask me, DOGE does indeed give outsized control of the government to a select few wealthy individuals, but many would counter that this is simply the private sector guiding the government in a more efficient direction.

So, as DOGE continues to make spending cuts, sometimes doing so with questionable legality, we should all be asking where to draw the line between democracy and oligarchy. Never stop questioning when the wealthy are so powerful that your voice no longer matters, and never stop using your voice to ensure America never reaches that point.