WASHINGTON — In a recent farewell address, President Joe Biden issued a stark warning about the trajectory of American democracy, suggesting it is veering towards an “oligarchy” dominated by wealthy technology magnates. This brings into focus the question: what exactly does the term oligarchy mean?
An oligarchy refers to a political system where a small elite group wields significant control over governance and decision-making processes. By utilizing the term “oligarchy,” President Biden draws a troubling comparison between the current state of affairs — characterized by the influence of affluent tech entrepreneurs celebrating President-elect Donald Trump — and some of the more oppressive regimes throughout history.
Notable figures like Meta CEO Mark Zuckerberg are slated to co-host a reception for Trump’s inauguration alongside affluent Republican donors. At the same time, Amazon Prime Video, established by billionaire Jeff Bezos, has secured exclusive streaming rights for a documentary featuring first lady Melania Trump. Additionally, recent contributions to Trump’s inauguration fund have come from Meta, Amazon, and OpenAI CEO Sam Altman, who collectively donated $1 million. Furthermore, billionaire Elon Musk’s political action committee reportedly spent around $200 million to support Trump’s election bid.
Biden’s remarks reflect a nuanced reality, as both major political parties in the U.S. have sought financial support from the tech elite to further their political goals.
The term oligarchy has its roots in Ancient Greek, where it literally means “rule by a few.” Unlike aristocracy, which is often linked to noble lineage and familial ties, oligarchy is more associated with wealth and economic power. The philosopher Aristotle commented on the flaws of oligarchies in his work “Politics,” stating that democracies tend to foster a more stable environment compared to oligarchies, which can lead to conflicts both among the oligarchs themselves and between the elite and the general populace.
Academics have pointed to various instances of oligarchy throughout history. After the dissolution of the Soviet Union in 1991, a new class of billionaire oligarchs emerged as former state assets were privatized and acquired by wealthy business figures. This shift began a trend of intertwining profits and politics under President Boris Yeltsin, which later evolved into a system bolstered by President Vladimir Putin, who maintained close relationships with select oligarchs in exchange for their loyalty.
The Philippines has also faced accusations of functioning as an oligarchy, where powerful families have historically held significant influence over politics, though former President Rodrigo Duterte asserted he was dismantling the existing power structure. Critics, however, contend that his administration merely shifted preferences to a different group of oligarchs.
In apartheid-era South Africa, some scholars have characterized the situation as a white racial oligarchy. Concerns about rising income inequality in the U.S. and China have also fueled worries that these leading economies may be teetering into oligarchic structures.
As discussed in Biden’s address, the focus on oligarchic tendencies in modern governance illustrates crucial tensions in contemporary political landscapes.
Biden cautions that the US is at risk of turning into an ‘oligarchy.’ What does this term signify?
