President Joe Biden’s recent warning about potential American descent into an “oligarchy” dominated by wealthy tech entrepreneurs will be visually represented during Donald Trump’s inauguration. At this event, some of the richest individuals in the world, including Elon Musk, Jeff Bezos, and Mark Zuckerberg, are expected to occupy prominent positions as Trump officially begins his second term.
Musk, known as the world’s richest individual, played an active role in supporting Trump’s campaign, contributing approximately $200 million through a super PAC. His involvement signifies a new influence on government matters within the prospective administration. He will share the stage with Bezos, the founder of Amazon, both of whom have substantial federal contracts tied to their businesses. Zuckerberg, the CEO of Meta, recently adjusted his company’s focus to align more closely with Trump after an earlier confrontation that threatened his freedom. Together, these three billionaires have a combined net worth nearing $1 trillion.
The inauguration will also feature the CEOs of OpenAI and TikTok, the latter facing a government shutdown in the U.S. under newly established regulations that Trump opposes. Additionally, Meta, Amazon, and Sam Altman, the CEO of OpenAI, have collectively contributed $1 million to the Trump inauguration venture.
Historically, wealthy individuals have played crucial roles in American politics, with many billionaires financing campaigns for candidates across the political spectrum, including Vice President Kamala Harris during her campaign against Trump. Biden recently awarded the Presidential Medal of Freedom to billionaire philanthropist George Soros, known for his support of liberal initiatives. However, the upcoming inaugural scene starkly emphasizes the overt participation of ultra-wealthy individuals in shaping the incoming administration.
Biden’s mention of the term “oligarchy” was strategic, drawing parallels to Russia, a nation whose leader, Vladimir Putin, maintains a grip on power through collaboration and control of wealthy individuals. Under Putin, the rich in Russia are kept in line with threats, causing concern for similar outcomes in the U.S.
Turning to economic dynamics, while income inequality in the U.S. has seen a slight decrease during Biden’s presidency, it remains significant. The wealthiest 0.1% of Americans, approximately 131,000 households, owned nearly 14% of the country’s wealth, translating to over $22 trillion in various assets, which is a notable increase from the 10% recorded two decades ago. In contrast, nearly 65 million households in the bottom half of the income distribution own a meager 2.4% of the nation’s wealth, or just under $4 trillion.
Moreover, a handful of billionaires in the U.S. are amassing unprecedented wealth. Musk’s net worth stands at $450 billion, while Bezos and Zuckerberg follow at $242 billion and $212 billion, respectively. They are currently the only individuals globally with wealth exceeding $200 billion, exemplifying the concentration of wealth within the tech sector. In response to this drastic inequality, Democrats have attempted to reform tax laws directed at the affluent, with renewed discussions around wealth taxes and steeper taxes for individuals earning above $1 million.
Despite criticisms of the increasing influence of billionaires in governance, Trump and members of his team present themselves as advocates for the average American, pledging to reclaim power from elite interests. Prominent conservative figures have echoed sentiments that the U.S. government functions more like an “oligarchy” that serves its own interests over those of the populace.
The tension surrounding these discussions surfaced recently during a confirmation hearing for Trump’s Treasury Secretary nominee, Scott Bessent. When questioned by Senator Bernie Sanders about the emergence of an oligarchy in America, Bessent emphasized the entrepreneurial success of billionaires. This indicates the relevance of billionaire input in the evolving political landscape.
Public perception regarding the involvement of billionaires in politics appears skeptical. Polling indicates that a significant majority of Americans — nearly 60% — disapprove of presidential reliance on billionaire advice concerning governmental policies. This concern is particularly pronounced among Democrats, in contrast to Republicans, who show more ambivalence towards such relationships.
The term “oligarch” has gained notoriety in modern times primarily through its association with Russia. Following the Soviet Union’s dissolution, affluent business leaders acquired extensive assets during the privatization era, eventually consolidating power. Putin’s regime struck a deal with these oligarchs: refrain from political interference, and their wealth would remain intact. Those who defied this arrangement met grim fates, reflecting the dangers of unchecked power dynamics.
In the U.S., while current systems maintain diversity and resilience, concerns exist regarding a growing nexus between wealth and government relationships, potentially exacerbating inequality and economic stagnation. The technology sector highlights this worrying trend, particularly as Trump returns to power, having previously clashed with these tech giants. Companies like Google and Microsoft have shown their support by contributing to Trump’s inauguration fund, while Zuckerberg actively collaborates with affluent Republican patrons leading up to this political event.
Brooke Harrington, a sociologist specializing in wealth dynamics, has dubbed this new group of Trump supporters “broligarchs.” She warns that their rising influence poses a significant threat to democracy, as their accumulated wealth may surpass the power exerted by governments, creating an uneven playing field in global governance dynamics.
