President Joe Biden has issued a stark warning concerning the potential for the United States to devolve into an “oligarchy” dominated by technology billionaires. This concern will be vividly demonstrated at Donald Trump’s upcoming inauguration, where the three wealthiest individuals in the world will be present as Trump is sworn in for a second term.
Elon Musk, with a net worth of $450 billion, played a significant role in supporting Trump’s campaign, contributing approximately $200 million through a super PAC. Musk is anticipated to have an influential position in the new administration. He will be accompanied on stage by Jeff Bezos, the founder of Amazon, whose company holds substantial contracts with the federal government. Additionally, Meta’s CEO Mark Zuckerberg will be present, having adjusted his company’s focus to align with Trump’s priorities shortly after facing threats of imprisonment from the former president.
Together, these three tech moguls boast a combined wealth of nearly $1 trillion. Also attending the inauguration will be the CEOs of OpenAI and TikTok, both of whom are involved in substantial political discussions, especially with TikTok facing a potential shutdown in the U.S. under new regulations that Trump opposes. Notably, Meta, Amazon, and Sam Altman of OpenAI have collectively contributed $1 million to the inauguration fund.
The influence of ultra-wealthy individuals in U.S. politics is not new; several billionaires also supported Trump’s opponent, Vice President Kamala Harris. Moreover, Biden recently awarded a presidential medal of freedom to George Soros, a prominent donor to liberal initiatives. However, the imminent inauguration showcases the explicit involvement of billionaires in forming the new administration, reinforcing Biden’s reference to “oligarchy,” a term that commonly evokes parallels with Russia’s political landscape, where President Vladimir Putin maintains control over the wealthy elite.
Despite some indicators showing a decrease in economic inequality during Biden’s presidency, the wealth gap in the U.S. remains stark. As of last fall, the wealthiest 0.1% of Americans — about 131,000 households — owned nearly 14% of the nation’s wealth, amounting to over $22 trillion. In contrast, the bottom half of the population holds a mere 2.4% of the country’s wealth, highlighting a significant imbalance.
The extreme financial disparity primarily stems from the unprecedented wealth amassed by a select number of billionaires, with Musk, Bezos, and Zuckerberg being prime examples. All three have recently reached valuation milestones of over $200 billion, and among the top ten richest individuals globally, nearly all are rooted in the tech industry. This wealth accumulation has prompted some Democratic lawmakers to push for reforms within the U.S. tax system, aiming to address wealth concentration through proposals such as wealth taxes.
In the context of Trump’s administration, there is a portrayal of a populist agenda. Trump and his close associates, including Vice President-elect JD Vance, portray themselves as representatives of the common person, eager to reclaim power from elites. Some conservatives, like Charlie Kirk, have branded the government as an “oligarchy” that prioritizes its own interests over those of citizens. Paradoxically, Trump himself is a billionaire, and his populism often hinges on rallying support from other wealthy entrepreneurs whom he argues can uplift the working class.
Discussions around wealth inequality arose during the confirmation hearings of Trump’s Treasury Secretary nominee, Scott Bessent, indicating that the mega-rich’s influence on social media and politics is a matter of concern for many. Bessent, a hedge fund manager, acknowledged that the wealth generated by billionaires is self-made, hinting at the complex nature of wealth creation and influence.
The term “oligarch” has gained notoriety particularly in relation to modern Russia, where a group of powerful businessmen capitalized on the 1990s privatization of state industries. These “oligarchs” amassed great wealth under the guidance of then-President Vladimir Putin, who imposed conditions to ensure their wealth remained intact as long as they steered clear of political involvement.
While the United States differs significantly from Russia’s oligarchic model due to its resilient institutions and diverse economy, there remains a caution against the trends of wealth concentration leading to increased inequality and stagnation. Critics fear that a similar path may emerge, with Trump’s administration poised to extend relationships with tech giants during his second term. Donation records show contributions from Google and Microsoft to Trump’s inaugural efforts, highlighting the ongoing interplay between wealth and political influence.
Brooke Harrington, a sociologist studying the affluent, notes the emergence of a new class of billionaires who support Trump, coining them “broligarchs.” She warns that their rise poses challenges to democracy, suggesting they are accumulating power that could surpass even that of individual national governments.
