In his farewell address, President Joe Biden warned Americans about the growing threat of oligarchy in the United States, signaling the necessity to safeguard the middle class from its clutches. This stark acknowledgment comes amid the increasing concentration of wealth and power in the hands of a few billionaires, a trend that has been exacerbated by the rise of populist leaders, particularly Donald Trump. In fact, the idea that America is heading toward an oligarchic state has been articulated by various commentators, including Prof. Indrajit S. Saluja, editor of The Indian Panorama, who in his December 10, 2024 article (https://www.theindianpanorama.news/opinion/perspective/united-states-on-the-way-to-becoming-an-oligarchic-state/) highlighted the alarming trajectory of the U.S. toward becoming an oligarchic society.

Over the past few decades, the United States has witnessed a disturbing shift in its political and economic landscape. Once celebrated as the world’s foremost democracy, the country now faces the growing dominance of a small, powerful elite whose influence threatens to undermine the democratic foundations that once defined its governance. This concentration of wealth and political power, often referred to as oligarchy, presents a significant challenge to the country’s middle class, which has long been the backbone of American society.

A key indicator of the increasing oligarchic tendencies in the U.S. is the dramatic rise in economic inequality. According to a 2023 report by Oxfam, the top 1% of Americans now control approximately 34% of the nation’s wealth. In stark contrast, the bottom 50% collectively own just 2.5% of the wealth. This concentration of wealth is not only a result of market forces but also of deliberate policy choices that have disproportionately benefited the ultra-wealthy.

Billionaires like Elon Musk, Jeff Bezos, Warren Buffett, and others not only dominate the U.S. economy but also exert significant influence over its political machinery. Through their vast financial resources, they are able to fund political campaigns and lobby for policies that protect and expand their wealth. The most glaring example of this is the 2017 Tax Cuts and Jobs Act, which reduced the corporate tax rate from 35% to 21%. Proponents argued that the cuts would stimulate economic growth, but an analysis by the Institute on Taxation and Economic Policy found that the primary beneficiaries were large corporations and the wealthiest Americans. Meanwhile, the middle and lower classes saw little to no tangible benefit.

The pandemic further exacerbated this divide. While millions of Americans lost their jobs, saw their businesses shuttered, and faced economic hardship, U.S. billionaires collectively saw their wealth increase by more than $1 trillion between March 2020 and March 2021. This stark contrast underscores the growing divide between the economic elite and the rest of the population, providing clear evidence of an oligarchic power structure in the making.

Economic power alone is not enough to cement oligarchic rule; it must be accompanied by political influence. In the United States, the influence of billionaires over political outcomes has increased dramatically in recent years. The landmark 2010 Supreme Court decision in Citizens United v. FEC opened the floodgates for unlimited corporate and individual spending in elections. This decision allowed the ultra-wealthy to dominate the political process by funding Super PACs and other political action committees.

During the 2020 election cycle, for instance, billionaire Sheldon Adelson and his wife Miriam contributed more than $218 million to Republican candidates and causes. On the other hand, former New York City Mayor Michael Bloomberg spent nearly $1 billion of his own fortune on his presidential campaign and to support Democratic candidates. This concentration of political spending in the hands of a few individuals raises critical questions about the integrity of American democracy. Elected officials may increasingly be more accountable to their deep-pocketed donors than to their constituents.

Moreover, the rise of Super PACs and dark money groups has led to a situation where political campaigns are no longer primarily funded by small donations from ordinary citizens. Instead, the wealthiest Americans can effectively buy influence and shape policy outcomes, undermining the democratic principle of equal representation. As a result, the political system becomes increasingly skewed in favor of the interests of the rich and powerful, contributing to a sense of alienation and disillusionment among the general public.

Another hallmark of an oligarchic system is the revolving door between the public and private sectors, where individuals move seamlessly between powerful positions in government and influential roles in business. This phenomenon ensures that policies remain favorable to corporate interests, reinforcing the power of the economic elite.

For example, the appointment of former Goldman Sachs executives to key positions in government is a prime illustration of this revolving door. These appointments raise concerns about whether public policies are being shaped to serve the needs of the public or the interests of Wall Street. The influence of business executives in government not only perpetuates oligarchic rule but also erodes trust in public institutions, making it more difficult for ordinary citizens to believe that their government represents their interests.

The election of Donald Trump brought another dimension to the growing oligarchic tendencies in the U.S. His administration was marked by the centralization of power in a small, exclusive circle of friends, family members, and loyalists. These figures, often lacking the necessary qualifications for public office, were nonetheless appointed to high-ranking government positions based on personal loyalty rather than merit.

This pattern of appointing unqualified individuals to key positions undermines public trust in the democratic process and reinforces the idea of an oligarchic system where power is concentrated in the hands of a few individuals and their allies. For example, Trump’s appointment of his daughter Ivanka and his son-in-law Jared Kushner to influential positions in his administration exemplified a shift toward a more personalized form of governance, which is reminiscent of oligarchic rule.

The United States has faced oligarchic tendencies in the past, notably during the Gilded Age of the late 19th and early 20th centuries, when industrial magnates like John D. Rockefeller, Andrew Carnegie, and J.P. Morgan amassed enormous fortunes and wielded significant political influence. However, the Progressive Era that followed brought important reforms, including antitrust laws, labor protections, and campaign finance regulations, aimed at curbing the excesses of oligarchy.

Unfortunately, many of these safeguards have been eroded in recent years. The weakening of campaign finance laws, the rollback of antitrust enforcement, and the decline of labor unions have all contributed to the resurgence of oligarchic power in the U.S. As a result, the country is now at risk of repeating the mistakes of the past, with wealth and power becoming increasingly concentrated in the hands of a few individuals and corporations.

The United States stands at a crossroads. The concentration of economic and political power in the hands of a wealthy few threatens to undermine the democratic principles upon which the nation was founded. While the challenges are formidable, history offers hope that meaningful reform is possible. By addressing the root causes of oligarchic influence, the United States can reaffirm its commitment to democracy and ensure that power truly resides with the people.