In today’s political discourse, the term “oligarch” is increasingly used, often in connection with concerns about wealth, power, and influence within democratic societies. But What Is An Oligarch exactly, and why is this concept generating so much debate? This article explores the historical definition of oligarchy, its modern manifestations, and its potential implications for countries like the United States and Australia.
The concern about the rise of oligarchs was highlighted in a farewell address by outgoing US President Joe Biden, who cautioned against “an oligarchy is taking shape in America of extreme wealth, power and influence that literally threatens our entire democracy.” This statement suggests a scenario where public policy could be shaped by billionaires rather than the general population.
This concern isn’t unfounded. For example, Elon Musk, owner of X, has publicly supported Republican candidates. Furthermore, several tech billionaires, including Mark Zuckerberg of Meta, Jeff Bezos of Amazon, Tim Cook of Apple, and Sundar Pichai of Google, have visited Trump at Mar-a-Lago after his 2024 election victory.
While business leaders seeking to engage with incoming presidents is normal, the concern arises when influential backers own media platforms with the capacity to sway public opinion. This begs the question: Should these new tech titans be considered oligarchs?
Defining Oligarchy: A Historical Perspective
The concept of oligarchy dates back to ancient Greece, where it was defined by the philosopher Aristotle. In his work, The Politics, Aristotle described humans as inherently social beings who instinctively seek to live in a community. He analyzed different forms of government and identified six essential types.
According to Aristotle, a state could be ruled by a single leader, a small elite group, or the masses. When the leadership acted for the common good (koinê sumpheron), these forms were classified as monarchy, aristocracy, and polity, respectively. However, when leadership became corrupt and served only its own self-interest, these forms devolved into tyranny, oligarchy, and democracy.
The School of Athens painted by Raffaello Sanzio da Urbino, 1511. Aristotle is depicted centre right. Alt text: Depiction of the School of Athens, highlighting Aristotle’s contribution to political philosophy, painted by Raffaello Sanzio da Urbino.
Therefore, what is an oligarch according to Aristotle? It’s a member of a corrupt government where power is concentrated in the hands of a small group of elites who prioritize their own interests over the common good. While democracy has been largely rehabilitated as a positive concept, oligarchy retains its negative connotations.
When the United States was established, the Founding Fathers drew inspiration from Aristotle, Polybius, Cicero, and other ancient thinkers to create a constitution. They sought to establish a mixed constitution to prevent domination by any single entity, be it one person, a small group, or the majority. The president holds considerable power, but is balanced by Congress and the judiciary, which, in turn, are checked by the media and the electorate through regular elections.
Oligarchies in the Modern World
In modern political discourse, the term “oligarch” is most frequently associated with Russia. Following the collapse of the Soviet Union in 1991, individuals amassed enormous wealth by acquiring state assets, such as energy companies and financial institutions, which resulted in significant political influence.
However, under Vladimir Putin’s presidency, Russia has shifted towards authoritarianism. While an oligarchic class remains, their power has been curtailed. These individuals are expected not to challenge Putin’s authority or the state’s vision.
During the presidency of Boris Yeltsin, opportunistic Russian tycoons made enormous fortunes from buying up state assets. Alt text: A photo of Boris Yeltsin during his presidency, reflecting the era when Russian tycoons accumulated significant wealth by acquiring state-owned assets.
Despite being officially communist, China has also experienced a widening Gini index (a measure of social inequality). A small group of elites have become increasingly wealthy, leading political scientist Ming Xia to argue that China is transitioning into a modern oligarchy, despite its commitment to socialist principles.
Oligarchic Tendencies in the US and Australia?
Returning to the initial question, what is an oligarch in the context of Western democracies? Even with Biden’s warning, some political scientists like Martin Gilens and Benjamin Page argued back in 2014 that the US already exhibits oligarchic characteristics.
While the US maintains the fundamental elements of a liberal democracy – fair elections, freedom of speech, and a free press – Gilens and Page expressed concerns about the disproportionate influence that large businesses and affluent citizens exert on policy decisions.
Political scientists hold fears that a small group of affluent citizens have a disproportionate influence on US policy. Alt text: Elon Musk with Donald Trump, reflecting concerns about the influence of wealthy individuals on policy decisions in the US.
Similarly, in Australia, it could be argued that an oligarchy is either emerging or already established. Australia’s economy is comparable in size to Russia’s, and it boasts a growing number of billionaires who appear to wield considerable influence over government policies.
The Murdoch family’s power and media empire are well-documented. Moreover, individuals such as Gina Rinehart, Andrew Forrest, and Clive Palmer have increased their political activity, with Palmer even forming his own political party.
While billionaires in the US and Australia undoubtedly possess immense power and influence, this alone does not constitute an oligarchy. In Aristotelian terms, the hallmark of an oligarchy lies in the blatant use of power by the ruling elite for personal gain, rather than for the benefit of the public.
Making this determination has become increasingly challenging as the ultra-wealthy increasingly control traditional news media and social media platforms, enabling them to shape public opinion.
Nevertheless, any movement toward oligarchy should raise alarms for those who value the long democratic traditions in both the US and Australia. Whether this trend is a consequence of Trumpism or a broader societal shift, strengthening democratic institutions and combating the spread of disinformation and misinformation prevalent on social media platforms is crucial. By addressing these challenges, we can safeguard the principles of democracy and prevent the concentration of power in the hands of a few.
