Understanding Oligarchy and Its Implications in America

What is an Oligarchy?

An oligarchy is a system of governance where power is concentrated in the hands of a few individuals or families. This concentration often stems from wealth, nobility, corporate control, or military power. Unlike a democracy, where power distributes among the populace, an oligarchy centralizes authority. A select group makes decisions that primarily serve their own interests.

Historical Context

Examples of this in American history are the robber barons of the late 19th Century. Industrialists like Andrew Carnegie, John D. Rockefeller, and J.P. Morgan set the framework for oligarchic rule in America.

Four elegantly dressed older men in tuxedos and suits seated on a balcony, smiling and holding glasses of champagne, reminiscent of a bygone era of wealth and influence. — A toast to power and privilege (Leonardo AI)

Their immense wealth allowed them to control key industries such as steel, oil, and banking. They influenced politics and labor laws to maintain their dominance. This power was exercised not only through lobbying but also by creating monopolies, suppressing unions, and funding political campaigns.

The Modern Tech Oligarchy

In recent decades, tech giants like Amazon, Google, Facebook (Meta), and Apple have amassed extraordinary wealth and influence. Leaders such as Jeff Bezos, Elon Musk, and Mark Zuckerberg hold immense power over information, communication, and commerce. They shape public dialogue and influence policy through their lobbying efforts. Their economic power rivals that of entire nation-states.

Differences Between Ordinary Wealth and Oligarchic Power

The difference between oligarchs and "ordinary" rich people lies primarily in power and influence:

Ordinary Rich People: These individuals possess significant wealth but generally focus on their own interests. Their influence over government and society is often indirect, achieved mainly through lobbying, philanthropy, or business operations.
Oligarchs: These ultra-wealthy individuals have wealth directly tied to political power and control. They leverage their resources to influence or manipulate governmental policies, secure favorable laws, and maintain their status. Often, their wealth stems from exploitative connections with the state, blurring the lines between public service and personal gain.

Oligarchy in Russia

Nighttime view of the Kremlin in Moscow, with its illuminated golden domes and green-roofed towers reflecting over the nearby river, showcasing the grandeur of Russian architecture. — The Kremlin aglow

Russia represents a quintessential example of oligarchic rule. Following the collapse of the Soviet Union, a small group accumulated great wealth by acquiring state assets during the 1990s privatization of industries. These oligarchs aligned closely with the government, particularly with Vladimir Putin's administration.

Political Ties: Russian oligarchs maintain their wealth by showing loyalty to the Kremlin, receiving protection and further opportunities in return. This relationship solidifies their influence and bolsters central government power.
Economic Control: Key sectors like energy, mining, and telecommunications are often dominated by these oligarchs. This creates an economic environment of concentrated wealth and stifled competition.
International Impact: Russian oligarchs frequently use their wealth to exert influence abroad. They fund political movements, media outlets, and think tanks that align with Russian interests.

In essence, Russian oligarchs are not merely wealthy; they are gatekeepers of power. Their influence extends beyond wealth to shape the political and social landscape of their country and, occasionally, the world.

The Yawning Gulf Between Oligarchs and Everyday People

A black-and-white illustration of wealthy individuals in tuxedos and gowns enjoying champagne on a grand balcony, laughing, while a crowd of poorer individuals in disheveled clothing raises their arms and shouts from below, highlighting a social and economic divide. — The balcony laughs, the crowd cries—two worlds, one divide.

Prominent billionaire tech leaders like Elon Musk, Jeff Bezos, and Mark Zuckerberg often find themselves seated in reserved sections during presidential events. The 2025 inauguration ceremony, relocated to the Capitol Rotunda due to cold forecasts, sparked cynical comments. It illustrated President-elect Trump's priorities. While he and his wealthy guests stayed warm, supporters who bought tickets were left outside in the cold. This situation metaphorically represents the indifference Trump and his fellow oligarchs have for their base. They show little concern for the everyday struggles of ordinary Americans.

Illustration split into two scenes: On the left, an opulent presidential inauguration with a leader taking the oath of office inside a grand hall; on the right, MAGA supporters huddle outside the U.S. Capitol in the cold, locked out from the ceremony. — Sworn in while supporters shiver

Gasoline Prices: A Case Study

The President's influence on gas prices is minimal. This is due to a complex web of factors, including global supply and demand, geopolitical tensions, and market speculation. Although leaders often promise lower fuel costs, such slogans have limited impacts. The United States has been the world’s largest oil producer for the past seven years, achieving record production in 2023. Yet, gasoline prices remain subject to unpredictable global market forces that no single nation can control.

The Preoccupations of the Ultra-Rich

While ordinary individuals struggle with daily financial concerns, many ultra-rich people focus on ventures far removed from these immediate needs. For instance, billionaires like Elon Musk and Jeff Bezos have heavily invested in space exploration through their companies, SpaceX and Blue Origin.

On January 17, 2025, Jeff Bezos’s Blue Origin successfully launched its New Glenn rocket from Cape Canaveral, Florida, marking a significant entry into the orbital space race. This achievement positions Blue Origin as a major competitor to SpaceX, which has dominated the reusable heavy rocket category. While these advancements are monumental in aerospace innovation, they do little to alleviate the struggles of those grappling with everyday expenses.

Similarly, Elon Musk’s SpaceX continues to push boundaries in space technology, adopting a “fail-and-fix quickly” strategy to encourage rapid progress and innovation. Despite recent test failures, this approach enables quicker development and lower costs, vital for commercial viability. Yet, these efforts feel remote to those living paycheck to paycheck.

The Impact on Everyday Americans

As the ultra-rich pursue ambitious projects like space exploration, many Americans face dire financial conditions. Rising food prices, housing costs, and healthcare expenses loom as pressing concerns. The endeavors of the wealthy elite often overlook these immediate needs, highlighting the growing disparity between the priorities of oligarchs and ordinary citizens.

Recognizing the presence and influence of oligarchies is essential for preserving democratic values. We must remain vigilant and monitor those coming into power. By the time the Oh, my God, what have we done? moment strikes, it may be too late to quickly repair the damage.

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Kwei Jones Quartey