As the debate intensifies around the term “oligarchy” in America, a key question arises: Is the United States truly an oligarchy? This article explores the growing influence of wealth concentration among a select few and how it impacts the nation’s democracy and political landscape. Using insights from politicians like Senator Bernie Sanders and experts like Lee Drutman, we delve into whether denouncing America’s shift towards oligarchy could be a pivotal political message.
Michigan Senator Elissa Slotkin recently expressed concerns about her Democratic peers increasingly using the term “oligarchy.” Slotkin believes it may not resonate beyond America’s coastal regions.
Contrasting this view, Senator Bernie Sanders has been rallying significant support across the nation with his anti-oligarchy message. He argues that Americans are not “quite as dumb as Ms. Slotkin thinks they are.”
But what does “oligarchy” truly mean in the American context? Lee Drutman from Vox suggests it describes a scenario where a “handful of very wealthy individuals use their riches to shape government policies for personal gain.” Notable examples include significant political contributions from billionaires like Elon Musk, Timothy Mellon, and Miriam Adelson in recent elections, ensuring policies align with their interests.
Further illustrating this, Evan Osnos in a New Yorker essay highlights how President Donald Trump allegedly leveraged his position for personal benefits and those of wealthy supporters. This includes the pardon of billionaire Trevor Milton after campaign donations and favorable treatment towards Elon Musk’s interests. Osnos refers to Trump as the “oligarch in chief.”
Drutman’s analysis shows that while the top 1% of Americans—over three million people—benefit from wealth concentration, the reality is much starker. In truth, wealth is concentrated among far fewer, with just 19 families benefiting significantly over the past decade.
America’s Oligarchic Trajectory
The past four decades show a clear trend towards oligarchy, characterized by the increasing wealth share of the richest groups. Understanding this requires looking beyond standard metrics of wealth distribution and examining smaller subsets within the top 1%.
The discrepancy becomes apparent when we observe that the top 0.01% has heightened their share of the nation’s wealth, while other upper-tier groups have seen little to no increase. For instance, the top 0.1% expanded their share remarkably from 8.1% in 1980 to 21.9% today. Meanwhile, the next 0.9% hardly saw any growth.
The Role of Super-Wealthy Elites
Since 2012, the greatest wealth concentration has emerged within the top 0.01%, with lesser increments in the wealth share of the subsequent 0.09%. The most striking growth is seen among the top 0.00001%, a group comprising just 19 households, controlling 1.8% of total U.S. wealth—a tenfold increase since 1982.
Using combined data from the Forbes 400 list and economist Gabriel Zucman, we uncover that half of the wealth-share increase among the top 0.01% since 2012 primarily benefits these 19 households. This small fraction of elites prominently defines America’s contemporary oligarchy.
An Oligarchic Reality
In summary, over the past dozen years, the concentration of American wealth has centered significantly on the top 0.01%. Half of this wealth concentration is attributed to just 19 households, epitomizing the oligarchic structure in America today.
This pronounced concentration of wealth and power underlines the nation’s shift towards oligarchy, posing profound implications for democratic representation and policy-making. America stands at a crossroads—deciding how to address this imbalance will shape its future.
