The idea that the United States is becoming an oligarchy is no longer confined to academic debate or dystopian speculation.
As Donald Trump begins his second term in office, concerns about an American oligarchy are growing.
This is mainly due to rising wealth inequality, deregulation, and the consolidation of power among a select group of ultra-rich individuals.
In his farewell address, Joe Biden warned of the dangers of a privileged few controlling vast economic and political resources, a warning that resonated with many across the political spectrum.
This begs the question of whether the US is truly becoming an oligarchy or if this concern is overblown.
What is an Oligarchy? Applying the definition to the US
The term “oligarchy” originates from Ancient Greece, where Aristotle described it as a system where the rich rule by virtue of their wealth.
Modern examples, such as Russia and Hungary, showcase oligarchic structures where business elites directly shape governmental policies, often through corruption or coercion.
In the US, the situation is more complex. Unlike in Russia, where oligarchs control vast swathes of the economy with direct political backing, American billionaires do not officially govern.
However, they exert enormous influence through lobbying, campaign donations, and control over key industries such as finance, technology, and media.
This system, as political scientist Jeffrey Winters describes, is a “civil oligarchy”, one in which the wealthy use their financial power to shape the rules rather than govern directly.
At its core, an oligarchy is defined by economic power translating into political control. The US exhibits many of these traits, from billionaire-funded political campaigns to the deregulation of industries that benefit the elite.
While elections still occur, the reality is that wealth increasingly dictates policy outcomes, placing the country in a precarious position between democracy and oligarchic rule.
The role of wealth inequality in shifting power
One of the key markers of oligarchy is extreme wealth inequality and in the United States, the numbers are staggering.
The richest 1% of Americans control nearly 30% of the nation’s wealth, while the bottom 50% own just 2.5%.
This gap is wider than at any point in modern U.S. history and mirrors levels seen in feudal societies rather than democratic ones.
This concentration of wealth grants immense power to a small group of individuals who can influence elections, shape policy, and, in some cases, dictate government agendas.
The Citizens United ruling, which allows unlimited corporate and individual spending in political campaigns, has only made things worse.
The result? A system where public policy often reflects the interests of the ultra-wealthy rather than the majority of citizens.
Under Trump’s second administration, this divide is expected to widen further.
His economic policies prioritise deregulation, tax cuts for the wealthy, and protectionist trade policies, all of which benefit billionaire elites at the expense of the middle and working classes.
The question is no longer whether wealth influences politics—it is to what extent democracy can function when financial power is so disproportionately distributed.
How Trump’s second administration embodies oligarchic politics
Trump’s presidency has historically been characterized by an unprecedented alliance between political power and economic elites. His second term is no different, with a Cabinet and advisory circle composed of three key factions:
First, the conservative mainstreamers, including figures like Treasury Secretary Scott Bessent and National Economic Council Director Kevin Hassett, aim to maintain some economic stability.
However, they have largely embraced Trump’s protectionist stance, supporting tariffs and deregulation while ensuring Wall Street interests remain safeguarded.
Next, the America Firsters, led by figures like Stephen Miller and Peter Navarro, push for aggressive nationalist policies, including high tariffs, strict immigration controls, and economic isolationism.
Their vision aligns with Trump’s strategy to reshape America’s economic and foreign policy through protectionist measures that benefit select industries while limiting international competition.
Finally, the tech tycoons, the likes of Elon Musk, David Sacks, Mark Zuckerberg and Marc Andreessen. All of them now seek to dismantle government oversight while cementing corporate dominance over key industries.
Musk, in particular, has been granted significant influence through his leadership of the Department of Government Efficiency (DOGE), a newly created agency designed to shrink federal bureaucracy.
These three factions do not always align, but collectively, they represent a shift toward an economic system where power is increasingly concentrated in the hands of a wealthy elite.
According to recent reports, the estimated net worth of Trump’s administration could be more than $20 billion.
Is Silicon Valley the new “oligarchic class”?
While traditional oligarchies have been built on industries like oil, banking, and natural resources, the 21st-century version is driven by technology and data control.
Silicon Valley billionaires now wield immense influence over not only commerce but also information dissemination and national security.
Companies like Amazon, Meta, and Tesla control large and centralized digital ecosystems, which allow them to shape public discourse and public policy.
Trump’s deep ties with tech moguls have solidified their influence, with figures like Musk and Zuckerberg being given prime seating at his inauguration, symbolizing their elevated political standing.
However, the argument that the US is becoming a “tech oligarchy” is flawed.
Unlike in Russia, where oligarchs operate as a unified bloc, Silicon Valley is rife with competition.
Musk and Zuckerberg are direct rivals in social media, while Amazon and Google battle for dominance in cloud computing and AI.
Nevertheless, this division does not negate the fact that tech billionaires now hold more political and economic influence than ever before.
How Trump is shielding billionaire wealth
One of the most direct examples of Trump favoring oligarchic interests was his decision to scrap Biden’s global tax reform.
Originally, this initiative aimed at establishing a 15% minimum corporate tax rate worldwide, in order to curb multinational tax avoidance and ensure that companies like Amazon and Meta paid their fair share.
The reform was not just about revenue collection; it was a foundational attempt to curb the ability of billionaires and corporations to manipulate global tax laws to their benefit.
It sought to prevent powerful multinational entities from shifting profits to tax havens, effectively starving nations of public funds essential for infrastructure, healthcare, and education.
Trump’s rejection of the deal was not a surprise but rather a calculated move to further entrench the wealth of America’s billionaire class.
By dismantling the global framework, he ensured that American tech giants could continue leveraging offshore loopholes to shield their fortunes.
While European nations and developing economies struggle to maintain financial stability, the US remains an enabler of wealth hoarding on an unprecedented scale.
Without coordinated global action, billionaire-backed corporations will continue to consolidate economic and political power, deepening the already stark divide between the ultra-wealthy and ordinary citizens.
This is also one of the reasons that the US stock market has performed so well over the past decades, in comparison to emerging markets.
Is America at risk of becoming a full oligarchy?
While the US remains a flawed democracy, the growing consolidation of wealth and power poses an undeniable risk.
The line between democracy and oligarchy is becoming increasingly blurred.
Elections may still occur, but when billionaire-backed candidates dominate the political landscape and policy decisions favor corporate interests over the public good, what remains of democratic governance?
The unchecked influence of money in politics has eroded public trust, while regulatory agencies have been systematically dismantled to serve the elite.
If the current trajectory continues—where corporate lobbying dictates legislation, wealth inequality deepens, and political accountability weakens—then America will no longer be “approaching” oligarchy; it will have fully embraced it.
The battle for democracy is ongoing. Whether the U.S. fully succumbs to oligarchic rule or fights back against elite dominance will depend on public pressure, policy reform, and a renewed commitment to economic justice.
If unchecked, however, the warning signs are clear: America is inching closer to a reality where the ultra-wealthy no longer just influence politics—they control it.
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