Lecture Notes: Oligarchs and Oligarchies in the US and Beyond

Introduction

• Main Topic: The issue of oligarchy in the US and its comparison to other countries.
• Key Question: Are prominent wealthy figures like Michael Bloomberg, Jeff Bezos, Elon Musk, and Donald Trump oligarchs?

Definitions and Frameworks

Oligarch vs. Billionaire

• Oligarch: Someone who rules or has power by reason of their wealth.
• Billionaire: Merely an individual with significant wealth, not necessarily using it for political power.
• Key Insight: The wealth must provide significant political influence to be considered oligarchic.

Professor Jeffrey Winters’ Insights

1. Differences between a billionaire and an oligarch.
2. Examination of whether the US is becoming an oligarchy.
3. Potential ways to mitigate the power of oligarchs.

Characteristics of Oligarchies

• Greek Origin: Aristotle’s definition - ruling by wealth.
• Confusion in Modern Context:
  • Russian oligarchs gained wealth through corruption after the Soviet Union’s fall.
  • US figures like Bloomberg earned wealth through business, not corruption.

Political Implications

• Steve Bannon's View: Individuals like Bloomberg are oligarchs due to political influence.
• Interviewer’s View: Wealth should come from corruption to be classified as an oligarch.

Is the US an Oligarchy?

Analysis by Professor Winters

• Oligarchs in the US: Around 150,000 ultra-wealthy individuals.
• Trump’s Case: Despite Bannon’s view, Trump’s wealth does classify him as an oligarch.

Democracy vs. Oligarchy

• Democracy: Rule by the people.
• Oligarchy: Wealthy individuals exercising political power.
• Relationship: Countries can exhibit both traits; not mutually exclusive.

Types of Oligarchies

1. Civil Oligarchies (e.g., US, Sweden): Oligarchs operate from the shadows, focus on tax reductions.
2. Ruling Oligarchies (e.g., Ancient Rome, modern China): Oligarchs rule directly.
3. Sultanistic Oligarchies (e.g., Russia): Dominated by a single figure (e.g., Putin).

Potential Shifts

• US Situation: Potential shift from a civil to a sultanistic oligarchy due to Trump’s influence.
• Concerns: Sultanistic oligarchies conflict with democratic principles.

Historical Context and Future

• US Gilded Age: Close to a ruling oligarchy.
• Post-WWII: High taxes reduced oligarchic power.
• Current Challenges: Globalization and tax evasion make past measures less effective.

Conclusion

• Current State: The US is at a tipping point between increasing oligarchic dominance or public pushback against inequality.
• Recommendations: Higher taxes and cracking down on global tax evasion.

Additional Resources

• Further Reading: Recommended articles from The Economist on global democracy and political influence.
• Subscription Offer: Discount for The Economist to stay informed on such topics.