Plutocracy

Some places are ruled by rich people.

This is called a plutocracy. In these lands, wealthy people make the big rules.

This can be unfair to others. It means a few people have much power.

Long ago, some cities in Greece had this. The Roman Empire was also like this.

Some people say this is happening now. They worry about how money affects rules.

It is important to see how power works.

A plutocracy is a way of ruling. In this system, people with great wealth hold the power. They make the big rules for their society. This is a type of oligarchy, which means rule by a small group. The word was first used in English in 1631.

Many places in history were like this. The Roman Empire and some Greek city-states were examples. The Dutch Republic was also one. Some people say the United States looks like a plutocracy today. They worry that money has too much influence on government.

In the past, the U.S. had a time called the Gilded Age. During this time, very rich people had much power. President Theodore Roosevelt fought against this. He was called a "trust-buster." He used laws to break up huge companies. He wanted to stop them from having too much control.

Today, some people point to the City of London. It is a small part of London. In this area, businesses get many of the votes. This is different from the rest of the city. Most voters there are not even residents. They represent the companies that work there.

This chart shows how wages change over time.

A plutocracy is a type of society where wealth holds the power. In this system, people with very high incomes or great riches control how things are run. It is a form of oligarchy, which means a small group of people makes the rules. The word first appeared in the English language in 1631. Most people use the term as a warning about something bad. They use it to describe a situation that is not fair to everyone. Some call an American version of this "dollarocracy."

History shows many examples of these wealthy-led societies. The Roman Empire and some city-states in Ancient Greece were known for this. The civilization of Carthage and the Dutch Republic also had these systems. In Italy, merchant cities like Venice, Florence, and Genoa were led by rich traders. Even the Empire of Japan had a version before World War II. These groups were often led by large business families called zaibatsu. Each of these places allowed money to shape their leaders and laws.

In the United States, history has seen times of great wealth and power. During the Gilded Age and the Progressive Era, many thought the country was a plutocracy. President Theodore Roosevelt fought to change this. He was known as a "trust-buster" because he broke up huge companies. He used the Sherman Antitrust Act of 1890 to stop them. He wanted to prevent large corporations from controlling public opinion and politics. He saw these wealthy groups as a major problem for the nation.

Some people believe the United States is still moving toward this system today. Economist Paul Krugman says three things helped this happen in the past. First, many poor people could not vote. Second, the wealthy paid for the campaigns of politicians. Third, it was easy to buy votes or use fraud. Now, many members of the U.S. Congress are millionaires. A study in 2014 suggested that most citizens have very little influence over government policy. This makes some researchers worry about the future of democracy.

There are also modern places that act like a plutocracy. The City of London is a small financial district in England. It has a very unique way of voting for its leaders. Most voters there do not actually live in the City. Instead, they represent big businesses and their employees. About 450,000 people work there during the day, but only 7,000 people live there. This system exists because the businesses use the services the City provides. It is a clear example of how money can change local rules.

A plutocracy is a society ruled or controlled by people with great wealth or high income. It is a specific type of oligarchy. An oligarchy is a system where a small group of people holds power. In a plutocracy, that small group is defined by its money. The term first appeared in English in 1631. It is not part of any established political philosophy. Most people use the word as a pejorative. This means they use it as a criticism to warn against an undesirable condition. Some people even use the term "dollarocracy" to describe a version of this in America.

History provides many examples of plutocratic systems. The Roman Empire and several city-states in Ancient Greece functioned this way. The civilization of Carthage and the Dutch Republic are other historical examples. In Italy, merchant city-states like Venice, Florence, and Genoa were led by wealthy traders. Before World War II, the Empire of Japan had a version of this system. It involved large business groups known as zaibatsu. These groups allowed massive wealth to shape the direction of the nation.

During the Gilded Age and Progressive Era, many argued the United States was effectively a plutocracy. This period lasted from the end of the Civil War until the start of the Great Depression. President Theodore Roosevelt fought against this influence. He earned the nickname "trust-buster" for his work. He used the Sherman Antitrust Act of 1890 to break up massive monopolies. These included the largest railroad and the Standard Oil company. Roosevelt believed these wealthy heads of corporations exerted too much influence over politics and public opinion.

Economist Paul Krugman identified three factors that helped plutocracy take hold in the U.S. during that era. First, the poorest quarter of residents, including African-Americans and non-naturalized immigrants, could not vote. Second, wealthy individuals funded the political campaigns of their preferred candidates. Third, vote buying and electoral fraud were easy and widespread. This included methods like ballot-box stuffing and intimidating voters. These factors allowed money to act as the "mortar" of a political system that functioned like a large business.

Some modern critics point to the City of London as a formal example of plutocracy. This area is a financial district covering about 2.5 square kilometers. It has a unique electoral system that is separate from the rest of London. More than two-thirds of the voters are not residents. Instead, they are representatives of businesses that occupy the area. Votes are distributed based on the number of employees a business has. While only 7,000 people live there, about 450,000 people work there during the day. The system is justified because businesses use the services provided by the City of London Corporation.

In the modern United States, many leaders and economists have raised concerns about a drift toward plutocracy. Former Federal Reserve chair Paul Volcker stated he believed the U.S. was developing into one. Some describe a "donor class" that makes up only one-quarter of 1 percent of the population. Economist Joseph Stiglitz argued that the U.S. is increasingly ruled by the wealthiest 1 percent. Research by Martin Gilens and Benjamin Page in 2014 supports this concern. Their study suggested that the majority of the American public has very little influence over government policy. They used the term "civil oligarchy" to describe this dynamic.

Wealth concentration is often linked to economic trends. Economist Thomas Piketty suggests that rapid economic growth can increase income inequality. This happens as the rate of return on innovation increases. In the U.S. Congress, more than half of all members are millionaires. Billionaire Warren Buffett once noted that the "rich class" is winning a form of class warfare. This discussion connects to broader ideas about state-corporate capitalism. It also examines how societies prioritize the accumulation of wealth over other social interests.