The Importance Of A Plutocracy In America

As the 2016 United States election is fast approaching, the debates on wealth inequality has once again captured the public’s attention. The society is divided in its opinion of whether the government is responsible for allowing the leading financial institutes and business tycoons to accumulate their affluence within a lax regulatory environment. Others argue that the imbalance of income distribution between the rich and the poor are just simply part of the capitalism package. In order to understand the roots of wealth inequality and to review some of the key concepts that are fundamental to these discussions, former Reuters editor Chrystia Freeland’s "Plutocrats" is a riveting account on the rise of plutocracy.

The United States of America is governed by an oligarchy. Regardless of what children are taught every year in school, from kindergarten to graduation, the belief instilled in people from a young age that we are a democracy is an idealistic, and unrealistic view of current political affairs. Before delving into why the United States operates as a government dominated by the economic elite rather than a democracy though, the latter must be defined. Following the classical teachings of Aristotle’s utopian view of democracy, in which each citizen has as much weight in the policy-making that governs as any other and still maintains the rights to live as a free individual, it is not controversial to suggest that America has never been a

Could the American Dream not be what it used to? In an opinion piece titled Requiem for the American Dream; The 10 Principles of Concentration of Wealth & Power published by Seven Stories Press (2017), American political activist and notable social critic Noam Chomsky discusses how the American Dream is not what it used to be and argues that the reason for this is because the rich control the United States. Chomsky supports this claim by acknowledging that the wealthy and powerful created American government so they will always be in control, identifying that ordinary people can create power when they come together, and finally by discussing problems about inequality. Chomsky’s purpose is to show how the American society is controlled by

Everywhere you look at the United States you can find economic stratification. From the kind of vehicle you drive, to the kind of house you live in, to the kind of restaurants you eat at the most you will find economic stratification. Some might ask, does any of that truly matter today? Yes, unfortunately, it does. An important goal for most people is what’s referred to as The American Dream. Whether it is to attend a good college, get a respectable job, purchase the perfect house, and have a small family or maybe just to start your own business; that dream starts with wealth. People with more money will have an easier time with achieving the dream than a lower income person would. With wealth comes power and prestige as well. People with more money have better life chances because they can afford better healthcare, education, healthier food, and safer neighborhoods just to name a few things.

The United States is no longer the democracy it stands for. Democracy stands for a government controlled by the majority of the population. The United States is no longer controlled by the majority. America is controlled by the powerful corporations and rich elite. The combination of an uninformed, disinterested public, a flawed election process, and an economy controlled by 1% of the population have all led to the formation of the American Oligarchy.

It can be said that money is power in the United States, and this is brought out in the essay, “Class in America---2012” written by Gregory Mantsios. He says that even though many Americans do not like to discuss class, “it can determine where people live, who their friends are, how well they are educated, and what they do for a living” (Mantsios). Many Americans do not speak about class type, and most find it unacceptable (Mantsios). Unfortunately, we can see that there are laws that are built to help and better the wealthy, while it cripples the rest of us. According to the Economic Policy Institute, “The richest twenty percent of Americans hold nearly ninety percent of the total household wealth in this county” (Institute) Gregory Mantsios without reserve describes the majority of people are at a disadvantage in their social class, while the upper class is compensated.

Majority thinks that America is the land of opportunity, where the lower class has the ability to succeed and prosper; statistically the truth is less expectant. According to facts presently, the smallest percentage of Americans earns over $1,000,000. The next smallest percentage of Americans earn over $125,000. Meanwhile, the median income that Americans earn is $41,000. Any American can succeed with the right mind set. Facts also show that more Americans considered to be wealthy have earned it rather than inherited it. I come from a family that is considered to be working class. My parents didn’t own their first home until I was 15, and I am the youngest of four children. Hard work does pay off, and I have seen it.

One of the issues I am most passionate about is that of money in American politics. Increasing campaign costs, coupled with a decrease in the number of donors contributing to those campaigns, is a disturbing trend which has caused many to feel the need to question the state of our democracy—myself included. The problem of mainstream political corruption and legalized bribery is one that I was made aware of three years ago, and has since become one of the things keeping me up at night most often.

The Gilded Age was named by Mark Twain. What he meant by this was that the time period was glittering on the surface, but corrupt underneath. The name suits the time period well; the Gilded Age was a time of economic growth, industrial revolution and wealth, yet beneath the surface of all this the middle and lower classes suffered greatly. The big corporations and the small number of wealthy elites held most of the country’s wealth and the poor were left with barely anything. In other words, in the Gilded Age, the wealthy became wealthier and the poor became poorer.

This idea that rich people will use money to influence government is referred to by Jason Brennan and Peter M. Jaworski in “Line up for Expensive Equality” as rent seeking, and “a high degree of rent seeking is a sign of serious government failure”. A government that is powered by rich people, for rich people is one that is failing to promote the common good as the government will only do what benefits the rich; the ones voting them most. Jean-Jacques Rousseau stated that “the deficiencies in individuals were rectified by upholding the ‘common good'” which can only be upheld when all individuals have a say. This expressed the sentiment that what makes government work is that if everyone is able to participate. Similar to how the French nobility oppressed the poor in government for their own gain.

In the 1700s when the United States had detached itself from British rule it was then seen as a plutocracy. The U.S established as a democracy; a government of the people and by the people. However, this establishment was in favor of the rich, educated, and powerful and anyone who was categorized or known as elites and it has remained in favor of these people ever since. Yes we can say we have witnessed variations and seen a semi-democratic rise in the past two centuries, but we have remained a plutocracy hidden behind the word that people use to cover its true identity, democracy. Those like the framers, the public opinion role, interest groups, and money all portray our hidden plutocracy.

Increase in inequality between classes has always been a concern for the high and low castes of the society. Carl Sandburg’s poem I Am the People, the Mob and Nick Hanauer’s magazine publication The Pitchforks Are Coming... For Us Plutocrats both try to illustrate or rather warn their targeted audience about the consequences of this demarcation. In contrast to the magazine publication, the poem is written from the perspective of the lower class to present the narrator’s subjective opinions.

For my Junior Year of highschool, I had the opportunity to take an independent research class. Those type of courses aren't available at my school but I had a teacher named Mr.Kelleher (whom I admire and look up too ) advocate for me and by the time 2nd semester rolled around, we had all technical work figured out and the research was able to begin. I did all the research and writing on my own, and Mr.Kelleher’s job was to just grade it in the end, My question was, ‘Does the United States Fit the Definition of a Plutocracy ?’, the short answer was yes, although I now know the U.S fits in more with corporatocracy than a plutocracy. The hardest part of writing the paper was definitely trying to not get lost in the rabbit hole of new information

The United States of America was once renowned for and demarcated by the size and successfulness of its middle class. Currently, America faces a shrinking middle class and a new rising oligarchy that is creating the largest wealth disparity in eighty years. Robert B. Reich wrote Saving Capitalism: For the Many, Not the Few, for the sole purpose of exposing the reasons why the wealthy get wealthier and poor get poorer. Reich contends that the free market vs government debate serves as a means of distraction, covering up the real issues of the top one percent reaping economic gains. Reich states in the book that the “free market” is a myth that prevents us from examining the rule changes and questioning who they serve. Reich further states “it is no accident that those with disproportionate influence over these rules, who are the largest beneficiaries of how the rules have been designed and adapted, are also among the most passionate supporters of the “free market” and the most ardent advocates of the relative superiority of the market over the government.”

     We elect politicians on the basis on the issues by which they stand, and these issues are either held up or weakened by the numerous interest groups that exist today. Interest groups target both major and minor issues, using all of their resources to sponsor or overpower the groups’ concern. Interest groups are composed of a limited range of the body of voters who have a great stake in the issues their group support. They make evident the issues their group supports. Their resources are used in an attempt to make their issue public policy. Interest groups are persistent; they do not give up until they succeed. They lobby congress, take legal action,