Plutocracy

Plutocracy refers to a government that is controlled exclusively by the rich, either directly or indirectly. A plutocracy allows, either openly or under certain circumstances, that only the rich can govern. This can lead to policies designed exclusively to help the rich, which is reflected in their name.

Related topics

Autocracy, oligarchy

What is plutocracy?

A plutocracy is the form of government that develops at the moment when the high classes are in charge of the direction of the State. Its concept derives from the Greek god of wealth Pluto.

The plutocracy is not necessarily an open and deliberate format for the government, on the contrary, it can be created through the permission of access to certain educational programs and resources to which only the rich can have access and it is done for the rich to have more influence. The concern of inadvertently creating a plutocracy is that the regulatory approach will be limited and will concentrate on the objectives of the rich, creating even more income and asset-based inequalities.

Etymology

The term plutocracy comes from ancient Greek. It is formed by the words “ploutos” meaning wealth and “krathos” meaning power and government.

The word was first used by the Greek historian and philosopher Xenophon, and he used it to refer to the Athenian society that existed before the Solon reforms, whose political congress was under the control of the big landowners and owners of most of the slaves, forcing the enactment of measures that excluded the lower classes from the government.

Characteristics of the plutocracy

Among the main characteristics of the plutocracy we can mention the following:

• The government rewards the support of the economic elites by benefiting their needs over and above the general will of the population.
• The plutocrats were able to revoke the mandate of the governments that had been elected.
• The people who governed were therefore, accountable to plutocrats, as they were more important than to the population itself.
• Public authorities are subject to binding instructions from the elite.
• The economic elites have mechanisms capable of enacting laws that benefit their interests, regardless of whether or not they affect the rest of the population.
• The public powers are managed in favor of the particular interests of the local economic elite.
• The concept is linked to oligarchy because the economic elites are minorities in relation to people in general.
• At present, it is considered a corruption crime in many countries of the world.
• They use the media to favor the elite and public opinion.
• The media help to create a weakening of institutions and help to build the plutocracy.
• Among the consequences that a plutocracy can cause are social inequalities, the lack and bad distribution of wealth since there are favoritism, acts of corruption and preference for the economic elite.

The plutocracy impedes the good functioning of a democracy and thus promotes the creation of many hidden interests within the field of politics which can generate different struggles between groups and economic tensions that leave aside the real needs of a country.

History of plutocracy

The term was first used in 1652. Unlike other democratic systems, the plutocracy is not adapted to an established political philosophy. Throughout history, different political thinkers such as Winston Churchill, Alexis de Tocqueville and Juan Donoso Cortés, as well as Noam Chomsky, have made accusations and condemnations against plutocracy, since it has been known since ancient times that it increases class poverty and corrupts societies.

Years ago, countries were established in states when state governments were formed. Throughout history the forerunners of plutocratic states within societies managed to gain and retain control through obvious, luxurious and competitive manifestations of the wealth they had.

Examples

For example, Mexico and the United States are considered to be plutocracy countries. There are many monopolies and oligopolies that influence politics.

Carthage is an example city of an ancient plutocracy. This city was the main part of Phoenician civilization after Tyre was defeated by Babylonians. The first kings of Carthage were military leaders, and the crown was in the hands of the highest bidder.

The city-states that existed in Italy during the Middle Ages were plutocracies and were the ones that set the precedent in medieval Europe. The fall of the Byzantine empire by the Ottomans transformed Venice, Genoa and Florence from flourishing trading empires. This generated a dependence on foreign resources which was so costly that even the elites could not maintain.