We explain what plutocracy is and how it is related to oligarchy. Also, what are its general characteristics and examples.
What is Plutocracy?
Plutocracy is a type of oligarchic government, that is, where few make decisions for many, whose ruling elite is also the economic elite. In other words, it is the government of the rich sectors of society, always a minority compared to the poor.
The plutocracy does not obey any political theorybut rather it consists of a single republican democracy in whose operation the wealthiest stratum of society plays an excessive role. It is, therefore, a risk for any system, and in that sense the term “plutocracy” either “plutocrat” is used in a derogatory way.
A plutocracy will then be, a government of the rich and for the rich.
See also: Representative democracy.
Characteristics of plutocracy:
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Etymology
The word plutocracy comes from ancient Greekfrom the words “ploutos” (wealth) and “krathos” (power, government).
That term It was first used by the Greek historian and philosopher Xenophon.to refer to Athenian society prior to Solon’s reforms, whose political congress was controlled by the large landowners and owners of the majority of slaves, forcing the promulgation of measures that excluded the lower classes from the government and allowed them to command its width.
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Classic concept
The traditional precept of plutocracy refers to the control of a nation’s government by its economic eliteswho have the mechanisms of the political system at their disposal to enact laws that benefit their interests, whether or not they are detrimental to the rest of the population.
It should not be confused with political participation systems that require a minimum amount of wealth to vote, for example. The distinctive feature of plutocracy is the management of public powers in favor of the particular interests of the economic elite of the nation, whatever the participation mechanism or political system in question.
In that sense, plutocracy usually implies the following:
- Rulers reward the support of economic elites by favouring their needs over the general will of the population.
- Plutocrats can revoke the mandate of elected rulers.
- Rulers are therefore accountable to plutocrats rather than to the people.
- Public powers are subject to binding instructions from the elite.
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Economic power
If republican democracies as we know them They operate on the basis of coexistence and mutual regulation of public powersare often vulnerable to the so-called economic power, that is, to the influence of capital and the interests of the wealthiest classes in political affairs.
These powers They tend to be more or less invisible in the political debateso they often play the role of the power behind the throne, that is, they pull the invisible strings of politics.
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Plutocracy and oligarchy
The concept of plutocracy is closely linked to that of oligarchy, which It is nothing other than the government of a few (from Greek oligos“few”; and ark“mandate”). It could well be said that plutocracy is a form of oligarchy, since the economic elites are always a minority compared to the rest of the common people.
More in: Oligarchy.
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Financing of political parties
The fight against plutocracies pays special attention to the financing of political parties, which must be transparent and public, and thus prevent dark interests from investing in a candidate’s campaign and then collect this preference in favors, which would reduce the representative democratic exercise to pure demagoguery. This is considered a crime of corruption and is punishable in numerous national laws.
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Control of the media
Another form of plutocratic mechanism is the biased management of the media, to favor elite interests by manipulating public opinion. This is because many local or transnational information consortia belong to more or less visible business groups.
Thus, the so-called “fourth power” that constitutes the media often contributes to the weakening of institutions and the construction of a plutocracy.
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Privatization
A third plutocratic mechanism consists of the acquisition of public or state property at public auctions which are called privatization, and which grant private interests control over basic companies or companies of unquestionable public importance, such as urban sanitation or light, gas, and electricity services.
This gives the economic sectors an important interference in national political dynamics from the control of essential goods.
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Consequences
The direct consequences of a plutocracy have to do with the growth of social inequalitiesthe lack of redistribution of wealth through favoritism, protectionism and acts of corruption and clientelism that favor, more than anyone else, the interests of the economic elite.
In general terms, plutocracy prevents the transparent functioning of democracy representative and promotes the existence of hidden, secret interests in the political environment. This could also lead to struggles between plutocratic groups and therefore to economic tensions that are irresponsible with the real needs of the people.
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Claims against plutocracy
The Marxist, anarchist and socialist sectors of contemporary society consider liberal democracies as systems designed to favor the bourgeoisie and therefore systematically plutocratic.
The struggle to socialize the means of production that Marxism supports is contrary to private property and class society, because it always favors the maintenance of the upper classes to the detriment of the poor.
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Examples of plutocracy
There are accusations of plutocracy in societies like Mexico or the United Statesgiven the monopolistic or oligopolistic circuits, business holdings and other forms of economic association that have a notable influence on political dynamics.
In particular the existence of multi-business groups such as Grupo Prisa in Spain o Grupo Clarín in Argentina, which control information, agricultural, financial sectors, etc., supposes the existence of influential powers in the country but outside the direct control of the institutions.