Oxfam examines what this means for the U.S. and the world.
For years, Oxfam—along with advocates and activists around the world—has argued that extreme concentration of wealth is leading to extreme concentration of power, allowing an ultra-rich few to tighten their grip on governments, economies, and media.
When power belongs to just a few, democracy suffers as the extreme inequality gap widens. Oligarchy isn’t created overnight–decades of policies and politics across parties in favor of mega-corporations and the ultra-rich have got us here.
The U.S. has contended with oligarchy in the past. In 1948, Supreme Court Justice William O. Douglas argued that, “Power that controls the economy should be in the hands of elected representatives of the people, not in the hands of an industrial oligarchy”.
Now even President Biden in his farewell speech has warned us of the rise of an oligarchy in the U.S.
The ultra-richest segments in the U.S. control a greater portion of wealth than they did during the Gilded Age. Just the top five billionaires today together own more than a trillion dollars in wealth.
Americans should brace for even higher levels of inequality under the next Trump administration. His administration has a blueprint that takes us deeper into an oligarchy that threatens democracy, freedoms, and a more equal future.
What is oligarchy?
Oligarchy is about the ability of an ultra-wealthy elite to shape political decision-making in ways that increase their wealth. Oligarchic power is ultimately rooted in wealth. The power of oligarchs is enabled by huge concentrations of wealth.
Given the massive amount of wealth and power that the ultra-rich have amassed, coupled with the way too many U.S. politicians have embraced them, it’s only fitting to use the term for the direction that America is headed.
What does oligarchy look like in the U.S.?
For starters, let’s look at who holds power in our economy. Industries from technology, food, and pharmaceuticals have become so deeply consolidated by just a handful of corporations, in turn giving outsized power to a handful of owners and executives. In 2024, our research found that 7 out of 10 of the world’s largest corporations are owned by a billionaire or have one as a principal shareholder.
What about the electoral process? Don’t we all have equal power in that system? Not quite. We’ve seen 150 billionaire families spend a total of $1.9 billion in support of presidential and congressional candidates in 2024.
Right now, we’re getting a view into just how the ultra-rich have bought themselves a seat—if not a couch—in the Oval Office. Elon Musk, Mark Zuckerberg, and Jeff Bezos are a few examples of the wealthy elite who have not only cozied up to president-elect Trump to influence policy, but also benefitted under previous administrations. So far, Trump has 13 billionaires—and counting—in his proposed administration whose total wealth is more than $450 billion. And even without Musk, Trump’s cabinet would be the richest in history.
Trump’s blueprint for new oligarchy: three things to watch
There is so much we can expect from the Trump presidency that will fuel inequality.
First is a massive upward redistribution of wealth from everyday people, chiefly through a massive tax giveaway to the ultra-rich and to corporations. In his first term, President Trump delivered a more than $1 trillion handout to the ultra-wealthy and large corporations, and now they’re set to double down. That won’t just give the ultra-rich more wealth, but more power.
Second is cutting away the public programs that we all rely upon and to take it a step further, privatizing programs to give them to profit-making corporations.
And third is taking a sledgehammer to the rules and referees that protect ordinary people from excessive corporate and monopoly power. Bodies like the Federal Trade Commission and Consumer Financial Protection Bureau are there to hold corporations from pharma to banks to account, but the signs are that Trump’s administration wants to weaken their power. This is great news for already powerful monopolies–and bad news for everyone else.
How do we hold the ultra-rich accountable?
Oxfam is working alongside partners and allies to unrig the system so the ultra-rich few and mega-corporations are held accountable and pay their fair share. Bold and systemic changes such as increasing taxes on the ultra-rich and corporations, strengthening labor rights, ensuring fair wages, and curbing corporate concentration are key to fighting and reversing the path towards oligarchy. By tackling the roots of inequality, we can build a more equitable future where prosperity is shared, and power is not exclusive to the hands of a few. If we all work together, a more equal future is possible.