In his farewell address, former US President Joe Biden warned “an oligarchy is taking shape in America of extreme wealth, power, and influence that literally threatens our entire democracy”.

The comment suggests that, under Donald Trump’s second term as president, it will be billionaires rather than the people who shape public policy.

There is certainly some evidence Biden’s ominous caution should be taken seriously. The world’s richest man and the owner of X, Elon Musk, has been a vocal supporter of the Republican candidate. Other billionaire tech moguls to visit Trump at his Mar-a-Lago mansion after his 2024 election victory include Meta’s Mark Zuckerberg, Amazon’s Jeff Bezos, Apple’s Tim Cook, and Google chief executive Sundar Pichai.

There is nothing unusual about business leaders wanting the ear of a president. What has concerned Biden and others is that so many of Trump’s influential backers also own media platforms and have the ability to sway public opinion.

Should these new tech titans be thought of as oligarchs?

Like many of the academic and scientific categories we still use today, oligarchy was originally defined by the Greek philosopher Aristotle.

In The Politics, he argued people are “political animals”, social by nature, and instinctively want to live in a community. He studied different governments of the ancient world and concluded there were six essential types.

A State could be ruled by a single leader, a small group of elites, or through mass participation of the people. If the leadership acted in the common advantage (koinê sumpheron), he termed these constitutions to be monarchy, aristocracy or polity, respectively.

If the constitutions became corrupt and the leadership acted only to advance their own self-interest, he labelled them tyranny, oligarchy, and democracy.

So, for Aristotle, an oligarchy is a corrupt form of government. It is when power is in the hands of a small group of elites who advance their own interests rather than the common good.

In Aristotelian terms, democracy is also a corrupt form of government in which the majority uses its power to abuse minorities. While the term democracy has been rehabilitated and is usually seen as a positive, the word oligarchy has retained its negative connotations.

When the United States was created, the founding fathers looked back to Aristotle, Polybius, Cicero, and other ancient thinkers to try and create the best kind of constitution.

Following the Aristotelian tradition, they tried to design a mixed constitution where neither the one, the few, nor the many could dominate the others. The president has great power. But that power is kept in check by Congress and the judiciary, which is, in turn, kept in check by the media and, ultimately, the people through regular elections.

In modern politics, the term oligarch is most often used in a Russian context. After the collapse of the Soviet Union in 1991, opportunistic tycoons made enormous fortunes from buying up State assets such as energy companies and financial institutions, which also brought them significant political influence as a result.

Since Vladimir Putin became president in 2000, however, Russia has become increasingly authoritarian. While there is still an oligarchic class, their power has been reined in. They must not challenge Putin’s power or vision for the State.

Although China is ostensibly a communist State, the Gini index (the measure of social inequality) has blown out in recent years as a small group of elites become increasingly wealthy.

Despite the State’s official commitment to socialist principles, political scientist Ming Xia has argued China is now transitioning into a modern oligarchy.

Despite Biden’s warning of a potential oligarchy, political scientists Martin Gilens, and Benjamin Page argued back in 2014 the US already was one.

The US has the essential features of a liberal democracy (fair and regular elections, freedom of speech, and an independent press). But Gilens and Page worried large businesses and a small group of affluent citizens had a disproportionate influence on policy.

In Australia also, it could be argued an oligarchy is either emerging or has already taken hold.

Australia has a similar-sized economy to Russia and a growing list of billionaires who appear to have significant influence over government policy.

The power of the Murdoch family and their media empire is well-documented. We have also seen increased political activity from other billionaires, including Gina Rinehart, Andrew Forrest and Clive Palmer — who went as far as to start his own political party.

There is no question billionaires in the US and Australia have enormous power and influence, but that in itself does not make an oligarchy.

In Aristotelian terms, the defining feature of an oligarchy is the ruling elite blatantly using their status for their own personal gain rather than the public good.

This is a moral judgement, and one that is increasingly hard to make when so many of the ultra-wealthy own traditional news media and social media platforms that can shape public opinion.

Nevertheless, any shift towards oligarchy should be a cause of alarm to all who value the long democratic tradition in both the US and Australia.

Whether it is a symptom of Trumpism, as Biden suggests, or part of a longer trend, strengthening our democratic institutions and curtailing the disinformation and misinformation that are all too prevalent on social media is part of the solution.

Reprinted courtesy of The Conversation, the world’s leading publisher of research-based news and analysis.