What is an oligarchy? Biden issues warning in farewell speech

WASHINGTON (AP) - President Joe Biden in his Wednesday farewell speech to the nation warned that American democracy was sliding into an "oligarchy" of tech billionaires. But what exactly is an oligarchy?

What is an oligarchy?

The definition:

An oligarchy is defined as a small group of people having control of a country, organization, or institution. In short, it's a form of government in which an elite few control the government’s actions.

"Today, an oligarchy is taking shape in America of extreme wealth, power and influence that literally threatens our entire democracy, our basic rights and freedoms, and a fair shot for everyone to get ahead," Biden said, drawing attention to "a dangerous concentration of power in the hands of a few ultra-wealthy people. Dangerous consequences if their abuse of power is left unchecked."

By using the pointedly negative term "oligarchy," Biden equated this moment — when the world’s wealthiest men are feting President-elect Donald Trump — with some of history’s more brutal regimes.

Meta CEO Mark Zuckerberg is scheduled to cohost a Trump inaugural reception with wealthy Republican donors next week. Amazon Prime Video, which was founded by billionaire Jeff Bezos, got exclusive licensing rights to stream and theatrically release first lady Melania Trump ‘s new documentary.

Meta, Amazon and OpenAI CEO Sam Altman last month donated $1 million to Trump’s inauguration fund. And billionaire Elon Musk’s super PAC spent around $200 million to help elect Trump.

But Biden made a complicated assertion as both Republicans and Democrats have relied on Silicon Valley fortunes to boost their political ambitions.

What are some examples of oligarchies?

Historical perspective:

Multiple countries have been labeled oligarchies by academics. After the break-up of the Soviet Union in 1991, former state assets and other institutions came under the control of increasingly wealthy businessmen who became known as billionaire oligarchs.

The mix of profits and politics that began under then-Russian President Boris Yeltsin gave way to crackdowns by President Vladimir Putin, who has his own favored oligarchs and pledged to let them keep their fortunes so long as they are loyal to him.

With its legacy of colonialism and powerful families, the Philippines has been accused of being an oligarchy, with its former President Rodrigo Duterte claiming to have dismantled the system. Critics said he simply gave preferences to a different set of oligarchs.

Apartheid-era South Africa was also seen by some academics as having a white racial oligarchy.

Dig deeper:

Even before Biden’s speech, the rising wealth gap in the United States — as well as in China — raised concerns about whether the world’s two largest economies were becoming oligarchies.

Much like President Dwight Eisenhower's warnings about the military-industrial complex when he left office, in his address, Biden said he's "equally concerned about the potential rise of a tech-industrial complex that could pose real dangers to our country as well."

He also called for a constitutional amendment to end immunity for sitting presidents, after the Supreme Court granted Trump sweeping protections last year from criminal liability over his role in trying to undermine his 2020 defeat to Biden, though he never mentioned Trump's name. 

Biden also criticized social media companies for rolling back on fact-checking on their platforms and blamed much of his poor standing during his final months in office on misinformation online.