The Rise of Plutocrats - Essay Example

Op-ed paper - The Rise of Plutocrats Introduction Plutocrats are a phrase that emerges from plutocracy whichdefines a society that has a minority which is powerful, wealthy and dominated the means of production. According to Freeland (2012), plutocrats are a mere 1% of the world population but control over 90% of the world wealth with an average income of more than $24 million. Plutocrats are considered as hardworking, focused, educated and meritocrats with the significant control of different sectors of the economy including production, technology and processing. According to Freeland, (2012), plutocrats have their presence in global economies, controlling international markets and living a life that is reflective of an international citizen. The growth of plutocrats in the 21st century has been supported by the growing global businesses, emergence of technology and neoliberalism as captured in her publication. The rise of plutocrats has been facilitated by the era of neoliberalism, emergence of technology which enables plutocrats to control factors of production and economic globalization. The rise of global plutocrats has significant political implication in various parts of the world especially on countries that have influence on global business and trade (Gardels, 2013). In this paper, the impacts of globalization, technology and neoliberalism on plutocrats will be discussed in this paper including its implications on global politics. Importance of neoliberalism, economic globalization and technological change on plutocrats Freeland (2012) identifies neoliberalism, economic globalization and change in technology as some of the emerging issues in this era that influences the emergence of plutocracy. Neoliberalism is defined as the growth of ideas that thrive on a free society thus leading to the development of free trade and a decline in government interference. Neoliberalism has facilitated the emergence of plutocracy through the strengthening of the belief that despite the social position we hold in the society at birth, we are well placed to rise to the top by utilizing our talent (Gardels, 2013). With a laissez fairer economics, the market is liberated from any form of political or government interference, opening business opportunities with those with the means to acquire the factors of production. Under neoliberalism, the state should not in any way interfere with the business activities of the private sector. Instead, it should introduce the right safeguards aimed at protecting private property and ensuring that the activities of the plutocrats are not affected by policies which restrict the market (Gardels, 2013). According to neoliberalism, there is need to shrink the powers of the state and improve the democratic operations of global markets. However, a cleaner look at this argument demonstrates the desires of the elites to ensure that their power and hunger for more wealth is not restrained and instead the market left at the mercy of the elites. Neoliberalism provides an environment for the protection of the interests of the elites from any form of interference that it may face within a controlled market. By confining the actions of the government and other agencies that may influence the activities within the market, plutocrats have found an environment that allows them to improve their financial muscle without any question or intimidation (Marshall, 2015). Economic globalization borders on the rise in international trade and liberalization which has allowed business people and multinationals to operate in different parts of the globe. According to Freeland (2012), economic globalization is a catalyst to the emergence of strong and wealthy elite which control the factors of production across the world. Though globalization has had an impact in almost all economies with plutocrats, its impacts has been felt more within the BRICs economies which include Brazil, Russia, china and Russia. As opposed to the previous years when plutocrats would amass wealth from accumulated capital, globalization has led to the emergence of income plutocrats. Freeland describes these plutocrats as preoccupied with the creation of massive wealth through engagement in global trade, production and influence of government policies. Freeland argues that the super-rich have managed to continue making significant wealth even in sophisticated economies such as the United States due to their abilities to influence tax policies in the country. The power laws are the basis for the dominance of the superrich and their continued influence towards the policies adopted by governments across the globe (Marshall, 2015). American billionaire Donald Trump, for example, has continued to massively influence the foreign and domestic financial policies adopted in the United States due to her plutocratic position. The ideology that Trump has embraced over the years is control of the market and remaining the sole of driver of different sectors through monopoly. This can be demonstrated through his acquisition trends in which he has consistently acquired companies that are sole players within the market in different parts of the world (Gardels, 2013). Such influence has been made possible through the impact and influence of economic globalization which has pushed most plutocrats into global limelight, thus improving the performance of their business empires. Major multinationals such as Microsoft, Apple among other strong brand names have increased the influence of the superrich due to the influence of economic globalization. Technological changes has also created superrich 1% in most developed countries such as the united states where massive discoveries have been made in the technology sector. Technology has enabled businesses to reach out to more than a billion customers at a go, a situation that has improved their revenue and wealth. Freeland indicates that those with the right technological knowledge, smart at manipulating the market and with a combination of luck can be able to gain massive wealth within a very short period of time (Marshall, 2015). For example, the pioneer of Tumblr has become a new member of the super-rich at a young age of 26 years when the company was acquired by yahoo for over $1 billion. Technology has also diversified superrich individuals beyond those with the ability to use as a means of production as other members of the global business market such as bankers, lawyers and even cooks have joined the superrich league as has been witnessed in the case of Bernard Touati (Gardels, 2013). The universal benefits of plutocracy has made it difficult for the remaining 99% to realize the way in which the elite class are making a big catch by using marketing their products into the global market. With technology, various parts of the economy will be down and out which demonstrates its relevance to various economies of the world irrespective of the neoliberal environment that it has created. Companies such as Amazon, Apple, Starbucks and even Google are led by superrich plutocrats who have mastered the art of appeasing to the market and improving their profit margins. Technological changes has therefore significantly influenced the development of plutocracy in different parts of the country especially the developed economies such as the United States (Gould, 2014). Political consequences of global plutocrats The emergence of modern plutocrats supported by strong economic globalization has significantly affected international politics and given the elites influence of various political affairs. By controlling most factors of production and holding the right technology, the influence of plutocrats has continued to rise, not just in the United States, but global politics as well. While economic globalization has increased considerably over the years, the development of regulatory measures has considerably lagged behind (Marshall, 2015). For example technology has led to the development of apps that allow traders to engage in global financial and stock trade without control or monitoring from regulatory authorities. The superrich have grown to influential elite with the muscle to bring down governments and affect their operations through economic sabotage due to the powers they hold. For example, the recent move by the Obama administration to increase tax for high income earners has faced significant hurdles due to the powers that the plutocrats hold in the country (Gould, 2014). The ultra-rich members of the United States have formed a strong force against the Obama administration due to what is viewed as his desire to reduce their influence in the performance of the economy. To reduce the influence of the government, the plutocrats have ganged up with the republican opposition who are the majority in both houses to shot down various legislations and bills introduced by the government. In the past years, an election in the United States was influenced but foreign and domestic policies, a situation that has considerably changed due to the emerging strength of the plutocrats. It will be a common event to witness a situation in the future where the results of the elections are influenced considerably by the plutocrats as opposed to the policies of the candidates (Marshall, 2015). According to Freeland, the political influence of the plutocrats continues to rise and this will significantly affect the sanctity of the election process in various parts of the world. The superrich have no interest of the low income earners at heart, a situation that affects their willingness to compromise in situations that affect the majority. This will continue to increase the widening social gap between the superrich and other average citizens of the world, phenomena that Freeland fears may affect a number of economies (Gould, 2014). While previous plutocrats worked their way towards richness and influence, a big number of modern day plutocrats acquired their wealth through inheritance which affects their contribution in the growth of various economies. The superrich have grown to influential elite with the muscle to bring down governments and affect their operations through economic sabotage due to the powers they hold. For example, the recent move by the Obama administration to increase tax for high income earners has faced significant hurdles due to the powers that the plutocrats hold in the country. The ultra-rich members of the United States have formed a strong force against the Obama administration due to what is viewed as his desire to reduce their influence in the performance of the economy. Conclusion Freeland has conducted massive studies on the emergence of plutocrats and their influence on economies and political discourses in different parts of the globe. The emergence of plutocrats has been attributed to an increase in economic globalization, technological changes and neoliberalism, a practice that thrives in free environment devoid of any control. According to Freeland, the plutocrat superrich will continue to increase in influence and this will affect the global political situation due to disconnect with the average minorities. References Freeland, C. (2012). Plutocrat; The rise of the new global super rich and the fall of everyone else. New York: The Penguin press, 2012. Gardels, N. (2013). The Rise of Plutocracy. NPQ: New Perspectives Quarterly, 30(1), 2-5. doi:10.1111/npqu.11349 Gould, A. M. (2014). Plutocrats: the Rise and fall of the New Global Super-Rich and the Fall of Everyone Else. Relations Industrielles / Industrial Relations, 69(4), 848-850. Marshall, P. (2015). Blame the rise of the plutocrats on politics not capitalism. The Financial Times. Read More