On The Political Influence Of Super Rich Individuals

Posted: 9/21/2018

Introduction

This post is mainly focused on the situation in the U.S., but the implications and discussion may well apply to other Western democracies. Not naming any of the individuals in this post is on purpose.

The rich probably have always influenced politics and government in human history (in good and bad ways). First, they were mostly noble men or women, later successful businessmen and businesswomen joined in.

Rich entrepreneurs have been made easy targets or scapegoats throughout history by ideologues, intellectuals, and common people, quite often undeservedly.

There were a number of super rich entrepreneurial individuals or families during the medieval ages that wielded influence and power significantly beyond their place of business or residence (e.g. Fuggers, Medici). However, the modern phenomenon that considerable numbers of citizens of all backgrounds can amass enormous wealth during their lifetime as entrepreneurs has probably not been experienced before the industrial revolution and before capitalism (classical liberalism).

The Situation In The United States

Currently, there are about 585 billionaires living in the U.S. (Source). Let’s ignore, for arguments sake, the many multi millionaires ($100+ millions).

Any of these 585 billionaires has the potential to easily spend millions if not tens of millions of dollars or more to influence e.g. political elections and/or the legislative process. Several of those billionaires are frequently reported to actively and persistently influence politics on a large and national, regional, and local scale. They have become household names and poster children. They represent the spectrum of political ideologies. It is presumed that some of the political activities of these billionaires were even motivated to drive more business sales and profits.

It is certainly of some concern, when super rich people can wield far more political influence than the average citizen. Equality of opportunity or one person, one vote may ring hollow. Economic freedom might be in jeopardy etc. One may not even safely assume that these politically active billionaires are successfully neutralizing or countervailing each other (e.g. each leftists are roughly cancelled out by a rightists or extremists are roughly cancelled out by moderates).

This situation certainly has become a hot button issue for some time!

Remedies, Solutions, Or Proposals

What to do and what not to do about it in a civilized society governed by a constitution? Some proposals and thoughts:

1. Do we even need a solution? Perhaps, the actual political influence of these billionaires is highly mischaracterized or largely exaggerated
2. Ignore or accept and/or live with the situation? On the grounds, there is nothing or little illegal about it or there is not sufficient justification to do something about it?  
3. Expropriation or targeted taxation are unconstitutional and illegitimate
4. Prohibition, criminalization, or punishment of activities aimed at influencing politics? Unconstitutional or at least controversial
5. More legal transparency requirements regarding activities and/or money flows? A very double edged sword. How effective?
6. Could citizens effectively boycott or disinvest from businesses of political active billionaires who they disagree with? Some of these billionaires are in businesses or some businesses of billionaires cannot be easily boycotted or disinvested from by citizens. To some extent this has been happening in the U.S., but what is the impact? Some citizens have just done the opposite and started to support businesses of these billionaires they agreed with
7. Citizens asking politicians to sign and commit to a pledge that they don’t accept any money from businesses or significant amounts of direct or indirect money from any individual. So voters could judge a politician by their lack of commitment etc.? Signed pledges by politicians have been tried in the U.S. and, I believe, they have had some positive impact
8. Citizens founding a new political party with the expressed commitment to e.g. eliminate or diminish the political influence of billionaires on their party. This also has been tried in the U.S. with some or limited success
9. More media or watchdog reporting or coverage on the political activities of billionaires. I am afraid some billionaires have purchased media outlets or fund such watch dogs already. Many journalists or reporters are partisan themselves etc.
10. Some billionaires have publicly pledged to give away substantial amounts of their wealth to various philanthropic causes while still alive. Would some billionaires voluntarily be willing to pledge to largely refrain from political activities or to fully disclose their political activities and intentions? Hope, they do
11. Are there other proposals? Maybe, but at the moment I am not aware

Conclusion

This issue will most likely not go away anytime soon. Widely acceptable solutions (in accordance with the U.S. Constitution and Declaration of Independence), if necessary, will take time and are not easily to come by.