Plutocracy
A plutocracy (from Ancient Greek πλοῦτος (ploûtos) 'wealth', and κράτος (krátos) 'power') or plutarchy is a society that is ruled or controlled by people of great wealth or income. The first known use of the term in English dates from 1631.[1] Unlike most political systems, plutocracy is not rooted in any established political philosophy.[2]
"Merchant prince" redirects here. For powerful businesspeople, see captain of industry. For the computer game, see Merchant Prince.Usage[edit]
The term plutocracy is generally used as a pejorative to describe or warn against an undesirable condition.[3][4] Throughout history, political thinkers and philosophers have condemned plutocrats for ignoring their social responsibilities, using their power to serve their own purposes and thereby increasing poverty and nurturing class conflict and corrupting societies with greed and hedonism.[5][6]
Causation[edit]
Reasons why a plutocracy develops are complex. In a nation that is experiencing rapid economic growth, income inequality will tend to increase as the rate of return on innovation increases. [48] In other scenarios, plutocracy may develop when a country is collapsing due to resource depletion as the elites attempt to hoard the diminishing wealth or expand debts to maintain stability, which will tend to enrich creditors and financiers. Economists have also suggested that free market economies tend to drift into monopolies and oligopolies because of the greater efficiency of larger businesses (see economies of scale).
Other nations may become plutocratic through kleptocracy or rent-seeking.