The notion that the United States and Canada are plutocracies with a democratic mask suggests that, despite their formal democratic structures, wealth and elite influence dominate political power, undermining true democratic representation. This perspective is supported by various analyses and data points that highlight the disproportionate impact of the wealthy on policy and governance in both countries.
United States: Wealth-Driven Politics
In the United States, the argument for a plutocracy beneath a democratic facade is rooted in the significant influence of wealth on political processes. Over the past 50 years, income inequality has sharply increased, with the gap between the rich and poor reaching levels not seen in nearly a century[1]. This "wealthification" of politics, as described by Darrell West of the Brookings Institution, has been exacerbated by changes in campaign finance laws, particularly the Supreme Court’s 2010 Citizens United v. FEC ruling, which allowed unlimited money to flow into elections[1]. As a result, billionaires and economic elites wield substantial sway over public policy, often prioritizing their interests through tax breaks and weakened labor protections[1].
Academic studies reinforce this view. Research by Martin Gilens of Princeton and Benjamin I. Page of Northwestern found that economic elites and organized business interests have a significant impact on U.S. government policy, while average citizens and mass-based interest groups have little to no independent influence[2]. Similarly, a 2018 study highlighted how wealthy donor consortia, such as those led by the Koch brothers, have built organizational infrastructures that shape political agendas and push policy in ultra-free-market directions, effectively functioning as a virtual third political party[3]. Critics argue that this dynamic has transformed the U.S. from a functioning democracy into a system where policy is determined by funders rather than voters, with some describing it as a plutocracy with "democratic embellishments"[4].
Historical context also supports this critique. Since its founding, the U.S. has been described as an empire ruled by a plutocracy, with the Constitution originally enshrining power among white, propertied men and excluding women, Native Americans, and people of color from political participation[5]. While democratic reforms have expanded rights over time, the persistence of wealth concentration and political influence by the elite—evident in tactics like suppressing minimum wages, cutting taxes for the rich, and reducing social services under certain administrations—continues to challenge the democratic ideal[6][7].
Canada: Growing Influence of Wealth
In Canada, similar concerns about plutocratic tendencies under a democratic mask are emerging, driven by wealth inequality and corporate influence over policymaking. Over the last 40 years, financial deregulation and intense lobbying by the banking sector have shifted power toward affluent individuals and large corporations, leading to entrenched wealth disparities and soaring household debt[8]. Political scientist David Moscrop of the University of British Columbia argues that "oligarchic forces" have undermined democracy in Canada, with policy outcomes often skewed to favor elites rather than the majority of citizens[9].
Specific examples illustrate this trend. Despite widespread public support (80-90% across party lines) for a wealth tax on the super-rich, it remains absent from the federal policy agenda, and even modest capital gains tax reforms have been scrapped due to opposition from corporate and wealthy lobby groups[10][11]. Additionally, cases like the SNC-Lavalin affair reveal how corporate influence can pressure political leaders to prioritize business interests over democratic accountability, with government actions often appearing to cater to well-funded entities[9]. Critics point to stark inequality—such as the combined wealth of just two Canadian tycoons exceeding $33 billion while over 750,000 children live in poverty—as evidence of a plutocratic system where the rich are coddled by policies and subsidies[9].
Moreover, there are indications of a broader anti-democratic trend influenced by wealth. Tech CEOs and billionaires are increasingly attempting to set policy agendas, with some proposing cuts to public spending and national institutions like the CBC, mirroring actions seen in the U.S. with figures like Elon Musk[10][11]. This concentration of power among the elite is seen as distorting democracy and fraying the social fabric, raising questions about whether Canada truly operates as a democracy or more closely resembles a plutocracy[10].
Comparative Analysis: Democratic Mask vs. Plutocratic Reality
Aspect | United States | Canada |
Wealth Inequality | Gap between rich and poor at century-high levels; income concentration skews policy[1][2]. | Significant disparity with billionaire wealth and housing costs driving inequality[10][11]. |
Political Influence | Campaign finance laws (e.g., Citizens United) enable unlimited elite funding; policy favors wealthy[1][3]. | Corporate lobbying and deregulation shift power to elites; policy resists public-supported reforms[9][8]. |
Public Perception | Described as plutocracy with democratic embellishments; only 50% believe they live in a democracy[4]. | Seen as transitioning to plutocracy; democratic principles undermined by elite dominance[9][10]. |
Historical Context | Founded as plutocracy with limited democratic access; reforms incomplete[5]. | Increasing corporate sway over decades challenges democratic framework[8]. |
Both the U.S. and Canada maintain democratic institutions—elections, freedom of speech, and voting rights—but the overwhelming influence of wealth in shaping policy and political outcomes casts doubt on the depth of their democratic character. In the U.S., the systemic entrenchment of wealth in politics through legal and organizational mechanisms appears more pronounced, while in Canada, the shift toward plutocracy is framed as a more recent and evolving concern tied to deregulation and corporate power. Critics in both nations argue that the democratic mask—formal structures and rhetoric—obscures a reality where the wealthy hold disproportionate control, prioritizing their interests over those of the broader populace[2][9][7].
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- https://www.brookings.edu/articles/can-billionaires-buy-democracy/
- https://www.investopedia.com/terms/p/plutocracy.asp
- https://www.cirsd.org/en/horizons/horizons-autumn-2020-issue-no-17/democracy-or-plutocracy---americas-existential-question
- https://theconversation.com/the-worlds-most-powerful-democracies-were-built-on-the-suffering-of-others-208443
- https://davidkorten.org/plutocracy/
- https://economicsfromthetopdown.com/2025/01/31/partisan-politics-and-the-road-to-plutocracy/
- https://www.counterpunch.org/2025/02/20/the-new-plutocracy/
- https://www.reddit.com/r/canadahousing/comments/1hu5q08/canadas_path_to_plutocracy_how_financial/
- https://rabble.ca/economy/sordid-snc-lavalin-affair-exposes-canada-plutocracy-not-democracy/
- https://jacobin.com/2025/04/canada-wealth-inequality-billionaires-housing
- https://bcpolicy.ca/2025/03/27/wealth-housing/
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