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By The RepresentUs Team February 15, 2025 |
Is America a Kleptocracy?
A growing question among those who care about democracy, rule of law, and accountability is whether America, with its intricate systems of government and powerful institutions, has veered into kleptocracy. This has become particularly pressing since the United States was recently classified as a backsliding democracy for the first time in its history.
Here’s the answer: While the United States is not formally classified as a kleptocracy, elements of kleptocratic behavior exist in parts of its political and economic systems.
We promise we’re not dodging the question. Understanding this requires peeling back the layers of what a kleptocracy is and how features of it can manifest even in a democracy. Let’s break it down.
What Is a Kleptocracy?
A kleptocracy (which literally means “rule of thieves”) is a form of governance where leaders or elites exploit national resources and manipulate institutions for personal enrichment or the benefit of their allies. Typically, kleptocratic regimes are marked by high levels of corruption, weak rule of law, lack of accountability, election manipulation, and systems that favor a small group of powerful insiders.
Money laundering, bribery, embezzlement, and other financial crimes flourish in the political culture of a kleptocracy. Unlike a functioning democracy, kleptocracies often prioritize self-interest over the public good.
A recent poll found that 76% of Democrats, 79% of Republicans, and 74% of Independents all agree that U.S. democracy is under threat.
Kleptocracy vs. Oligarchy
It’s important to understand the distinction between a kleptocracy and an oligarchy, as the two are sometimes conflated. While both involve concentrated power and wealth, their key differences lie in focus and mechanisms:
Kleptocracy:
- Centered on corruption and theft. Leaders exploit public resources, funnel wealth to themselves or close allies, and use the state as a vehicle for personal gain.
- Prominent in regimes where accountability and transparency are practically nonexistent.
Oligarchy:
- Centered on rule by a small, elite group, often determined by wealth, family lineage, or political connections.
- Doesn’t necessarily involve outright theft or corruption but can lead to policy decisions that overwhelmingly favor the elite, often to the detriment of the broader populace.
In practice, the two systems can overlap. For instance, an oligarchy can adopt kleptocratic practices if those in power begin abusing state resources for personal enrichment. Evidence suggests that the wealthy elite in the United States have outsized influence on public policy while everyday Americans’ have little impact–meaning that the U.S. is definitely considered an oligarchy.
What are the Signs of Kleptocracy in the United States?
The United States is a representative democracy governed by laws, elected leaders, and checks and balances, but certain characteristics raise red flags. Here are a few examples:
1. Political Influence of Big Money: The disproportionate influence of wealthy individuals and corporations in American politics has led some to draw comparisons to kleptocracies. The Supreme Court’s decision in Citizens United v. FEC (2010), which loosened restrictions on political spending by outside groups, has enabled a flood of campaign contributions that often benefit powerful interests at the expense of ordinary citizens.
2. Regulatory Capture: Regulatory agencies meant to oversee industries often end up staffed by individuals who have worked for, or will later work for, those same industries. This phenomenon, known as regulatory capture, allows private interests to sway public policy to serve their own goals, sometimes to the detriment of the environment, public safety, or economic fairness.
3. Tax Evasion and Financial Secrecy: Although the United States has stringent financial laws, it is also home to mechanisms that allow wealth hoarding, tax avoidance, and secrecy. In fact, the U.S. has become the world’s go-to country for criminals and international elites to launder, stash, and shelter their wealth and ill-gotten gains.
4. Public Corruption: Even though public corruption is less pervasive in the United States than in full-fledged kleptocracies, a majority of Americans are “very afraid” of government corruption. Scandals involving high-ranking officials alongside corrupt business-as-usual practices like Congressional insider trading have eroded public trust so much that the United States’ score in the Corruption Perceptions Index (a global measure of a country’s perceived level of public sector corruption) has declined over the last decade.
How Do We Safeguard America’s Democracy?
America may not be an explicit kleptocracy, but some of the kleptocratic tendencies in our political, financial, and regulatory systems are alarming. When wealth and power increasingly dictate outcomes in our country, the risk of kleptocracy rises.
Americans from across the political spectrum know something is seriously wrong: a recent poll found that 76% of Democrats, 79% of Republicans, and 74% of Independents all agree that U.S. democracy is under threat.
So what do we do?
This country belongs to We The People–it’s up to us to remain vigilant and to advocate for transparency, accountability, and trust in our elected leaders and institutions.
We need to pushback against:
- Efforts to dismantle or co-opt independent institutions and systems essential to accountability
- The growing, and increasingly unchecked, power of big money interests in the federal government
- Self-serving politicians who undermine free and fair elections and work to keep themselves in office
We’re building a mass movement to make our political system work for all Americans and not just the wealthy few, and we need your help. Sign up with us and find out how you can get involved.