The terms “oligarchy” and “plutocracy” refer to different types of governing bodies in a nation or organization. In other words, they stand for two different types of political structures.
The difference between plutocracy and oligarchy is that “plutocracy” is the rule of the wealthy or rich class.On the other hand, government by the “few” is an oligarchy.
It is described as a few people controlling the entire nation. The “little group” may result from being royal, in the military, or for any other reason.
Let us learn the basic difference between plutocracy and oligarchy below:
Table of Contents
Definition of Plutocracy
The Greek words ploutos, which mean “wealth,” and kratos, which imply “power,” combine to form the phrase “plutocracy.”
An all-wealthy government, whether directly or indirectly, is known as a plutocracy. In a plutocracy, only the wealthy can hold power openly or through force of nature.
Indirectly, plutocracy might appear in laws and policies that only benefit the wealthy.
Government policies that favor the wealthy are usually utilized, frequently at the expense of the lower classes, and this is a prevalent feature of plutocracy.
Example:
In a corporation, only the owners have voting rights. Even working there, you can only vote if you are well-spent to own a share.
Even among the owners, it’s different from everyone having an equal say; instead, your number of votes is determined by how many shares you hold. More money, more power.
Definition of Oligarchy
The Greek words for “few” and “rule” are the root of the word “oligarchy.”
A small ruling group controls a country known as an oligarchy. A plutocracy is often an oligarchy when the ruling class is affluent.
It may also be referred to as the top class’s use of power for its own illegal goals rather than for the benefit of lower social classes.
There have been instances where the oligarchic group was not defined by riches but rather by a military, religious, or royal elite.
Any government is allowed to employ the spoils system. An old saying is that “the spoils go to the victor.”
That implies that whichever political party, group, or junta gains control of the country can give government employment to anybody it pleases as a thank-you for their support during the ascent. You have the right to share the treasure if you have the power.
Example:
During the 20th century, South Africa provided a modern example of an oligarchy.
Given that the South African type of oligarchy was founded on race, the fundamental traits of oligarchy are particularly simple to observe in this situation.
Difference Between Plutocracy and Oligarchy
The basic difference between plutocracy and oligarchy is below:
The primary difference between plutocracy and oligarchy is that a privileged minority rules an oligarchy, whereas a wealthy minority rules a plutocracy.
Another difference between plutocracy and oligarchy is that it is the ruling party.
In an oligarchy, the ruling party can include aristocrats, religious leaders, elites, scholars, philosophers, military leaders, affluent individuals, etc.
However, in a plutocracy, the ruling party is exclusively composed of wealthy people. Plutocrats are powerful people whose money gives them the ability to rule.
Because a small group of individuals governs an oligarchy, and often only a small number of people in a society are actually wealthy, a plutocracy may also be an oligarchy.
Yet, an oligarchy can also be the rule of a small group of people, such as a few priests, military generals, or other people who are not extremely affluent.
Plutocracy Vs. Oligarchy
The comparison between plutocracy vs. oligarchy is below:
Oligarchy
An oligarchy is a form of governance where a small number of people are elected to power based on various criteria, including their wealth, social status, education, military record, or other attributes.
Plutocracy
Only the wealthy control the government in a plutocracy.
The plutocrats are not usually government officials; they could also be wealthy private individuals who use their wealth to sway elected authorities in legal and unlawful ways.
Of course, wealth often buys influence, but a system of plutocracy and oligarchy (ruled by a “few” affluent individuals) would be referred to as a plutarchy in this case.
Oligarchy Vs. Plutocracy : Advantages and Disadvantages
The advantages and disadvantages of comparison between oligarchy vs. plutocracy are below:
Advantages of Oligarchy
- It concentrates power in the hands of the knowledgeable.
- The general populace in an oligarchy in lawful action.
- It promotes artistic endeavors.
Disadvantages of Oligarchy
- Wealth favors the ruling class more than the working class.
- In time, it prevents growth.
- An oligarchy that can seize a large amount of power can greatly impact its economy.
- It produces puppeteers as leaders.
Advantages of Plutocracy
- The wealthy can benefit from plutocracy.
- They have the authority to decide what laws will govern it.
- A plutocracy may be a beneficial type of governance for the people.
Disadvantages of Plutocracy
- Since not everyone can influence, the system is unjust.
- It encourages social and economic inequality.
- The generals’ interests are put aside in favor of a select few.
- It is a system that could be more inclusive.
What is the Difference Between Plutocracy and Oligarchy?
Highlighting the main difference between plutocracy and oligarchy in the following table:
| Oligarchy | Plutocracy |
| It is a form of government where a select few privileged individuals rule. | It is a form of government where the wealthiest people are in control. |
| The ruling class in an oligarchy may be noble, devout, elite, powerful, or military members. | The only individuals who can rule the plutocracy are wealthy. |
| A modern example of the oligarchy can be found on race in South Africa | Ancient Rome’s Republican era and the United States’ Gilded Age, which valued wealth, are two examples of plutocracies. |
Conclusion
The difference between plutocracy and oligarchy is that a privileged minority rules the oligarchy, whereas a wealthy minority rules the plutocracy.
Both plutocracies and oligarchies are minority groups in society that are only interested in their interests.
As a result, both phrases are commonly used negatively to express worry that a minority in power will put its interests before those of the nation. People may experience injustice as a result of oligarchies and plutocracies.
Frequently Asked Questions
1) What’s the process of a plutocracy?
Government run by plutocrats is responsive to the needs of the wealthy. They impact how choices are made and policies are developed in the nation, preferably in a way that serves their interests.
The majority of how the system operates is by corruption and changing the rules and laws to suit their purposes.
2) What is an oligarchy government?
A government that a small group of people dominates is called an oligarchy. In other words, it is a system of governance where a select few people control everything. Examples include ancient Rome and South Africa under white supremacy.
3) What characteristics define a plutocracy?
The fundamental element of this type of government is rule by the wealthy. Yet, a plutocratic government differs from others in that a power transfer may occur when one segment gets wealthy.
4) Is plutocracy a form of oligarchy?
A type of oligarchy is a plutocracy. Oligarchy is the political system in which an elite controls sway. A particular type of oligarchy called a plutocracy has a small but rich ruling class as its elite.
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