The candidates for President-elect Donald Trump’s administration are becoming extremely wealthy. If all is confirmed, the incoming Trump administration will be the wealthiest administration in U.S. history.
Ari Shapiro, host:
What do a hedge fund manager, a former professional wrestling executive, and the world’s richest man have in common? First, they are all reportedly billionaires. They have all been appointed to serve in President-elect Trump’s future administration. The administration’s combined assets could exceed $300 billion. So what does that mean for governance? Adrian Ma and Wei-Ling Wong of NPR’s daily economics podcast “The Indicator” explain.
ADRIAN MA, BYLINE: Now, of course, when it comes to government and politics, the rich and well-connected have always had the upper hand. But if Trump’s election is confirmed, his administration will literally be run by billionaires.
WAILIN WONG, BYLINE: Of course, there are not just billionaires, there are far more billionaires than in a typical presidential administration.
MA: So I guess my first question is, what do you think about that?
Steve Nelson: I wasn’t surprised.
Wong: Steve Nelson. He is a professor of political science at Northwestern University. He and his colleagues recently conducted a study that looked at billionaires around the world and how often they enter politics and government.
NELSON: And we found that 11 percent of the people on the list went into politics. That means that for every nine billionaires chosen at random from that list, at least one of them has political ambitions that go beyond just donating to campaigns. They actually go into politics. So I wasn’t all that surprised to see President Trump find an ally in his billionaire class willing to throw into the ring.
MA: But something that was a bit of a surprise to Steve was that 11% of billionaires go into politics or government, which is why we tend to think that we produce so many politicians. This means that it was much higher than that of the group. For example, Steve says less than 1% of lawyers in the United States become politicians. Interestingly, he says it’s more common for billionaires to enter politics in countries where governments are more authoritarian.
NELSON: China and Russia alone account for about half of the world’s billionaire politicians.
Wong: If billionaires and governments are more common in authoritarian regimes, many of President Trump’s nominees are not just wealthy people, but the ultra-rich, the 1% of the 1%. What should we think about the fact that it is being collected? Darian Stacy is a political science professor at the U.S. Naval Academy who studies how politicians’ wealth is reflected in policy.
Darian Stacey: There’s some research that looks at the effects of wealth on governance, but it’s actually kind of a mixed bag.
MA: By the way, Darian says he is speaking as a private citizen, not on behalf of the Naval Academy or the U.S. government.
Stacey: Some research has shown that wealth may be correlated with certain leadership traits that are useful in both business and government, such as risk-taking skills, decision-making skills, and strategic thinking. I am. And wealthy individuals often have access to large networks and resources that can assist in policy development and implementation.
WONG: On the other hand, Darian says there’s also evidence that extreme wealth can create a disconnect between average citizens and those in power.
Stacey: Research on things like socio-economic diversity and leadership shows that leaders from affluent backgrounds are less likely to prioritize policies that address things like inequality, poverty and social safety nets. There is also some evidence that they may unconsciously favor some policies that are consistent with their own experiences and priorities, and that those unconscious biases may be important when trying to address inequality. It can actually perpetuate inequality.
MA: Another problem that can arise for ultra-wealthy businessmen in top-level government positions is the potential for conflicts of interest. In fact, government watchdogs criticized the first Trump administration on that point. This time, Trump will be surrounded by even more fellow billionaires. And the worry is that these billionaire politicians could use their power and influence to benefit themselves.
Wong: Whether this is a concern for you may depend largely on your own personal policies. But for Northwestern University’s Steve Nelson, it comes down to what he thinks about democracy.
Nelson: I think the problem with having a large number of ultra-wealthy people, or a high percentage of ultra-wealthy people, in government positions is that it creates a dilemma for democracy.
MA: Steve, if democracy is about inclusivity and average people electing leaders who represent the interests of the people, then a government staffed by billionaires and billionaires can do that, right? Or?
Wong: I’m Weilin Wong.
MA: Adrian Marr, NPR News.
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