In a series of articles dubbed “Billionaire Nation,” the Washington Post confirms what we have all sensed as we watch the operation not only of the Trump administration but also the massive investment by our richest citizens in the candidates and policy of our state legislatures.
In How Billionaires Took Over American Politics, the Post recounts the political story of our new Gilded Age: “In an era defined by major political divisions and massive wealth accumulation for the richest Americans, billionaires are spending unprecedented amounts on U.S. politics… Since 2000, political giving by the wealthiest 100 Americans to federal elections has gone up almost 140 times… In 2000, the country’s wealthiest 100 people donated about a quarter of 1 percent of the total cost of federal elections… By 2024, they covered about 7.5 percent, even as the cost of such elections soared… (R)oughly 1 in every 13 dollars spent in last year’s national elections was donated by a handful of the country’s richest people… America’s 902 billionaires are collectively worth more than $6.7 trillion, the most wealth ever amassed by the nation’s ultra-rich… A little more than a decade ago, there were half as many billionaires in the U.S….”
Our current politics reflect the rise of the billionaire class as well as the erasure of necessary regulation: “Economists say wealth is now more concentrated at the very top than at any time since the Gilded Age. The tech and market revolutions of recent decades have created riches on an unprecedented scale. Changing norms on executive compensation and lower-tax policies under Republican and Democratic administrations have helped insulate those fortunes. And in three landmark decisions, starting with 2010’s Citizens United v. FEC, federal courts gutted post-Watergate campaign finance restrictions, clearing the way for donors to contribute unlimited money to elections.”
Clearly all this has shaped the second Trump administration. “Last year, many tech barons threw their support behind the GOP, which they saw as more aligned with their often-libertarian ideals and their companies’ economic interests… Musk is the starkest example of the shift. He accounted for a sizable portion of the uptick in political spending in 2024, doling out $294 million to help elect Trump and other Republicans… The president installed about a dozen billionaires in his current administration… Trump’s Cabinet is the wealthiest in U.S. history, with a combined net worth of $7.5 billion… At the same time, Trump has championed a deregulation and tax cut agenda that is bringing huge benefits to wealthy Americans.”
Economist Joseph Stiglitz published a warning in the summer of 2024 in his book, The Road to Freedom: “There are two distinct aspects to the situation in the U.S. The power dynamics are exacerbated by a political system in which money matters more than in most democracies. American elections are very expensive, and donors who make more campaign contributions (more rightly thought of as ‘political investments’) inevitably have more influence. Lobbying has also become a major business.” (p. 232) “To put it bluntly, ordinary citizens around the world have been sold a bill of goods. When there’s a problem, they’ve been told to ‘leave it to the market.’ They’ve even been told that the market can solve problems of externalities, coordination, and public goods. That’s wishful thinking. A well-functioning society needs rules, regulations, public institutions, and public expenditures financed by taxes.” (pp. 278-279)
While we have all been watching the operation of big money driving the power dynamics in Washington, D.C., just last week in its “Billionaire Nation” series, the Washington Post explored the role of big money in the legislative chambers across the states. . In “Meet the Billionaire Pushing Taxpayer-Funded School Vouchers,” Laura Meckler, Beth Reinhard, and Clara Ence Morse profile the role of Pennsylvania billionaire Jeff Yass investing in the promotion of his favorite ideology as he helps purchase state legislation for universal school vouchers. It is not as though Jeff Yass has had much recent experience with public schools; he educated his sons at “the Haverford School, a private school for boys on Philadelpia’s Main Line, where yearly high school tuition today costs nearly $48,000.” And he and some friends opened their own classical charter school. But sixty-seven-year-old Yass formulated a commitment to his favorite ideology even before he made enough money to become “the 27th-richest person in the world” through the “Susquehanna International Group, the behemoth trading firm.” “Yass’s political instincts began to form in his 20s, when he read economist Milton Friedman’s seminal work, ‘Capitalism and Freedom.’ He came away convinced of the value of free markets and idolizing Friedman himself.” Yass once personally asked Friedman for advice: “If you had a lot of philanthropic money, how would you spend it? His answer: ‘school choice.’ ”
According to Meckler, Reinhard and Morse, Yass regularly distorts the results of recent studies showing that private schools accepting vouchers are definitely not more academically effective than their public school counterparts: “But he also says he doesn’t really care what the studies say…. He takes the libertarian point of view that all parents should be empowered to choose the school—public or private—that they want for their children., no matter what.” “He argues that public schools are failing millions of children, and says those students deserve the chance to attend the school of their choice—private, religious, charter or traditional public—with taxpayer dollars.”
Yass has definitely been investing in school choice via universal vouchers, which he calls “his philanthropy,” even though he has not yet successfully been able to buy enough legislative power to produce universal voucher plans in Pennsylvania, Kentucky, Colorado, and Nebraska, where voucher legislation he supported ultimately proved unsuccessful. However, he hasn’t give up. He has already supported Vivek Ramaswamy, a supporter of Ohio school voucher expansion, in Ramaswamy’s 2026 gubernatorial run in Ohio with a check for $10 million, for example.
Yass’s money did enable Texas Governor Greg Abbott to pass a universal voucher plan last April, 2025. Abbott’s original 2023 drive for school vouchers failed in a state where vouchers would not be relevant in many rural districts lacking private schools where vouchers could be used. After 21 rural Republicans in the Texas House voted with Democrats to block the vouchers, Abbott tried a new strategy: backing pro-voucher Republicans to challenge the incumbents. “Yass gave $6 million to a political fund controlled by the governor, which Abbott’s campaign called the largest contribution in Texas history. He later gave $6 million more… Yass also donated $5.7 million that year to the Texas AFC Victory Fund, the political arm of the American Federation for Children… that spent $8 million working to defeat the anti-voucher Republicans… Most of the anti-voucher Republicans were defeated, and in April, the newly voucher-friendly Texas legislature approved a $1 billion program.”
In The Road to Freedom, economist Stiglitz discusses a term students learn about in Economics 101: “Key questions of economic policy entail managing externalities—discouraging activities where there are harmful (negative) externalities and encouraging activities where there are positive externalities.” (p. 46) Yass’s huge donations helped replace one set of state politicians with others who share his libertarian ideology without public conversation about the negative externalities of universal school voucher policies—their diversion of tax dollars away from the public schools that serve the majority of children—their failure to protect students’ civil rights—their exclusionary admissions policies—their failure to ensure teachers are qualified—their failure to protect the separation of religion and public life.
Jeff Yass epitomizes the power of the world’s 27th richest person to use his money to help politicians undermine the kind of public oversight that protects the majority of U.S. families who depend the provision of well funded public schools in rural, urban and suburban areas and the kind of public oversight that protects all students’ civil rights. Here is the late political theorist Benjamin Barber speaking to the consequences for all of us of the growing power of money in our unequal society as billionaires increasingly dominate our politics:
“Privatization is a kind of reverse social contract: it dissolves the bonds that tie us together into free communities and democratic republics. It puts us back in the state of nature where we possess a natural right to get whatever we can on our own, but at the same time lose any real ability to secure that to which we have a right. Private choices rest on individual power… personal skills… and personal luck. Public choices rest on civic rights and common responsibilities, and presume equal rights for all. Public liberty is what the power of common endeavor establishes, and hence presupposes that we have constituted ourselves as public citizens by opting into the social contract. With privatization, we are seduced back into the state of nature by the lure of private liberty and particular interest; but what we experience in the end is an environment in which the strong dominate the weak… the very dilemma which the original social contract was intended to address.” (Consumed, pp. 143-144)