Plutocracy

DEFINITION of 'Plutocracy'

A government controlled exclusively by the wealthy either directly or indirectly. A plutocracy allows, either openly or by circumstance, only the wealthy to rule. This can then result in policies exclusively designed to assist the wealthy, which is reflected in its name (comes from the Greek words "ploutos" or wealthy, and "kratos" - power, ruling).

BREAKING DOWN 'Plutocracy'

A plutocracy doesn't have to be a purposeful, overt format for government. Instead, it can be created through the allowance of access to certain programs and educational resources only to the wealthy and making it so that the wealthy hold more sway. The concern of inadvertently creating a plutocracy is that the regulatory focus will be narrow and concentrated on the goals of the wealthy, creating even more income and asset-based inequality.

RELATED TERMS
  1. Sliding Scale Fees

    A type of tax or cost that may change according to an associated ...
  2. Young And Wealthy But Normal - ...

    A class of self-made millionaires that live relatively modest ...
  3. Personal Trust

    A trust created for a person or persons. Personal trusts can ...
  4. Annual Exclusion

    The amount of money that may be transferred by gift from one ...
  5. Sudden Wealth Syndrome (SWS)

    A syndrome afflicting individuals who suddenly come into large ...
  6. Dividend Exclusion

    A rule that allows corporations to subtract dividends received ...
Related Articles
  1. Managing Wealth

    Investment Choices For Wealthy People

    Here is an overview of some investment vehicles that are available to wealthy investors.
  2. Managing Wealth

    Wealthy Clients: How Advisors Can Nab More of Them

    Wealth management firms still only manage a minority of the assets of high net worth individuals. Here are some insights into how to tap their market.
  3. Managing Wealth

    5 Reasons the Rich Are Better Investors than the Average Joe

    Find out five investment secrets of rich investors that make them better at investing than the average Joe. It's nothing you couldn't do yourself.
  4. Financial Advisor

    How to Find Wealthier Financial Advisory Clients

    Most financial advisors are eager to add more and wealthier clients to their practice. Here's what it takes.
  5. Managing Wealth

    A Look At How The Ultra-Wealthy Invest

    According to research conducted by the Spectrem Group, wealthy investors were sporting a more cautious mindset in 2015.
  6. Financial Advisor

    A Look at How the Ultra-Wealthy Invest

    Ultra-wealthy investors are cautious this year as they approach the markets. Many target mutual funds and stocks, but most also diversify their portfolios.
  7. Financial Advisor

    How Financial Advisors Can Woo Wealthy Clients

    To woo wealthy clients, offer the resources they need and design a strategic website and marketing plan to bring those desired clients into your firm.
  8. Financial Advisor

    10 Common Traits of Wealthy Investors

    Here are 10 common traits the wealthy share that financial advisors should keep in mind when looking to attract HNWI clients.
  9. Managing Wealth

    These Are the 5 Financial Products/Services the Ultra-Rich Care About

    Learn about the financial products and services that wealthy individuals make use of to cater to their planning and wealth management goals and needs.
  10. Financial Advisor

    An Undiscovered Growth Stock to Consider This Year (KTOS)

    Wall Street may not have uncovered this perfectly positoned defense company yet, but it will, and that could mean huge gains for patient investors.
RELATED FAQS
  1. Why is Switzerland considered a tax haven?

    Learn how Switzerland is considered a tax haven, even though its government has signed agreements to disclose information ... Read Answer >>
  2. How can a reverse mortgage help wealthy and poor retirees?

    Learn about the ways a reverse mortgage can help both wealthy and poor retirees by allowing them to borrow against their ... Read Answer >>
  3. What are the pros and cons of a progressive tax policy and who benefits the most ...

    Find out who may be opposed to a progressive tax hierarchy. Learn the pros and cons of such a taxation policy and who it ... Read Answer >>
  4. Can I take another exclusion in 2016 for selling my current condo?

    I sold one house in May 2012 and made about $100,000 and put it down on a condo on June 1, 2012. I have lived in the condo ... Read Answer >>
  5. Will I have to pay taxes by selling a condo and buying another?

    I sold a house in 2015 and purchased a condo at a lower price. Now I want to sell the current condo an... Read Answer >>
  6. How do I attract high net worth individuals (HNWI) as clients at my financial advisor ...

    Learn who high net worth individuals are and what you can do to attract and retain them in your financial advisory practice. Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center