The founding generation’s fear of demagogues is well known. Alexander Hamilton insisted on the problem in Federalist No. 1: “Of those men who have overturned the liberties of republics, the greatest number have begun their career by paying an obsequious court to the people; commencing demagogues, and ending tyrants.” The Founders’ concern was really two fears combined: fear of an unscrupulous leader and fear of an unreflective people. What is less well known is that they also feared a third source of power that could damage their grand experiment in popular government: extraordinarily rich Americans whose aims did not align with democracy. With America’s most prominent billionaires lining up to pay homage to Donald Trump at his inauguration, and in particular with the power granted to Elon Musk to make the government more “efficient,” the country is witnessing these three fears come together: a demagogue who unites the self-interested rich with the politically ignorant.
As a first step to protect against this sort of alliance, America’s republican political institutions rejected the built-in privileges of aristocracy. Thomas Jefferson, then a member of the Virginia House of Delegates, wrote legislation that abolished primogeniture and entail—property laws inherited from monarchical and aristocratic England that advantaged “an aristocracy founded on wealth and birth,” entrenching a sense of social and political privilege.
Similarly, Gouverneur Morris, the Founder who drafted the actual text of the Constitution, worried at the Constitutional Convention that “the schemes of the rich” would take advantage of the passions of the people, resulting in “a violent aristocracy, or a more violent despotism.” Morris insisted that the “rich will strive to establish their dominion,” and even considered designing a Senate populated by the established and propertied to balance the more democratic and popular House. The two classes, he reasoned, reflected in two different institutions, would contain each other. Although the Constitution did not embrace institutional class divisions, it did formally prohibit the granting of titles of nobility as a hedge against rule by the few. Yet even in a wholly republican and popular government, fears that concentrated wealth would enable the rich to have a predominant position in political life persisted.