Robert Lawson

CEO Elon Musk is the world’s first trillionaire thanks to the initial public offering for his company SpaceX, an aerospace manufacturer. Pundits have been debating whether anyone should own so much wealth. His defenders point to his successful companies and his many employees, many thousands of whom are now likely millionaires by virtue of their own shares of SpaceX. His detractors point to all the social problems that his money could solve if only he wasn’t hoarding it.

They also question whether anyone should wield so much economic power in our society. And make no mistake about it: Musk is certainly powerful. He can buy almost anything he wants. He is so rich that he could sleep in a different mansion every night for the rest of his life. I’m sure that when he speaks, people listen.

While discussions around income inequality often target billionaires — and now a trillionaire — it is crucial to recognize that the most profound economic control lies not in the hands of a few rich Americans such as Musk, but rather within the halls of government.

Consider Congress. This joint assembly of just 535 individuals — less than 0.00016% of the U.S. population — spends approximately $7 trillion every year, accounting for about 23% of the more than $31 trillion U.S. economy. This Congress leaves just 77% of the income for the remaining 99.99984% of us. The 535 members exert economic influence that dwarfs that of the wealthiest individuals.

Based on the latest Forbes 400 list along with reasonable estimates for the next wealthiest 135 people, I estimate the combined net worth of the wealthiest 535 individuals in the United States, the same number as members of Congress, to be about $7.2 trillion, which translates roughly to around $400 billion in annual income.

Thus, the 535 members of Congress spend annually 17.5 times more than the richest Americans. But wait. It gets worse. While the richest Americans spend their time running their businesses and vacationing on their luxury yachts, they mostly leave the rest of us alone to live as we please.

These rich Americans mostly don’t even know each other, don’t have meetings to coordinate their actions, and don’t meddle in our lives on a daily basis. In contrast, Congress meets regularly not only to decide how to spend those trillions but also to conspire to regulate so many facets of our lives: what drugs we can take, what health insurance we can buy, and even what light bulbs we are allowed to use in our homes.

Everyone who thinks the rich should do more to solve our social and economic problems should instead be asking why Congress, with 17.5 times as much money to spend every single year, hasn’t yet solved any of these problems.

As we grapple with the implications of Musk’s astonishing wealth, it is vital to acknowledge that the real power extends beyond individual fortunes to the legislative actions that control our lives. Only by confronting this reality can we hope to build a socially just future where the interests of all are prioritized over the desires of a few.

If we are genuinely concerned about the concentration of wealth and power, our focus must shift — from the billionaires and trillionaire among us to our elected officials in Washington. They are the real oligarchs.

Robert Lawson holds the Jerome M. Fullinwider Centennial Chair in Economic Freedom in the Cox School of Business at SMU Dallas.