'...the only difference is the size of their yacht...'

 

Since the Russian invasion of Ukraine over 24 months ago, there has been a concerted effort to punish the wealthy supporters of Putin, the oligarchs, who control vast fortunes and who allegedly bankroll Putin personally. The sanctions are meant to undermine Putin’s ability to wage war by applying economic pressure against his power base. 

We in the west have generally agreed with this aggressive seizure of their overseas assets including homes and superyachts and other overt expressions of wealth. I include myself in the number who favour even stricter sanctions and seizures. These individuals have gained their wealth on the backs of the Russian population because of favourable government influence initiated by Putin. One hand washes the other!  

Let’s be clear. Oligarchs don’t get rich by selling products and services to one another. Each ruble that a homeowner spends on home heating fuel; each drop of gasoline that powers their cars; every pound of fertilizer that augments their fields...all benefits an oligarch and is not funded by another oligarch. They maintain their wealth through the monopolies that the government created and sustain. 

So how is our system of government so much different? Consider these facts. 

According to ‘Open Sheets’, in 2023, US industries spent over $4.25 billion to lobby in Washington DC. These funds supported over 12,000 registered lobbyists whose sole purpose in life was to curry favour with politicians and other influencers to ensure the best legislative outcomes for their clients. The amount of money spent on lobbying has more than doubled in the past 20 years though the number of politicians has not. You can draw your own conclusions.  

Lobbying has ethical problems in my mind but there is not much distinction between these activities and those of oligarchs who ‘lobby’ by funding Putin and his cronies. 

Who are the major beneficiaries of this lobbying? Unsurprisingly, they are the CEOs of America’s top companies. In 2023, the average income of the top 10 CEOs was up to $130 million, a large component of which was earned through stock options which have been lobbied to be taxed at a significantly lower tax rate than salaries. These figures do not include the income of individuals like Elon Musk who chooses not to draw a salary; preferring to survive only on his stock options...currently valued at $190 billion. 

Given that the average household income in the US is about $75k, it’s hard not to draw a comparison with the average Russian whose purchases support the oligarchs. Afterall, it’s not as if Tim Cook of Apple is hoping that Musk buys one more iPhone to ensure that his bonus level in met. 

We rightly scoff at the lack of governance abroad and decry their methods of wealth accumulation. But we should be looking more closely at the wealth disparities at home and seeking more equitable compensation and tax regulations.  

 As I see it, the only real difference is the size of their yachts!