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What a Study of Oligarchs' Second Acts Heralds for Trump 2.0
They’re usually worse off during their subsequent terms in office. So are the rest of us.
Nov 13, 2024
On November 5, Donald Trump was elected as the 47th U.S. president. Trump is an oligarch—an economic or political actor who secures and reproduces power and wealth, then transforms one into the other. And now he is in the small minority of oligarchs across history who have had second acts—having lost power or wealth, they find a way back. What can we learn from those experiences that might inform our understanding of Trump’s second term?
To answer that question, we looked at the track records of three other business oligarchs like Trump who have served as heads of state or government since World War II. Business oligarchs begin their journey by accumulating wealth, then move to power.
In our book The Oligarch’s Grip: Fusing Wealth and Power, we wrote about Chilean president Sebastian Piñera. He served two non-consecutive terms in office (2010-14 and 2018-22). His second act was decidedly worse than his first. During his first term in office, per capita income in constant dollars grew by 14%, while life expectancy expanded by 0.9 years. Sure, there were controversies, such as the appointment of Pinochet-era figures as cabinet ministers and protests over the end of the school voucher system. But, in general, Chileans felt better off.
While we are hesitant to make any grand predictions for the Trump second term based on these cases, it does seem questionable that it will be any better than the first.
By contrast, Piñera’s second term was disastrous. Per capita income rose by only 2% and life expectancy contracted by 0.8 years. The Covid-19 pandemic played a role in these outcomes, but it wasn’t the only driver. Piñera’s poor handling of a second, larger set of student protests has also led to his relatively low ranking among modern Chilean heads of state. He died in a helicopter accident in 2024.
Trump has been compared to Silvio Berlusconi, Italy’s three-time prime minister (1994-95, 2001-06, and 2008-11). We will focus on his second and third terms, which are longer. Per capita income expanded by 3.5% in that second term, and life expectancy grew by a remarkable 1.4 years. Ambitious goals aimed at constitutional and tax reform were thwarted, but, still, Italians felt better off, even if they narrowly backed a center-left coalition that removed Berlusconi from office.
His third term was dominated by the 2007-08 global financial crisis, the Great Recession of 2008-09, and the 2009-10 eurozone crisis. Italy’s economy was one of the most highly indebted in Europe, and higher interest rates led to a 6.8% GDP decline during 2008-09. Per capita income declined by 3.6% during this term, while life expectancy increased by 0.6 years. Having been ranked by Forbes as the 12th most powerful person in the world in 2009, Berlusconi resigned in 2011 as a deeply unpopular and polarizing figure.
A similar pattern of a poor second act emerges with Rafic Hariri, Lebanon’s prime minister for two terms (1992-98 and 2000-04). Per capita income grew by a substantial 44% during his first term, while life expectancy expanded in the post-civil war period by 2.2 years. But when Hariri returned to office for a second term, results were much less compelling: income up by 16% and life expectancy by 0.6 years. Political tensions led to his assassination in 2005. His son Saad served two terms as well and also left office under a cloud. A third oligarch prime minister, Naguib Mikati, is in his third term and, given the recent Israeli invasion, is unlikely to have a successful ending.
Does history offer any relief from this picture of disappointing second acts? Not really. For example, Marcus Licinius Crassus—one of the Roman Republic’s richest and most powerful men, served as consul twice (70 and 55 BCE), both times with often rival and sometimes ally Pompey. The first consulship led to the Triumvirate Alliance of Caesar, Pompey, and Crassus. The second consulship led to Crassus being named governor of the endlessly wealthy province of Syria, where he was defeated by the Parthians and died in 53 BCE.
These examples suggest some preliminary findings and cautions. First, oligarchs’ second acts generally end badly. Sometimes, external circumstances drive this result. Other times, it seems that oligarchs don’t show much evidence of learning from their first terms.
Second, many oligarchs never serve in decision-making roles as heads of state or government like Piñera, Berlusconi, or Hariri. Some have agenda-setting power through political contributions or media ownership. Others have ideological power, shaping the way we think and act. Based on our dataset at the Center for the Study of Oligarchs, we are unaware of any oligarchs who had and lost those types of power who were able to regain it. We also don’t know of any significant cases of oligarchs losing their wealth and then recovering it.
While we are hesitant to make any grand predictions for the Trump second term based on these cases, it does seem questionable that it will be any better than the first. During that first term, per capita in the U.S. rose by 2.9% and life expectancy fell by a jaw-dropping 1.7 years. That record helped earn Trump a ranking as the worst president in U.S history, according to the American Political Science Association survey.
It is difficult to imagine how Trump will be able to successfully fight the dismal history of oligarchs’ second acts.
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20+ Children Among Scores Killed by IDF Strikes in Gaza and Lebanon
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said he and U.S. President-elect Donald Trump "see eye to eye" on the Iranian "threat."
Nov 11, 2024
Israeli airstrikes killed scores of Palestinians and Lebanese—including dozens of women and children—over the weekend as right-wing Israeli Prime Minister Benjamin Netanyahu said Sunday that he and Republican U.S. President-elect Donald Trump "see eye to eye" on perceived threats posed by Iran.
A Sunday morning Israel Defense Forces (IDF) strike on the home of the Alloush family in the Jabalia refugee camp in northern Gaza killed at least 33 Palestinians including at least 13 children and nine women, according to health and civil defense officials in the embattled coastal enclave.
Some sources said more than 40 people were killed in the attack. According to Gaza officials, more than 50 people—many of them forcibly displaced by Israel's 13-month onslaught—were sheltering in the Alloush home when it was bombed.
Witnesses to the strike's aftermath described a horrific scene of dozens of victims blown to bits.
"There was a very huge explosion," relative Abdullah al-Najjar toldAgence France-Presse. "When we arrived here, all the bodies were torn apart."
The IDF claimed the strike targeted unspecified "terrorist infrastructure" that "posed a threat" to its troops, and that "numerous steps were taken to mitigate the risk of harming civilians."
Israeli forces have killed or wounded hundreds of Palestinians in a monthlong operation in northern Gaza during which residents have been forcibly expelled, possibly permanently.
IDF troops have destroyed much of the Jabalia camp and cut its residents off from humanitarian aid. As the IDF forces people to flee from Jabalia, its drones and snipers have targeted Palestinian civilians without regard for age or gender. Survivors have reported Israeli soldiers shooting people holding white flags, first responders, and journalists trying to document what many experts say is a genocide backed by U.S. military aid and diplomatic support.
Another Sunday morning IDF strike that targeted the al-Khour family home in Sabra, south of Gaza City, killed numerous Palestinians including Wael al-Khour, the director of the Palestinian Authority's Welfare Ministry in Gaza, his wife, three of their children, and three grandchildren, according toReuters.
Meanwhile, the Lebanese Health Ministry said at least 23 people including seven children were killed in a Sunday IDF airstrike on the village of Almat north of the capital Beirut.
"Under the rubble, there are only children, elderly men and women," said Raed Berro, a lawmaker from the political and paramilitary group Hezbollah who represents the district in the Lebanese Parliament.
Lebanese officials also said that more than a dozen paramedics and civil defense volunteers were killed by IDF strikes in the Tyre district of southern Lebanon on Saturday.
The Lebanese Health Ministry said at least 3,186 people have been killed and over 14,000 others wounded by Israeli attacks on the country since October 2023. That's when Hezbollah began launching rockets at Israel in solidarity with Gaza after the Hamas-led attack and kidnappings prompted Israel's retaliatory assault that has left more than 156,000 Palestinians dead, maimed, or missing.
The latest IDF strikes came amid a looming deadline this week imposed last month by the Biden administration for Israel to take "urgent and sustained" action to improve the humanitarian situation in northern Gaza, where United Nations officials last week warned of imminent famine.
However, with the end of the Biden administration fast approaching, Netanyahu said Sunday that he has spoken three times with Trump and that he and the U.S. president-elect "see eye to eye on the Iranian threat in all its components," including Hamas and Hezbollah, which are backed by Tehran.
On Monday, Trump confirmed that he has tapped Congresswoman Elise Stefanik (R-N.Y.) to serve as his ambassador to the United Nations. Medea Benjamin, co-founder of the peace group CodePink, last week called Stefanik a "strident genocide supporter," as she has advocated sending Israel as many U.S. weapons as it needs, without conditions, to ensure "total victory" in Gaza.
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Biden’s Apocalyptic Middle East Failure: an Autopsy
By his insistence on impunity for the government of Prime Minister Benjamin Netanyahu, Biden has left the Middle East in flames and the U.S. and the world distinctly in peril.
Nov 11, 2024
U.S. President Joe Biden has now joined the ranks of Jimmy Carter and George W. Bush as a president whose Middle East policy crashed and burned spectacularly. Unlike Carter, who was stymied by the Iranian hostage crisis, or Bush, who faced a popular Iraqi resistance movement, Biden’s woes weren’t inflicted by an enemy. Quite the opposite, it was this country’s putative partner, the Israeli government, that implicated the president in its still ongoing genocide in Gaza, as well as its disproportionate attacks on Lebanon and Iran, for which Biden steadfastly declined to impose the slightest penalties. Instead, he’s continued to arm the Israelis to the teeth.
Israel’s total war on Palestinian civilians, in turn, significantly reduced enthusiasm for Biden among youth and minorities at home, helping usher him out of office. It also created electoral obstacles for Vice President Kamala Harris’s presidential bid. By his insistence on impunity for the government of Prime Minister Benjamin Netanyahu, Biden has left the Middle East in flames and the U.S. and the world distinctly in peril.
During his first three years in office, his administration wielded the tools of diplomacy in the Middle East. Donald Trump’s sanctions against the Houthis in Yemen had imperiled the civilian population there by denying them humanitarian aid and gasoline to drive to the market for food. Biden lifted those sanctions and sponsored continued negotiations between those in power in the Yemeni capital of Sanaa and in the neighboring Saudi Arabian capital of Riyadh. Only relatively small contingents of American troops remained in Syria and Iraq to help with the mopping-up operations against the so-called Islamic State terrorist organization.
Pushing Iran Into the Arms of China and Russia
Danger signals nonetheless soon began flashing bright red among friend and foe alike in the region, as Biden’s team quickly squandered an opportunity to restore the 2015 “Joint Comprehensive Plan of Action,” or JCPOA, between the United Nations Security Council and the Iranian regime in Tehran, which Trump had so tellingly trashed. Between 2015 and 2019, that deal had successfully kept Iran’s civilian nuclear enrichment program purely civilian, closing off the four most plausible pathways to a nuclear weapon.
In those years, the Iranians had, in fact, mothballed 80% of their nuclear program in return for sanctions relief. While the U.N. Security Council lifted economic sanctions on that country, Republicans in Congress refused to halt unilateral American sanctions, which applied to third parties as well. European investors had to jump through hoops to invest in Iran while avoiding Treasury Department fines. As a result, a disappointed Iranian leadership went unrewarded for its careful compliance with the JCPOA.
Then, in May 2018, Trump stabbed the Iranians in the back, withdrawing the U.S. from the JCPOA and slapping the most severe economic sanctions ever applied by one country to another in peacetime on Iran. It essentially added up to an invisible blockade of the Iranian economy, even interfering with ordinary commerce like that country’s oil sales. Israel’s Prime Minister Benjamin Netanyahu boasted of having convinced the gullible Trump to take such a step, which led Iran’s petroleum exports to plummet over the next three years. Trump even designated the Iranian National Bank a terrorist organization, again with potentially crippling consequences for the entire economy.
Biden’s hardline policy toward Tehran ultimately harmed his major foreign policy initiative, of defeating Moscow.
In revenge, Iran went back to enriching uranium to high levels and building more centrifuges, though without actually producing weapons-grade material. To this day, its civilian nuclear program remains a form of “the Japan option,” an attempt at deterrence by making it clear that it does not want a bomb but that, if it feels sufficiently threatened, it can build a nuclear weapon relatively quickly.
As soon as Joe Biden defeated Trump in 2020, the centrist Iranian President Hassan Rouhani declared that the JCPOA could be restored by the two leaders virtually by fiat. And Biden’s foreign policy team initially appeared to consider negotiations to reinstate the treaty, only to ultimately retain Trump’s outrageous sanctions as “leverage,” demanding that Iran return to compliance with the JCPOA before the two sides could talk.
Perhaps the Iranian public got the message that Biden was determined to be as hostile as Trump. Certainly, in the next round of voting in the summer of 2021, they swung behind hardliner Ebrahim Raisi. And despite occasional modest diplomatic forays since then, relations have been in a dumpster for the remainder of Biden’s term, with most of Trump’s “maximum pressure” sanctions still in place. And once again, as in the Trump years, the Israeli government of Benjamin Netanyahu has lobbied Biden hard to cease all negotiations with Tehran.
Iran, which might have been drawn into the Western camp, has instead become a hostage to Beijing. Starting in 2019, China accepted smuggled Iranian petroleum at a substantial price discount. Then, when the Ukraine War broke out and Biden imposed maximum sanctions on the Russian Federation, Moscow and Tehran found themselves pushed ever closer.
Now, the two countries plan to sign a “strategic partnership agreement,” while, in July 2023, Iran joined the Shanghai Cooperation Organization, cementing the alliances with both China and Russia into which it had been so vigorously pushed by Washington. Iran also became a definite asset for Russia in its Ukraine War, providing Russian President Vladimir Putin with crucial weaponry. In short, Biden’s hardline policy toward Tehran ultimately harmed his major foreign policy initiative, of defeating Moscow.
Passionate Intensity
Biden’s team also pursued the strategy worked out by Donald Trump and his son-in-law Jared Kushner of trying to wheedle or strong-arm Arab states into making a separate peace with Israel, while throwing the stateless Palestinians under the bus. They managed to defame the Bible by naming their agreements—initially among Bahrain, the United Arab Emirates, Morocco, and Israel—the “Abraham Accords,” though they were actually thinly veiled arms deals. Underlying such a strategy lurked the possibility of creating a military bloc, involving Israel and significant parts of the Arab world, to isolate and ultimately overthrow the government of Iran. The Arab signatories all sought the economic benefits of trade and investment with Israel as well as U.S. security promises, benefiting American arms manufacturers with their orders. Had Biden instead made a full-court press for Palestinian rights, he might have created optimism rather than despair.
Sudan was also soon blackmailed into joining the accords. A popular revolution there overthrew the decades-long dictatorship of Omar al-Bashir on April 11, 2019. Its civilian and military wings then entered into a tenuous cohabitation, with the civilians pressing the generals to return to their barracks. Civilian Prime Minister Abdalla Hamdok and the chairman of the Transitional Military Council, General Abdel Fattah Burhan, signed onto the Abraham Accords in January 2021 both to get Sudan removed from the U.S. list of terrorist nations and to begin repairing its economy.
The Israeli and U.S. response to the gruesome Hamas attacks on Israel on October 7, 2023, can fairly be said to have entirely undone all of Biden’s diplomatic work in the region.
In the end, that represented pure economic blackmail, a policy continued by Secretary of State Antony Blinken. A 2022 poll showed that more than 74% of Sudanese rejected any normalization with Israel. Instead of attempting to bolster budding Sudanese democracy, the Biden administration continued to resort to backdoor deals with that junta in the interests of America’s main geopolitical client in the Middle East (while Sudan itself fell into a catastrophic civil war).
Blinken also made it a personal mission to rope Saudi Arabia into the Abraham Accords. Unlike the two other Gulf states committed to the treaty, however, Saudi Arabia has a largely pro-Palestinian Muslim population in the millions and a peace treaty with Israel might have fomented unrest among them. While Mohammed Bin Salman, the fickle crown prince who ran much of the show in that country, continued to vacillate on the issue, his father, King Salman, repeatedly made it clear that “Palestine is our number one issue,” and that there will be no recognition of Israel without an ironclad path to a Palestinian state (a longstanding Saudi position).
Nonetheless, the Biden foreign policy team continued pressuring Riyadh to normalize relations with Israel, even as the Gaza War grew ever more devastating and the Saudi public daily saw images of women and children being shredded by American-supplied bombs and drones. In an opinion poll released last January, 78% of Saudis said that they felt psychologically stressed by the Gaza War, while nearly every one of them lambasted the U.S. response as “bad” or “very bad,” and 57% believed there was now no possibility of making peace with Israel.
Things Fall Apart, the Center Cannot Hold
The security guarantees the U.S. gave the United Arab Emirates under the Abraham Accords emboldened its leader, Mohamed Bin Zayed (MBZ), in his quest to create an informal empire stretching from Yemen to Sudan and even all the way to Libya. In April 2023, however, Sudan’s conventional army and the country’s special operations Rapid Support Forces (RSF) fell to fighting one another, as the generals that led them competed for power. The country then devolved into a horror show of a civil war, with half of its 50 million people now facing starvation and at least 62,000 already slaughtered. The brutal RSF fighters are nonetheless backed by the Emirates (lovingly dubbed “little Sparta” by the Pentagon). And in these years, President Biden has proven impotent when it came to reining in America’s “Abraham Accords” darling. In fact, he only recently hosted MBZ at the White House and a Rose Garden that’s seen more genocidaires than most administrations.
The Israeli and U.S. response to the gruesome Hamas attacks on Israel on October 7, 2023, can fairly be said to have entirely undone all of Biden’s diplomatic work in the region. While the United States and some other Western governments viewed Prime Minister Benjamin Netanyahu’s never-ending devastation of Gaza and his country’s deployment of American 2,000-pound bombs against residential complexes as forced on him by Hamas’ alleged tactic of using civilians as “human shields,” virtually no one in the Global South agreed. Even some European Union states and Israeli journalists dissented.
President Biden could undoubtedly have halted Netanyahu’s total war on Palestinian civilians at any point in 2024, given Israel’s dependence on U.S. ammunition and arms.
South Africa brought a case against Israel at the International Criminal Court charging it with genocide, which the Court said was "plausibly brought" in January, issuing the equivalent of a preliminary injunction against the Netanyahu government. Israel, of course, ignored it and has simply continued the devastation there (and now in Lebanon as well). Somehow, Biden seemed unaware that the government of extremists formed by Netanyahu in late 2022 was anything but the Israel of the 1960 film Exodus, with a blue-eyed Paul Newman as the protagonist. It was instead a witch’s brew of virulent ethnonationalism and religious apocalypticism.
Worse yet, Netanyahu used the cover of his Gaza atrocities to expand the war further. He deliberately bombed an Iranian diplomatic facility (considered Iranian soil under international law) in the Syrian capital of Damascus last spring. Iran later responded with a rocket barrage. Netanyahu went on attempting to get Tehran’s goat, aware that if he could turn his conflict into an actual war with Iran, American jingoists would give him even more knee-jerk support.
In the process, he had Ismail Haniyeh, his chief, if indirect, civilian Hamas negotiating partner, assassinated in Iran’s capital of Tehran on the occasion of the inauguration of a new president there. He then launched a terrorist onslaught of booby-trapped pager bombs against an Iran-allied group, Hezbollah, in Lebanon before invading that country and subjecting significant parts of it to a Gaza-style bombardment, as a response to Hezbollah rocket attacks on Israel in support of Gaza. Such provocations led to yet another Iranian missile barrage against Israel on October 1 to which Israel replied with attacks on Iranian military facilities. Biden was reduced to pleading with Iran to be reasonable in response, while declining to demand any similar restraint from Israel.
The Blood-Dimmed Tide
And here’s the truth of the matter: President Biden could undoubtedly have halted Netanyahu’s total war on Palestinian civilians at any point in 2024, given Israel’s dependence on U.S. ammunition and arms. Instead, his gung-ho support of the insupportable in Gaza has helped turn the Middle East into a genuine powder keg, which he is bequeathing to his successor. Crucial Red Sea and Suez Canal maritime trade has already been partially paralyzed, thanks to rocket attacks launched by Yemen’s Houthi rebels in support of the people of Gaza, adding inflation and supply-chain difficulties to the global economy.
Biden then restored sanctions on the Houthis, harming Yemeni civilians, while allowing Netanyahu to go on butchering Gazan civilians. Lebanon, already a basket case, with a ruined port, a bankrupt national bank, no president, and a third of its population below the poverty line, now faces a wholesale reduction to fourth-world misery. More than a million Lebanese have had to flee their homes in that small country, and the conflict will undoubtedly contribute to Europe’s immigration crisis.
Consider it a distinct irony, then, that, rather than allying with Israel against Iran, most Arab publics have significantly raised their estimation of Tehran. Even long-time American ally Turkey and U.S. partner Egypt have felt threatened by the extremist Netanyahu government and its Napoleonic ambitions, and have begun warming to one another and exploring better relations with Tehran.
Nativist Shiite militias in Iraq rained down rockets on bases in that country hosting U.S. troops, but ranged even further afield, targeting American soldiers in Jordan and killing Israeli troops in Israel itself. They pledged to come to the aid of Lebanon’s Hezbollah. The Iraqi parliament recognized such militias in 2016 as the equivalent of a national guard. Iraq’s outraged Shiites even finally convinced Prime Minister Mohammed Shia’ Al Sudani to kick the last U.S. troops out of that country by 2026.
In the end, Biden’s unfaltering bear hug of Benjamin Netanyahu ensured that even the last vestiges of the George W. Bush administration’s neoconservative project of reshaping the Middle East to America’s and Israel’s advantage have now gone down the drain. Washington continues to send ever more bombs and sophisticated weaponry to a Middle East in flames and, with Donald Trump set to take office in January, such dangerous arms deals will likely only multiply.
Consider it a genuine first-class nightmare.
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