Ostensibly this should have no effect on the legislative decisions of elected representatives however it would be unlikely that no politicians are influenced by these contributions. (see: Lobbying) Most western democracies permit partisan organizations to raise funds for politicians, and it is well-known that political parties frequently accept significant donations from various individuals (either directly or through corporate institutions). Recently, there have been numerous cases of wealthy individuals and organizations exerting financial pressure on governments to pass favorable legislation. Recent examples include Rupert Murdoch's News Corp's alleged political agendas in Australia, the UK and the United States or the oil industry oligarchy, and billionaire Richard Mellon Scaife, which may back right-leaning political action committees (PACs), as well as billionaire George Soros' efforts to influence US politics by backing left-leaning PACs. It can also be exerted by the owners and ad buyers of media properties which can shape public perception of political issues. Positive influence includes campaign contributions negative influence includes refusing to support the government financially by refusing to pay taxes, threatening to move profitable industries elsewhere, bribes, and so on. President Richard Nixon, argues that the United States is a plutocracy in which there is a 'fusion of money and government.'. The second usage of plutocracy is a pejorative reference to a disproportionate influence the wealthy are said to have on political process in contemporary society: for example Kevin Phillips, author and political strategist to U.S. Examples of such plutocracies include some city-states in Ancient Greece, the civilization of Carthage, the Italian merchant republics of Venice and Florence, and Genoa. The former indicates the political control of the state by an oligarchy of the wealthy.

The term plutocracy is generally used to describe two distinct concepts: one of a historical nature and one of a modern political nature.

Modern plutocracy