Billionaires (especially those in tech) may propagate the myth of the merit-based American dream, but some of the most dramatic success stories began with a parent using their wealth or connections to give their child the upper hand. Take Bill Gates, the founder of Microsoft, who became one of the world’s wealthiest people in his 30s. Gates’s early success was largely due to the well-documented connections that his parents flexed on his behalf to get his fledgling company off the ground. Other tech nepo babies include Facebook founder Mark Zuckerberg, whose father loaned him $100,000 to start his company, and Amazon founder Jeff Bezos, whose parents were early investors in his online retail business to the tune of nearly $250,000.
Nepotism is part of the fabric of capitalism. For centuries, unfair advantages were available to those who have historically faced fewer hurdles, through the sheer luck of being born into a family with wealth, connections, or respect within their field. Indeed, in order to beat back the imposter syndrome, many advise channeling the unearned confidence of a mediocre straight white man.
Our economy is rigged to encourage nepotism by ensuring that the already wealthy pass their wealth—and by extension the power that their money buys—to their children. The Center on Budget and Policy Priorities (CBPP) pointed out how the tax code is written in order to benefit the moneyed classes. According to a CBPP report, “High-income, and especially high-wealth, filers enjoy a number of generous tax benefits that can dramatically lower their tax bills.”
Nepo babies who defend their status reinforce the notion that wealth, fame, and privilege equal brilliance, talent, and genius. The reality is that the privileged among us simply have the means to cheat. The rest of us are sold the lie that working hard will bring rewards—rather than unearned wealth.
This, in turn, encourages cheating among those who cannot rely on nepotism to gain power. One well-known example of the “fake-it-till-you-make-it” approach is Anna Sorokin, a woman whose fabricated lies about wealth and power landed her in prison and made her the focus of a Netflix show. Sorokin faked being a nepo baby—a German heiress—in order to live a lavish lifestyle. Sorokin learned that to gain the edge that moneyed elites have, one must internalize the insider syndrome.
Republican Congressman George Santos, who was recently exposed as a fraud for lying about his work experience, wealth, and even ethnicity, is another prime example. His political party has made a habit of encouraging (real or fake) nepo babies like Donald Trump, who openly admitted to tax avoidance in a debate and whose company was convicted of criminal tax fraud.
The GOP has for years led the charge to protect the interests of the wealthy while insisting on means testing and drug testing for the rest of us to receive benefits.
In truth, the emperor has no clothes. The meritocracy of American capitalism is a myth built on smoke and mirrors, on lies and false confidence. The current long-overdue conversation around nepo babies may help to further class consciousness among Americans who may see a bit more clearly now just how scantily clad the emperor really is.
This article was produced by Economy for All, a project of the Independent Media Institute.
Sonali Kolhatkar is an award-winning multimedia journalist. She is the founder, host, and executive producer of “Rising Up With Sonali,” a weekly television and radio show that airs on Free Speech TV and Pacifica stations. Her forthcoming book is Rising Up: The Power of Narrative in Pursuing Racial Justice (City Lights Books, 2023). She is a writing fellow for the Economy for All project at the Independent Media Institute and the racial justice and civil liberties editor at Yes! Magazine. She serves as the co-director of the nonprofit solidarity organization the Afghan Women’s Mission and is a co-author of Bleeding Afghanistan. She also sits on the board of directors of Justice Action Center, an immigrant rights organization.