The Psychology of Presidential Corruption
Why Public Greed Damages the Human Psyche (Vol. 6; Issue 27)
Corruption doesn't merely empty public coffers; it reshapes the human mind. When leaders openly enrich themselves at the public’s expense, they normalize exploitation, encourage denial and foster a profound sense of helplessness.
If the world’s first trillionaire (Elon Musk) fails to sufficiently frighten global citizens about income inequality, then Donald Trump’s earnings of $2.2 billion so far this year should terrify us. Of these earnings, $1.4 billion came from his family’s cryptocurrency businesses. Millions of dollars were generated through properties in Saudi Arabia and Qatar. Additionally, his Mar-a-Lago club and Trump National Doral enjoyed surging revenues. Despite his access to insider information, Trump also executed tens of thousands of securities trades across major technology, AI and defense companies. These figures aren’t exaggerated; they are based instead on annual financial disclosures required by the Office of Government Ethics.
Psychologically, these disclosures convey his remarkable dissociation from ordinary American people. No other US president has enriched himself to Trump’s extent. In fact, no other modern Western leader has ever publicly disclosed such windfalls. Trump’s behavior contradicts the United States as a standard-bearer for financial regulation, anti-graft measures and the rule of law.
Trump’s overtly greedy actions ripple through the mind-bodies of the global population. Instead of modeling a democratic country governed “by the people, for the people,” Trump joins the parade of other autocratic leaders who shamelessly become wealthier at the expense of their citizens. Silvio Berlusconi, the billionaire mogul who served as the Italian prime minister in three governments, similarly bullied the media and legislative bodies to ensure he could use his position to enrich himself. He made tens of millions of dollars while prime minister (but never $2 billion in six months).
Vladimir Putin, another infamous autocrat, officially owns only a modest apartment, but he oversees a vast network of oligarchs and state power that has made him one of the richest people in the world. He is worth $200 billion. Viktor Orbán, recently unseated after 20 years in power in Hungary, used oligarchs (like Putin) to hide his illicit earnings. Hungary’s National Integrity Authority estimates that institutional corruption over Orbán’s years in power redirected an estimated €186 billion to him and his family.
As noted in last week’s essay about Musk, governments ideally ensure their citizens are cared for more equally. Ideas ranging from progressive taxation to universal basic income allow for ambitious, skilled individuals to earn more money without impoverishing others. No individual, like Musk, should EVER be allowed to possess 5 million times the average American family's worth.
I reiterate the wisdom of the German philosopher GWF Hegel1, who discussed realms ranging from metaphysics to political science. Regarding the latter, he famously proclaimed:
The state must always precede capital.
In other words, Hegel believed, thoughtful governments establish ethical guardrails before releasing market forces. They create laws and institutions that keep the free market in check while fostering cultural unity. Trump models precisely the opposite, overseeing a government that uses every opportunity to bilk the public.
Consider the conflict of Trump’s cryptocurrency earnings. He oversees the regulation of that industry, and then directly profits from it. Shortly before taking office this year, Trump began selling crypto tokens issued by World Liberty Financial, a company he had founded with his friend Steve Witkoff. It promised an ill-defined platform for borrowing and lending digital money; the tokens carried no promise of ownership in anything, could not be resold or traded, and entitled owners only to a vote at an unspecified future date on what the company would actually do. Trump and his family received 75 percent of the proceeds from token sales. Thousands lost money on these investments while the Trumps grew still wealthier.
Prior essays have explored how collective denial prevents taking action, how the sheer level of corruption overwhelms us and how many individuals feel powerless to intervene effectively. Trump’s recent financial disclosures reveal a worsening of these trends. They model the idea that “greed is good,” that one should use any measure, however illegal, unethical or unfair, to get an edge on the “other.”
Perhaps this theme unconsciously bolsters the infantile omnipotence lying within all of our minds. During infancy, such God-like beliefs enhance survival; encounters with siblings, other relatives and, ideally, the broader social world temper such grandiosity. But such corrective forces have obviously not occurred for Trump. The greed displayed by him and his cronies has, instead, expanded exponentially. Perhaps more importantly, the astonishing amount of wealth amassed by Trump is demoralizing.
Lingering questions remain: Why do so many people identify with enormously wealthy leaders rather than resent them? Does the overt nature of the corruption invite a collective regression, causing many to admire rather than resent? Does the corruption become psychologically normalized? Or, could the trend be an example of identification with the aggressor?
Our government, as currently constituted, resembles the systems of “divine right” epitomized by France's Louis XIV in the 17th century or of Vladimir Putin in our era. The ever-increasing normalization of such conduct should concern every citizen committed to democratic institutions. Authoritarian corruption succeeds only when citizens become psychologically resigned to it. The antidote begins with seeing clearly. Democratic societies depend not merely on laws but on individuals willing to confront denial, resist learned helplessness and act on behalf of the common good.
Enjoying this newsletter? Consider a free subscription and share it with a friend.
And check out my book, Lover, Exorcist, Critic: Understanding Depth Psychotherapy, available on Amazon.
References
Hegel, G. W. F. (1991). Elements of the philosophy of right (A. W. Wood, Ed.; H. B. Nisbet, Trans.). Cambridge University Press. (Original work published 1821).