What theory of government argued that power is held by a small group of people?

Elite theory

Explanation: Hi,The Elite theory in political science, is a theoretical perspective according to which a community’s affairs are best handled by a small subset of its members and in modern societies; such an arrangement is in fact inevitable.  

Elite theory's origins lie most clearly in the writings of Gaetano Mosca (1858–1941), Vilfredo Pareto (1848–1923), Robert Michels (1876–1936), and MaxWeber (1864–1920).

a lot. if the people that will one day be our presidents, mayors, police and firemen are the same people that do stuff online , eating

we are screwed.

monarchy doesn’t have to have the hereditary element. there have been elective monarchies in the past where you choose your king-for-life and when he dies elect someone else for the job.