Jacobin Radio Jacobin Radio: Tech Capital Is Taking Over Politics w/ Thomas Ferguson
Sep 30, 2025
Thomas Ferguson, a political scientist and research director at the Institute for New Economic Thinking, dives into the intersection of tech and politics. He reveals how big money influences election outcomes and shapes Democratic priorities away from working people. Ferguson examines the rise of 'red tech,' the implications of a K-shaped recovery, and the bipartisan capture of crypto. He warns of a structural impasse for labor and suggests reforms like banning super PACs to revive trust in the party.
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K-Shaped Recovery Masked By Nominal Wage Gains
- The Biden years produced only modest nominal wage gains that evaporated after adjusting for prices and falling hours.
- Ferguson shows a K-shaped recovery where asset owners gained while typical workers saw real weekly wages decline.
QE And Low Rates Fueled Wealth Concentration
- Federal Reserve asset policies and near-zero interest rates pumped up housing and stock markets, concentrating gains among the wealthy.
- Ferguson and Servet Storm link Fed QE during COVID to dramatic wealth increases that boosted consumption for the rich but hurt equality.
Wealth Replaced Popular Power In Politics
- Political influence now flows from wealth because popular organizations are weak, letting rich donors shape policy.
- Ferguson's investment theory emphasizes that rich actors, not mass movements, dominate White House decision-making today.
