from 1995 Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political Systems (American Politics and Political Economy Series) (9780226243177): Thomas Ferguson: Books
December 22, 2010 § Leave a comment
This review is from: Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political Systems (American Politics and Political Economy Series) (Paperback)
Thomas Ferguson argues the US two party system functions as a mediator between conflicting business interests. Through case studies (primarily the New Deal era) Ferguson persuasively backs his argument.
During the New Deal era, Ferguson contends the Democratic party was controlled by capital intensive “free trade” multinational businesses vs the Republican party which was dominated partly by labor intensive “protectionist” industry.
Who were the multinational interests? (siding with Democrats) Major oil companies/ Rockefeller dominated banking e.g.,standard oil,chase manhatten. General Electric was also a major player.
Who were the labor intensive/protectionist interests? (Siding with Republicans)Textiles,Steel,Domestic oil producers and rubber manufacturers. Capital intensive Chemical industries led by Dupont lobbied for protection due to competition from Germany….Also JP Morgan due to interlocks with certian holding companies which partly separated Morgan Interests from Rockefeller financial interests.
A fascinating study! The capital intensive industries favored labor mediation/social welfare while the labor intensive industries lobbied against. Ferguson follows the paper trail which shows GE interests strongly influencing the creation of the national labor relations board while the Social security act was the brainchild of Rockeller interests. From ferguson’s point of view, business reacted to class conflict by creating top down business oriented reforms in reaction to labor unrest.
I’ve ordered this.