“The best guide I know of is political economist Thomas Ferguson’s “investment theory of politics,” mentioned above, the thesis that to a good first approximation, we can understand elections to be occasions in which groups of investors coalesce to control the state, a very good predictor of policy over a long period, as he shows. For 2008, we would therefore anticipate that the interests of the financial industries, the major funders (who preferred Obama to McCain), would be “most peculiarly attended to” by government policy, in accord with Adam Smith’s maxim. And so we find.”
Book:Hopes and Prospects
