POLITICO Tech Episode Summary: "The new Gilded Age could be bad for Republicans — and Big Tech"

Release Date: March 4, 2025

In this insightful episode of the POLITICO Tech podcast, host Stephen Overlead engages in a compelling conversation with historian and best-selling author Joshua Zeitz. They explore the notion that the United States may be experiencing a second Gilded Age, drawing parallels between the economic dynamics of the late 19th century and today’s technology-driven society. This summary delves into the key points, discussions, insights, and conclusions presented during the episode.

Introduction: Setting the Historical Context

Stephen Overlead opens the episode by introducing Joshua Zeitz, who posits that America is navigating a second Gilded Age. He recalls the first Gilded Age, characterized by the Industrial Revolution, with magnates like bankers and railroad tycoons wielding substantial influence over the economy and government. Zeitz extends this comparison to contemporary tech titans such as Elon Musk and Jeff Bezos, highlighting similarities in wealth accumulation and political influence.

Stephen Overlead [00:34]: "Joshua Zeitz thinks America is living through a second Gilded Age... But Josh wrote in Politico magazine recently that the business moguls then and now aren't so different."

Defining the Gilded Age and Its Modern Counterpart

Zeitz elaborates on the characteristics of the Gilded Age, emphasizing unprecedented wealth, technological advancements, and significant income inequality. He draws a direct line to the present day, noting that current tech giants have amassed wealth comparable to their 19th-century counterparts, supported by substantial government subsidies and contracts.

Joshua Zeitz [02:22]: "We had unprecedented wealth and an enormous increase in wealth and income inequality... And we're seeing something very similar happen today."

Parallels Between Historical Tycoons and Modern Tech Giants

The discussion shifts to specific individuals from the first Gilded Age and their modern equivalents. Zeitz compares historical figures like Cornelius Vanderbilt and Jay Gould to today’s tech leaders like Elon Musk and Jeff Bezos, highlighting their reliance on government support to build and sustain their enterprises.

Joshua Zeitz [06:16]: "Elon Musk's various tech companies have benefited by about $38 billion in government subsidies and incentives and bailouts... They are beneficiaries of taxpayer investments."

Impact on Politics: The Republican Party and Wealth Concentration

Zeitz argues that the concentration of wealth among tech giants poses significant challenges for the Republican Party. Drawing parallels to President William McKinley’s reliance on industrialists, Zeitz suggests that modern Republican leaders, such as Donald Trump, similarly depend on wealthy tech figures. This dependence may alienate the broader electorate and provoke backlash.

Joshua Zeitz [09:45]: "McKinley relied on the wealthiest magnates for his campaign... Similarly, Trump relies heavily on Elon Musk for campaign funding and operations."

The Inevitable Backlash: Lessons from the Past

Reflecting on the end of the first Gilded Age, Zeitz highlights the intense labor unrest and the rise of populist movements that ultimately led to the Progressive Era. He warns that a similar backlash could emerge today as workers and ordinary citizens react against the disproportionate influence of Big Tech and economic inequality.

Joshua Zeitz [12:29]: "Labor unrest from the 1870s through the 1890s... This very much mimics the potential for a new progressive movement today."

Signs of a New Progressive Era Brewing

Zeitz points to current signs of populist discontent, such as anger towards billionaires like Elon Musk infiltrating government operations. He draws a direct analogy to the late 19th-century populist movements, suggesting that a modern progressive push could reshape American politics and policy significantly.

Joshua Zeitz [14:25]: "Republican congressmen from deep red districts are facing anger against billionaires... This is a direct analogy to the early 1890s populist movements."

Violence and Political Turmoil: Historical and Modern Parallels

The conversation touches on the violent reactions that marked the end of the first Gilded Age, including assassinations and targeted attacks on industrialists. Zeitz cautions that similar tensions could escalate today, referencing the murder of a United Healthcare executive as a modern instance of such unrest.

Joshua Zeitz [14:25]: "Henry Clay Frick was shot almost to death... A United Healthcare executive was murdered in New York, reflecting similar tensions."

Lessons for Business Leaders and Politicians

Concluding the discussion, Zeitz urges current business leaders and politicians to recognize their dependence on government support and to adopt a more socially responsible approach. He emphasizes the importance of viewing the government as a public institution rather than an adversary, advocating for policies that ensure fair economic regulation and reduce inequality.

Joshua Zeitz [16:12]: "Business leaders should recognize their reliance on taxpayer largesse and view the government as something that belongs to everyone... They should consider if they want the path that led to the Progressive Era."

Conclusion: Looking Ahead

Stephen Overlead wraps up the episode by thanking Joshua Zeitz for his valuable insights. The conversation underscores the critical need for awareness and proactive measures to prevent the potential pitfalls of the modern Gilded Age, advocating for a balanced relationship between Big Tech, government, and the populace.

Stephen Overlead [16:40]: "That's all for today's Politico Tech... See you back here tomorrow."

Key Takeaways:

1. Economic Parallels: The current tech-driven economy mirrors the first Gilded Age in terms of wealth concentration and government reliance.

2. Political Implications: The Republican Party may face significant challenges due to its ties with Big Tech, potentially leading to increased political polarization and populist backlash.

3. Inequality and Labor Unrest: Growing economic inequality and labor dissatisfaction could ignite movements akin to the Progressive Era, demanding greater regulation and fairness.

4. Responsible Governance: There is a pressing need for business leaders to adopt socially responsible practices and for government policies to address the disparities exacerbated by technological advancements.

5. Historical Lessons: Reflecting on the past provides crucial insights into managing the present and preventing the adverse outcomes of unchecked economic power.

This episode serves as a thought-provoking analysis of the intersection between technology, economics, and politics, urging listeners to consider historical lessons in navigating contemporary challenges.