Profiting from Polarization: The Economics of America’s Culture War

Polarization isn’t just a political outcome—it’s an industry. This week, Elisa welcomes Aakaash Rao and Shakked Noy, economists from MIT and Harvard and co-authors of The Business of the Culture War, to explore how shifts in the media business model—from the collapse of local newspapers to the rise of cable news—created powerful incentives to divide audiences. Together, they unpack how networks learned to mobilize viewers through cultural identity issues, what survey data reveals about a dramatic realignment in voter priorities, and why these trends pose urgent questions for policymakers and the future of American democracy.

Aakaash Rao is a Ph.D. candidate in Economics at Harvard University

Shakked Noy is a Ph.D student in Economics at MIT

References:

• Rao, Aakaash, and Shakked Noy. The Business of the Culture War. Job Market Paper, Harvard University, 2025.
• NSLT, Ep. 229, Broken News and the Media Rage Machine with Chris Stirewalt
• The Fairness Doctrine Overview