Born hard of hearing in Hollywood, California, James "Jim" Macfadden attended hearing schools throughout his primary and secondary education and relied on lip reading. After high school, Macfadden attended Gallaudet College, where he majored in economics.

Upon graduation in 1962, Macfadden was employed as a computer programmer and moved up the career ladder to eventually become a division manager. In 1986, Macfadden started his own company that provided computer services and consulting.