A primer on the rise of populism and a way forward

Gulzar posts about why rise of populism is closely linked to inequality and gulf between 1% and 99%.

Why is it happening? But this consensus was accompanied by a less benign bipartisan elite convergence (more of it latter) which effectively ended up capturing the economic and political establishment. 
The rapid and fairly inclusive economic progress achieved in the period helped underpin this consensus and paper over fissures that were developing due to forces like trade liberalisation, globalisation, de-unionisation, and skill-biased technological changes. But once growth started slowing, for a variety of factors, these fissures started to show up.
But mainstream political parties, captives as they had become of elite interests, failed to see the breakdown in social consensus. The liberal elites too became caught up in their rhetoric.    
Nothing has been more emblematic of this isolation of elites from the electorate than the staggering levels of economic inequality, which has been widening at a rapid pace since the millennium. As the graphic below shows, in the US, the share of national income going to the top 1% has nearly doubled from 11% in 1980 to 20% in 2014. 
Fair amount of graphs etc to emphasise his point.
What is the way out? Gulzar quoting Prof. Rodrik says “the most promising solution may be to let the house burn down completely!”…

 

 

 

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3 Responses to “A primer on the rise of populism and a way forward”

  1. Anantha Nageswaran Says:

    Just to add to the discussion: I had blogged on Dani Rodrik’s ‘Project Syndicate’ article. Gulzar picked it up. I had also made an extensive comment on the post of Gulzar as an independent blog post and then there is the great story of the town of Blackpool in the UK in FT. I had blogged on it too. We also have an article and a letter by Ros Altmann in FT on the role of QE in fostering global disaffection.

    All of these can be found at http://thegoldstandardsite.wordpress.com

  2. Anantha Nageswaran Says:

    I just shared the information on the availability of additional information in my blog site so that visitors to this post of yours, if they want other perspectives, know where to look.

  3. vikramml Says:

    So, finally someone comes to the obvious point belatedly. That the global elite is corrupt and incapable of redemption and so should be burnt down.

    And, as I asked at the gold standard site, Steve Bannon has said he wants to burn it all down. So, what is the opinion on his take?

    Now ofcourse this terrifies the corrupt elite and that is why the unrestrained, incessant attacks and name calling as well as universal media condemnation. But, that only points to how big and widespread the problem is, isn’t it? So, if it isn’t going to be Steve Bannon, what or where or who is the solution? Because it isn’t coming from the current elite, the left or the right, nor the media nor the academia.

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