Raghuram Rajan: Populist Nationalism Is “the First Step Toward Crony Capitalism”
Asher Schechter at ProMarket discusses Raghuram Rajan's views on the rise of populist nationalism:
Raghuram Rajan: Populist Nationalism Is “the First Step Toward Crony Capitalism”: The wave of populist nationalism that has been sweeping through Western democracies in the past two years is “a cry for help from communities who have seen growth bypass them.”
So said Raghuram Rajan, the former governor of the Reserve Bank of India, during a keynote address he gave at the Stigler Center’s conference on the political economy of finance that took place in June.
Rajan, a professor of finance at the University of Chicago Booth School of Business, spoke about the “concentrated and devastating” impact of technology and trade on blue-collar communities in areas like the Midwest, the anger toward “totally discredited” elites following the 2008 financial crisis, and the subsequent rise of populist nationalism, seen as a way to restore a sense of community via exclusion.
In his talk, Rajan focused on three questions related to current populist discontent: 1. Why is anger focused on trade? 2. Why now? 3. Why do so many voters turn to far-right nationalist movements?
“Pointing fingers at these communities and telling them they don’t understand is not the right answer,” he warned. “In many ways, the kind of angst that we see in industrial countries today is similar to the bleak times [of] the 1920s and 1930s. Most people in industrial countries used to believe that their children would have a better future than their already pleasant present. Today this is no longer true.” ...
There's quite a bit more. I don't agree with everything he (Raghuram) says, but thought it might provoke discussion.
Posted by Mark Thoma on Thursday, August 31, 2017 at 09:48 AM in Economics, Income Distribution |
You can follow this conversation by subscribing to the comment feed for this post.