Economic Crisis and Populism

The world in 2019 is still recovering from the Great Recession that plagued the last decade. There are even talks of the Recession’s strain on the world’s financial systems returning, possibly triggering another global financial crisis. Yet despite the economic threats of the Recession, another challenger to the world’s financial and political positions looms: populism in politics.

The impact of economic crisis on politics—especially when it bolsters populist candidates—is not new phenomenon. During the Great Depression, Germany’s populist, ultranationalist Nazi Party’s membership soared from around 100,000 followers before the crisis to almost a million adherents in 1929, during the crash. The same happened in Russia when, after the immense poverty and economic ruin caused by the First World War (1914-1918), politician Vladimir Lenin orchestrated a workers’ revolution ousting Russia’s emperor, Tsar Nicholas. And in Italy, Fascist dictator Benito Mussolini’s anti-democratic, anti-liberal policies were strengthened due to a severely weakened economy. Populist candidates gained the favor of the majority by claiming to change the status quo.   

Similar consequences occur today. Following the longest recession in their history, Brazil elected the radical right-wing Jair Bolsonaro. In Germany due to the economic pressure of the migrant crisis on jobs, far-right nationalist parties, such as the AfD, are making a comeback in parliament—winning 12.6 % of votes in the 2017 federal election (the third highest amongst the six parties in parliament). France’s election was a battle between the radical Marine Le Pen (of the National Front Party) and political outsider Emmanuel Macron (of “La République en Marche” party). The USA elected political outsider Donald Trump. Italy’s current government is a populist coalition between the Five Star Movement and the Matteo Salvini’s far-right party.

Just like their older counterparts, today’s populists arose during difficult financial times—times of economic pressure. Throughout France’s election unemployment was at around 10%. In Germany and the USA there are fears of migrants taking jobs. Ordinary Italians are apprehensive of out-of-control immigration and are still reeling from the effects of the Great Recession (the country’s debt is almost 132% of GDP and unemployment hovers at around 10%). Brazilians are tired of government corruption, poverty and their almost never-ending Recession. A poor or pressured economy is breeding ground for radical populists.

Populism is a toxic political ideology that leads to myriad conflicts, global crises, and strained national, ethnic, and economic ties between nations. The populists of the 1930’s—Germany’s Nazis and Italy’s fascists—started the largest conflict the world has ever seen: World War II. Brazil’s president expresses views akin to the military dictatorship that ran the country between the 1960s and the early 1980s, including expressing positive views towards torture, a bolstering of military presence in government, and homophobic rhetoric. Matteo Salvini’s remarks have drawn criticism from European powers, mainly in regards to his hardline immigration policy, and his budget reforms may potentially result in Italy getting sanctioned by the EU for reckless spending. Donald Trump is already destroying multilateral ties, engaging in a massive trade war pitting America against the world. His foreign policy—including his ignorant support of Saudi Arabia despite the Kashoggi murder—and his hardline policy on Iran have drawn widespread criticism from American allies. Global peace is at risk: populist policy is completely opposite of the multilateral trust that is holding the world together.

Parties opposing populism must not, however, ignore the hardships of hardworking people under the pretext of them supporting populist candidates or movements. Italians should not direct violent actions towards ethnic minorities, yet their concerns of out-of-control immigration hold some value: with thousands of immigrants washing on its shores, Italy may fail to accommodate such a vast number of work-seeking arrivals, especially since its unemployment rate is already at around 10%. France’s gilet-jaune (“yellow vest”) uprising involves the scornful destruction of historic buildings and shops, but such crimes are that of a small minority, and the movement highlights important issues with Macron’s fuel tax and France’s city geography and economy. A French farmer needs to drive up to 50km when picking-up his child from school because his district lacks one; Macron’s fuel tax heavily impacts him. And he pays this tax on top of his financial struggles— which are consequences of intense competition from Chinese and Brazilian farmers who produce far more than he does thanks to looser labor rights and less regulation on product quality in their respective countries. He has the right to dissent. By properly taking into account the protests of the populace, non-populist politicians can direct the nation onto the proper route to solve these issues instead of blindly rejecting them.

Populists are a dangerous element of democracy. They propose no solutions, simply campaigning and winning elections thanks to the plight of the populace. Yet we must not cast aside the people for they vote radically for a reason, and fixing the problems that compel or force them to do so are key to stopping populism. Instead of elitist rhetoric, major parties must understand the population—and fix its problems accordingly.

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