Andrew Cumbers A Political Theory Of Populism
income that goes to the top 1% of Americans went from 10% to 20% since 1980. Relying on such a data, we may expect an economic stagnation to be a part of the US future.
Andrew Cumbers, who is a professor of Regional Political Economy at the University of Glasgow, assured that there is an inverse relationship between the inequality in country and the rates of economic democracy. In 2011, National Bureau of Economic Research, published “A Political Theory of Populism”, where they assumed that the high levels of inequality lead to political platforms based on populism. Referencing the work of Rudiger Dornbush and Sebastian Edwards, they are explaining that: “Populist regimes have historically tried to deal with income inequality problems through
the use of overly expansive macroeconomic policies. These policies, which have relied on deficit financing, generalized control, and a disregard for a basic economic equilibrium, have almost unavoidably resulted in major macroeconomic crises that have ended up hurting the poorer segments of society.”
What if Elizabeth I was right and growth that economists are seeing coming due to technological improvements may be a purpose of big wave of “beggars”? According to most predictions, future industries aren’t labor-intensive, which may be a cause of extrusion of low-skilled from the labor market. Concentration of wealth in the hand of small group of people, in our case those who are better educated and can adjust to new requirements of labor market, is a main reason for inequality. Absence of a large middle class that is able to consume what is being produced will decrease productivity and slow the growth. In the worse scenario, rising inequality also may lead to establishment of populism regime in the US.
Andrew Cumbers, who is a professor of Regional Political Economy at the University of Glasgow, assured that there is an inverse relationship between the inequality in country and the rates of economic democracy. In 2011, National Bureau of Economic Research, published “A Political Theory of Populism”, where they assumed that the high levels of inequality lead to political platforms based on populism. Referencing the work of Rudiger Dornbush and Sebastian Edwards, they are explaining that: “Populist regimes have historically tried to deal with income inequality problems through
the use of overly expansive macroeconomic policies. These policies, which have relied on deficit financing, generalized control, and a disregard for a basic economic equilibrium, have almost unavoidably resulted in major macroeconomic crises that have ended up hurting the poorer segments of society.”
What if Elizabeth I was right and growth that economists are seeing coming due to technological improvements may be a purpose of big wave of “beggars”? According to most predictions, future industries aren’t labor-intensive, which may be a cause of extrusion of low-skilled from the labor market. Concentration of wealth in the hand of small group of people, in our case those who are better educated and can adjust to new requirements of labor market, is a main reason for inequality. Absence of a large middle class that is able to consume what is being produced will decrease productivity and slow the growth. In the worse scenario, rising inequality also may lead to establishment of populism regime in the US.