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Home The Populist Temptation

The Populist Temptation

Economic Grievance and Political Reaction in the Modern Era

Barry Eichengreen
Politics
Book
  • The Populist Temptation - 9780190058821
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Content
Populism, on both the right and the left, has spread like wildfire throughout Europe and the United States and is making inroads in other parts of the world. In simplest terms, populism is a political ideology that vilifies elites, minorities and foreigners while lionizing "the people." It reached its apogee in the U.S. with the election of Donald Trump but has been a force in Europe since the Great Recession and the refugee crisis. We now see the rise of leaders with populist tendencies everywhere from Brazil to Turkey. In The Populist Temptation, Barry Eichengreen places this global resurgence of populism in its historical context. Populists have always thrived, he observes, in times of poor economic performance. Populism feeds on rising inequality, which augments the ranks of those left behind and fans dissatisfaction with the economic status quo. It responds to rapid economic change that heightens insecurity. These economic developments, Eichengreen shows, give rise to populist reactions when they highlight the divergent interests of the people and the elite. Banking and financial crises are a case in point: the financiers who are the precipitating agents of such crises are card-carrying members of the elite, and are seen as profiting at the expense of the people. But populism is also a protest against the declining influence of the traditions, beliefs and community of once-dominant groups. It is a reaction against the challenge posed by immigrants and minorities to the people as a homogeneous, well-defined entity. Populists capitalizing on these feelings appeal to a glorious, mythologized past grounded in the collective traditions of that once-dominant majority. They invoke nationalism and criticize politicians who embrace diversity, open borders and equal rights. Populism has particular appeal, Eichengreen shows, when these identity politics and economic grievances come together. There is no magic solution to these concerns, but Eichengreen points to a starting place: strengthening welfare state policies that make for greater equality of opportunity and social cohesion. Comparing Europe with the United States, he shows that America's patchwork welfare state is less well equipped to deal with the fallout from globalization and technical change and the growing distance between social groups. This reality will be hard to change, since America's limited welfare state reflects the country's historically-rooted suspicion of big government. It is therefore in the United States, Eichengreen concludes, where the siren song of populism is most alluring-and dangerous.
Specifications
Publisher
Oxford University Press Inc
Publication date
March 15, 2020
Pages
256
ISBN
9780190058821
Format
Paperback
About the author
Barry Eichengreen is Professor of Economics and Political Science at the University of California, Berkeley. His previous books include Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System and Golden Fetters: The Gold Standard and the Great Depression, 1919-1939.
Reviews

Barry Eichengreen is the world leader in distilling the lessons of economic history for the policy makers of today. This important book is the best we yet have on populism and the antidotes it demands. - Lawrence H. Summers, President Emeritus and Charles W. Eliot University Professor, Harvard University

No one makes economic history relevant to today while doing justice to the past like Barry Eichengreen. "The Populist Temptation" is the best of American and European perspectives on the worst of current EU and US politics. Sobering and sensible, this is a necessary interpretative guide to our times. - Adam S. Posen, President, Peterson Institute for International Economics

Finally, a superb book that places populism in its proper historical context. And who better to write it than Barry Eichengreen, a master at shedding light on our contemporary economic problems from a historical perspective? Eichengreen brilliantly describes the backlash unleashed by economic difficulties and dislocation periodically throughout history, and the varying success of political regimes to rise to the challenge. Historical treatments with their focus on deeply rooted processes can be fatalistic. Eichengreen nicely sidesteps that trap, with a hopeful, constructive message pointing the way forward. - Dani Rodrik, Harvard University

In "The Populist Temptation", Barry Eichengreen, amongst the foremost international economists today, explains why we are seeing an outburst of populist movements across the industrial world, and how they mirror similar movements from history. He argues that while the populists have genuine grievances, the solutions their leaders propose are unlikely to work. Eichengreen is skeptical that populists' concerns can be addressed easily. However, his insightful analysis is an essential starting point for anyone who wants to understand one of the most important developments of our times. - Raghuram G. Rajan, Katherine Dusak Miller Distinguished Service Professor of Finance, University of Chicago

Barry Eichengreen has written a characteristically lucid book on the contemporary threat of populism. - Financial Times

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