Source: EconLog
by Christopher Coyne & Andre Quinta
“Populism is one of the most important political phenomena of our time. Yet, it is still poorly understood. At its core, populism is built on the notion that the masses are engaged in a struggle against corrupt elites who have rigged the political and economic system to their advantage. Whether left-wing or right-wing, this is the essence of the populist narrative: an appeal to ‘the people’ against ‘the elite’ and the claim to restore power to ordinary citizens by breaking the grip of entrenched interests. But can populism effectively challenge crony capitalism—a system where the political and economic elite are entangled? Can it truly dismantle the grip of entrenched interests? In a recent working paper, we argue that populist movements are likely to fail to deliver on their promises. The reason is that populism does not resolve the dual epistemic and incentive challenges necessary for success.” (03/13/25)