The Economic Peril of Aggrieved Nationalism

Humanity is tribal, notes Martin Wolf for the Financial Times, and communities form around shared cultural or national values during difficult times. “Today, as in the past, leaders foment aggrieved nationalism to justify despotism and even war,” Wolf writes. “For much of human history, war was seen as the natural relationship between societies. Victory brought plunder, power and prestige, at least for elites.” Cooperation through trade also delivers prosperity. “Perhaps the greatest contribution of economics is the idea that societies will gain more from seeking to trade with one another than trying to conquer one another,” Wolf notes. Still, some feel threatened by cooperating with outsiders. Some leaders criticize those who strive to be “citizens of the world” rather than prioritize national loyalties; others pursue power by encouraging resentment, polarization and paranoia with an “us against others” mentality. A common target for despots who cannot endure criticism is an independent media. Wolf concludes with a warning that authoritarian nationalism is gaining in global appeal. – YaleGlobal