Global Elites Must Heed the Warning of Populist Rage

Dissatisfaction runs high in many of the world’s most advanced economies – and many voters are turning to leaders who encourage nationalism, protectionism and other extreme policies, explains Martin Wolf in the Financial Times. He points to studies showing “Stagnant incomes bother people more than rising inequality.” Economic recessions, aging populations, rising inequality, immigration and cultural changes also contribute to voter anger. Wolf offers recommendations: Leaders must remind voters that global cooperation and interconnections bring prosperity, capitalism requires reforms and a reduction of finance’s excessive role, international cooperation around basic objectives like taxation can reduce inefficiencies and competition, while increased economic growth improves opportunities. “Prolonged stagnation, cultural upheavals and policy failures are combining to shake the balance between democratic legitimacy and global order,” Wolf concludes, and he urges “imaginative and ambitious ideas aimed at re-establishing … balance.” – YaleGlobal