Last week we considered the short-term reasons for believing in the rise of left-wing populism. Now, we now turn to the more profound, long term pressures underpinning this shift in the US and, to a lesser extent, the UK.
Why Does the Future Belong to the Left?
• The Unstable Right Coalition: While all versions of left-wing populism are consistent with big government in the economic sphere, on the right, only authoritarianism is (Fig. 1). It appears inevitable that the mainstreaming of left-leaning economics as a solution to inequality will instigate a longer-term conflict within the right alliance. Big government and authoritarianism lie counter to much of the bedrock principles of Anglo-American conservatism. In the US, this alliance is holding strong thanks to the Trump administration delivering on key cultural issues, but over time these violations will become harder to ignore. The right-wing alliance between the anti-EU Tories and Nigel Farage’s working class is even weaker and unlikely to extend beyond a single issue coalition.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.