The Economic Cost of Populism

While we take a quick summer break, we wanted to re-release an episode that felt timely, given the rise of right-wing populism around the world. More than 25 percent of countries around the world are currently governed by populists, from Recep Tayyip Erdogan in Turkey, to Donald Trump in the United States. Based on these findings, populism is at an all-time high, and taking a significant economic toll, according to a recent paper by Christoph Trebesch and his co-authors. Trebesch is Professor of Economics at Kiel University. He and his co-authors find that populism leads to slower economic growth, undermines democratic institutions, and can leave the country more vulnerable to future populist governments.