ECPS Academy – Summer School 2022: “Populism and Economic Performance: Implications on Institutions and Good Governance” by Dr Ibrahim Ozturk

This short seminar aims to introduce the concept of populism in economics in terms of its causes (i.e., globalization, income inequality, financial crisis), its mechanism of execution in economics by the populists (i.e., macroeconomics and institutions of populism), and its consequences.  The economic argument for populism is straightforward: poor economic performance feeds dissatisfaction with the status quo. It fosters support for populist alternatives when that poor performance occurs on the watch of mainstream parties. Rising inequality augments the ranks of the left behind, fanning dissatisfaction with economic management. Declining social mobility and a dearth of alternatives reinforce the sense of hopelessness and exclusion.  However, unlike the argument they use when they are in opposition, in power, by denying and undermining professional and autonomous institutions, discrediting science and scientific knowledge, and rejecting resource constraints in economics, populists would give even more harm to the people they promised to help.