Sergei Guriev and Ellias Papaioanno (G and P), Journal of Economic Literature 2022, 60 (3), are of the view in their article, “The Political Economy of Populism”, that global spread of populism threatens democracy in general, protection of world order, civil liberties, and “constitutional checks and balances.” It is evidenced, for example, by questioning the merits of globalization, attacking experts, elites and media, and an increase in hate of minorities and immigrants. These developments and views are further intensified by an increase in income and social mobility, thus resulting in distrust of politicians, experts and democracy in general.

The question one may ask is what is driving this change in attitudes. Many experts list causes such as growing import competition, technical change, decreasing manufacturing employment, decline of middle class, increasing service sector requiring advanced skills and education, and spread of information. However, Luca Rogers warned in his Letters to the Editor column in the Standard Examiner, May 17-18, 2025, that “turning schools into factories” does not solve the inadequacies of the “broken education system”.

The education system does not provide equal opportunities across different racial groups, such as Blacks vs Whites, American Indians vs Whites, thus resulting in resentment against private and political institutions. The median wealth gap between Whites and Blacks increased from 2010 to 2019; wealth of 50% of White families was less than $184,000 in 2019 but the majority of Blacks (82%) had less than that (St. Louis Fed, December, 02, 2010).

G and P further argue, “The rise of populism has been swift and synchronizes across the world”. In the US it was symbolized by the rise of “Tea Party” movement in 2010. In Hungary Victor Orban, who was critical of democracy, took over power in government. In 2014 populists did well in European parliamentary elections. One also finds populism in emerging markets, for example, Chavez-Maduro in Venezuela, Rafael Corea in Ecuador and Evo Morales in Bolivia.

According to G and P, anti-expert and anti-elite ideology is also suspicious of science, e.g., their support of anti-vaccination and anti-climate change movements. They think that vaccination and global warming are elite conspiracies or a “hoax”. Some politicians have also participated in the development of such suspicious attitudes toward science and expert views on climate change and have even led some to make factually incorrect statements. Anti-elite, anti-expert, anti-science and anti-globalization movements that propagate nativism have forged relationships between right and left wings of the populations, liberals and conservatives, and young and old.

What is causing the rise of populism? G and P state that the first populist party in the “modern sense of the term” was the American People’s Party in the late 19th century. Its agenda consisted of anti-globalization and anti-elitism.

Populism is about “the people’s” moral superiority over elites. It is a theory of society that divides the society into two homogeneous groups “people’s and elites”. The formation of EU was opposed by those who supported the agenda of populists. As G and P state, “anti-globalization and anti-EU angle” is sometimes associated with “nativism and identity politics.”

The idea that supernational institutions are elite and work against so called normal people is misguided and contrary to the evidence. According to G and P extensive historical evidence provided by researchers shows, especially about Latin American populism, that populists tend to ignore macroeconomic constraints in the economy, hence their fiscal and monetary policies end up in economic crisis.

The data show that the increase in world trade results in productivity and exchange of mutually beneficial goods and services. Hence it has led to a substantial decrease in poverty and increase in prosperity in all nations. Therefore, the fear of populists of international trade and globalization is unwarranted.

Mathur is professor emeritus of economics, at Cleveland State University, Cleveland, Ohio. At present he resides in Ogden.