The Politics of Our Time

1. Populism: A Warning Sign of Systemic Failure

The populist parties and candidates are an early warning sign that a new direction and a new consensus is needed.

Political logic. Populism is not a fixed ideology but a political logic that frames society as a conflict between "the people" and "the elites" or "establishment." Left-wing populism typically pits the bottom and middle against the top, while right-wing populism adds a third element: accusing elites of coddling an "outgroup" (e.g., immigrants, minorities). The demands made by populists are often non-negotiable, serving to highlight the fundamental clash rather than seeking immediate compromise.

Catalyst for change. Historically, populist movements emerge when prevailing political norms and economic promises fail to address the hopes and fears of significant portions of the public. They act as catalysts, signaling that the established worldview is breaking down and requires fundamental repair. Even if populist movements don't always achieve their stated objectives, they force mainstream parties to confront neglected issues.

Historical examples. From America's People's Party in the 1890s, which challenged unregulated finance, to Huey Long's "Share Our Wealth" movement in the 1930s, populists have consistently highlighted systemic inadequacies. In the 21st century, the Tea Party and Occupy Wall Street, followed by the candidacies of Donald Trump and Bernie Sanders, demonstrated widespread disillusionment with the neoliberal consensus, particularly after the 2008 Great Recession.

2. Right-Wing Populism: Blending Economic Grievance with Exclusionary Nationalism

Rightwing populists champion the people against an elite that they accuse of coddling a third group, which can consist, for instance, of immigrants, Islamists, or African American militants.

Triadic conflict. Right-wing populism is characterized by a "triadic" political logic, where "the people" are pitted against "the elites" who are perceived as favoring an "outgroup." This outgroup often includes immigrants, refugees, or specific religious minorities, who are blamed for economic woes or cultural erosion. This dynamic allows right-wing populists to combine economic grievances with exclusionary nationalist rhetoric.

"Left-behinds" as base. The core constituency for right-wing populism often comprises the "left-behinds" of post-industrial capitalism: individuals in small or mid-sized towns, often with less education, whose communities have suffered from deindustrialization and economic stagnation. They feel abandoned by globalized elites and see their way of life threatened by foreign trade, unscrupulous financiers, and mass immigration.

• Examples: Donald Trump's base in the American Rust Belt, UKIP's support in deindustrialized British towns, the AfD's strength in former East Germany, and the Danish People's Party's appeal to welfare-state protectionism.

Cultural and economic anxieties. These movements tap into a complex web of anxieties, including:

• Economic insecurity: Loss of manufacturing jobs, stagnant wages, perceived burden of immigrants on social services.
• Cultural erosion: Fears about changing national identity, challenges to traditional values, and the perceived threat of foreign cultures (e.g., Islam).
• Terrorism: Fusion of anti-immigrant sentiment with fears of Islamist attacks, leading to calls for stricter border controls and cultural assimilation.

3. Left-Wing Populism: Challenging Elites, Constrained by Global Structures

Leftwing populism is dyadic. It looks upward, but also down upon an out group.

Dyadic conflict. Left-wing populism focuses on a "dyadic" conflict, pitting "the people" (often defined as "working people" or "the 99%") against "the elites" or "billionaire class." Unlike their right-wing counterparts, they typically avoid scapegoating outgroups and instead emphasize economic inequality, corporate power, and the failures of neoliberal policies.

Anti-austerity movements. In Southern Europe, the Great Recession spurred the rise of left-wing populist parties like Greece's Syriza and Spain's Podemos. These parties gained prominence by attacking the austerity measures imposed by the European Union (EU) and the International Monetary Fund (IMF), which they argued exacerbated economic hardship and undermined national sovereignty.

• Syriza (Greece): Rose to power promising to reject EU-imposed austerity but ultimately capitulated to the Troika's demands, leading to disillusionment.
• Podemos (Spain): Emerged from the "Indignados" movement, challenging the "casta" (establishment) and advocating for social welfare and debt restructuring, but softened its stance on the Euro due to public fear of economic chaos.

Limits of the Eurozone. A significant constraint for left-wing populists in Europe has been the structure of the Eurozone. Membership in the common currency union removes the ability to devalue currency, a traditional tool for managing trade deficits and economic crises. The EU's Stability and Growth Pact further limits deficit spending, forcing countries into austerity measures that fuel popular discontent but offer few avenues for independent economic recovery.

4. Nationalism: A Deep-Rooted Force for Both Unity and Division

Nationalism provides us with a way … to feel moral, right, and just. It gives us a way to join with others in a heroic struggle. It gives a sense of purpose and meaning to our lives, and even to our deaths.

Beyond ideology. Nationalism is not merely a political ideology but a profound social psychology, rooted in deeply held sentiments usually acquired during childhood. It provides individuals with a sense of belonging, purpose, and symbolic immortality by identifying with a group larger than oneself. This "banal nationalism" is reinforced through everyday rituals like national anthems, historical narratives, and shared cultural practices.

Foundation of the state. Nationalist sentiment is crucial for the functioning of modern democracies and welfare states. It underpins the mutual trust necessary for citizens to accept electoral outcomes, adhere to laws, and contribute taxes for the collective good, even for strangers within the nation. Without a shared national identity, societies struggle with collective action problems and the sustainability of redistributive justice.

Dual nature. While nationalism can foster social generosity and democratic cohesion, it also possesses a darker side, capable of fueling bigoted exclusion and authoritarianism. The direction it takes depends heavily on historical circumstances and the appeals made by political leaders. Disregarding or demonizing nationalist sentiments, as some cosmopolitan liberals do, can inadvertently push them towards their most primitive and destructive forms.

5. The European Union's Grand Vision Undermined by Internal Fault Lines

The Eurozone’s horizontal diversity will continue to produce vertical inequalities. These will exacerbate the political division and national resentment that the EU was supposed to eliminate.

Post-war idealism. The European Union was founded on the ideal of transcending national sovereignty to prevent future wars, a vision articulated by figures like Altiero Spinelli and Jean Monnet. The creation of the European Economic Community (EEC) and later the EU, culminating in the Eurozone, aimed to foster a "we-feeling" among Europeans and integrate diverse economies and political systems.

Economic divergence. However, the Eurozone, in particular, institutionalized neoliberal rules that led to economic divergence rather than convergence. Northern export-driven economies (like Germany) benefited from an undervalued Euro, while Southern consumption-driven economies (like Greece and Spain) lost the ability to devalue their currency to manage trade deficits. This created "vertical inequality," fueling resentment and nationalist backlash against Brussels and Germany.

Migration and identity. The EU's commitment to open borders and generous asylum policies, while rooted in humanitarian ideals, clashed with national identities and economic realities. The influx of non-European immigrants and refugees, particularly after 2004 and the Syrian crisis, strained social services and fueled cultural anxieties, especially when linked to Islamist terrorist attacks. This led to a resurgence of right-wing nationalist parties across Europe, challenging the very notion of a supranational European identity.

• Examples: UKIP's successful Brexit campaign, the AfD's rise in Germany, the Danish People's Party's electoral gains, and the authoritarian nationalism of Hungary's Fidesz and Poland's Law and Justice parties.

6. American Nationalism's Resurgence: From Economic Loss to Cultural Identity

What drives voters, however, is often not a single issue, but a complex web of issues and concerns that represent a threat to a way of life.

Historical roots. American nationalism, though often presented as an "idea of liberty," has deep roots in an Anglo-Protestant ethnic and religious identity. This identity, initially defined by common ancestry, language, and religion, has been continually debated and expanded through waves of immigration, but never entirely lost. It forms the backdrop for ongoing struggles over what it means to be American.

Catalysts for revival. The late 20th and early 21st centuries saw a confluence of factors intensify American nationalist sentiment:

• Economic decline: Loss of manufacturing jobs to China and other low-wage economies, creating a "hollowing out" of the middle class and widespread anxiety about America's global economic standing.
• Mass immigration: Post-1965 influx of non-European, often unskilled, immigrants led to concerns about job competition, social costs, and cultural unity, echoing earlier nativist movements.
• Terrorism: The 9/11 attacks fused anti-immigrant sentiment with fears of Islamist terrorism, intensifying exclusionary nationalism and leading to suspicion of "un-American" elements.

Trump's appeal. Donald Trump effectively tapped into these anxieties, inheriting the nationalist mantle from figures like Ronald Reagan ("Make America Great Again") and Pat Buchanan. His "America First" platform resonated with "left-behind" white working- and middle-class voters who felt their way of life was under threat. He combined:

• Economic nationalism: Attacks on "bad trade deals" and corporate outsourcing.
• Immigration restriction: Demands for a border wall and demonization of Mexican immigrants.
• Cultural grievances: Opposition to "political correctness" and perceived moral decline, often with religious undertones.

7. Globalization's Unintended Consequences Fuel a Nationalist Backlash

The combination of capital mobility and unskilled immigration also deterred companies from lowering their costs through increasing productivity and is probably a factor in the slowdown in productivity over the last decade.

The promise of globalization. From the 1990s, policymakers in the US and Europe championed globalization, promising peace and prosperity through capital mobility, free trade, floating exchange rates, and reduced immigration barriers. This vision, epitomized by figures like Bill Clinton and Tony Blair, aimed to create an interconnected world order.

Economic fallout. However, this full-blown version of globalization, though never fully realized, led to significant unintended consequences:

• Financial instability: Uncontrolled capital flows and trade imbalances (e.g., China's surpluses recycled into US debt) contributed to financial crises, culminating in the Great Recession.
• Rising inequality: Capital mobility gave corporations immense power over labor, driving down wages, weakening unions, and creating a "race to the bottom" in corporate tax rates.
• Uneven development: While financial and high-tech sectors prospered in metropolitan areas, manufacturing towns suffered from job losses due to outsourcing and foreign competition.

The "false song" of globalism. The failure of globalization to deliver widespread prosperity, coupled with the social and cultural strains of mass immigration, fueled a powerful nationalist backlash. Leaders like Donald Trump rejected "globalism" as a "false song" that prioritized international interests over national ones. This critique, however, often veered into a Hobbesian view of international relations, where nations are in constant zero-sum conflict.

8. The Socialist Awakening: A Response to Capitalism's Modern Crises

The coronavirus pandemic came barely five years after the United States and Western Europe were finally recovering from the Great Recession of 2008. It has not, and will not, spell the end of the world or of capitalism, but it has put the final nail in the coffin of the laissez-faire, globalized capitalism that prevailed since the days of Margaret Thatcher and Ronald Reagan and that was perpetuated, wittingly or not, by their successors.

End of an era. The COVID-19 pandemic, following closely on the heels of the Great Recession, has exposed the profound weaknesses of laissez-faire, globalized capitalism. It has highlighted:

• Fragile supply chains: Over-reliance on international production.
• Underfunded social services: Inadequate healthcare and welfare systems.
• Economic inequality: Tax avoidance by the wealthy, immiseration of "essential workers."
  These failures have signaled the definitive end of the neoliberal consensus and the return of "big government."

New political landscape. This breakdown has spurred a "socialist awakening," particularly among younger generations in the US and Europe. Disillusioned with capitalism's inability to provide security and address systemic issues like climate change, they are increasingly receptive to socialist ideas. This shift is evident in:

• Left-wing populism: In Southern Europe.
• Rise of the Greens: Across the continent.
• Labour's socialist revival: In Britain.
• Democratic socialism: In the United States, championed by Bernie Sanders and Alexandria Ocasio-Cortez.

Beyond Cold War stigma. For many young people, born after the Cold War, the term "socialism" no longer carries the stigma of Soviet communism. Instead, it is often associated with the successful social democracies of Scandinavia, emphasizing public control of essential services, greater equality, and cooperation over cutthroat competition. This redefinition makes socialist politics more palatable and relevant to contemporary challenges.

9. Post-Marxist Socialism: Reforming Capitalism, Not Abolishing It

Socialism creates institutions and laws that fulfill the ethical ideals of liberty, equality, justice, democracy, and social solidarity.

Socialism within capitalism. Contemporary democratic socialism, or "post-Marxist socialism," rejects the orthodox Marxist vision of a revolutionary overthrow of capitalism. Instead, it views socialism as a set of institutions and reforms that can be developed within capitalism, gradually shifting economic and social power from capital to labor. This "mix of socialism and capitalism" aims to subordinate markets to democratic politics.

Key features of new socialism:

• Ethical foundation: Emphasizes justice, equality, democracy, and social solidarity, extending beyond the workplace to address racial, sexual, and ethnic equality.
• Primacy of politics: Rejects historical determinism, recognizing that political struggle, not inevitable economic crises, determines whether social protections are erected against market fundamentalism.
• Explicit and implicit forms: Socialist reforms may be introduced explicitly under the banner of socialism or implicitly by "shadow socialists" who adopt similar policies without using the label, especially where the term is stigmatized.

Concrete proposals. This approach translates into concrete policy proposals aimed at reining in capitalism's excesses and empowering ordinary people:

• Progressive wealth and income taxes to diffuse wealth.
• "Co-determination" laws granting workers representation on corporate boards.
• Public ownership and control of essential services (healthcare, education, energy).
• Stronger regulatory agencies to police corporate behavior.

10. Bernie Sanders and the Rise of American Democratic Socialism

In 1944, FDR proposed an economic bill of rights but died a year later and was never able to fulfill that vision. Our job, seventy-five years later, is to complete what Roosevelt started.

From outsider to mainstream. Bernie Sanders, a self-identified democratic socialist, played a pivotal role in bringing socialist ideas back into American mainstream politics. His political journey evolved from early orthodox Marxism and utopian counterculture ideals to a pragmatic "Swedish-style socialism" focused on achievable reforms within capitalism, akin to Milwaukee's "sewer socialism."

Populist appeal. Sanders's campaigns in 2016 and 2020 adopted a populist logic, pitting "the people" or "working people" against the "billionaire class" and the "establishment." He championed:

• Medicare for All: Universal healthcare.
• Free college tuition: Funded by a transaction tax on Wall Street.
• $15 minimum wage: To address income inequality.
• Worker empowerment: Through corporate accountability and democratic ownership.

FDR's legacy. Sanders strategically linked his vision to Franklin D. Roosevelt's Second Bill of Rights, arguing for government-guaranteed economic rights like employment, education, and medical care. This reframed democratic socialism as an extension of American progressive tradition, making it more palatable to a broader electorate.

Youthful base. Sanders's message resonated strongly with young, college-educated voters (millennials and Gen Z) who were disillusioned with capitalism's failures, particularly after the Great Recession, and concerned about climate change and student debt. This demographic, unburdened by Cold War anti-communist narratives, increasingly views socialism favorably, associating it with greater equality and social services.

11. Labour's Fall: When Socialism Lost its Nationalist Anchor

Labour’s rout may also have been due to the kind of sociocultural factors that have shaped the outlook of American socialists and have made it difficult to conceive of socialism as a majority politics.

Historical context. The British Labour Party, historically less Marxist than its European counterparts, embraced a form of "socialist nationalism" after WWII under Clement Attlee. This involved nationalizing key industries and establishing the National Health Service, while also promoting economic nationalism through tariffs and capital controls to rebuild Britain.

Corbyn's rise and fall. Jeremy Corbyn, a veteran anti-imperialist, rose to Labour leadership on a wave of anti-austerity sentiment and a promise of "21st-century socialism." His 2017 manifesto, advocating renationalization and worker ownership, resonated with voters, particularly the young and college-educated. However, Labour's subsequent decisive defeat in 2019 was largely due to:

• Brexit equivocation: Corbyn's inconsistent stance on Brexit alienated both "Remain" and "Leave" voters, undermining Labour's credibility.
• Anti-nationalist image: His anti-imperialist views and perceived lack of patriotism clashed with British nationalist sentiments, which the Tories effectively exploited.

Cultural insularity. Labour's new left, particularly Momentum, became increasingly identified with radical positions on cultural issues (e.g., gender identity, open borders) that alienated traditional working-class voters outside metropolitan and university areas. This cultural insularity, coupled with a disdain for nationalism, fractured Labour's historic coalition, transforming it from a "workers' party" into a party of "college-educated cosmopolitans."

12. The "Shadow Socialists" and the Future of Progressive Politics

The heavy lifting of creating a “historic bloc” for democratic socialism may be done by politicians, publications, think tanks, and organizations that are not overtly identified as socialist.

Beyond the label. While self-identified socialist organizations like DSA face challenges (internal ideological conflicts, radical cultural stances), the broader "shadow socialist" network holds significant potential for advancing socialist reforms. This network comprises "progressive" or "liberal" politicians, think tanks, publications, and organizations that endorse many socialist policies without explicitly using the "socialist" label.

Biden's shift. Joe Biden's 2020 presidential campaign and subsequent administration exemplify this trend. Initially promising that "nothing would fundamentally change," Biden later embraced an ambitious agenda reflecting Sanders's influence, including:

• Large-scale industrial policy: To revive manufacturing and protect supply chains.
• Green New Deal components: Aiming for a carbon-free economy.
• "Public option" for healthcare: A potential wedge for universal coverage.
• Worker empowerment: Strengthening unions and promoting good wages.
• Redistributive tax reform: On corporations and the wealthy.

A Polanyi moment. The current era, marked by the pandemic, recession, and climate change, resembles Karl Polanyi's "Great Transformation," where capitalism's breakdown necessitates massive state intervention. This "Polanyi moment" presents an opportunity for a democratic, rather than authoritarian, response. The growing disillusionment with market fundamentalism, even among some business leaders and conservative intellectuals, suggests a potential for a broad coalition to support reforms that shift power and wealth towards labor and society.

Last updated: February 19, 2026