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Economic policies and identity politics

Tackling nativist populism calls for a strategy for reform that could weaken its appeal

Andres Velasco and Daniel Brieba
Published Thu, Feb 8, 2024 · 05:00 AM

WHAT kinds of economic policies should centrist reformers pursue? The standard answer is that they should target innovation-driven economic growth and a fair distribution of income. Achieving these goals simultaneously would be difficult under normal circumstances. Nowadays, the clash of identities threatening to tear apart many democratic societies makes it even harder.

According to conventional wisdom, a fairer distribution of income is the best way to defang identity politics. In fact, the opposite is true: unless we address the identity clash head-on, politics will become so nasty and intractable that spurring innovation and reducing economic inequality, let alone improving public services and curbing climate change, could become impossible.

Part of the answer is candidate choice: elitist, aloof leaders will be perceived that way by voters.

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