IfW in the News

Don’t believe the naysayers: Capitalism is healthier than it appears


A long-term study by Christoph Trebesch and Manuel Funke shows reasons for the electoral success of populist parties.

Excerpt from the Article

(...) In a recent study, economists Manuel Funke, Moritz Schularick and Christoph Trebesch analyzed more than 800 elections held between 1870 and 2014 in 20 advanced countries, including the US and UK. They found that populist parties saw a significant increase in their parliamentary vote share following financial crisis. This finding is not surprising to those of us in the US and UK who have been saturated by populist sentiment the past few years.

The economists also found that political upheaval subsides, typically within 10 years of the crisis. So I have some hope that continued economic growth and wage gains will be a balm to the populist irritation in coming years.

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