The Populist Explosion

The country appears trapped in low-growth equilibrium with exceptionally high unemployment and without command over the instruments of economic policy that could alter its predicament. The notion that low wages coupled with deregulation of markets and privatization of public assets would lead to sustained growth is entirely without theoretical and empirical foundation.”

In 2009, Tsipras had barely referred to the “people,” but in 2012, it became the constant referent in his speeches—occurring 51 times in his closing electoral address in June. In his speech, Tsipras declared about the coming vote, “Sunday is not just about a simple confrontation between Syriza and the political establishment of the Memorandum. . . . It is about an encounter of the people with their lives

young voters, the unemployed, and the urban employed in both public and private sectors

public sector at roughly the size—16 percent of GDP—of some other EU states

new currency. But voters in these countries didn’t want to leave the Eurozone. They feared chaos and, particularly among the elderly, the loss of savings and of fixed incomes. Or third, these countries could undertake a severe version of what Mitterrand had to do in 1982—curtail spending and raise taxes resulting in even higher unemployment, but also a reduced demand for imports, and eventually and hopefully, by lowering wage costs, more competitive exports.

First, they could convince the creditor countries, chiefly but not exclusively Germany, to forgive their debts. That proved impossible. The German electorate, along with the Finns and Dutch, loudly protested any bailout. Second, they could leave the Eurozone entirely and accept radical devaluation of their

Political scientist Cas Mudde writes, “In the public debate populism is mostly used to denounce a form of politics that uses (a combination of) demagogy, charismatic leadership, or a Stammtisch (pub) discourse.”

Eventually, much of the populists’ agenda—from the graduated income tax to a version of the sub-treasury plan—was incorporated into the New Deal and into the outlook of New Deal liberalism

Eventually, much of the populists’ agenda—from the graduated income tax to a version of the sub-treasury plan—was incorporated into the New Deal and into the outlook of New Deal liberalism.

populists were the first to call for government to regulate and even nationalize industries that were integral to the economy, like the railroads; they wanted government to reduce the economic inequality that capitalism, when left to its own devices, was creating; and they wanted to reduce the power of business in determining the outcome of elections.