Populist policies and the US manufacturing slowdown
klementoninvesting.substack.com
Historically, we associated populism with left-wing socialist leaders in Latin America ranging from Lula da Silva and Rousseff in Brazil to the Kirchners in Argentina and the tinpot dictators in Venezuela. They managed to get elected based on promises to help the poor with redistributional policies of their countries’ natural resources. Once elected, they often enacted programs that amounted to government handouts to the poor and the nationalisation or pseudo-nationalisation of important industries. The end result was some alleviation of poverty for a while but a lack of investments in the future that eventually came back to haunt them as revenues from the nationalised industries declined and economic growth stalled. This, in turn, led to massive government deficits and rapidly rising sovereign debt which in many cases led to runaway inflation and debt default.
Populist policies and the US manufacturing slowdown
Populist policies and the US manufacturing…
Populist policies and the US manufacturing slowdown
Historically, we associated populism with left-wing socialist leaders in Latin America ranging from Lula da Silva and Rousseff in Brazil to the Kirchners in Argentina and the tinpot dictators in Venezuela. They managed to get elected based on promises to help the poor with redistributional policies of their countries’ natural resources. Once elected, they often enacted programs that amounted to government handouts to the poor and the nationalisation or pseudo-nationalisation of important industries. The end result was some alleviation of poverty for a while but a lack of investments in the future that eventually came back to haunt them as revenues from the nationalised industries declined and economic growth stalled. This, in turn, led to massive government deficits and rapidly rising sovereign debt which in many cases led to runaway inflation and debt default.