The message to Democrats is clear: you must dump neoliberal economics | Joseph Stiglitz
The party must return to its progressive roots. A new economy is needed with new rules and new roles
As the shock of Donald Trump’s victory sinks in, pundits and politicians are mulling what it means for the future of the US and global politics. Understanding why such a divisive, unqualified figure won again is crucial for the Democrats. Did they go too far left and lose the moderate Americans who make up a majority? Or did centrist neoliberalism – pursued by Democratic presidents since Bill Clinton – fail to deliver, thus creating a demand for change?
To me, the answer is clear: 40 years of neoliberalism have left the US with unprecedented inequality, stagnation in the middle of the income spectrum (and worse for those below), and declining average life expectancy (highlighted by mounting “deaths of despair”). The American Dream is being killed, and although President Joe Biden and Vice-President Kamala Harris distanced themselves from neoliberalism with their embrace of industrial policies, as representatives of the mainstream establishment, they remained associated with its legacy.
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This all then boils down to the issue of trust. Many are baffled how a character like Trump can be seen as genuine and sincere. The trick lies in his perceived opposition to institutions, norms and the establishment of even his own party. This aesthetic helps him immensely in the eyes of the disillusioned.
New economic policy which is not accompanied by a revamping of image and personalities in the democratic party will have limited results (but admittedly it might still be enough to win elections).