“Both the populist right and left are protectionist when it comes to trade. While the right advocates for protectionism to support national security, preserve manufacturing, and maintain national sovereignty, the left supports tariffs and other trade restraints to protect workers’ rights, prevent exploitation in developing countries, and reduce environmental impact. Both sides, if for different reasons, favor trade barriers and are skeptical of free-trade agreements. The best evidence is that President Joe Biden has retained most of former President Donald Trump’s tariffs.
Similarly, under the misguided excuse of strengthening our economy, both sides now practice an industrial policy that dispenses massive subsidies, tax credits, and other government-granted corporate privileges. For instance, the Biden administration’s $52 billion in federal tax breaks and subsidies through the CHIPS Act to prop up the semiconductor industry, including reports of $40 billion—77 percent of the funds—benefiting giant companies like Intel, GlobalFoundries, Samsung, and Taiwan Semiconductor Manufacturing Corp., was passed in a bipartisan way.
Utterly inconsistently, both sides also express serious distrust in mega-corporations. The New Right often views large corporations as part of a “global elite” disconnected from the average citizen and influencing government policies for its own benefit. Meanwhile, the left criticizes these entities for their alleged role in increasing income inequality, opposing workers’ rights and degrading the environment.
As a result, despite throwing money at big businesses with one hand, both sides are bogging down corporations—especially the ones that successfully earn a lot of customers—with the other hand, stacking up regulations, or even threatening to break them up with antitrust cases.Both the New Right and the left reject talks of fiscal discipline. No side wants to reform entitlement programs like Medicare and Social Security even though these programs are becoming insolvent. Both groups support expensive, often excessive, and politically popular redistribution to families, including rich ones, in the form of paid leave programs, child care subsidies, or expanded child tax credits.”
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“This shift bodes poorly for the economy, as populism has a track record of producing results opposite what their proponents promise.”