The rise of populist politics in the United States has coincided with a major shift in the level of wealth held by average Americans relative to the elite.

The wealth levels of the bottom half of Americans in 2019, taking into account the amount of consumer debt they held, were $1.5 trillion lower in liquid assets than 30 years ago, while the total wealth of the top 10% remained roughly unchanged. according to According to calculations done by Oren Cass, executive director of American Compass, the decline in American wealth is a result of populist politics. shift In the United States, it has been led primarily by former President Donald Trump. (Related article: Biden's economy is killing American-born workers. Here's why)

Professor at Georgetown University Identified In 2021, they predict that globalization, outsourcing of domestic jobs, and automation are accelerating long-term trends of populism around the world, leading to the decline of manufacturing. The professors agreed that the recent rise of populism is “unprecedented.”

Since launching his first presidential campaign in 2015, Trump has been a key figure riding the wave of American populism. policy These include trade protectionism, expanding American manufacturing, and reducing illegal immigration. The former president maintains these populist policies in the current presidential election, claiming that they focus on the American people and reject the interests of globalists, including major multinational corporations.

“Populism has always been a sign of a failing political system, and that has always been true,” EJ Antoni, a fellow at the Heritage Foundation's Grover M. Herman Center for the Federal Budget, told the Daily Caller News Foundation. “People are angry that those in power have created a financial system based on the Federal Reserve that benefits those who work with bureaucrats at the expense of ordinary people. Today, we see a clear sense, especially among younger Americans, that they've done all the right things but that they can't succeed in such a system.”

Opponents of President Trump and his populist economic policies Assert Trade-restrictive policies encourage a more global view of supply chains, rather than focusing on supporting domestic manufacturing and large corporations. Inflow Increased immigration leads to a stronger economy where more wealth is created, regardless of who receives the benefits.

“I think immigration is a big part of the problem,” Cass told DCNF. “Bringing in loads of low-wage immigrants is good for corporate profits but terrible for the workers who are already here.”

Under the Biden administration, a large influx of foreign-born workers, many of them illegal immigrants from the southern border, has been a key driver of top-line economic growth figures like gross domestic product in recent quarters. As a result, the economy appears to be growing, but it is to the benefit of foreign-born workers, not native-born Americans.

“But is the fact that millions of immigrants are coming illegally to our country in search of work, ignoring the clear wishes of the majority of our people, and encouraged by the corporate class and ruling party, a sign of a particularly strong economy or a truly broken political system?” Cass said. Said In a Friday Substack post, he asked: “But which economy is stronger: one with high GDP growth because immigrants are coming across the border at a rapid rate, or one with high wage growth because the labor market is tight?”

9. Of course. Elon Musk And his investors have done pretty well, even though Tesla's stock price recently halved. The incentives for multinational owners are not aligned with the interests of the American people. No one should expect capitalism to work this way. pic.twitter.com/dCdBJVCc9q

— Oren Cass (@oren_cass) June 26, 2024

Manufacturing employment has also fallen significantly since 1989 due to increased efficiency from rising capital and the U.S.'s shift to a service economy that has reduced production. Employed The number of manufacturing employees increased through 1989, then declined sharply after 2000, falling to 11.45 million in March 2010 after the Great Recession. However, it has since recovered and has remained stable at just under 13 million since around 2019 (excluding a temporary large drop during the COVID-19 pandemic).

As manufacturing declines, the U.S. trade deficit (the difference between the amount of goods the U.S. exports and imports) is InflatedAccording to the earliest available records, the U.S. trade deficit was about $2 billion in January 1992, but by 2006 it had soared to more than $60 billion a month, and as of April 2024 it stood at $74.6 billion.

“It's not surprising to see a disconnect between the wealthy and the rest of the population,” Antoni told DCNF. “Three problematic decades of inflation caused massive increases in asset prices that benefited asset holders while impoverishing everyone else. This phenomenon is acutely felt today among homeowners and renters, as constantly declining incomes and savings make it nearly impossible for many Americans to get ahead.”

Populist policies have also surged in the Democratic Party, largely driven by Vermont Senator Bernie Sanders, who was the leading candidate in the 2016 Democratic presidential primary and briefly topped the list in the 2020 primary. Sanders has also Advocate He advocates for greater protectionism in trade policy and has made clear his aversion to wealth inequality.

Biden has shifted his stance on certain protectionist trade policies, such as tariffs, to try to capitalize on the growing popularity of populist politics by winning over unions and other labor-allied groups. Trump has repeatedly tried to use his populist trade policies to appeal to union members, who typically lean Democratic.

“This is not a sustainable equilibrium,” Cass told DCNF. “In a democracy, you can't expect people to support this and allow it to continue, so the so-called elites need to either acknowledge that this is not a good model and embrace reforms that realign these incentives or be prepared to be pushed out.”

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