The Politics of the Knowledge Economy and the Rise of Populism
This chapter considers the “second-order” effects of the transition to the knowledge economy. This means the set of preferences, beliefs, and party allegiances that are crystallizing as a consequence of the political-economic realities brought about by the knowledge economy. Chapter 3 considered “first-order” effects—immediate policy responses reflecting existing political coalitions—and showed that these responses were relatively limited and in most countries, failed to offer much compensation for those who lost out in the collapse of the Fordist economy. This chapter argues that this failure has created the political conditions for the rise of populism. Populism refers to a set of preferences and beliefs that rejects established parties and elites, that sees established politicians as gaming the system to their own advantage, and that at the same time sees the poor as undeserving of government support.