What Explains The Rise Of Populism?
Finweek English|10 August 2017

New research shows that the economic climate in a country appears to have a substantial impact on individuals’ political sentiment. These findings could have important implications for South Africa.

Johan Fourie
What Explains The Rise Of Populism?

Consider this thought experiment: Sibusiso and Thulani each own a firm that competes with the other. In each of the following scenarios, Sibusiso’s firm outcompetes Thulani’s. Which of the four do you consider unfair competition?

1. Sibusiso works hard, saves and invests his profits, and invents new techniques and products, while Thulani’s products change little and he loses market share.

2. Sibusiso finds a higher quality input supplier in the US, improving his products. He therefore takes market share from Thulani.

3. Sibusiso outsources some services to Bangladesh, where workers work 12-hour shifts under hazardous conditions, earning very low wages.

4. Sibusiso brings Bangladeshi workers to SA under temporary contracts, and puts them to work earning less than the minimum wage.

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