About this video

• Video Title: Why gen-Z men are turning far right and women far left
• Channel: Money & Macro
• Speakers: Not specified in the transcript
• Duration: 00:17:21

Overview

This video explores the trend of young men increasingly leaning towards the far right and young women towards the far left in their political leanings, using examples from Germany, South Korea, the Netherlands, the UK, and the US. It delves into the definition and characteristics of populism, distinguishing between far-left and far-right populism, and examines the historical impact of populist governments on democracy and the economy. The video also discusses potential reasons for this generational political divide, including economic insecurity, cultural factors, and the influence of social media.

Key takeaways

• Generational Political Divide: Gen Z men are showing a marked shift towards the far-right, while Gen Z women are increasingly aligning with the far-left, a trend observed across several countries.
• Defining Populism: Populism is defined by its focus on the struggle between "the people" and "the elite establishment." The video differentiates between far-left populism (e.g., Bernie Sanders), characterized by calls for radical redistribution and rejection of the current capitalist system, and far-right populism (e.g., Trump's MAGA movement), characterized by nativism and a belief in strict social order and punishment for defiance.
• Risks of Populism: Historically, populist governments, both left and right, have shown a tendency to challenge democratic institutions, erode checks and balances, and often lead to negative economic outcomes, though there are exceptions.
• Drivers of Populism: Increased economic insecurity, exacerbated by factors like the cost of living crisis and housing prices, is a primary driver. Cultural factors, such as a decline in social status for certain demographics and a backlash to perceived extreme feminist ideas, may explain the divergence between men and women's political leanings.
• Role of Social Media: Social media platforms amplify polarizing messages and provide populist politicians with a significant reach, particularly among young men.

According to historical studies presented in the video, the two main negative effects of populist governments are:

1. Challenging democratic institutions and eroding checks and balances: Populist leaders have been found to be significantly more likely to trigger democratic backsliding and tend to stay in office much longer than non-populist politicians, with many never leaving.
2. Being bad for the economy: On average, populist leaders tend to reduce economic growth compared to non-populist counterparts, with left-wing populists performing slightly worse than right-wing populists in this regard.

While the video states that on average, populist governments tend to reduce economic growth, it also highlights some exceptions where this was not entirely the case or where outcomes were mixed:

• Right-wing leaders like Hungary's Orbán and Israel's Netanyahu have, so far, seen solid economic growth despite being difficult to get out of office.
• Historically, Brazil's Getúlio Vargas and Bolivia's Evo Morales, both left-wing populists, actually outperformed their "doppelganger" economies.
• The video also mentions that some past US presidents associated with populism, like Teddy Roosevelt and FDR, are still seen as some of America's best presidents, implying their presidencies did not universally lead to negative economic outcomes.