Don’t let the cost-of-living crisis feed far-right populism – The Irish Times

Though the political battle over gun reform laws in the US, after the latest school shootings in my home state of Texas, may seem like a faraway problem, its not. Even if events are happening across the Atlantic, we should be concerned by the intransigence of Republicans, who will not yield on their sanctification of the right to keep and bear arms. We should also be worried about other policy positions developed closer to home, such as Hungarian Prime Minister Viktor Orbans 12-point plan for successful Christian Conservative politics in Western democracies or the French far rights desire to limit the rights of migrants.

We should be concerned because, despite geopolitical separation, political leaders on the far right are co-ordinating strategic objectives and policy programmes. The recent American Conservative Political Action Conference (CPAC) held in Budapest highlighted the level of co-operation. As this coordination becomes more powerful, then small countries such as Ireland, whose social values are moving in a different direction, will be increasingly troubled. They will find themselves navigating the politics of allies who are moving not just further and further away from liberal democracy, but also toward highly unequal societies where information is biased, opposition is limited or repressed, those in power act with impunity, and prejudice and patriarchy are validated.

Whats missing, though, from the far-rights otherwise coherent agenda, is any notion of how economic policy is going to support this kind of society. The gap in thinking offers an opportunity for liberal democracies such as Ireland, who can link economic policy to an alternative trajectory of societal change, distinctive from the exclusionary, even violent vision of the far right.

Far right governments have often treated the economy as a political tool, providing handouts to political allies and supporters, and punishing businesses that express political views they dont like, for instance, about climate change. They also engage in wishful thinking about the effects of deregulation and lower taxes on economic growth and income distribution. During his presidency, Donald Trump embraced tax cuts for the wealthy and stripping worker rights. Correspondingly, income inequality grew, with the top 5 per cent benefiting the most, while poor management of the pandemic undid gains in employment and economic growth after he took office.

[Spiralling rents and mortgage costs pushing more into poverty, study finds]

The current cost of living crisis, as well as the war in Ukraine, offer the chance for a rethink on precisely how to reduce inequality, diversify the economy, and account for the impact of economic growth on the environment and society. In Ireland, the combination of long-term structural problems such as underinvestment in public services and rising costs is certainly placing unbearable pressure on lower income households, but its affecting middle income households as well. The OECD recently reported on falling real wages in Ireland, along with higher taxes on that income.

Certainly, the Government should help households in the short term. But they should be more ambitious in confronting the inequalities that undermine social cohesion and provoke political discontent. For instance, policymakers could ask how new initiatives such as the 90 million start-up fund as well as investment in infrastructure could help reduce regional inequalities and the decline of rural communities.

According to 2020 data, the gap between the average disposable income per capita at a national level and in the Northern and Western region, as well as the gap between Dublin and the Border region, have tripled since 2010. These inequalities are manifested in local resistance against national policy, for instance, the protests against the ban on turf cutting. Communities have called the ban unfair, citing its significance to their livelihoods and sustainability as a community. Some have called for developing community-owned assets, such as energy production, so that residents benefit economically and communities themselves can be rejuvenated. They reject investment from multinationals or large companies whose priority is profitmaking.

These protests echo those in other countries, where communities suffering from years of underinvestment and economic decline feel neglected by national governments. Leaders such as Orban have taken advantage of this dissatisfaction. Indeed, he argues in his 12-point plan that there is no conservative political success without well-functioning communities. The fewer the communities and the lonelier the people, the more voters turn to the Liberals. Whereas the more communities there are, the more votes we get. It is as simple as that. Yet can communities really function if people cannot find good jobs or earn enough money to pay the bills?

Ireland has a chance now to strengthen the connection between investing in local economies and community development, a connection that goes beyond building rural work hubs. Adoption of models such as community wealth building entails altering local public institutional spending in areas of high deprivation, for example, using procurement contracts to generate growth in local businesses, especially those that pay a fair wage.

The Government should go further by expanding use of public funds to bring together researchers, entrepreneurs and community stakeholders to cultivate centres of innovation that benefit local businesses and residents in regions suffering long-term downward economic trends. The reality is that communities will only become more functional if instead of uncertainty and decline, their members can now visualise a more vibrant future, where they can trust economic policy to increase local opportunities and improve community life.

Shana Cohen is the director of Tasc, the think tank for action of social change

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Don't let the cost-of-living crisis feed far-right populism - The Irish Times