When Fukuyama declared “the end of history”, that included the end of economic history too. Western neoliberal economics had triumphed over Soviet-style socialism. But, with the rise of populism, settled neoliberal economic theories regarding free trade, globalisation, and the independence of central banks are all now up for debate. Trump has blamed globalisation for the "poverty and heartache" of workers, and introduced wide-ranging tariffs and $20bn of subsidies for farmers - both a rejection of free trade. At the same time, Trump is implementing tax cuts that allocate 45% of the benefits to the top 5% of earners in line with trickle-down economics and libertarian thinking. This combination of protectionism, libertarianism, socialism, and liberalism looks like no economic approach or theory that has come before. Economic history isn't over yet.
Are we witnessing the emergence of a new, populist economic theory? Or is this simply a ploy to win votes, and does populist economics pull in opposing directions? Or is this evidence that a grand economic theory isn't necessary, and should economics always be flexible and pragmatic?
