Defeating the Far Right: The Role of Economy and Ecology
TL/DR –
The rise of far-right movements across the world has been linked to economic instability, with austerity and precarity leaving citizens vulnerable to simplistic, divisive narratives. Examples can be seen in Germany, the US, and Brazil, where economic hardships and perceived exclusion from prosperity have fueled far-right support. To counter this, it is suggested that governments invest heavily in public infrastructure, tackle inflation, promote a just transition to a low-carbon economy, restore trust in institutions, and craft narratives that offer hope and emphasize collective well-being.
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The Rise of Far-right Politics: Economic Crisis and the Search for a New Economic Vision
The surge of far-right political movements in countries like Germany, the United States, and Brazil, among others, signals a global trend. A common thread among these nations is an economy failing to provide a sense of security, justice, and prosperity. This rise of far-right politics is not an isolated phenomenon but seemingly a reflexive response to economic instability.
It is not a novel idea that capitalism’s instability can breed reactionary political movements, as noted by thinkers like Antonio Gramsci and Karl Polanyi. Polanyi, in his work The Great Transformation, made a case for how the ‘disembedding’ of markets from societal structures provided fertile ground for authoritarianism to thrive.
Contemporary scholars and analysts have offered insights into this phenomenon as well. Nancy Fraser from the New School for Social Research, for instance, has highlighted how neoliberalism can erode social solidarity, feeding into exclusionary populism. It is also argued that austerity and precarious living conditions make citizens more susceptible to simplified, blame-game narratives.
Just as the Great Depression paved the way for fascism in Europe, the 2008 global financial crisis created the conditions for nationalist backlash around the world.
Historical evidence shows how far-right extremism can grow from conditions of mass unemployment, inflation, deteriorating living standards, especially when paired with weak institutions or political polarization. The Great Depression and the 2008 global financial crisis both laid the groundwork for nationalist backlashes globally.
The COVID-19 pandemic and the subsequent energy crisis, stemming from Russia’s invasion of Ukraine, exposed Germany to a similar cycle. Economists Isabella M. Weber and Tom Krebs demonstrate how escalating energy expenses rippled across the economy, increasing inflationary pressures and boosting the far-right Alternative für Deutschland’s popularity.
Similar trends can be seen in the US, where decades of deindustrialization, wage stagnation, and rising inequality have been catalysts for discontent. This environment provided fertile ground for Donald Trump to exploit post-pandemic price hikes and societal grievances, ultimately leading to his 2024 election victory.
Brazil’s situation involves a different dynamic. While millions were lifted from poverty under President Luiz Inácio Lula da Silva’s Workers’ Party government, many later suffered a reversal of fortune, and others felt alienated from social programmes.
In a binary world of winners and losers, the complexity disappears in myths of bygone cultural purity and national greatness.
Despite far-right leader Jair Bolsonaro’s sentencing for a coup attempt, other far-right figures in Brazil promise a return to order. Yet, their narratives often ignore the structure barriers to socioeconomic mobility and capitalize on external shocks – like the pandemic-driven supply-chain disruptions, energy market volatility, and climate change-induced inflation – to fuel far-right ideologies.
Forging a New Economic Vision
The far-right movements, rooted largely in economic discontent, require a comprehensive economic solution. This includes addressing inflation at its source rather than defaulting to interest-rate hikes and austerity, which disproportionately affect the most vulnerable. Fiscal tools like income support, tax relief on essentials, and robust public services, coupled with investment in renewable energy, food security, and sustainable manufacturing, could offer a way forward.
Revitalizing public infrastructure, from transportation and housing to health and education, is also crucial. Ensuring services are reliable, equitable, and climate-resilient through public ownership or regulations could help rebuild trust in institutions.
Where the far right offers fear, division and scapegoats, democratic forces must offer solidarity, dignity and hope.
A fair transition to a low-carbon economy is another priority. The market alone cannot ensure this transition won’t exacerbate inequalities. Therefore, the energy transition must empower workers and generate good, secure, well-paid, unionized, and community-rooted jobs.
Finally, democratic forces must craft a new narrative that centers collective well-being, celebrates diversity, and makes progress feel tangible, offering an antidote to the fear, division, and scapegoating of the far right.
The far right thrives on despair, insecurity, and exclusion, and reforming neoliberalism at its fringes will not suffice to starve it. We need a new economic model rooted in sustainability, justice, and solidarity.
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