German economists Manuel Funke, Moritz Schularick, Christoph Trebesch studied elections in 20 advanced economies from 1870 to 2014, and they found that far right political parties tend to make electoral gains after a financial crises. Far left parties tend not to do as well. If we accept these findings, this year’s supposedly shocking election results are actually a less shocking and a lot more predictable. In fact, recently far right parties have made gains in the U.K., in France, and in Austria.
Long Story Short is a series looks at financial and economic history to understand current events. In the first episode, we show how Donald Trump’s victory can be explained, in part, by the financial crisis of 2008.