The threat of prejudice politics

Weekly Updates

An irony of any period of technological change is that economic success does not depend on technology. Economic growth depends on how the technology is used, which means that people are what matters. The mantra for corporate and economic strength in a rapidly changing world is “right person, right job, right time.”
The problem with a rapidly changing world is that not everyone will be a winner. Some people will lose relative social and economic status. The causes for these shifts are complex, but in a complex world, people crave simple solutions. This then encourages scapegoat economics and prejudice politics—blaming a minority group for the economic change.
This pattern has repeated throughout history, and is evident in politics and protests across the developed world today. Immigrant groups and foreigners are often targets (as they are easy to caricature as being different). This encourages aggressive economic nationalism with implications for trade. The LGBTQ+ community is also a target, probably in reaction to recent advances toward equality.
This rise in prejudice politics undermines economic growth. If the right person for a job is deemed to come from the wrong social group and denied employment, their skills are lost to the economy. That economic underperformance can, of course, fuel further prejudice and economic nationalism.