Populist Policies Won't Help Workers. What Would?

I open my recent article in The Catalyst by praising populism’s success at focusing attention on America’s workers:

Critics of populism — myself included — should be among the first to acknowledge that this impulse to focus on the problems facing American workers is both welcome and long overdue. Unfortunately, the solutions being offered by today’s populists — namely protectionism, nationalism, and larger, more heavy-handed government — simply won’t fix the problems they purport to solve. But what reforms would? How, in a populist age, can policymakers actually deliver more prosperity to the Americans who need it most?

I go on to answer that last question by proposing a four-part growth-and-participation agenda. A sample:

If populist solutions won’t work, what would? I propose a four-part agenda designed to increase participation in economic life and foster upward economic mobility. First, policymakers should remove barriers that currently block such upward mobility. Second, they should encourage greater participation in the workforce. Third, they should advance policies that will increase skills. Fourth, they should encourage business investment. Below, I discuss some illustrative policies that would advance each component of this agenda (but my list of examples is not meant to be exhaustive).

American workers today face substantial barriers to upward mobility. To acquire a cosmetologist license requires an average of 342 days of education and experience — almost 10 times more time than is required to become an emergency medical technician (36 days). Of course, some licensing rules promote public health and safety. But many occupational licenses are little more than barriers to entry established by incumbents to reduce competition. Indeed, the evidence suggests that occupational licenses reduce wages for typical workers. . . .

In the article, I also discuss my analysis of how populism and nationalism emerged, turning the parties of Romney and Obama into the parties of Trump, Sanders, and Mamdani in just four short years. And I discuss why populist and nationalist policies will hurt the very workers their advocates wish to help.