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The author is currently working on a book titled ‘Hayek’s Bastards: The Neoliberal Roots of the Populist Right’
Over the years, rightwing populist movements have employed various forms of direct democracy to advance their agendas. From Switzerland’s minaret ban referendums to the Brexit vote, the strategy has been to bypass traditional establishments and connect directly with the will of the people. In the United States, the Maga movement is now exploring a new approach: direct economics.
Direct economics, similar to plebiscites and referendums, aims to circumvent experts and incumbents to communicate directly with individual citizens and voters. It seeks to demystify processes that have long been controlled by elites, such as stock market indices, interest rates, and fiat currency, revealing them as tools used by the elite to further subjugate the populace.
There are three main manifestations of direct economics in action. The first is the consolidation of executive power in President Donald Trump’s tariff policies. While many criticize the arbitrary nature of his tariff announcements, proponents of direct economics see this unpredictability as a display of strength rather than weakness.
The second form of direct economics involves cash transfers, exemplified by Trump’s distribution of stimulus checks during the pandemic. This direct distribution of funds bypassed traditional channels, emphasizing a more personal connection between the state and its citizens.
The third form of direct economics revolves around the concept of gold as a store of value. Some economic thinkers believe that the US government hoards gold to control the population in times of economic collapse. Calls for audits of the gold reserves held by the government have gained traction, with figures like Elon Musk and Senator Rand Paul supporting the idea.
Direct economics challenges established institutions and intermediaries that typically influence decision-making processes. Its impact on traditional markets remains to be seen, as indicators like US Treasury bill rates and consumer confidence fluctuate. The allure of direct economics lies in its ability to disrupt conventional norms and potentially reshape the economic landscape.