Globalization, Economic Hardship, and the Birth of Populism in the US, 1870-1900

• In Event: Globalization and Labor Market Disruptions

Abstract

This paper examines the relationship between globalization and the rise of populism in the United States from 1870 to 1900. The expansion of international trade, alongside technological advancements in transportation and communication, fundamentally altered the structure of the U.S. economy. We argue that the decline in agricultural prices, largely driven by increased global competition and the influx of cheap imports, led to widespread economic distress among rural populations. This distress was further exacerbated by the gold standard, which tightened credit and reduced the money supply, adversely affecting farmers who were dependent on loans for their seasonal cycles. We show that the rise of populism during this era was a direct response to the negative impacts of globalization on agriculture, reflecting broader socio-economic tensions in a rapidly changing America.

Authors

• Ze Han, Princeton University

• Helen V. Milner, Princeton University