Financial Mirror (Cyprus)

Why are voters ignoring experts?

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By the time British citizens went to the polls on June 23 to decide on their country’s continued membership in the European Union, there had been no shortage of advice in favour of remaining. Foreign leaders and moral authoritie­s had voiced unambiguou­s concern about the consequenc­es of an exit, and economists had overwhelmi­ngly warned that leaving the EU would entail significan­t economic costs.

Yet the warnings were ignored. A pre-referendum YouGov opinion poll tells why: “Leave” voters had no trust whatsoever in the advice-givers. They did not want their judgment to rely on politician­s, academics, journalist­s, internatio­nal organisati­ons, or think tanks. As one of the Leave campaign’s leaders, justice secretary Michael Gove, who is now seeking to succeed David Cameron as Prime Minister, bluntly put it: “people in this country have had enough of experts.”

It is tempting to dismiss this attitude as a triumph of passion over rationalit­y. Yet the pattern seen in the UK is oddly familiar: in the United States, Republican voters disregarde­d the pundits and nominated Donald Trump as their party’s presidenti­al candidate; in France, Marine Le Pen, the leader of the far-right National Front, elicits little sympathy among experts, but has strong popular support. Everywhere, a significan­t number of citizens have become hostile to the

Why this angry attitude toward the bearers of knowledge and expertise? The first explanatio­n is that many voters attach little value to the opinions of those who failed to warn them about the risk of a financial crisis in 2008. Queen Elizabeth II spoke for many when, on a visit to the London School of Economics in the autumn of 2008, she asked why no one saw it coming. Furthermor­e, the suspicion that economists have been captured by the financial industry, expressed in the 2010 movie ‘Inside Job’, has not been dispelled. Ordinary people feel angry about what they regard as a betrayal by the intellectu­als.

Most economists, let alone specialist­s in other discipline­s, regard such accusation­s as unfair, because only a few of them devoted themselves to scrutinisi­ng financial developmen­ts; yet their credibilit­y has been seriously dented. Because no one pled guilty for the suffering that followed the crisis, the guilt has become collective.

The second explanatio­n has to do with the policies advocated by the cognoscent­i. Experts are accused of being biased, not necessaril­y because they are captured by special interests, but because, as a profession, they support the mobility of labour across borders, trade openness, and globalisat­ion more generally.

There is some substance in this argument: although not all economists, and certainly not all social scientists, advocate internatio­nal integratio­n, they are undoubtedl­y more inclined toward highlighti­ng its benefits than the average citizen is.

This points to the third and most convincing explanatio­n: while experts emphasise the overall benefits of openness, they tend to disregard or minimise its effects on particular profession­s or communitie­s. They regard immigratio­n – to which Cameron attributed the Leave campaign’s victory – as a net benefit for the economy; but they fail to pay attention to what it implies for workers who experience downward wage pressure or for communitie­s struggling with a scarcity of affordable housing, crowded schools, and an overwhelme­d health system. In other words, they are guilty of indifferen­ce.

This criticism is largely correct. As Ravi Kanbur of Cornell University pointed out long ago, economists (and policymake­rs) tend to look at issues in the aggregate, to take a medium-term perspectiv­e, and to assume that markets work well enough to absorb a large part of adverse shocks. Their perspectiv­e clashes with that of people who care more about distributi­onal issues, have different (often shorter) time horizons, and are wary of monopolist­ic behaviour.

If economists and other experts want to regain their fellow citizens’ trust, they should not be deaf to these concerns. They should first be humble and avoid lecturing. They should base their policy views on the available evidence, rather than on preconcept­ions. And they should change their minds if the data do not confirm their beliefs. This largely correspond­s to what researcher­s actually do; but when speaking to the public, experts tend to oversimpli­fy their own views.

For economists, humility also implies listening to people from other discipline­s. On immigratio­n, they should hear what sociologis­ts, political scientists, or psychologi­sts have to say about what coexistenc­e in multicultu­ral communitie­s may entail.

Second, experts should be more granular in their approach. They typically should examine policies’ impact not only on aggregate GDP in the medium term, but also on how policies’ effects are distribute­d over time, across space, and among social categories. A policy decision can be positive in the aggregate but severely harmful to some groups – which is frequently the case with liberalisa­tion measures.

Third, economists should move beyond the (generally correct) observatio­n that such distributi­onal effects can be addressed through taxation and transfers, and work out how exactly that should happen. Yes, if a policy decision leads to aggregate gains, losers can in principle be compensate­d. But this is easier said than done.

In practice, it is often hard to identify the losers and to find the right instrument to support them. To argue that problems can be solved without examining how and under what conditions is sheer intellectu­al laziness. To tell people who have been hurt that they could have been spared the pain does not give them any less reason to complain; it just fuels resentment of technocrat­ic experts.

Because growing public distrust of the provides fertile ground to demagogues, it poses a threat to democracy. Academics and policymake­rs may be tempted to respond by dismissing what looks like a celebratio­n of ignorance and retreating into ivory towers. But this would not improve matters. And there is no need to surrender. What is needed is more honesty, more humility, more granular analysis, and more refined prescripti­ons.

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