Nationalism, Perceived Inequality, and Democratic Discontent

• In Event: Does liberal democracy promote social mobility and well-being?

Abstract

Does economic inequality lead to democratic discontent as many studies assume? Why and how does economic inequality affect people’s dissatisfaction with the workings of democracy?

To address these questions, we develop an argument based on nationalism and inequality perceptions. The argument is in two parts: First, we argue that income inequality does not have a meaningful effect on democratic discontent at the individual or the country levels. Perceived inequality or how people perceive income inequality is what matters for popular dissatisfaction with democracy since actual inequality and perceived inequality are not always closely correlated.

Second, in contrast to conventional wisdom, nationalism leads to less democratic discontent. Strong nationalist tendencies make income inequality less perceptible as high, which leads to less dissatisfaction with democracy. Nationalists tend to believe or want to believe that their country is doing well or that their country is superior to others and consequently perceive low income inequality in their countries.

We test these claims using original surveys and interviews conducted in the United States, Japan, and South Korea as well as large cross-national survey data from 37 democracies. In contrast to popular belief that the poor are more dissatisfied with democracy, we find that democratic discontent is stronger among the rich as the poor are more likely to identify with the nation and perceive less inequality.

The paper contributes to our understanding of democratic threats and the rise of populism by explaining why democratic discontent is stronger in some countries than others and identifying who are more dissatisfied with democratic institutions.

Author

• Yeon Ju Lee, Waseda University