Donald Trump’s unpredictable style and electoral success reflect a turbulent era when neither progressives nor authoritarians have secured control. Far from signalling an autocratic takeover, his rise shows a political landscape in flux. The 2008 crash and its uneven recovery marked the decline of the old economic order. But in 2016, the rise of Trump on the right and Bernie Sanders on the left highlighted a real shift, as neoliberalism’s grip loosened, making space for once marginalised ideas.
Since then, two US presidencies have acknowledged the need to rebuild an economy that supports blue-collar workers affected by free trade, immigration and globalisation. While neither administration succeeded – and paid for it at the ballot box – the result has been a growing constituency on both sides of the American political divide that takes seriously, albeit often rhetorically, economic injustice. But for any political movement to become dominant, it has to shape the core ideas that matter to everyone, not just its diehard supporters.
A subtle shift is taking place: once-taboo “protectionism” is now a bipartisan issue, with Joe Biden upholding Trump’s tariffs on China. The two presidents have encouraged US companies to reshore manufacturing. Industrial policy, missing since the 1990s, and antitrust actions now find advocates on both sides of the aisle. Both Trump and Harris gauged voters’ indifference to near-trillion-dollar deficits, promising on the campaign trail to protect social security and Medicare.
While the methods are shared, the goals diverge. The US became the world’s top oil and gas producer in the last decade. Biden sought to cultivate a green economy, while Trump promoted fossil fuels so aggressively that it bordered on self-parody.
Biden fell short of delivering the transformation he had promised. He set out to tackle inequality, improve public services and address the climate crisis with a $4tn plan funded by taxing the wealthy – a mission to unite social liberalism with economic fairness. But his ambitious plans were shrunk by lobbying by corporate interests and resistance from centrist Democrats.
After Russia’s invasion of Ukraine, Biden shifted away from economic radicalism. When inflation surged, instead of controlling prices, he allowed the cost of essentials to soar, causing the steepest food-price hike since the 1970s. In 2022, the poorest 20% of Americans spent nearly a third of their income on food, while the wealthiest fifth spent just 8%. Biden avoided emergency price controls, unlike Richard Nixon who implemented them in 1971 – and won a landslide reelection the following year.
Biden learned the lesson too late, promising to tackle “greedflation” as part of his reelection campaign. Once he dropped out, Harris said she would enact the “first ever federal ban” on food-price gouging. That was slamming the stable door shut long after the horse had bolted. However, in a sign that price controls were becoming mainstream in national politics, Trump promised to cap credit card interest rates.
Trump’s populist rhetoric resonated with disillusioned voters, yet his first term’s policies had often mirrored the establishment he criticised, blending and betraying the US’s pro-market ideals. As the historian Gary Gerstle writes in his book The Rise and Fall of the Neoliberal Order: “If [the administration’s] deregulation, judicial appointments, and tax cuts pointed toward the maintenance of a neoliberal order … Trump’s assault on free trade and immigration aimed at its destruction.” Trump presents free trade and open borders as threats to US prosperity, advocating for strict controls that admit only goods and people aligned with American interests.
The president-elect has abandoned the neoliberal tradition of keeping markets shielded from direct political influence, openly using his power to favour allies and enrich elites. While centrist Democrats support corporate interests by blocking progressive reforms, Trump aligns directly with billionaires, promoting a culture where justice serves the wealthy, prejudice is trivialised and power diminishes equality. This trickle-down bigotry will ultimately create a system where servility to power and social division become normalised, eroding fairness for everyone.
Whether Trump can mobilise popular discontent over social and economic inequalities without alienating the oligarchs who support him remains an open question. In the months ahead, a struggle will unfold among factions within Trump’s circle. Economic populists such as the Republican senator Josh Hawley and the vice-president-elect, JD Vance, will differ from libertarians such as Vivek Ramaswamy and the self-interested deregulatory agenda of Elon Musk. Trump’s aim isn’t to lift all boats, but rather to lift enough to convince voters to tolerate the corruption, consumer scams and environmental degradation that enrich a plutocratic class. This strategy, boosted by a pliant mediasphere, enables him to present a party of private power as the voice of the ordinary voter.
American political life often oscillates between “normal” and “revolutionary” phases – periods of stability interspersed with upheaval, where ideological shifts reshape public policy. After the crash but before Trump, the Tea Party was a rightwing populist movement frustrated by globalisation yet anti-worker in orientation. Revolutionary moments – such as the rise of nativist populism or democratic progressivism – trigger profound ideological shifts that reshape public values and policy. Trump’s victory was historic, but it is not yet ideologically cohesive or triumphant.
If that changes, it could permanently shift certain constituencies. In 1948, Democratic support for civil rights led African Americans to abandon their traditional allegiance to the Republicans. They left the party of emancipation for the party of Jim Crow. Betting that working-class voters have nowhere else to go is a gamble centrist politicians will profoundly regret.
For Democrats, the traditional strategy of pairing social liberalism with modest economic reform no longer connects with today’s voters. While social equality is a moral imperative, it requires bold, egalitarian economic policies to truly resonate. Until such policies take shape, political dysfunction and public frustration will persist. The pressing question now, for the US and beyond, is what vision and leadership will meet these urgent demands.
