Is Trump about race and Brexit about culture?

The initial reaction to the Trump victory was to look at the Rust Belt states that swung the result to Trump, and as a result to talk about the economically left behind (as a result of automation or globalisation). Since then there has been a number of pieces of analysis that have appeared to show the opposite, which is that the Trump victory was all about race. This piece in The Nation by Sean McElwee and Jason McDaniel is a good example.

This debate has its exact counterpart with Brexit. While a lot of focus has been on how those voting in areas left behind by automation or globalisation tended to vote Leave, others have argued that the vote is really about cultural values. For example Eric Kaufmann notes how attitudes to the death penalty are a very good predictor for voting Leave.

The evidence from studies of Brexit for a ‘left behind’ effect is essentially geographical, as I discuss here. This corresponds with Rust Belt swing states for Trump. However McElwee and McDaniel use a different measure in their analysis, designed to pick up economic anxiety (worries about job security, mortgage payments etc). They show that while measures of racial resentment or animosity (among whites) are clearly correlated with Trump’s vote, measures of economic anxiety are not, as the RHS of the figure below shows.

They conclude on the basis of this that it was race, not economics, that won the vote for Trump.

However I think the chart above suggests a rather more nuanced conclusion. As the authors note and as shown on the LHS of this figure, high economic anxiety decreased the probability of voting for the Republican Romney in 2012. That is what you should expect. For those in economic difficulty the Democrats are more likely to bring in helpful measures (like more universal health care) than the Republicans. What Trump managed to do was negate a relationship between economic anxiety and voting Democratic that we would otherwise expect to see.

You can see exactly the same phenomenon with Brexit. Brexit is essentially about economics, because at heart it is about leaving a free trade area. To achieve that free trade requires some joint decision making, but I have yet to find a Brexiter who could tell me anything of significance that had been ‘imposed by Brussels’ that they were unhappy with. In that sense, the problems highlighted by Dani Rodrik’s famous trilemma were not critical: the UK was not giving up any sovereignty that really mattered to achieve free trade.

Except, of course, for freedom of movement. Attitudes to immigration, like the death penalty, is a pretty good way of sorting social conservatives from social liberals. But immigration as an issue can do more than that. If you can convince voters that they will also be economically better off by restricting immigration, then you satisfy their economic concerns as well. This is why immigration is such an attractive issue for the political right, particularly if you can shut out all those annoying experts who keep saying immigration has economic benefits rather than costs. That is how the Leave campaign could convince half the population that they will be better of leaving the EU, when almost every economist thinks the opposite.

What the Leave campaign managed to do was make a vote about an economic issue into one about a social issue, and as a result the vote split along the social conservative/liberal axis. McElwee and McDaniel, among others, show that Trump achieved much the same. Because he promised various measures, from immigration controls to restrictions on trade, that were designed to appeal to the economically anxious and the left behind, he negated the natural tendency of those groups to vote Democrat. And as with Brexit, no economist thinks these measures will actually help anyone. 

This helps explain an apparent paradox that might already have occurred to you. How can Trump’s victory be all about race, when before Trump we had the first ever black President who was re-elected for a second term? The answer was that a traditional Republican campaign was not prepared to deflect economic anxieties with building walls and erecting barriers to trade, so many in the rust belt put aside any racial animosity and voted for Obama. In contrast Trump was prepared to do this, so the racial issue dominated. 

That the economic promises made by Trump and Leavers are just a sham can lead to a regressive dynamic that I examined here. How can more progressive parties actively try and stop that happening and win back control, rather than simply hoping the right are rejected by the electorate? I suspect just explaining why immigration control or trade restrictions will not work will not be enough when we have a media that avoids providing expertise. It has not worked with Brexit. 

The answer may be to fight fire with fire, if the UK 2017 general election is any guide. Labour did not win that election, but in a three week period it staged an unprecedented advance to take away May’s majority. It did that by offering clear economic benefits for various groups, paid for by reversing previous corporation tax cuts and increasing taxes on the wealthy, as well as promising a substantial increase in public investment financed by borrowing. A lesson, perhaps, in how to deal with right wing parties that use populist policies to deflect economic concerns.

Postscript (01/04/2018) Here is a link to a tweet thread from Jason McDaniel commenting on this post.

A divided nation

After the Brexit vote, economists and others who voted Remain are quite right to say I told you so as the economic hit they expected comes to pass. The Brexit Bust needs to be labelled clearly, given the power the Leave side has over the means of communication. (Those behind that campaign are already talking utter nonsense in order to pretend it had nothing to do with them.) But those who voted Remain also need to understand why they lost.

The studies I’m going to focus on here use regressions and the breakdown of the Brexit vote district by district. [1] It is important to do regression analysis, which can look at more than one factor at a time, because influences are correlated with each other. We might note, for example, that districts are less likely to vote Leave if they contain relatively high earners, or relatively well educated people. So is it lack of education or lack of money that caused people to vote Leave? That is what any kind of multiple regression can try and sort out.

Before looking at individual studies, let me mention some things that appear to be uncontroversial. Education and age are key determinates: if you are less educated or older you tend to vote Leave. Both matter independently: although young people with few qualifications tend to vote Leave, they are less likely to do so than less qualified older people.Once you take these into account, income is not a significant factor. Geography matters in key ways. One of those is that people in Scotland and Northern Ireland were much less likely to want to leave (controlling for other factors). The other I will come to.

A key issue is whether the local level of migration has had an influence. Stephen Clarke and Matthew Whittaker at the Resolution Foundation find that the level of immigration is not important, but its recent rate of change is, in making people vote Leave. Zsolt Darvas at Bruegel also finds the level unimportant. However Monica Langella and Alan Manning from the LSE find that areas with high immigration are more likely to vote Leave, and confirm the finding that the rate of change matters too. So while two studies agree that areas with a recent large increase in immigration are more likely to vote leave, more work needs to be done on whether its actual level matters. However, even if it matters, it does not matter that much, as the large majority for Remain in London tells us.

One other area where the studies differ is employment or unemployment. Clarke and Whittaker suggest areas with a low employment rate are more likely to vote Leave, but Langella and Manning seem to find the opposite, and Darvas says any impact from levels of unemployment (which is not the same as the inverse of the employment rate) is explained by other factors which I will now come to.

There are some variables that have not been considered by all three of these studies. Darvas has one particularly interesting result: the Leave vote increases in areas where there is a lot of poverty and local inequality. Langella and Manning find that areas with long term declines in agricultural, manufacturing or public employment are more likely to vote Leave. This is also the conclusion of a team led by Bristol geographer Ron Johnston, which is worth quoting in full.

“There are substantial parts of the country where large numbers of people have lost out from the deindustrialisation and globalisation of the last few decades of neo-liberal economic policies, and where the educational system has not helped large proportions of the young to equip themselves for the new labour market. Increasing numbers in these disadvantaged groups were won over during the last few decades by the campaigns in parts of the print media, taken up by UKIP since the 1990s, linking their situations to the impact of immigration – uncontrollable because of the EU freedom of movement of labour principle. The wider Leave campaign built on that foundation in 2016, producing the geography displayed here.”

That conclusion of course goes beyond the finding that areas hard hit by globalisation tended to vote Leave, and adds an explanation that sees the press and politicians actively trying to link the experience of disadvantage to the issue of immigration. It is an argument I have also made. Unfortunately it is an argument that is very difficult to prove using regression analysis, because - as newspapers often argue - they may print just what sells newspapers, so any correlation does not imply causation.

It is also important to remember that the link between voting Leave and areas of deindustrialisation is in additional to the strong links with education and age. Education may fit in with a story where the anti-EU stance (to say bias does not do it justice) of most of the tabloid press is important, for obvious reasons. The same is true with age, as younger people are likely to get their information by other means than the tabloid press.   

There is another, very different, line of argument that tries to explain the Leave vote not in terms of class but psychology/culture. Eric Kaufmann finds simple correlations between voting Leave and authoritarianism. A story you can tell is that, for some at least, Brexit was a vote against not neoliberalism but social liberalism. The link between social liberalism and the EU is once again migration, which represents one more unwelcome change for social conservatives. Social conservatism and authoritarianism may also map more easily into nationalism and wanting to 'take control', and it was part of the tabloid 'grooming' to do exactly that. Social conservatism may also explain the importance of age and perhaps also education.

There is no reason why we need to choose between the economic and the social types of explanation. Kaufmann and Johnston et al can both be right. As Max Wind-Cowie says (quoted by Rick here):

“Bringing together the dissatisfied of Tunbridge Wells and the downtrodden of Merseyside is a remarkable feat, and it stems from UKIP’s empathy for those who have been left behind by the relentless march of globalisation and glib liberalism.”

Both these explanations see antagonism to the idea (rather than the actuality) of migration as the way an underlying grievance got translated into a dislike of the EU. But was immigration really so crucial? A widely quoted poll by Lord Ashcroft says a wish for sovereignty was more important. The problem here, of course, is that sovereignty - and a phrase like taking back control - is an all embracing term which might well be seen as more encompassing than just a concern about immigration. It really needs a follow-up asking what aspects of sovereignty are important. If we look at what Leavers thought was important, the “ability to control our own laws” seemed to have little to do with the final vote compared to more standard concerns, including immigration.

However there are other aspects of the Ashcroft poll that I think are revealing. First, economic arguments were important for Remain voters. The economic message did get through to many voters. Second, the NHS was important to Leave voters, so the point economists also made that ending free movement would harm the NHS was either not believed or did not get through to this group. Indeed “more than two thirds (69%) of leavers, by contrast, thought the decision “might make us a bit better or worse off as a country, but there probably isn’t much in it either way””. Whether they did not know about the overwhelming consensus among economists who thought otherwise, or chose to ignore it, we cannot tell.

Third, Leave voters are far more pessimistic about the future, and also tend to believe that life today is much worse than life 30 years ago. Finally, those who thought the following were a source of ill rather than good - multiculturalism, social liberalism, feminism, globalisation, the internet, the green movement and immigration - tended by large majorities to vote Leave. Only in the case of capitalism did as many Remain and Leave voters cite it as a source of ill. These results suggest that Leave voters were those left behind in modern society in either an economic or social way (or perhaps both).

Taking all this evidence into account it seems that the Brexit vote was a protest vote against both the impact of globalisation and social liberalism. The two are connected by immigration, and of course the one certainty of the Brexit debate was that free movement prevented controls on EU migration. But that does not mean defeat was inevitable, as Chris makes clear. Kevin O’Rourke points out that the state can play an active role in compensating the losers from globalisation, and of course in recent years there has been an attempt to roll back the state. Furthermore, as Johnston et al suggest, the connection between economic decline and immigration is more manufactured than real. Tomorrow I’ll discuss both the campaign and what implications this all might have.

[1] Please let me know if I missed any studies. One I found out about as this post was about to be published was this by Richard Mann.

Rolling Postscript: Studies I've seen since. This by Jo Michell (particularly on migration impact). Geoff Tily argues that London may be special.