Leath Al Obaidi, SPE member and economist, interviewed Martin Wolf, Chief Economics Commentator at the Financial Times and author of The Crisis of Democratic Capitalism.
Leath opens with a story of a friend who, after reading the first part of the book, immediately placed a bet on Trump winning the next US election. For him, this captured the book’s argument, that the rise of populism is not a surprise, but the logical result of economic and political systems under strain.
Martin explains how the 2008 financial crisis marked a turning point. It exposed the failure of elites, weakened public trust, and set the stage for what he calls pluto-populism. Economic insecurity, rentier capitalism and stagnant growth have eroded the foundations of democratic capitalism.
They discuss the social impact of deindustrialisation, falling male employment and widening generational divides. Martin also addresses immigration, arguing that ageing societies need migrants, but citizenship depends on legitimate control of borders.
The conversation turns to whether innovation can thrive in authoritarian regimes. Martin believes China is testing that idea but doubts it will succeed long-term. He warns of the danger of democratic societies losing their grip on shared truth, which he sees as essential for reform.
Martin closes with advice for young economists: be curious, write clearly, stay open-minded and don’t cling to theories that no longer fit the facts. He remains cautiously hopeful that democratic capitalism can still recover with bold, credible reform.
Martin Wolf is Chief Economics Commentator at the Financial Times, a position he has held since 1996. He began his career at the World Bank, focusing on trade and development, before moving to the Trade Policy Research Centre in London, where he specialised in global economic policy. Martin is also a visiting professor at the University of Nottingham and has written several widely acclaimed books, including Why Globalization Works and The Crisis of Democratic Capitalism. He has received multiple honorary doctorates for his contribution to economics and journalism, and was appointed a CBE for services to financial journalism. He is recognised as one of the world’s leading economic commentators.
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