{"id":9331,"date":"2017-06-09T17:21:05","date_gmt":"2017-06-09T17:21:05","guid":{"rendered":"http:\/\/www.lifeandnews.com\/articles\/?p=9331"},"modified":"2017-06-09T17:21:05","modified_gmt":"2017-06-09T17:21:05","slug":"how-populism-explains-mays-stunning-uk-election-upset-experts-react","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/how-populism-explains-mays-stunning-uk-election-upset-experts-react\/","title":{"rendered":"How populism explains May’s stunning UK election upset: Experts react"},"content":{"rendered":"

Terrence Guay<\/a>, Pennsylvania State University<\/a><\/em> and Charles Hankla<\/a>, Georgia State University<\/a><\/em><\/span><\/p>\n

Editor\u2019s note: U.K. Prime Minister Theresa May\u2019s election gamble failed badly as her Conservatives lost 12 seats<\/a>, leaving them with 318, shy of a majority. It was a stunning loss<\/a> for a party earlier projected to gain dozens of seats. Without a majority, the Conservatives will have to rely on another party<\/a> to govern \u2013 known as a hung Parliament. If they\u2019re unable to forge a coalition, rival Labour leader Jeremy Corbyn \u2013 whose party gained 31 seats \u2013 would be able to give it a go. We asked two experts to offer their insights on what Americans should make of the election and its results.<\/em><\/p>\n

\n \"\"
\n May had a bad night and may face a struggle over her party\u2019s leadership.<\/span>
\n AP Photo\/Alastair Grant<\/span><\/span>
\n <\/figcaption><\/figure>\n

Tories\u2019 growing populism begets a power struggle<\/h2>\n

Charles Hankla, George State University<\/strong><\/p>\n

The results of this election show how similar, and yet how different, British politics are from what is happening in America.<\/p>\n

As in the United States, there has been an explosion of populism in Britain, most recently evidenced by the Brexit referendum. This new political force is translating into less liberal policies from the major parties.<\/p>\n

In continental Europe, the new populism is mostly embodied by the resurgent far right. But in Britain, as in America, it is being filtered through the existing two-party system \u2013 though the U.K.\u2018s smaller parties do complicate the electoral map.<\/p>\n

To accommodate the political winds, May and her Conservatives decided to shift their electoral strategy away from Margaret Thatcher\u2019s<\/a> pro-market economic approach toward a greater focus on immigration, security and economic nationalism. <\/p>\n

Labour leader Jeremy Corbyn, for his part, deserted<\/a> the more centrist \u201cNew Labour\u201d ideas of Tony Blair in favor of a more robust form of social democracy<\/a>. <\/p>\n

The American left, like its British counterpart, has also become increasingly skeptical<\/a> of unbridled markets<\/a>. But among Republicans, a traditional hostility to \u201cbig government\u201d makes pro-worker redistributive policies<\/a>, some of which the Tories have adopted to win votes, hard to stomach. For this reason, populism on the American right has mostly taken the form of protectionist and anti-immigrant policies, as embodied by Donald Trump.<\/p>\n

Yesterday\u2019s results were devastating for May and indicate that the Conservatives were ultimately unable to balance their new populist message with their traditional support for neo-liberal policies. <\/p>\n

Corbyn, for his part, will use this unexpected victory (of sorts) to solidify his hold over the Labour Party and to move it further to the left.<\/p>\n

It remains to be seen whether the election will result in a minority or a coalition government, or whether the parties will be well and truly deadlocked. Whatever happens, the British electorate, like its cousin across the pond, has shown itself to be highly polarized. <\/p>\n

Still, at a minimum, Britain\u2019s parliamentary structure, along with the ability of the Labour leadership to co-opt disillusioned voters, seems to have spared Britain the fate of America \u2013 the takeover of government by a populist insurgent.<\/p>\n

\n \"\"
\n Corbyn and his Labour Party had reasons to smile on election night.<\/span>
\n AP Photo\/Frank Augstein<\/span><\/span>
\n <\/figcaption><\/figure>\n

For US companies, it\u2019s business as usual<\/h2>\n

Terrence Guay, Pennsylvania State University<\/strong><\/p>\n

So now that we know the results, what are the implications for U.S. business interests in the U.K., America\u2019s seventh-biggest trading partner<\/a>? <\/p>\n

May took a calculated political risk<\/a> and lost. While the market reaction has been severe, with the pound plunging<\/a>, it\u2019s nothing new to companies, which take calculated risks like that every day \u2013 some pay off and some do not. <\/p>\n

So first of all, U.S. corporate executives will need to take a deep breath. Assuming a combination of other parties do not cobble together at least 322 seats \u2013 despite winning seven seats, Northern Ireland\u2019s Sinn Fein will not send MPs<\/a> to London \u2013 the Conservatives will dominate a coalition government and have considerable sway over policy. <\/p>\n

This means a \u201chard Brexit<\/a>,\u201d as outlined by May in January<\/a>, and as seen in the European Union\u2019s tough negotiating guidelines<\/a>, is unlikely to change. But this is what most U.S. companies have been planning for anyway since last June\u2019s Brexit vote<\/a>. Many companies, particularly banks and financial institutions, are already planning to move some of their U.K. operations<\/a> to other EU countries to take advantage of the single market rules.<\/p>\n

This process will continue no matter who\u2019s in power, since only the low-polling Liberal Democrat and Green parties promised a Brexit revote<\/a>. <\/p>\n

Second, a weakened Conservative Party will need more foreign friends, and that includes U.S. companies. Since Brexit, some foreign businesses have threatened to downsize or close their U.K. operations as leverage for obtaining government subsidies<\/a>. Expect more companies to use this strategy with a weaker U.K. government.<\/p>\n

As I argue in my recent book<\/a>, the business environment of Europe is much more than the U.K. market, and U.S. companies have become increasingly aware of this since Brexit. <\/p>\n

\"TheIn other words, it\u2019s business as usual, and that means the continued segmenting of companies\u2019 U.K. and EU strategies, regardless of who is governing in London.<\/p>\n

Terrence Guay<\/a>, Clinical Professor of International Business, Pennsylvania State University<\/a><\/em> and Charles Hankla<\/a>, Associate Professor of Political Science, Georgia State University<\/a><\/em><\/span><\/p>\n

This article was originally published on The Conversation<\/a>. Read the original article<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Terrence Guay, Pennsylvania State University and Charles Hankla, Georgia State University Editor\u2019s note: U.K. Prime Minister Theresa May\u2019s election gamble failed badly as her Conservatives lost 12 seats, leaving them with 318, shy of a majority. It was a stunning loss for a party earlier projected to gain dozens of seats. Without a majority, the […]<\/p>\n","protected":false},"author":44,"featured_media":9332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,277],"tags":[720,2489,2500,2491,2490,780,781,765,183,2494,717,1580],"_links":{"self":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/9331"}],"collection":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/comments?post=9331"}],"version-history":[{"count":1,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/9331\/revisions"}],"predecessor-version":[{"id":9333,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/9331\/revisions\/9333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media\/9332"}],"wp:attachment":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media?parent=9331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/categories?post=9331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/tags?post=9331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}