Nudging the Masses: The Paradox of Libertarian Paternalism in Global Populist Movements

Libertarian paternalism, a concept popularized by Richard Thaler and Cass Sunstein, aims to guide individuals toward socially beneficial choices while preserving their freedom. This entry explores the intricate relationship between libertarian paternalism and global populist movements, which claim to voice the concerns of the ordinary populace against elite groups. The write-up highlights the ethical and practical complexities that arise when these two ideologies intersect using real-world examples like Brexit and India’s 2016 Demonetization. It discusses who gets to define the “greater good” and examines how such definitions can sometimes serve vested interests. The entry also discusses instances where paternalistic interventions by populist governments, such as Brazil’s Bolsa Família program, have yielded positive societal outcomes. The entry attempts to explicate the challenges and ethical dilemmas of merging libertarian paternalistic actions with populist ideologies, especially when they risk undermining democratic pluralism.