We all know about the rise of the authoritarian right in America, and the risks that it poses to both the economy and society. But what about the hard left? This political tail risk is now being taken more seriously by many in the business community who worry that the centre-left is disappearing, just as traditional conservatism has given way to Maga.
The rise of democratic socialist New York City mayoral candidate Zohran Mamdani (who is still leading in the polls following incumbent mayor Eric Adams pulling out of the race); the emergence of a number of other leftwing populists like Graham Platner (a Maine oysterman who is likely to take on five-term Republican Senator Susan Collins in next year’s midterms); even hints that congresswoman Alexandria Ocasio-Cortez will run for president or the US Senate in 2028 — together, these developments have both Democratic centrists and business thinking about what a sharp swing to the political left in the US might look like.
The issue is, in fact, at the heart of the current US government shutdown, which is being driven by Democratic unwillingness to sign off on a budget that will cut healthcare benefits for millions of the poorest Americans in exchange for tax breaks for the wealthy.