Economic Performance and Political Trust: The impact of the financial crisis on European citizens

Abstract

II III ForordDenne masteroppgaven markerer ikke bare slutten på et halvt års hardt arbeid, men også slutten på fem års utdanning, og starten på voksenlivet. Jeg vil dedikere dette arbeidet til pappa fordi hver gang jeg har følt at jeg ikke har vaert god nok, har han fortalt meg det motsatte. Jeg setter også stor pris på støtten og motivasjonen jeg har fått fra mamma, Joachim, Mathias, Rikke, og resten av familien.Takk til veilederen min Tor Georg Jakobsen for gode tilbakemeldinger, hjelp underveis, og stort engasjement. En stor takk rettes også til faggruppen ledet av Tanja Trust links ordinary citizens to the institutions that are intended to represent them, and thereby enhancing both the legitimacy and the effectiveness of democratic government (Bianco 1994;Gamson 1968;Braithwaite and Levi 1998;Hetherington 1998). It is therefore an essential part of a democratic system. People have confidence in their leaders when the government is working well, and absence of political confidence could threaten the system's legitimacy. Mistrust by the citizens is often expressed as an unwillingness to follow political outcomes, which prevents progress from happening in the political process (Norris 1999). In this thesis I investigate whether economic performance affects political trust, and if the 2008 financial crisis has decreased confidence levels due to the severity of its consequences. By using multilevel modeling to analyze data from 25 European countries, I find that economic performance is an important component in levels of trust. I am also able to conclude that the financial crisis has reduced citizen's trust in political institutions in the countries where the crisis has had a severe impact on the economy. As much research emphasizes the importance of individual perception of economic performance, this has also been tested for. The results indicate that individual perception of the economic situation, influence trust just as much, if not more, than the actual economic situation.

Downbound spiral? Economic grievances, perceived social protection and political distrust

“…In particular, poor macroeconomic performance and soaring unemployment rates have been identified as keys to understanding distrust in politics in the wake of the financial crisis (e.g. Friedrichsen and Zahn 2014; Kroknes, Jakobsen and Grønning 2015;Polavieja 2013; van Erkel and van der Meer 2016).…”

When and where did the great recession erode the support of democracy?

“…Given these diverse forms of trust there is overlap with the concepts of specific support and diffuse support. The main commonality is that trust links ordinary citizens to institutions that represent them (Fagerland Kroknes et al 2015). If citizens trust these institutions this will enhance both the legitimacy and the perceived effectiveness of democratic government.…”

Unemployment, Trust in Government, and Satisfaction with Democracy: An Empirical Investigation

“…Both are regarded as essential resources for the performance and stability of political systems (e.g., Hetherington 1998; Levi and Stoker 2000). This research thereby contributes to a growing literature that investigates this link empirically (e.g., Arias et al 2013;Kroknes et al 2015;Muro and Vidal 2014;Roth 2009 Second, empirical evidence on this relationship is limited. It is either U.S. centered, comparative in nature, and/or characterized by certain shortcomings.…”

“…Especially in the wake of the economic crisis in 2008, scholars rang the alarm bells and pointed to the threat rising unemployment levels may pose to democratic systems (Arias et al 2013;Kroknes, Jakobsen, and Grønning 2015;Muro and Vidal 2014;Roth 2009). Although most research focuses on unemployment's negative personal consequences, such as depression or suicidal tendencies, there is also a long research tradition that links it to political phenomena such as voting behavior and political extremism (e.g., Bay and Blekesaune 2002;Falk, Kuhn, and Zweimueller 2011;Jahoda and Zeisel 1974;Linn, Sandifer, and Stein 1985;Lundin and Hemmingsson 2009;Siedler 2006;Stokes and Cochrane 1984).…”