Income losses from bank collapse radicalize voters more than equivalent general income declines

Evidence

The banking crisis was not the only reason why incomes decreased during the Great Depression. Lower incomes in general could produce radical voting. In panel B we first show that income declines, predicted by exposure to Danat, are associated with markedly more Nazi voting in July 1932 (column 1). Second, we include both predicted income and actual income changes in our voting regression in column (2). Predicted income has a much greater effect on voting, despite the fact that income and predicted income have a similar mean and dispersion. While income declines led to radical voting, those induced by financial collapse had a much more pronounced effect. — Sebastian Doerr et al., Financial Crises and Political…, 108

Categorization

• QUESTION: What mechanism explains why bank-crisis-induced income loss radicalizes more than equal non-financial income loss?
• XREF: connects to: Danat exposure radicalized Nazi voting beyond the income losses it caused — Sebastian Doerr et al., Financial Crises and Political…, 113; The bank crisis radicalized voters beyond what income losses alone can explain — Sebastian Doerr et al., Financial Crises and Political…, 109; Falling local incomes from the banking crisis raised Nazi vote share substantially — Sebastian Doerr et al., Financial Crises and Political…, 107 (+4 more)

Related

• The bank crisis radicalized voters beyond what income losses alone can explain (similarity 0.91)
• Falling local incomes from the banking crisis raised Nazi vote share substantially (similarity 0.87)
• Danat exposure radicalized Nazi voting beyond the income losses it caused (similarity 0.85)
• Identical bank-failure income losses radicalized voters only where media singled out the bank (similarity 0.83)
• Financial distress shifted Nazi votes beyond what income loss alone explains. (similarity 0.82)
• Nazi gains in exposed cities appeared only after the banking crisis, not before. (similarity 0.82)
• An unpublicized bank failure did not radicalize voters despite similar economic damage. (similarity 0.82)
• Danatbank-exposed cities saw a 2.9-percentage-point extra rise in Nazi vote share. (similarity 0.80)
• Both failing banks hurt local incomes identically, isolating framing as the differentiator (similarity 0.80)
• Media scapegoating, not economic loss alone, drove post-crisis Nazi radicalization (similarity 0.80)
• Both income shocks and elite scapegoating jointly drove Nazi radicalization (similarity 0.80)
• Prior crisis research neglected electoral radicalization and cultural factors (similarity 0.80)
• The Danat collapse boosted Nazi votes beyond nationwide crisis effects (similarity 0.80)
• Prior anti-Semitism roughly doubled the radicalizing effect of bank distress. (similarity 0.80)
• Nazi gains in Danat-exposed cities emerged only after the bank’s collapse (similarity 0.79)

Broader Connections

• Falling local incomes from the banking crisis raised Nazi vote share substantially #exemplifies (0.95) — Sebastian Doerr et al., Financial Crises and Political…, 107
• Economic retrenchment produced defensive embourgeoisement rather than further radicalization #contradicts (0.90) — Aijaz Ahmad, In Theory, 140
• Unemployment makes people passive and withdrawn rather than radicalized. #contradicts (0.90) — Robert D. Putnam, Bowling Alone The Collapse and Revival…, 641
• Bad times make voters choose riskier challengers even with equal expected value #expands (0.80)
• Unequal austerity generates populism, nationalism, and violent movement instead of revenue #expands (0.80) — Mark Blyth, Austerity, 63