Does Austerity Cause Polarization?

Abstract In recent decades, governments in many Western democracies have shown a remarkable consensus pursuing fiscal austerity measures during periods of strained public finances. this article, we show that these decisions consequences for political polarization. Our macro-level analysis 166 elections since 1980 finds increase both electoral abstention and votes non-mainstream parties, thereby boosting party system A detailed selected episodes also shows new, small radical parties benefit most from policies. Finally, survey experiments with total 8,800 respondents Germany, Portugal, Spain the UK indicate effects on polarization are particularly pronounced when mainstream right left stand restraint. Austerity is substantial cause hence instability industrialized democracies.