Society & Culture / Social Issues / Race & Ethnicity

Does Economic Anxiety Fuel Racism? The Shocking Truth from Germany

Economic Insecurity and the Rise of the Right: Evidence from Germany

Naci H. Mocan, Christian Raschke

Economists Naci H. Mocan and Christian Raschke analyzed 14 years of German survey data to uncover a dark link between personal finances and prejudice. Their NBER working paper reveals a counterintuitive finding: when people feel economically insecure, they become more hostile toward minorities—not because of job competition, but due to a deep-seated psychological need for group protection. Even more unsettling, the study shows that historical Nazi support in a region still predicts anti-Semitism today, regardless of current economic conditions. This video breaks down the evidence, showing how economic wellbeing can either buy tolerance or fuel hatred. If you've ever wondered why some communities turn against outsiders during hard times, this is the research you need to see.