The socioeconomic definition of populism applies the term to what it regards as an irresponsible form of economic policy by which a government engages in a period of massive public spending financed by foreign loans, after which the country falls into
hyperinflation and harsh economic adjustments are then imposed.
[96] This use of the term was used by economists like
Rudiger Dornbusch and
Jeffrey Sachs and was particularly popular among scholars of Latin America during the 1980s and 1990s.
[93] Since that time, this definition continued to be used by some economists and journalists, particularly in the US, but was uncommon among other
social sciences.
[97]
An additional approach applies the term
populism to a political strategy in which a charismatic leader seeks to govern based on direct and unmediated connection with their followers.
[97] This is a definition of the term that is popular among scholars of non-Western societies.
[97] Mudde suggested that although the idea of a leader having direct access to "the people" was a common element among populists, it is best regarded as a feature which facilitates rather than defines populism.
[98]
In popular discourse,
populism is sometimes used in a negative sense in reference to politics which involves promoting extremely simple solutions to complex problems in a highly emotional manner.
[99] Mudde suggested that this definition "seems to have instinctive value" but was difficult to employ empirically because almost all political groups engage in sloganeering and because it can be difficult to differentiate an argument made emotionally from one made rationally.
[99] Mudde thought that this phenomenon was better termed
demagogy rather than
populism.
[31] Another use of the term in popular discourse is to describe opportunistic policies designed to quickly please voters rather than deciding a more rational course of action.
[99] Examples of this would include a governing political party lowering taxes before an election or promising to provide things to the electorate which the state cannot afford to pay for.
[100] Mudde suggested that this phenomenon is better described as
opportunism rather than
populism.