In 2008, the global financial crisis decimated Latvia. As unemployment skyrocketed, the government slashed public funding and raised taxes, while providing relief to the wealthy and large businesses -- all without backlash or protest from struggling citizens. Sociologist Liene Ozoliņa examines how Latvian officials convinced their people to accept responsibility for the country's failing economy -- and highlights the rise of similar social policies upholding inequality worldwide.

Why do we blame individuals for economic crises?

After Latvia’s 2008 economic collapse, ordinary citizens faced wage cuts, shrinking social benefits, and a 25 percent drop in GDP, yet few protested. Instead, struggling people were urged to see unemployment and hardship as personal shortcomings to be fixed through self-help seminars and positive thinking. This shift from collective accountability to individual responsibility allowed policymakers to avoid scrutiny and deepened social divides. Societies that focus on moralizing the poor while protecting the wealthy suffer from low trust, high anxiety, and poor health outcomes for all.