While a certain virtue in our leaders is not the only ingredient for a healthy polity, it is nevertheless a yardstick for measuring the health of that class. Confucious noted on many occasions that the demeanour of leaders, their moral compass and virtue, was a fundamental element of a stable political and social system. Surely it helps if those in positions of power seem honest and emboldened by a desire for the good of the commonwealth, and that this is seen to be the case in both word and deed. There is always a case for top-down exemplars - even autocrats can appreciate the utility of being above corruption.
Populism will grow if people become sufficiently disillusioned or even disgusted with their elected representatives and leaders. I am not a Confucian but can appreciate another of his ideas, that ritual is important and needs to be paid attention to. In the modern case, I would say that decorum and mutual respect between political adversaries is of the essence. You can disagree without being bombastic and you can debate by presenting issues clearly and without the need for ad hominems.

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