The principle that a small group will always emerge to lead is a fundamental law of human organization. This isn't limited to geopolitics or massive corporations; it's a fractal pattern observable in every group, including one's own family.
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Both ideological extremes, left unchecked, concentrate power and lead to authoritarianism. Unfettered capitalism creates a corporate 'king' who controls all resources, while socialism creates a state dictator. Both systems ultimately subvert individual freedom without proper checks.
Our default method for promotion—open competition—is flawed because it disproportionately attracts and rewards individuals who most desire power, not necessarily those best suited for leadership. The Founding Fathers understood this, preferring reluctant leaders. Alternative models, like deliberation by a select body, can produce more competent and less self-interested leaders.
According to Ray Dalio's historical analysis, today's severe wealth inequality creates irreconcilable political divisions and populism. This pattern mirrors past eras, such as the 1930s, where internal conflict became so intense that several democratic nations chose to become autocracies to restore order.
When a political movement is out of power, it's easy to unify against a common opponent. Once they gain power and become the establishment, internal disagreements surface, leading to factions and infighting as they debate the group's future direction.
Governments originate from a collective need to organize and control violence for defense. However, this very concentration of power is predisposed to become oppressive, reflecting a cyclical pattern in human history where freedom is lost to tyranny, regained, and then threatened once again.
Whether in old industries like oil or new ones like AI, amassing massive wealth attracts a personality type willing to eliminate threats to protect their power. This dynamic is about the psychology of power itself, not the specific industry a company operates in.
Human societies are not innately egalitarian; they are innately hierarchical. Egalitarianism emerged as a social technology in hunter-gatherer groups, using tools like gossip and ostracism to collectively suppress dominant 'alpha' individuals who threatened group cohesion.
True global power operates at a structural level above daily life. A small group of people (e.g., ~150) influences global economic policy by understanding and manipulating the fundamental mechanisms of society, a reality most are unaware of.
Don't expect corporate America to be a bulwark for democracy. The vast and growing wealth gap creates an overwhelming incentive for CEOs to align with authoritarians who offer a direct path to personal enrichment through cronyism, overriding any commitment to democratic principles.
History demonstrates a direct, causal link between widening inequality and violent societal collapse. When a large portion of the population finds the system unbearable, it leads to events like the French Revolution—a blunt cause-and-effect relationship often sanitized in modern discourse.