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.

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.

The U.S. political landscape is increasingly adopting authoritarian rhetoric and tendencies. However, this shift comes without any of the supposed upsides of authoritarianism, such as hyper-efficient infrastructure or public order. The result is a dysfunctional "authoritarianism without the good stuff."

In Russia, nominally private companies like Gazprom function as direct extensions of the state. Their international investments are designed not just for profit but to achieve geopolitical goals, creating a system where foreign policy, business interests, and the personal wealth of the ruling class are completely inseparable.

Extreme inequality and inflation, driven by debt and money printing, create widespread frustration. This frustration "summons" populist figures like Trump, who are seen as chaos agents to disrupt a rigged system, rather than being the root cause of the political anger themselves.

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.

The system often blamed as capitalism is distorted. True capitalism requires the risk of failure as a clearing mechanism. Today's system is closer to cronyism, where government interventions like bailouts and regulatory capture protect established players from failure.

Basic efficiency—doing things in bulk is cheaper—drives the growth of massive index and private equity funds. Harvard's John Coates argues this economic good creates a political problem, as the resulting concentration of influence in a few firms is at odds with the democratic principle of dispersed power.

As governments print money, asset values rise while wages stagnate, dramatically increasing wealth inequality. This economic divergence is the primary source of the bitterness, anxiety, and societal infighting that manifests as extreme political polarization. The problem is economic at its core.