The anxiety driving protectionism in the West stems from seeing other nations catch up, not from an absolute decline in living standards. This psychological fear of losing the top spot undermines national confidence and can trigger a dangerous, self-defeating shift toward isolationism.
While societal decline can be a long, slow process, it can unravel rapidly. The tipping point is when the outside world loses confidence in a nation's core institutions, such as its legal system or central bank. This triggers a sudden flight of capital, talent, and investment, drastically accelerating the collapse.
The U.S. economy's ability to consume more than it produces is not due to superior productivity but to the dollar's role as the world's reserve currency. This allows the U.S. to export paper currency and import real goods, a privilege that is now at risk as the world diversifies away from the dollar.
Despite America's high standard of living, decades of wage stagnation have created a national psychology of pessimism. Conversely, China's explosive wage growth, even from a lower base, fosters optimism. This psychological dimension, driven by the *trajectory* of wealth, is a powerful and often overlooked political force.
When a country is successful for too long, its citizens forget the difficult and often violent actions required to achieve that prosperity. This ignorance leads to guilt, a weakened national identity, and an inability to make tough decisions for self-preservation.
Unprecedented global prosperity creates a vacuum of real adversity, leading people to invent anxieties and fixate on trivial problems. Lacking the perspective from genuine struggle, many complain about first-world issues while ignoring their immense privilege, leading to a state where things are 'so good, it's bad.'
Civilizations don't fall directly from war or plague. They fall when these shocks trigger a psychological shift from an open, exploratory mindset to a fearful, protectionist one. This 'Spartan mentality' stifles the innovation required to overcome the original challenges, leading to decline.
Globalism was highly successful, lifting millions from poverty. Its failure wasn't the concept itself, but the lack of strategic boundaries. By allowing critical supply chains (like microchips and steel) to move offshore for cost savings, nations sacrificed sovereignty and created vulnerabilities that are now causing a predictable backlash.
A historical indicator of a superpower's decline is when its spending on debt servicing surpasses its military budget. The US crossed this threshold a few years ago, while China is massively increasing military spending. This economic framework offers a stark, quantitative lens through which to view the long-term power shift between the two nations.
When a society attempts to eliminate all risk and shame aggressive competition, it stifles the very forces that drive innovation and growth. This cultural shift from valuing freedom to prioritizing safety makes people docile and anxious, leading to economic stagnation and a loss of competitive edge.
The psychological engine of populism is the zero-sum fallacy. It frames every issue—trade deficits, immigration, university admissions—as a win-lose scenario. This narrative, where one group's success must come at another's expense, fosters the protectionist and resentful attitudes that populist leaders exploit.