True economic prosperity for the majority comes from wage growth, which leads to inflation and higher rates. These factors are poison for the long-duration assets and leveraged models that Wall Street depends on, creating a direct conflict of interest in policymaking.

When government policy protects wealthy individuals and their investments from the consequences of bad decisions, it eliminates the market's self-correcting mechanism. This prevents downward mobility, stagnates the class structure, and creates a sick, caste-like economy that never truly corrects.

The U.S. has "asset feudalism" (propping up the S&P), while China has "factory feudalism" (subsidizing exports). All these systems concentrate wealth and power, leaving the bottom 90% of the population with little capacity to consume, which leads to global stagnation.

Policies designed to suppress market volatility create a fragile stability. The underlying risk doesn't disappear; it transmutes into social and political polarization, driven by wealth inequality. This social unrest is a leading indicator of future market instability.

Governments with massive debt cannot afford to keep interest rates high, as refinancing becomes prohibitively expensive. This forces central banks to lower rates and print money, even when it fuels asset bubbles. The only exits are an unprecedented productivity boom (like from AI) or a devastating economic collapse.

U.S. economic policy is no longer aimed at broad prosperity but at ensuring the S&P 500 index continues to rise. This singular focus creates negative side effects, like suffering for the majority of the population who rely on wage growth rather than asset appreciation.

Historically, what tears societies apart is not economic depression itself but runaway wealth inequality. A major bubble bursting would dramatically widen the gap between asset holders and everyone else, fueling the populist anger and political violence that directly leads to civil unrest.

The core problem for the middle class is a direct chain reaction: national debt leads to money printing (inflation), which forces people to own assets to preserve wealth. Since only 10% of Americans own 93% of assets, the rest are left behind with devalued cash and stagnant wages.

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.