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.
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The wealth divide is exacerbated by two different types of inflation. While wages are benchmarked against CPI (consumer goods), wealth for asset-holders grows with "asset price inflation" (stocks, real estate), which compounds much faster. Young people paid in cash cannot keep up.
Widespread anxiety is primarily a symptom of economic precarity, not individual failings. The most effective national 'therapy' is not more counselors, but systemic solutions like a higher minimum wage, affordable housing, and universal childcare that reduce root financial stress.
Rising calls for socialist policies are not just about wealth disparity, but symptoms of three core failures: unaffordable housing, fear of healthcare-driven bankruptcy, and an education system misaligned with job outcomes. Solving these fundamental problems would alleviate the pressure for radical wealth redistribution far more effectively.
The distorted perception of one's financial health, or 'money dysmorphia,' is not exclusive to the financially insecure. A significant portion of Americans earning over $100k annually do not consider themselves wealthy, revealing a stark disconnect between financial reality and perception fueled by online comparisons to extreme wealth.
The depression of someone chasing wealth is often buffered by the hope that money will solve their problems. The true psychological danger comes *after* achieving financial success, when you realize your non-money problems persist. This can lead to a profound and debilitating sense of hopelessness.
Happiness is the gap between reality and expectations. Even in a world of immense progress in wealth and health, people may not feel better off if their expectations rise faster. Appreciating nothing despite objective improvements is, as Morgan Housel describes, a tragic way to live.
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Despite rhetoric about shifting to a consumption-led economy, China's rigid annual GDP growth targets make this impossible. This political necessity forces a constant return to state-driven fixed asset investment to hit the numbers. The result is a "cha-cha" of economic policy—one step toward rebalancing, two steps back toward the old model—making any true shift short-lived.
America's mental health crisis is largely driven by economic precarity. Systemic solutions like a higher minimum wage, affordable housing, and universal healthcare would be more effective at improving population well-being than an individualistic focus on therapy, which often treats symptoms rather than the root cause of financial stress.
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.'
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.
