A K-shaped economy becomes dangerous not just from the wealth gap, but when the bottom half is actively regressing—falling behind the rising cost of living. This violation of the human need for progress is the primary trigger for instability, not the mere existence of billionaires.

Prime Minister Terence O'Neill's efforts to attract foreign investment disrupted traditional Protestant-dominated industries. This economic change, rather than creating harmony, heightened anxieties among working-class Protestants who felt their privileged status was being eroded.

While rooted in real discrimination, the Catholic "second-class citizen" narrative alienated many working-class Protestants. Living in similar poverty, they rejected the idea of their own privilege. This perception of being unfairly maligned drove them away from moderation and towards hardliners, fracturing potential class-based alliances for social improvement.

History shows populations often unify against an external physical threat, like the British during the Blitz. However, economic hardship creates internal division and is far more likely to lead to social collapse, as seen in 1970s Britain or post-bubble Japan.

A growing economy allows diverse groups to coexist without conflict. When the economy contracts and resources become scarce, people retreat into tribal, "me and mine" mentalities, and latent social and political frictions erupt as groups fight over a shrinking pie.

Throughout history, a large gap between the 'haves' and 'have-nots' is a recipe for revolution. This economic disparity fuels populism and social unrest more profoundly and consistently than external shocks like pandemics, technological disruption like AI, or even war.

The root cause of many social conflicts is not just ideology but deep-seated economic anxiety. When people struggle to pay bills, that stress turns into anger, which is easily manipulated into tribalism and fighting over a perceived "shrinking pie."

Anger directed at a group, like the wealthy, leads to ineffective violence. Lasting change, as seen after the Gilded Age, comes from identifying and fixing the specific, underlying economic mechanism that is broken—be it monopolies, labor laws, or an unbalanced budget. The target should be the system, not the players.

Despite data showing immense long-term progress, public sentiment is often negative. This disconnect arises because people judge their well-being relative to others, not to past generations. When economic gains are not broadly shared, the feeling of falling behind outweighs the reality of absolute improvement.