Political violence and extreme polarization are symptoms of deeper economic anxieties. When people feel economically insecure, they retreat into tribal identities and become susceptible to narratives of anger, which can escalate into violence.

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 current environment mirrors the late 19th century's first wave of globalization. Then, as now, rapid technological change concentrated wealth, fueling populism and nationalism that ultimately led to global conflict in 1914. We risk 'sleepwalking' into a similar catastrophe.

The inability for young people to afford assets like housing creates massive inequality and fear. This economic desperation makes them susceptible to populist leaders who redirect their anger towards political opponents, ultimately sparking violence.

The concentration of wealth where the top 10-20% capture 70-80% of the economic pie is fundamentally unstable in a democracy where everyone gets a vote. This economic reality serves as a political invitation for populist demagogues, making the rise of radical socialist ideas a predictable and dangerous outcome.

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.

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.

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 current wave of global conflict and deglobalization is a direct consequence of a multi-decade populist trend. As younger generations demand fairer economic outcomes ('median outcomes'), governments are forced into protectionist policies, which inevitably create international friction and competition for resources.