Economic uncertainty and anxiety are the root causes of political violence. When governments devalue currency through inflation and amass huge debts, they create the stressful conditions that history shows consistently lead to civil unrest.
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Widespread economic fear from debt and inflation creates a national 'fight or flight' mode. This anxiety is emotionally taxing, so people convert it to anger. Politicians exploit this by providing specific targets for that anger, mobilizing a populist base.
To fund deficits, the government prints money, causing inflation that devalues cash and wages. This acts as a hidden tax on the poor and middle class. Meanwhile, the wealthy, who own assets like stocks and real estate that appreciate with inflation, are protected and see their wealth grow, widening the economic divide.
Instead of officially defaulting on unpayable promises like Social Security, governments opt for massive inflation. This devalues the currency so severely that while citizens receive their checks, the money's purchasing power is destroyed, rendering the benefits worthless without an explicit, unpopular cut.
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 ability to print money creates inflation that widens the wealth gap. This hyper-inequality triggers a deep-seated, evolutionary psychological response against unfairness, which then manifests as widespread social unrest and societal breakdown.
The modern economic structure is morally flawed. It pushes people from housing, the only asset they understand, into the stock market, then erodes their wealth via inflation. This act of "stealing" from citizens through monetary policy creates the economic insecurity that fuels populism.
Historically, countries crossing a 130% debt-to-GDP ratio experience revolution or collapse. As the U.S. approaches this threshold (currently 122%), its massive debt forces zero-sum political fights over a shrinking pie, directly fueling the social unrest and polarization seen today.
The word "inflation" is a deliberately implanted euphemism that makes monetary debasement sound like positive growth. The reality is that money is depreciating and its purchasing power is being stolen. Reframing it as "monetary depreciation" reveals the true, negative nature of the process and shifts public perception from a necessary evil to outright theft.
Economist Peter Schiff highlights a historical pattern where countries, except for Japan, that surpass a 130% debt-to-GDP ratio experience internal strife, such as civil war or revolution. This is due to the inability to fund government programs, leading to societal breakdown and extreme political polarization.
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.
