Policies that pump financial markets disproportionately benefit asset holders, widening the wealth gap and fueling social angst. As a result, the mega-cap tech companies symbolizing this inequality are becoming prime targets for populist politicians seeking to channel public anger for electoral gain.

The anxiety driving protectionism in the West stems from seeing other nations catch up, not from an absolute decline in living standards. This psychological fear of losing the top spot undermines national confidence and can trigger a dangerous, self-defeating shift toward isolationism.

The Western belief that free trade would cause authoritarian states like China to liberalize has proven false. Instead, this policy created a powerful manufacturing competitor whose interests diverge from the West's. The current era of deglobalization is an unwinding of this flawed foundational premise of the post-war order.

Focusing public anger on high-earning individuals is a misdirection. The real drain on national economies comes from mega-corporations and financial funds that use legal loopholes, like offshore headquarters, to avoid paying taxes in the countries where they generate revenue. This corporate tax avoidance is the primary force hollowing out the middle class.

Despite being governed by the Communist Party, China exhibits a higher Gini coefficient—a measure of wealth inequality—than any of the G7 capitalist nations, including the US. This stark paradox highlights the deep economic disparities that have emerged, challenging the country's nominal political ideology.

Contemporary Western economies often operate under a system of "socialism for the rich." Government interventions, such as restrictive housing policies and monetary inflation, actively redistribute wealth from the working class to the wealthy elite, who have the political power to benefit from these policies.

For decades, China's rapid growth reduced global inequality. Now that it is an upper-middle-income nation, its high growth widens the gap with poorer countries in Africa and Asia, making it a net contributor to global inequality.

The belief that a thriving middle class naturally arises from capitalism is a myth. History shows it's a temporary anomaly created by deliberate post-WWII policies like 90%+ top income and inheritance taxes. Dismantling these policies causes society to revert to its historical norm: extreme inequality where a tiny elite owns everything.

Punishing the super-rich disincentivizes the very people whose obsessive drive to innovate creates widespread prosperity. As seen in China post-Mao, allowing ambitious individuals to "get rich" is a powerful mechanism for lifting millions out of poverty and supporting a robust middle class.