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.

Social and political chaos are symptoms of a foundational economic decay. When the work-to-reward feedback loop breaks—evidenced by housing becoming unaffordable—people lose faith in the system itself and become open to radical alternatives because they feel they have nothing left to lose.

Societal fears, or "moral panics," are cyclical. While the targets change (from witchcraft to 5G wireless), the underlying tactics of exploiting fears around child safety and innocence remain consistent throughout history, repeating the same patterns.

Populist figures don't create societal problems; they rise to power because existing economic and social issues create an environment where their message resonates. To solve the problem, you must address the underlying conditions, not just the leader who represents them.

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.

Using the 'horseshoe theory,' the analysis posits that the far-left and far-right often meet on extreme issues, such as antisemitism. This convergence serves as a critical litmus test for dangerous ideas. When ideologies from opposite ends of the spectrum align, it signals a significant societal risk.

The root of rising civil unrest and anti-immigrant sentiment is often economic insecurity, not just a clash of cultures. People convert financial anxiety into anger, which is then easily directed at visible, culturally different groups, creating flashpoints that can escalate into violence.

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.

In times of economic inequality, people are psychologically driven to vote for policies that punish a perceived enemy—like the wealthy or immigrants—rather than those that directly aid the poor. This powerful emotional desire for anger and a villain fuels populist leaders.