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Live Trading News > Blog > Politics > America > The Cracks are Showing: Why Western Politics is Fracturing Between the Establishment and the People
America

The Cracks are Showing: Why Western Politics is Fracturing Between the Establishment and the People

Shayne Heffernan Ph.D.
Last updated: December 21, 2023 6:58 am
Shayne Heffernan Ph.D.
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The tremors are undeniable. Across the West, a tectonic shift is occurring in the political landscape. The traditional left-right axis is not just cracking, it’s crumbling, with a new fault line emerging: one that pits the entrenched establishment against the increasingly frustrated people.

Here’s the argument for why this isn’t just a passing fad, but a fundamental realignment:

1. The Rise of Anti-Establishment Rage:

Populism isn’t confined to fringe figures anymore. From Trump in the US to Le Pen in France, Boric in Chile, and Johnson in the UK, ordinary people are turning to leaders who promise to shake up the status quo. This isn’t ideological, it’s a primal scream against a system seen as rigged for the elite.

2. The Inequality Abyss:

The gap between the wealthy and everyone else yawns wider every day. Automation, globalization, and tax cuts for the rich have left millions feeling left behind. This economic anxiety fuels resentment towards an establishment perceived as deaf to their struggles.

3. A Broken Social Contract:

The bedrock promises of Western democracies – opportunity, security, progress – feel increasingly brittle. Rising costs of living, stagnant wages, erosion of healthcare access, and climate change anxieties create a sense that the system is failing the people it’s supposed to serve.

4. The Disillusionment with Politics as Usual:

Traditional political parties and career politicians are seen as part of the problem, not the solution. Scandals, gridlock, and a constant churn of promises unfulfilled breed cynicism and a belief that the system is rigged against ordinary people.

5. The Echo Chamber Amplifies the Divide:

Social media algorithms and ideological news outlets create echo chambers where grievances are amplified and dissenters demonized. This further entrenches the feeling of “us vs. them” and makes finding common ground increasingly difficult.

Of course, this isn’t to say the left-right spectrum is irrelevant. Issues like abortion, gun control, and social justice still ignite passionate debates. But within each camp, there’s a growing sense that the establishment, regardless of ideology, is more interested in self-preservation than genuine change.

The West faces a critical juncture. Can it rebuild trust, address the concerns of the people, and bridge the widening chasm? Or will the establishment vs. people fracture continue to grow, potentially leading to even more dangerous polarisation and unrest?

This isn’t just a political debate, it’s a fight for the soul of Western democracies. The decisions made today will determine whether we heal the cracks or watch the edifice crumble.

Shayne Heffernan

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By Shayne Heffernan Ph.D.
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Shayne Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 40 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.
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