Us vs. Them Summary

“Globalism promised opportunity for all, but has it delivered equality, or has it deepened the divide between us and them?”

1. Globalism’s Economic Divide

Globalism has reshaped economies by enabling the free flow of trade, labor, and capital. While it has enriched many, it has also left others behind. Wealthier consumers in developed countries benefitted from cheaper goods, and workers in poorer countries saw new job opportunities. However, the shift of manufacturing to countries with lower labor costs has led to job losses in developed nations. In the United States, factory jobs declined nearly 40% since 1979. Furthermore, the share of income for middle-income households has dropped significantly, a marker of the waning strength of middle classes.

This economic shift has spurred deep resentment. Populist leaders, whether on the left or right, utilize an "us vs. them" narrative to rally support. They highlight the growing disparity between everyday workers and elite groups, such as wealthy corporations and financial institutions. This sentiment isn’t only economic but also cultural, as citizens feel alienated.

Polling further reflects dissatisfaction: in 2015, only 6% of Americans believed the world was improving. Leaders like Bernie Sanders in the U.S. and Marine Le Pen in France have tapped into this anger, each promising policies to “protect” the common worker from these trends.

Examples

• 40% of U.S. factory jobs disappeared since 1979.
• In 1970, middle-income households earned 62% of national income; by 2014, it was just 43%.
• Populist politicians on both left and right frame their arguments around “working citizens vs. elites.”

2. Immigration Intensifies Cultural Fear

Immigration, spurred by global flows of people and goods, has created anxiety in many nations. Concerns arise not just from job competition but a belief that cultural identities and public services are under threat. In the United Kingdom, the number of foreign-born residents more than doubled from 1993 to 2015, fueling the emotional Brexit campaign. Anti-immigration rhetoric suggested immigrants crowded schools, hospitals, and took benefits meant for locals.

Germany’s open policy during the 2015 crisis saw over a million asylum applications, leading to the rise of Germany’s far-right party, Alternative for Germany. Countries like France feared losing historical cultural identities, with Marine Le Pen warning against foreign influence eroding “Frenchness.”

The migrant crisis coincided with rising terrorist attacks, further straining the public stance on diversity. Citizens questioned the sustainability of open borders, as reflected in surveys where Western Europeans called for stricter restrictions. Immigration debates continue to polarize voters worldwide.

Examples

• Migration to the UK increased foreign-born residents from 3.8M in 1993 to 8.7M in 2015.
• Over a million asylum seekers applied to Germany in just two years (2015–16).
• European polls indicated majority voter support for tougher border controls.

3. Emerging Economies Share the Struggle

While globalism boosted some emerging nations, it also introduced new hurdles. Countries industrialized rapidly, grappling with environmental damage and mismatched expectations. In China, industrial activity has caused severe pollution. A reported one million annual deaths in China result from air toxicity, sparking sporadic protest eruptions.

Countries like Turkey faced different challenges. Turkey reduced poverty massively between 2002 and 2014 but failed to deliver on promises of significant income growth. Middle-class aspirations weren’t matched by sufficient investment in public infrastructure, even as people moved to cities in pursuit of economic opportunity.

These frustrations aren’t unique. In Brazil’s São Paulo, a minute increase in bus fares created protests, reflecting growing disdain toward government inefficiency and corruption. Emerging economies simultaneously face rapid new pressures from globalized expectations.

Examples

• One million annual deaths in China are linked to air pollution.
• Turkey’s average incomes plateaued below projected figures in recent years.
• Brazil’s 2013 protests, triggered by a 9-cent fare hike, spread nationwide.

4. Wealth Inequality Stokes Anger

Economic gains have disproportionately accrued to global elites. In the United States, the top 1% earn 81 times what the bottom 50% do. In Nigeria, the wealth imbalance is equally stark: the richest person makes thousands of times more daily than the average citizen’s yearly essentials budget.

Such imbalances generate unrest. Russia saw mass protests when a stagnant economy and government inflation policies hurt pensions and low-income wages. Meanwhile, lavish spending by elites, including duck sanctuaries built on private properties, symbolized the stark gaps.

In the U.S., rising income inequality has correlated with an increase in hate crimes. Research indicates deeper societal divides emerge in heavily unequal regions, reflecting the tangible social consequences of extreme wealth polarization.

Examples

• U.S. income inequality has worsened over three decades, with the elite’s earnings vastly outpacing the majority.
• Russian elites hold 24% of the nation’s wealth offshore.
• Hate crimes in the U.S. coincide with regions of higher economic inequality.

5. Technology and Jobs Create New Disparities

Automation advances such as robots are poised to displace millions. Between 1990 and 2007, robots replaced approximately 670,000 U.S. manufacturing roles, with many jobs yet to be recreated. While theory suggests automation paves the way for higher-paying roles, this shift is not occurring fast enough.

Low- and medium-skilled workers bear the brunt of these changes. However, without accessible education, many will struggle to transition to industries like tech or healthcare. With sky-high tuition costs in countries like the United States, automation’s benefits may only benefit the wealthy who can afford retraining.

If governments fail to address these pressures, discontent may rise rapidly among displaced workers.

Examples

• 670,000 U.S. manufacturing jobs were lost to automation from 1990–2007.
• Automation threatens up to half of all U.S. jobs by 2035, according to one study.
• College tuition inflation in the U.S. pushes education out of reach for many.

6. Developing Nations Face Amplified Job Losses to Automation

Emerging economies are more vulnerable to automation than wealthier nations due to their reliance on labor-intensive jobs. Countries like Nigeria, China, and India see between 65-77% of their roles at risk. This risk is compounded by insufficient investment in education and poor governance.

For example, South Africa struggles with legacy infrastructure problems and a one-party governance prone to inefficiency. Youth unemployment there crosses 40%, paired with restricted access to modern digital skills education.

Left unaddressed, automation could deepen inequalities in these nations, making poverty solutions more elusive while increasing unrest.

Examples

• Automation threatens 77% of jobs in China compared to 47% in the U.S.
• India’s population, half under 25, is badly prepared for tech innovations.
• South Africa faces high youth unemployment compounded by bad infrastructure.

7. Rising Nationalism Builds Physical and Digital Borders

Many nations are retreating from globalism, erecting barriers to trade, movement, and information. The U.S., under Trump, embraced economic protectionism through tariffs. Similarly, southeast Asian countries increased non-trade barriers six-fold since 2000.

Beyond goods, information is restricted. Nations like Russia fine-tune digital censorship, preparing even infrastructure for online disconnection in emergencies. Immigration laws also tighten as automation reduces demand for labor.

These barriers signal a retreat from the promises globalism once touted, reflecting fear and frustration.

Examples

• More than 40 countries built barriers since 1989.
• Non-tariff protections in Southeast Asia rose from 1,634 (2000) to 6,000 by 2015.
• Russia developed an alternative “internal internet” for state control.

8. Governments Should Modernize the Social Contract

Changing systems of work and inequality pressures demand a new understanding of government roles. Lifelong education will be vital for adapting to job disruptions. Singapore already leads with retraining programs and innovation incentives.

Proposals like robot taxes from figures like Bill Gates offer ways to fund displaced worker support. Meanwhile, universal basic income is being trialed, ensuring citizens avoid poverty while pursuing flexible options—be it caregiving, education, or entrepreneurship.

An updated social contract must reflect how globalism has reshaped citizens’ lives, pairing opportunities with support structures.

Examples

• Singapore provides over-25 citizens with learning credits.
• Bill Gates suggests robot taxes tied to welfare and training improvements.
• European trials on universal basic income offer lessons for adaptability.

9. Anger Towards Globalism Must Be Addressed

The anger fueling populism arises from real grievances. People in both developed and developing nations feel overlooked by those who benefit from globalism. Disdain at elites ignoring inequality, automation, and migration will only worsen societal division unless countries take action.

Investments in robust education, economic fairness, and protection from economic displacement offer long-term peace—more effective than short-term nationalist or isolationist policies.

Taking these voices seriously is necessary to address the turmoil shaped by globalism.

Examples

• Promises of automation-driven improvements are undermined by wage gaps.
• Protests globally underline shared grievances (e.g., São Paulo).
• Building societal trust in governments reduces populist rhetoric.

Takeaways

1. Focus on advancing accessible lifelong education to prepare workers for automation and technological changes.
2. Advocate for fair taxation on technology advancements to support displaced workers and social welfare programs.
3. Support local programs aimed at improving transparency in governments to curb inequality-driven anger.