Modern democracies, particularly in Africa and the Middle East, face dysfunction due to tribal groups prioritizing economic favoritism over collective governance. This leads to a fragmentation in political representation, where diverse ethnic groups focus solely on their share of resources, undermining trust in essential institutions such as policing and education. The welfare state is at risk as attempts to salvage it through immigration policies are ineffective, while nationalist strategies aiming to curtail immigration also fail. The decline of the social democratic experiment highlights a growing divergence between America and Europe, driven largely by demographic shifts—Europe's aging population leads to stagnation similar to that seen in Japan, emphasizing a crucial link between labor supply and economic vitality.

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