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Economic decline fuels cultural backlash: Blue America turns woke, Red America feels threatened and seeks territorial expansion.
  • As Blue America’s resources shrink, it reacts with cultural wokeness, trying to protect its identity through social movements.
  • Red America, perceiving a loss of global dominance, pushes for expansionist rhetoric and trade wars to reclaim status.
  • Both sides blame each other and external forces, deepening polarization and preventing coordinated policy.
  • This feedback loop accelerates the overall decline of Western influence.
  • Recognizing the economic root of the cultural battles is key to de‑escalation.
Balaji SrinivasanThe Peter McCormack Show00:21:57

Supporting quotes

The loss of economic status led Blue America to go woke and then push the tech lash wokeness. Balaji Srinivasan
Red America feels under assault and wants to expand its territory again. Balaji Srinivasan

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Four-Party Conflict: Red America, Blue America, China, Internet

Balaji reframes US politics as two internal factions (Red vs. Blue) each fighting external forces--China and the Internet--creating a four-way geopolitical struggle that reshapes policy and economics.

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