|

Why a Major Revolution Is Brewing

I have written many articles on how extremely polarized our politics has become in the last decade. I’ve dedicated several Leading Edge newsletters to the topic. I talked about it at our 2016 Irrational Economic Summit. I even discuss it briefly in my new book, Trump, Brexit, and the Next Civil War, which will be available around mid-August.

I talk about it so much because it’s related to the mega 250-Year Revolution Cycle sweeping over us right now. We’ll feel the effects of this cycle for decades to come… which I detail in my new book.

But today I want to show you another aspect of this divide.

Look at this chart.

There are a number of partisan issues that delineate the differences between red and blue voters, and this is clearly one of them. The chart on red versus blue voting in the last presidential election is nearly identical to this one.

When you look more closely, you can see that the red/blue split in our country is more a rural/urban split. Roughly 20% of our population lives in major cities, 60% in suburbs, and 20% in rural areas. Those closer to the larger cities tend to lean more toward liberal views.

Even in the largest red state – Texas – Dallas and Houston residents tend to be more liberal, although not as liberal as Austin, with Willie Nelson as its mascot.

The rural areas are more conservative. It’s no surprise that states like Nebraska, Kansas, Oklahoma, West Virginia, Kentucky, Tennessee, Wyoming, and Alaska were red states during last year’s election. They have huge swathes of rural land.

This is important because of this…

For the longest time after the election, there was all this debate about why Clinton lost. The truth is that Trump won the rural white vote by margins of 80%-plus… much higher than Clinton won the traditional working class and voters living in the inner-cities.

I saw a show a while back about a rural county in Alabama where Trump got 89% of the vote! The formerly blue states that turned red for Trump, like Pennsylvania, Ohio, Michigan, and Wisconsin have large rural, red areas!

The strong rural red leaning also explains why the Republicans were favored twice by the electoral college. It favors land mass a bit more than voter density – as does the two senators per state, which gives low population rural states like Wyoming more representation.

I’m not taking sides here. I lean red on some issues (more fiscal) and blue on others (more social). But the current split across the country is an unsustainable imbalance. The U.S. is the most politically polarized of the major developed countries, and it has the highest income inequality that just adds fuel to the polarization fire.

These imbalances block upward mobility, which is a fundamental cornerstone of democracy, innovation, and progress, as is the ability to compromise for effective political change.

We have a revolution coming on a convergence of my 250-Year Revolution and Andrew Pancholi’s 84-Year Populist Revolution cycle. America is going to be at the center of this. This revolution will be as big – if not bigger – than the one that brought us democracy, and the Protestant Reformation in Europe before that.

Watch out for the release of my new book. As a loyal subscriber, you’ll have exclusive access before it goes to the general public in 2018.

Author

Harry S. Dent, MBA

Harry S. Dent, MBA

Dent Research

Harry S. Dent Jr. studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of his chosen profession that he turned his back on it.

More from Harry S. Dent, MBA
Share:

Editor's Picks

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans. 

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.