It’s something we don’t like to think about, but we can’t completely dismiss it: the potential for a major meltdown in the United States. The erosion of federal structures by Donald Trump and Elon Musk could set off a chain of overlapping crises affecting society, finances, and industry.
Consider their handling of financial regulation first. Trump’s pick for the US Consumer Financial Protection Bureau (CFPB), Russell Vought, has virtually put the agency on ice, slashing its budget and coming alarmingly close to Musk’s desire to completely dismantle it. Born out of the ashes of the 2008 crash, the CFPB was designed to shield consumers from the kind of predatory practices that nearly sank the global economy back then. The message sent to financial players couldn’t be clearer: they can essentially do as they please. And if the US financial system encounters trouble, it’s a crisis that would ripple around the globe.
But that’s only one piece of the puzzle. Musk’s rallying cry for a dramatic rollback of regulations has prompted his supporters to target agencies that are the backbone of stability. While often villainized by big corporations, regulations are really all that stand between us and numerous disasters. Initially, deregulation serves as class warfare, hitting the middle and lower classes for the benefit of the elite. Over time, though, the repercussions rebound on society as a whole.
Take, for example, the devastating fires in Los Angeles this year. Estimates for insured losses bounce between $28 billion and $75 billion, with total losses possibly reaching $160 billion to $275 billion. These numbers pale in comparison to what future climate catastrophes could cost if Trump continues to dismantle environmental protections and weaken federal response services. The ripple effects could severely strain the insurance sector, homeowners, and potentially push the entire nation into crisis-mode.
Then we have the looming threat of another pandemic. Should a pathogen even more communicable and lethal than COVID-19 hit, it would find a country ill-prepared, given the undermined public health measures like vaccination campaigns and quarantines. A pandemic under these conditions could claim millions more lives and lead to an involuntary economic shutdown.
Most people aren’t fully aware of how complex systems operate, so when collapse does happen, it takes most by surprise. Systems—whether they are economic, social, or environmental—rely on diversity, redundancy, and structures like government regulations to remain stable. When these systems become too uniform and interconnected, as we saw in 2008, a disturbance in one area can cascade into disaster elsewhere.
Global capitalism inadvertently threatens systemic resilience. As companies chase profitability using similar strategies and as digitization spreads, the economic machinery loses its diversity and starts aligning too closely. Massive corporate centralization meanwhile—think Amazon or Cargill—creates “hub” nodes that, if failing, could trigger rapid downstream effects.
Efficiency is prized, but it strips away redundancy. When rules and infrastructure are standardized—consider the lookalike ports and transport networks—the system loses not just diversity, but also failsafe back-up plans. When resilience is compromised, even small disturbances can cause a domino effect of failures.
Ironically, Trump’s trade wars and attacks on global norms could—by shattering system synchrony—reintroduce some semblance of modularity. However, his simultaneous erosion of safeguards and disregard of ecological limits likely leaves the overarching system more vulnerable to breakdown.
In chaotic and disruptive environments, the far-right often finds opportunity. Feedback loops can morph crises into full-blown catastrophes, and Trump casts himself as the savior of the very crises he instigates, while diverting blame to scapegoats.
If or when a societal collapse seems on the horizon, Trump and his circle may hesitate to act. Many of the ultra-wealthy hold narratives reminiscent of an Ayn Rand dystopia—where the elites retreat to safe havens, abandoning the masses to chaos, failing to grasp that their fortunes are interlinked with society. Alternatively, some envisage a different end-times scenario, content in their sheltered bubbles while others endure suffering.
Governments should ideally prepare for the worst while hoping for the best. However, as with climate disruption and other global threats, many authorities—like the UK’s—seem to lean too heavily on wishful thinking. Since we can’t afford to put all our faith in political leaders, creating grassroots support systems becomes crucial.
The principle is simple: Don’t face challenges in isolation. Build connections, get to know your neighbors, form support networks, and lend a hand to those struggling. Throughout history, communities have thrived when bound by strong social ties.
Engage in discussions about potential challenges and explore response strategies. Initiate community involvement to create a participatory, democratic approach to solving local issues, and if possible, secure local resources to benefit the community under initiatives like the upcoming community right to buy in England.
A grassroots focus on democracy and local self-reliance, as suggested by figures like Murray Bookchin, could foster a political culture emphasizing diversity, redundancy, and modularity. While national and international policies are certainly needed, it’s starting to feel like we can’t rely on the cavalry to save us. Prepare for the worst, just in case.
