Pendulum at Both Extremes

The late 1970s marked a seismic shift in global economic and political landscapes, as a counterrevolution against Franklin D. Roosevelt’s New Deal took hold, first with Margaret Thatcher’s election in the UK in 1979 and then with Ronald Reagan’s presidency in the United States in 1980. This movement, rooted in the ideas of Austrian economists Friedrich Hayek and Ludwig von Mises, alongside Milton Friedman from the University of Chicago, sought to dismantle the Keynesian economic model that had shaped post-war prosperity. Dubbed neoliberalism—sometimes referred to as Reaganomics in the U.S. or the Third Way under Bill Clinton’s New Democrats and Tony Blair’s New Labour—this ideology promised prosperity, freedom, and stability through privatization, tax cuts for the wealthy, austerity for the masses, and a globalized marketplace. Yet, instead of delivering on these promises, neoliberalism has reshaped societies in ways that have fueled inequality, political violence, and a crisis of democracy, exemplified by the reemergence of figures like Donald Trump.

Let’s examine the psychological dynamics of neoliberalism’s failures, the spread of conspiracy narratives, and the urgent need for nonviolent resistance to restore balance and foster a culture of peace.

The Psychological Appeal and Fallout of Neoliberalism

Neoliberalism’s allure lay in its promise of individual freedom and collective prosperity through the “magic of the market.” Its proponents believed that reducing government intervention, slashing taxes for the wealthy, and dismantling labor protections would unleash entrepreneurial energy and stabilize democracies. Psychologically, this vision tapped into deep-seated desires for autonomy and self-determination, offering a narrative of empowerment in an increasingly complex world. However, the reality diverged sharply from the rhetoric. From 1980 to 2019, the top 1% of Americans saw their household income double, while the bottom 90% experienced stagnation. CEO pay skyrocketed by nearly 1,000%, and the wealthiest 0.1% now hold over 20% of the nation’s wealth, surpassing the combined wealth of the bottom 50%. This growing inequality eroded the social contract, fostering resentment and disillusionment.

From a psychological perspective, neoliberalism’s emphasis on individual competition over collective welfare exacerbated feelings of isolation and insecurity. The dismantling of social safety nets and labor protections left many feeling abandoned, as the promised trickle-down prosperity failed to materialize. The psychological toll of austerity—imposed disproportionately on the working class—manifested in widespread anxiety, distrust, and a sense of betrayal. As institutions like media and government increasingly served corporate interests, with corporations contributing $3.4 billion to the 2016 election and moving over 60,000 factories overseas, the public’s faith in democratic systems waned. This created fertile ground for populist figures like Donald Trump, who capitalized on collective frustration by offering simplistic narratives of blame and redemption.

The Psychology of Conspiracy Narratives and Hypervigilance

The rise of Trump and his “Big Lie” about the 2020 election exemplifies how psychological vulnerabilities can be exploited in times of societal unrest. As Dr. Hans Werbik, a pioneer in German cultural psychology, presciently warned in 2021, Trump’s extreme narcissism and need for dominance drove him to reject electoral defeat, framing it as a conspiracy of stolen votes. Werbik argued that Trump’s claims were not deliberate lies but pathological misstatements rooted in his inability to tolerate failure. This psychological profile—marked by a compulsive need to assert dominance—resonates with historical figures like Hitler and Stalin, who similarly manipulated reality to maintain power, as noted by Hannah Arendt in The Origins of Totalitarianism. Trump’s symbiotic relationship with his supporters, feeding their need for validation while stoking his own narcissism, created a feedback loop that amplified divisive narratives.

This dynamic is further compounded by what has been termed “hypervigilance,” a physiological state where fear overrides rational decision-making. The Trump regime’s use of hybrid warfare—combining psychological, legal, and governmental tactics—creates a high-intensity threat environment designed to induce panic and compliance. Hypervigilance short-circuits the prefrontal cortex, diverting control to the amygdala, which limits responses to fight, freeze, or flee. This explains why some, like the individual reflecting on their transition from building virtual reality games to facing lawsuits from figures like Kash Patel and Mike Flynn, experience moments of paralyzing overwhelm. Yet, as they note, naming emotions and grounding oneself in historical context can restore clarity, transforming fear into a finite, manageable challenge.

The Power of Nonviolence as a Psychological Antidote

In the face of neoliberalism’s failures and the rise of authoritarian tactics, nonviolence emerges as a powerful psychological and societal tool. Hannah Arendt’s observation that power and violence are opposites underscores the transformative potential of nonviolent resistance. Far from passive, nonviolence requires disciplined courage and a shift in consciousness, as exemplified by figures like Mohandas Gandhi, Martin Luther King Jr., and Rosa Parks. Gandhi’s concept of satyagraha—holding firmly to truth—emphasizes active engagement with injustice through creativity and justice, not coercion. Empirical evidence supports this: between 1900 and 2006, nonviolent movements were twice as likely to succeed as violent ones, producing more durable democratic institutions.

Nonviolence works by mobilizing legitimacy and mass participation, countering the fear-induced hypervigilance that authoritarian regimes exploit. It fosters solidarity and dignity, rebuilding the social bonds eroded by neoliberal individualism. Historical examples, from Gandhi’s Salt March to the U.S. Civil Rights Movement and Poland’s Solidarity, demonstrate how nonviolent action can reshape political destinies. These movements succeed by redefining power not as domination but as collective agency, rooted in what the author Elana Kaschak calls the “Mattering Map.” This tool highlights the interconnected causes of trauma and healing—gender, race, class, culture, and more—making visible the links between personal and political struggles. By identifying what matters in each life, individuals and communities can resist the psychological control of fear and division.

The Role of Mental Health in Addressing Socially Transmitted Diseases

The current crisis, marked by neoliberal inequality and authoritarian resurgence, can be understood as a “Socially Transmitted Disease” (STD), where delusions and fear spread contagiously through society. Mental health professionals have a critical role in countering this epidemic, not by retreating into private practice but by engaging publicly to illuminate the connections between individual and collective well-being. The Mattering Map offers a framework for this work, uniting psychological and cultural influences without pathologizing individuals. It encourages resistance by focusing on what matters—whether family, community, or justice—harnessing the intrinsic motivation that drives human action.

Professionals must also advocate for nonviolent strategies, educating communities about their historical successes and psychological benefits. Nonviolence counters hypervigilance by fostering deliberate, reflective decision-making, as seen in the practice of naming emotions to restore prefrontal cortex control. By promoting policies that prioritize prevention over militarization and building movements that cross borders, mental health experts can help transform a culture of violence into one of peace. This aligns with Spinoza’s insight that peace is not merely the absence of war but a state of justice and benevolence, achievable through collective imagination and solidarity.

Reclaiming Power Through Collective Consciousness

The failures of neoliberalism—its creation of inequality, distrust, and political extremism—have brought the world to a critical juncture. The psychological toll of these policies, compounded by authoritarian tactics like those of the Trump regime, threatens democratic stability and global peace. Yet, history and psychology offer hope. Nonviolence, rooted in courage and solidarity, has repeatedly toppled oppressive systems and built just societies. By embracing tools like the Mattering Map and advocating for nonviolent resistance, individuals and communities can counter the fear and division that sustain authoritarianism.

The choice to resist, as Theodore Roosevelt’s words remind us, belongs to those who dare greatly, striving for a worthy cause despite setbacks. As Hunter S. Thompson advised, fear must be faced directly, not avoided. The current chapter of autocratic drift is finite, and its end depends on our collective willingness to reject fear as a captor and embrace nonviolence as a liberator. By fostering a culture of peace through education, policy, and solidarity, we can write the next chapter—one that affirms human dignity and flourishing over destruction. The future depends on our capacity to make this choice, transforming personal and political consciousness to create lasting change.