Precipice of a Grievance-Based Society

Economic anxieties have fueled widespread resentment—a key finding of our research. We’ve observed a significant shift in public opinion, moving beyond political division to assertive self-interest advocacy. Recent elections globally saw citizens protesting against businesses, governments, and the wealthy. Incumbent governments in several Western democracies, including the U.S., U.K., France, Germany, and Canada, were ousted. Businesses faced backlash over their involvement in social issues, from diversity, equity, and inclusion (DEI) to sustainability.

This discontent stems from a belief that the system is unfair, that businesses and governments worsen things, and that the rich continue to prosper. A growing sense of alienation is so pervasive that almost two-thirds of respondents now fear discrimination, a 10-point increase from the previous year. Even high-income earners show increased worry about victimization—an 11-point jump to 62%. Three-quarters of respondents are concerned about wages failing to keep pace with inflation. There’s also deep concern about job losses due to automation (58% of employees) and globalization (62% worry about international trade impacting their livelihoods).

Four factors, developing over the past decade, have intensified these grievances. First is a widespread lack of faith in a better future. Only one-third of respondents believe the next generation will be better off. This is consistent across Western democracies, with Germany at 14% and France at just 9%.

Trust has also become increasingly disparate across income levels. Low-income respondents exhibit significantly lower trust in institutions than high-income respondents. For example, 48% of low-income respondents trust institutions (business, government, media, and NGOs), compared to 61% of high-income respondents. The disparity is most pronounced with businesses, showing a 16-point trust gap.

Institutional leaders may also bear responsibility. Globally, two-thirds of respondents worry about intentional dishonesty from journalists, government officials, and CEOs.

Furthermore, there’s a decline in shared facts. Almost two-thirds of respondents struggle to distinguish reliable news from misinformation. Social media’s decisions regarding information will further complicate this already complex media landscape.

Our collective grievances are widespread, encompassing economic, electoral, and societal aspects. Most people harbor resentment towards elites and institutions. Sixty-one percent of respondents feel a moderate (41%) or high (20%) level of grievance, defined as believing that businesses and governments hinder their lives, serve narrow interests, and that the system favors the wealthy while ordinary people struggle. This belief is more common among those on the Left (69%) than the Right (57%), and among older people (66% aged 55+) compared to younger people (58% aged 18-34). Many high-grievance individuals adopt a zero-sum perspective: any political gain for one party is perceived as a loss for another.

The wealthy are viewed negatively. Two-thirds of respondents believe the wealthy avoid paying their fair share of taxes and that laws benefit the wealthy at the expense of “people like me.” These grievances contribute to widespread belief in capitalism’s failure. Over half of respondents believe capitalism does more harm than good—53% overall, including 55% of 18 to 34-year-olds.

Many also feel political systems are broken. Only one-third of respondents believe those with opposing views “play by the rules,” and less than half (44%) trust those with different political beliefs. Government is distrusted in 17 of the 28 countries surveyed. For many, violence may seem necessary. Over half of young people approve of at least one hostile activism method to effect change: online attacks, intentional misinformation, or threatening or committing violence against people or property.

Low-trust nations exhibit higher grievance levels, while trust restoration fosters belief in a brighter future. In Germany, average institutional trust is 41%, and 69% feel moderate or high grievance. In Singapore, institutional trust is 65%, and grievance is only 39%. This highlights a strong inverse relationship: higher institutional trust correlates with lower societal grievance.

Businesses have become the default solution for societal problems, as many believe they are more competent (+48 points) and ethical (+29 points) than governments. However, business lacks the sole authority to lead, as perceptions of business ethics decline with rising grievance. Businesses have the potential, and considerable public support, to address social issues.

The other three major institutions also have roles to play in addressing societal grievances. NGOs have an opportunity to lead ethically, being seen as a unifying force among those with high grievance, and enjoying the highest trust within that group. Governments must demonstrate competence and deliver results that benefit citizens. Media outlets must provide reliable information to enable informed decision-making.

We need to avert a grievance-based society where violence is seen as a viable option. All four major institutions must contribute. Businesses will have opportunities to collaborate with new governments in major democracies on key issues like trade, energy, and reskilling.

These issues will be debated in a more chaotic media environment, prioritizing speed and accuracy. Our aim should be to empower individuals and drive positive change, rather than threats to society.