The Coming Social Explosion — A Political Report on the Political Party System
May 31, 2026
The Coming Social Explosion — A Political Report on the Political Party System
More and more people are beginning to realize that the AI revolution is threatening to demolish our society as we know it - more completely and drastically than any earlier economic revolution – more so than the steam engine, electro-mechanics, or even simple digital production. In February, a Citrini research report on a fictional 2028 AI-caused economic collapse caused a one-day 800-point drop in the stock market - despite the best efforts of conventional economists to refute it. History teaches us that the AI cataclysm will set off equally radical breaks in continuity in our social, political, and cultural institutions as well, including the historic US two-party political system. Indeed, they are already happening.
The exact immediate outcome of the AI boom is impossible to predict, but no conceivable scenario leads to a thriving or even stable economy. Just four AI giants – Google, Amazon, Meta, and Microsoft – are investing $650 billion in capital spending in 2026 alone. That is almost four times larger than the largest automakers, construction equipment manufacturers, railroads, defense contractors, wireless carriers, parcel delivery companies, Exxon Mobil, Intel, General Electric, and Walmart COMBINED. As UVA economist Anton Korinek pointed out, they “aren’t making hundred-billion-dollar bets because they expect AI to have minor effects on the labor market.”
AI investment is currently moving along two tracks. One is toward AGI (artificial general intelligence) that is designed to replace primarily white-collar workers in sectors like business, management, finance, math, architecture, and engineering. The other is toward so-called “physical AI”, the production of humanoid robots that embody AI in corporeal form. According to the Washington Post, physical AI is “fueling concerns about whether it could wipe out vast swaths of an already-devastated manufacturing sector”, not to mention transportation, agriculture, food service, and construction. Already, Elon Musk is beginning to pivot Tesla from production of cars to production of Optimus humanoids.
Ruling class economists argue that increased AI productivity will sustain “aggregate demand” and grow the economy, but people with no income cannot sustain demand even if prices go down – which is not guaranteed to happen. As Bernie Sanders asked about the billionaires controlling AI, “Does anybody in their right mind think that these people are staying up nights worrying about how this transformation is going to benefit ordinary people?”\
In the unlikely event that productivity projections by AI investors fail to happen, the sheer size of the investments makes major economic disruption inevitable anyway. An MIT Media Lab study found that “AI pilot failure is officially the norm – 95 percent of corporate AI initiatives show zero return.” Not one of the major generative AI systems makes a profit today. Open AI forecasts a loss of $14 billion in 2026 and losses of $44 billion through 2029. Meta, Amazon, Microsoft, Google, and Tesla are not projected to do any better. They are burning through funds far beyond the capacities of even these economic megaliths and are depending on massive infusions of venture capital and debt. Bloomberg estimates that it will require $3 trillion to build the data centers necessary just to serve these AI systems. Each company is gambling that it will be the one to make a fortune by being first to secure a monopoly on the AI system that will eliminate the most human labor, but none of them so far have been able to find paying customers. The outcome of these investments will be either a crash based on mass destruction of jobs, or a crash based on collapse of the financial system when projects fail and debts go unpaid.
Even more clearly than with earlier versions of digital automation, AI is absolutely antagonistic to the capitalist system that depends on exploitation of human labor to generate value. As the economist Korinek noted, “When a machine can do a worker’s job, the worker’s wage eventually falls toward the machine’s cost. Yes, new jobs will emerge, as they always do. But the machines will learn them faster and do them more cheaply. The reassuring historical patterns depend on humans being needed to run the economy. Remove that bottleneck, and we are facing something qualitatively different: a permanent shift in who, or what, captures the gains from economic growth.”
AI AND THE TWO-PARTY SYSTEM
Despite the most fervent proclamations of bourgeois economists, mass expulsion of humans from production can only decrease “aggregate demand”. Government may compensate for this for a while, with programs to create more markets, but in general the private property system cannot and will not permit substantial subsidies to meet the needs of human beings – that is a violation of its entire business model. As long as the government continues to be controlled by billionaires, it will never happen.
The level of antagonism that AI is introducing into the economy today is actually sharper than the one at the root the “irrepressible conflict” that led to the US Civil War. At that time, the underlying antagonism was between slave capitalism and free labor capitalism, and no amount of diplomacy or political compromise could undo it. The inner economics of both systems required expansion into the same contested geographical territory, and the political survival of each depended on that expansion. Neither could survive without destroying the other.
Today the antagonism is between a ruling class forced to defend private property, and the growing propertyless section of the working class that is becoming separated from the formal capitalist economy altogether. This section of the workers cannot physically survive without material means of support, and cannot obtain them without demanding that government distribute them based on need. They are compelled to politically attack the private property system. Today, it is either this displaced section of the working class or the private property system that must destroy the other in order to survive.
One of the most important lessons of the pre-Civil War period is that major realignment of the two-party system requires a split in BOTH parties. In the 1850s, the issue was slavery – the ownership of human beings as a form of private property. The Republican Party grew out of the splintering of the Whig Party, but its victory in the 1860 presidential election would likely not have been possible without the division of Democrats into Northern and Southern sections, each with its own convention and presidential candidate
The slaveocracy used John C. Calhoun’s “substantive due process” doctrine to claim that, since slaves were property, the constitution protected the slave system with no political, legal, or territorial limitations whatsoever. When the North resisted, the South launched an all-out counterrevolutionary Civil War. Despite vastly different economic and political conditions, the major ideological debate today is remarkably similar to that of the 1850s. Just as Calhoun argued that the constitutional right to own slaves trumped democracy then, today’s rulers argue that the right to private property supersedes every other right. In the 2020s, the issue has become ownership of private property itself.
The antagonism in today’s economic system has already unleashed an escalating social revolution. The question is how it will be reflected in the political struggle and what will be its impact on the two-party system.
The economy and a basic sense of human decency are driving more and more Americans to embrace restrictions on AI, data centers, ICE prisons, the Border Patrol, wars, genocides, and wanton destruction of the earth. The response of the rulers has been an escalating fascist offensive including Project 2025, DOGE, the mass deportation campaign, the attack on birthright citizenship, National Security memos, and the SAVE Act. Forced to choose between their hundred-billion-dollar bets on AI and tolerating democracy, the rulers have embraced fascism with a passion. The problem for the ruling class is how to impose a fascist regime on a population still steeped in the anti-fascism it learned in the twentieth century, especially during the 1960s -70s civil rights movement.
THE DEMOCRATIC PARTY
The basic outlines of the coming realignments are beginning to appear. In both parties, dramatic conflicts are emerging between the dominant corporate wings and their working-class bases, although in very different forms.
The Democratic Party majority is clearly anti-fascist, as the No Kings demonstrations amply illustrate. Democrats who describe themselves as liberals have increased from 28% of the total in 2000 to 59% today, with millions calling themselves democratic socialists. The pro-working-class movement within the Democrats continues to steadily broaden and deepen. Some 30 House Democrats are being primaried in 2026. Candidates like Platner, Talarico, and Abdul El-Sayed are surging in the Senate races. Large cities have elected pro-working-class leaders to local office like Zohran Mamdani, Katie Wilson, and Brandon Johnson.
Bernie Sanders and Rep. Ro Khanna have introduced national legislation to impose an annual 5% wealth tax on billionaires, creating a litmus test for measuring Democratic candidates, including ones for president in 2028. The tax would raise $4.4 trillion to reverse Trump Medicaid cuts, expand Medicare, and provide $3000 per person cash payments to all American families earning under $150,000 a year.
But the pro-corporate Democrats who dominate the Democratic National Committee are doubling down on resistance to these working-class demands for housing, health care, public education, peace, the environment, and abolition of ICE. Since the 2008 crash, the subservience of the Democratic leadership to Wall Street banks has ruined their brand and driven their frequent electoral losses. The explosion of AI – and the potential for billions in AI profits - now adds new urgency to their scramble to preserve power. At the same time, AI offers them a new narrative to attempt to bypass their credibility gap.
Pro-corporate Democrats are rallying around a new messaging strategy called the “abundance agenda”. The concept was popularized in the book Abundance by Derek Thompson and Ezra Klein in 2025. It has crystallized into an abundance movement that has raised funds, organized conferences, written articles and books, and spawned numerous lobby groups. Although purportedly nonpartisan, Thompson and Klein focus their critique primarily on the Democratic Party. Their essential argument is that Democrats should organize around creating more wealth rather than fighting over how the wealth that exists is distributed. They say that the problem with mainstream Democrats is that they are too hamstrung by government regulations to build the housing and green energy infrastructure necessary for a better future. The abundance movement is closely related to the so-called YIMBY (Yes In My Back Yard) housing movement that blames the lack of affordable housing on zoning and environmental regulations.
“Inclusive Abundance” is essentially a reinvention of the trickle-down economics popularized by Herbert Hoover and Ronald Reagan, dressed up in modern “techno-optimist” language. The problem of course is that increasing abundance within a private property system only creates more billionaires at the top and more poverty, homelessness, disease, and destitution for the masses at the bottom.
This is problematic enough, but the marriage of abundance ideology to the AI industry sets the stage for absolute capitulation to fascism. According to researcher Dylan Gyauch-Lewis, the “abundance gang has a big AI problem”. It turns out it is funded by AI-related tech corporations, foundations, think tanks, and trade associations. Abundance-advocated policies are not just about housing, energy, and transportation, but also for breaking down resistance to building data centers and ICE prisons.
While pro-corporate Democrats pay lip service to democracy, and may even loudly denounce Trump, they are nevertheless inseparably tied to the AI industrial complex being unleashed by Trump and the Republican Party. The catastrophic impacts of AI make it fundamentally incompatible with democracy.
REPUBLICAN PARTY
The Republican Party is generally aligned with the pro-corporate fascist agenda, but deeply divided over the tactics of how to implement it while still retaining some semblance of a working-class base. There is a pro-Nazi wing, led by Stephen Miller, that is aggressively driving the Project 2025 program. At the same time, there is a pragmatist wing led by people that pay lip servicing to disapproving of Nazism, while supporting a kinder, gentler fascism that can suppress democracy with less of the violence that has aroused so much opposition.
It may seem counter-intuitive for such pro-Israel Republicans to be allied with out-and-out Nazis, but in fact there is a long history of relationships between right-wing Zionists and Nazis dating back to the 1930s. Because MAGA depends on “blood and soil” Nazis to drive the fascist agenda, few are willing to openly condemn them. But the toxic unpopularity of Nazism forces Trump and the MAGA leaders into repeated verbal flip-flopping and ambiguity.
Fascism is not just the project of a group of racist ideologues and corrupt profiteers, however. The fact is that the AI revolution is already reducing too many millions, both Democrats and Republicans, to destitution. The economy is already beginning to tear the MAGA base apart. AI cannot proceed within a private property system without a fascist corporate dictatorship. Corporate dictatorship is impossible without eliminating or severely restricting the right to vote. And voter suppression is impossible without racial and other political campaigns against literally every population subgroup, real or imaginary, that can be separated out and attacked.
The history of so-called “Negro disenfranchisement” in the South from 1890 to 1910 is instructive. “In Virginia the average vote cast for Congressmen declined about 56 per cent between 1892 and 1902,” wrote historian C. Vann Woodward. “In Alabama the decline was 60 per cent; in Mississippi, 69 per cent; in Louisiana, 80 per cent; and in North Carolina, 34 per cent. Of the states relying on the poll tax or the white primary, the decline was 69 per cent in Florida, 75 per cent in Arkansas, 50 per cent in Tennessee, and 80 per cent in Georgia.”
Although the Southern disenfranchisement campaign very deliberately and specifically targeted African Americans, its corporate sponsors were more than happy to cancel voting rights for the millions of Southern working-class whites who also could not afford poll taxes or pass literacy tests. Indeed, consolidating the Jim Crow system required extending repression to every segment of the working-class. Similarly, the real danger of today’s SAVE Act, and the campaign against birthright citizenship, is that their actual targets are not just undocumented people, as they claim, but rather the rights of the ever-increasing categories of people that the dictatorship intends to marginalize as it consolidates its power.
The fight against fascism demands that we build working class unity, step by step, across every occupation, region, demographic, and ideology. The epic Minnesota uprising points the way. Unity begins with the most impacted and will work its way outward into the broader sectors of society. War, inflation, and basic needs budget cuts are driving more and more people into the resistance.
WAR ON IRAN
Every one of these divisions within the two major parties has been intensified dramatically by the US war on Iran. There has NEVER been so much opposition by the American people to a US war at its outset as there is now. In addition to once again threatening survival of the planet with nuclear warfare, it is creating massive environmental damage, and unnecessarily endangering the lives of millions of Iranian civilians and even US troops. It is costing billions of dollars and dramatically raising gas and food prices, not only overseas but here in the US, for both Republican and Democratic voters.
As a result, it is ratcheting up polarization within both the major political parties. On April 15, the largest number of Senators ever voted against sending weapons to Israel (36) - including over three-quarters of Democratic Senators. At the same time, the pro-corporate Democratic National Committee refused to cut its ties with the billionaire pro-Israel AIPAC lobby.
The war is so unpopular that anti-war sentiment has broken out even inside the Republican Party. Major MAGA influencers have spoken out boldly against the war, not because they have changed their fascistic views, but because the impact of the war is so badly hurting the working-class sections of the MAGA base. As a result, there is a possibility that a section of Republicans may break off and join Democrats to invoke the War Powers Act, when its 60-day deadline for Congressional approval expires on May 1.
The convergence of all these factors creates a significant opportunity - unprecedented since the Vietnam War - to unite a broad movement against the militarism of the ruling class. Strengthening the peace movement will be one more step toward independence from the two-party system, and creation of an anti-corporate, left wing third party where workers can fight more effectively for political power against the billionaire class. It is one more opportunity for revolutionaries to address the economic distress and moral outrage of the workers and deepen their social and class consciousness.
CONCLUSIONS
ONE. The League needs to reaffirm the assessments it made and tactics it projected from 2010 to 2018 around the motion toward a third party. Just because a third party has not yet emerged does not mean these assessments and tactics were wrong. In fact, the growth of AI makes those assessments more relevant and more urgent than ever. The following are quotes from Rally articles written in those years.
“Historically the working class has been politically tied to the capitalist class through the Democratic Party. Today, the Democratic Party remains the glue that ties the workers to the capitalists politically. That’s why the League’s strategy is to throw the blow at the middle — the Democratic Party — to break that connection as a first step towards the development of working-class political independence.
“Is the development of a third party a blow that strikes at this middle? It is, and revolutionaries should welcome and embrace motions towards a third party. As workers are increasingly thrown out of the production process and out of the capitalist economy, the subjective political ties are beginning to fray and break. The process is accelerated with the development of a third party, which becomes a new environment and school for political independence from capitalist rule.
“This third-party motion has one foot inside the Democratic Party pushing it to do the right thing, with the other foot outside, discussing the need to create new reformist political parties to the left of the Democratic Party. The third party is an indispensable stage in the revolutionary process. It is a necessary and inevitable step toward a workers’ party.
“An anti-corporate, left wing third party will serve simultaneously as an instrument for the ruling class and for workers. The rulers will use it to attempt to contain the movement and retain its political control. The workers will use it to attempt to unite and politicize their battles for basic needs.
“Revolutionaries who participate in the development of an anti-corporate, anti-fascist third party will influence it by pulling together a working-class trend within it. The stronger the working-class trend, the stronger the third party. It is crucial to influence the consciousness of the revolutionaries involved in the process. Political polarization will develop from this engagement over ideas, strategy and direction: polarization that will lead to a true workers party and a separation of class interests.”
The Democratic Party contains a powerful and growing anti-fascist, pro-working-class current — but that current is in direct conflict with the corporate wing that still controls the party apparatus. The Republican Party leadership has been fully captured by the billionaire fascist offensive. Neither party, as currently constituted, can deliver what the working-class needs.
We have to begin now to build the independent organizational infrastructure, programmatic clarity, and class unity that a working-class party will require. Support primary challenges to corporate Democrats. Build candidate pipelines grounded in working-class principles. Carry on political education that connects the present campaigns with the ultimate aim of creating a working-class party.
TWO. The League needs to reaffirm the tactic of focusing where the movement for basic needs enters the political arena. The movements of the unsheltered, housing-insecure, and poor are not peripheral to the class struggle — they are its leading edge. Our work must deepen unity among these sectors, connect their demands to electoral formations and the broader political realignment taking shape, and center the demands for basic needs in electoral strategy and candidate accountability frameworks. Connect poverty and housing insecurity to AI-driven job displacement, wage stagnation, and the collapse of public services under AI-driven austerity. Raise the basic needs agenda inside the No Kings movement.
THREE. Be nimble enough to respond to fascist coup attempts in Nov 2026 and 2028, including attempts to seize ballot boxes. Fight to block the SAVE Act and block repeal of birthright citizenship. These are the key pillars of the dictatorship - attempts to reinstate the Dred Scott decision that says nonwhites have no rights in the Constitution or Declaration of Independence. Expose the connection between billionaire AI ownership and the gutting of civil rights, labor rights, women’s rights, and democratic freedoms. Connect the growing resistance of women —to economic insecurity, political exclusion, and loss of reproductive rights — to the broader anti-fascist resistance, and use these connections to drive voter registration and turnout.
FOUR. No more blood for oil, no funding for war and genocide. The same billionaires that profit from AI are the ones driving the wars, occupations, and the genocide of the Palestinian and Iranian people. The proposed trillion-and-a-half-dollar military budget has nothing to do with safety and everything to do with cutting basic needs and subsidizing AI investments. There is no separation between the fight for economic justice and the fight against imperial violence.
FIVE. Work with the emerging working-class urban political movement that is already winning office, and putting forward transformational governance models. These victories are not isolated — they are the early expressions of political realignment. Elevate, connect, and learn from these models as proof of concept, and use them to build the political will for the deeper transformation we know is necessary. Public wealth for public good is not just a slogan — it is a governing framework that is winning in the real world. Develop political education curriculum connecting these local victories with the national movement to challenge private property supremacy and assert the people’s right to public wealth.
Build solidarity. AI requires a massive infrastructure of data centers, consuming land, water, and energy in communities already overburdened by poverty and pollution. At the same time, ICE concentration camps are expanding alongside the deportation machinery. The movement to oppose new data centers and close ICE camps is an essential opportunity to expand the movement, especially into rural and semi-rural areas.
THE MOMENT DEMANDS EVERYTHING WE HAVE
The AI revolution is not just disrupting the economy — it is cracking open the political system, forcing into the open the irrepressible conflict between the billionaire class and the working-class majority. The question is not whether a new political formation will emerge. The question is whether it will be one that is shaped by a conscious, organized, working-class movement — or one imposed from above by a fascist oligarchy.
The League's mission is to unite with other revolutionaries around the demands of low-income and displaced workers, and show how the solution is a cooperative society, where social wealth is owned in common and products are distributed according to need. The coming social explosion can be the birth of a new society. Our work is to make sure it is.



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