“It seems to me that we are now economically and socially divided and burdened in ways that are broadly analogous to 1937. During such times, conflicts (both internal and external) increase, populism emerges, democracies are threatened and wars can occur. I can't say how bad this time around will get. I'm watching how conflict is being handled as a guide, and I'm not encouraged.”

In a new essay on LinkedIn, noted hedge fund manager Ray Dalio (MBA 1973) writes that Americans are divided in ways not seen since the Great Depression and the era leading up to World War II.

“Largely as a function of these economic differences and differences in the principles that people believe most deeply in, we are seeing large and increasingly firm political differences,” he says. “The majority of Americans appear to be strongly and intransigently in disagreement about our leadership and the direction of our country. They appear more inclined to fight for what they believe than to try to figure out how to get beyond their disagreements to work productively based on shared principles.”

While Dalio concludes that he sees no immediate economic risks, he expresses concern that the current internal conflict in the US government is causing a stalemate in advancing legislation and setting policy and that income gaps are creating a social divide not seen since the 1930s.

Read the complete essay

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