The second solution would be to do nothing.
“The government doesn’t deal [with it], people get more agitated, the government becomes weaker, people revolt and then the government collapses,” Bremmer said. “This is the Syria model, the Yemen model, and probably the North Korea model with the added bonus of nuclear weapons."
In the third option, the government doesn’t change the social safety net nor does it become weaker. Instead, it becomes more powerful and separates the people to prevent social unrest.
“Wealthier countries will either get it right or they’ll go to walls; poorer, weaker countries will build walls or fall apart,” Bremmer said. “The problem is big enough and urgent enough to solve.”
As populism delegitimizes governments in the developed world, demographic and political stress is coming from failed states caused by a geopolitical recession.
This recession will be marked by the end of American hegemony and the decline of globalization, said Bremmer.
"The last time the geopolitical order fell apart and changed was after World War II," said Bremmer. "The U.S. was the last country left standing, and we rebuilt the order"
While many states could collapse as the balance of power shifts globally, countries like the U.S., China and Japan will be less affected by the changes.
The rest of the world, however, faces a string of crises, said Bremmer. OPEC can no longer effectively control the price of oil. As oil-based economies in the Middle East, Asia and Africa collapse, nearby countries and regions like Europe will experience a surge of refugees and a rise in terrorism.
At the same time, technology allows the public to express their anger.