We are, as scary as it seems, heading towards a two-tier society. One where the upper middle class and rich are doing extremely well, and an underclass that is living paycheck to paycheck.
From this perspective, the rise of extreme candidates like Trump is almost understandable. The shrinking middle class, and the rising lower-middle-class, are finding themselves under assault, and are reaching out for anyone who is will to fight for them, against any scapegoat that can be blamed for this assault. Mexicans, Muslims, China, Free Trade - all perfect targets.
Their complaints are real, but it's unfortunate that their anger is being directed towards fictitious threats. Let's face the truth and start addressing the underlying problem. We need to tax those who're benefiting tremendously from the current economy, and use this money to strengthen the middle class and help those who are falling behind. Raising the tax rates on the top 30%, and introducing a universal basic income, is a much needed first step.
[1]: http://www.nytimes.com/2011/03/07/opinion/07krugman.html?_r=...