Soft power doesn't exist. Iterated games don't exist. Long-term consequences don't exist. Externalities don't exist. Positive sum utility gains don't exist. Systemic effects don't exist. It's all too abstract and cognitively difficult, it's the business of the arrogant intelligentsia.
The problem for them is that reality isn't going to adjust to fit their worldview. The decline will eventually reach people's purchasing power. The laws of reality will catch up to them.