> If this hypothesis is true then you would think that the government in place would do everything they can to stop the far right/far left from rising from the ashes of the failed social safety net.

The problem is that politicians care about their individual pockets, not what happens to society after their term. Politicians are not incentivized to serve the people - quite the contrary. And even if they do end up thrown out of office, a nice private sector job is waiting for those who let themselves be bribed.