The west has been in the imperialist stage of capitalism for a bit more than a century. As was described back then, this is a parasitic, moribund stage of capitalism. It's parasitic in an obvious way, but what's most interesting is the moribund factor. Imperialism essentially becomes the dominant factor in a capitalist economy once it fully saturates the national economy, when monopoly bank and industrial capital begin consolidating into finance capital, and when these groups must expand outward, not just can.
The reason this is moribund is because it hollows out industrialization, seeking cheaper labor in the global south. It also seeks more specualtive than real returns, and sharpens the divide between rich and poor on an international scale, even if temporarily it reduces inequality in the national level (see FDR's New Deal, before imperialism began decaying and Reaganomics forced austerity to preserve superprofits). What's happening now is a sharp rightward turn in response to this system breaking down as the global south develops and gains independence from neocolonialism, giving them agency in how the world is run and tools at their disposal not purely linked to the west.
It's the protracted death of imperialism that is forcing many people into austerity in the west, which drives reaction. Everyone trying to blame it on foreigners and propaganda are missing the point, the actual material system the west runs on is dying away as has already been predicted before by analyzing the very mechanisms of capitalism.