Even in Western countries conditions are far from ideal with low-budget, overcrowded facilities that lead to neglect or tensions that can escalate to violence.
Many in the galaxy feared that the conflict would escalate to full-scale warfare, but Palpatine was adamant that the crisis could be resolved by negotiation.
If Washington were ever to challenge that status quo, the quarrel would escalate to the "fundamental" disagreement category.
This would eventually escalate to the snowman cavorting with women and offering drinks to minors.