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Politics in Star Wars isn't the problem. Lucas just refuses to believe he sucks at writing it because politics is always some etherial, distant concept to him. In fiction, it MUST convey immediate emotional jeopardy to the characters.

Ten years after the battle of Endor, the Alliance's control of the galaxy is already struggling. People forgot how to live under democracy under the Empire's rule, and now that they have it they regularly vote for only their own interests, rather than the interests of the galaxy as a whole. The galaxy is already edging towards a civil war which will be significantly more destructive than the war against the Empire ever was.

The movie begins with several students in the Jedi Academy, who at first do not get along because of their different viewpoints and backgrounds, but as the movie progresses the missions they are assigned slowly turn from disciplining and controlling criminals to increasingly gray areas. Finally, after stealing weapons from private citizens, it's revealed the Jedi Academy is in cahoots with Alliance officials. Everyone can see the upcoming civil war. Their increasingly desperate attempts to avert or delay it force them to ask worse and worse things of the students.

The last third of the movie goes VERY dark, with several unquestionably immoral decisions forcing the Jedi Academy into a schism just as the civil war hits. The main characters are shuffled and split every which way and turned against each other.