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The last alien war in 2041 has indeed proven to be an expensive victory. The contamination of Earth's atmosphere and the devastating climactic changes that ensued have affected everyone. While many sought to leave Earth and colonize other planets, a self-sufficient, self-contained city was successfully constructed here on Earth and thrived under the hazardous toxic atmosphere that surrounded our home world. Mega-Primus has already become an important historical achievement.
Unfortunately, the last four years have seen this comfortable, low-cost lifestyle rapidly deteriorate. The social and physical fabric of our society has decayed at an alarming rate; sociologists have been, as yet, unable to explain the cause of decay. Statistics clearly demonstrate increases in physical and cyberspace violence, family breakdowns, crime, ethnic unrest and strange cult group involvement.
The frequency and pace at which incidents are occurring is even more disturbing. The concern of the citizens is evident. Many have already fled the city. The ongoing mass migration increases the concern of all remaining citizens as each day passes. Losses in tax revenue are restricting the city's ability to deal with incidents, and the emergency services are unable to do any more than firefight existing problems.
Unless we deal with the source of the problem, social collapse appears to be a very real possibility! While the Senate remains unconvinced that Alien interference is the source of the problems, they have secretly agreed to fund a covert investigation by X-COM.