The way the world economy has run for years was always without question destined to fail, a system based on as many people as possible working, massive population growth and inevitably less jobs. As always my example (particularly relevant to detroit) is that 50 years ago it took a hundred guys maybe a week to make a few cars and today it takes 5 guys, 100 robots and half a day to make 20 cards. Per say 1000 people we need less farmers, less manual labourers, less of almost every job to do the same amount of work.
Since technology became the main driving force in almost every industry efficiency has gone through the roof and jobs are simply ceasing to exist. Most governments are trying to hide most of these private, tax revenue generating jobs by hiring them in the public sector. So straight away you have higher tax costs and lower tax income, its a double whammy, you don't lose 10k income from someone in a 30-40k a year job, you lost the 10k income AND pay out 20-30k from tax money in a public sector replacement job, so you're 30-40k down, not 10k. Then you have the fact that governments have been adding basically red tape, more paperwork to all these government sectors and in doing so reduced the efficiency of public sector working... they are creating busy work to keep people in jobs, but vastly increasing the costs for work that is completely not needed.
We pay the retirement costs of the current generation with the pension payments made by current workers, but this system has always and will always required significantly more workers to be paying in than taking out, so 1mil pensioners, 3mil workers, those 3mil workers hit retirement age and you need 5mil workers to cover their pensions, those 5mil workers hit retirement and, it goes on forever.
Its utterly unsustainable, the job growth, the population growth, the public sector growth, not one part of it is even marginally sustainable let alone all of them together.
Every time the economy gets worse we lose more jobs and gain more public sector jobs, it gets worse constantly, we borrow more constantly, we will never, ever pay off any of this debt our only possibly hope is to slightly reduce the deficit.
The banks are rubbish, cheated people, basically committed fraud after fraud after fraud, destroying peoples lives, taking their homes, ruining lives to make a bit of extra cash, but they aren't responsible for a completely unsustainable economic model most of the world is trying to follow.
