We are witnessing the decline of a 500 years old system, which is based on the accumulation of capital. To accumulate capital you need profit from productive enterprises. But -for most industries- the cost of production has gone so high and the real, effective demand so low that the profit is gone, and you can’t accumulate capital.

What we call white collar middle classes are not needed anymore, and they are being replaced by machines. But here’s the thing: who is going to buy the products and services then?, and that’s the real problem. There’s too much of everything and too little demand.

There’s nobody left to buy the products without debt, which makes increasingly useless the investments to create new products to be sold. This squeeze is getting worse and worse.

Young people find their standars of living lower than those of their parents, investments seem not to be profitable without government subsidies. Pension promises become overwhelming compared to the wages of young people, etc.

A large portion of the workfoce can’t afford to buy a house or fund a family (things that were for granted in previous generations), and they must invest increasing resources (time, money) in training and professional recylcling due to the increasing robotization and globalization.

Once the economy slows too much the whole system tends to implode, and then wages disparity become a huge issue, because their growth can’t cope with debt interest + principal payments.

Collapse is a process, not an event. Many people are expecting some degree of approaching collapse — be it economic, environmental and/or societal — thinking that they’ll recognize the danger signs in time. As if it will be completely obvious, like a Hollywood blockbuster. Complete with clear warnings from scientists, politicians and the media. And everyone can then get busy either panicking or becoming the plucky heroes. That’s not how collapse works. And it’s already underway, all around us. Collapse is already here. However, unlike Hollywood’s vision, the early stages of collapse cause people to cling even tighter to the status quo. Instead of panic in the streets, we simply see more of the same — as those in power do all they can to remain so, while the majority of the public attempts to ignore the growing problems for as long as it possibly can.

https://peakoil.com/generalideas/chris-martenson-collapse-is-already-here