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 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 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.