the crisis is the result of more than three decades of failed economic theory.
if jobs are outsourced to extremely low wage / slave labor, then we will have "cheap" goods. however, that means a lot of people who would otherwise be making those goods are in far less demand in the job market and can command only a much lower wage, or no wage at all. this results in less spending. we initially addressed this problem by extending credit; this worked until the early 2000s. with easy credit, consumers could still spend, and the GDP could still grow. but credit is temporary; we experienced a significant correction in 2008. the underlying failed economic model remains.
secondly, our energy model has also failed. gasoline has been "cheap," as well, when only the retail price is taken into account. however, those energy dollars have also left our economy by the billions, and the model has required us to go to extraordinary lengths the maintain access to the oil.
we need to take our trade deficit a lot more seriously, and we need to address energy as a national security issue. additionally, if we are going to continue to rely on consumer spending, then we are going to have to find a way for those consumers to work. short of that, those workers will be placed on entitlements. that's the reality of the situation, because there simply aren't enough jobs. i have to admit that i do find it a bit ironic that those who disapprove of entitlements the most defend the model that creates the largest amount of displaced workers who will need entitlements.
who is to blame? there's no easy answer. the reality is that both parties, most corporations, and most consumers share in the blame. we wanted cheap retail goods and services at any cost, and that's what we got. the flipside is that there is a human cost when the economic model is a race to the bottom. we need to re-examine our national priorities, and we need to put emphasis on the sustainability of any model that we choose.
to sum, we can't have our cake and eat it too. if we want to sustain a first world standard of living, goods are going to have to cost a little more, and we are going to have to generate more of our own energy, which is the lifeblood of any economy in our particular era.