Millions upon millions of "unemployed" (no job, no longer looking for a job, underemployed, temp, contractor) exist.
Unemployed buy nothing or far less than normal.
Sales drop at retail stores.
Retail stores layoff (or fire, if you prefer) employees.
Unemployment rises.
Unemployed buy nothing or far less than normal.
Sales drop further at retail stores.
Stores close, forcing more layoffs (or firings, if you prefer).
Unemployed buy nothing or far less than normal.
And so it goes....
The other side of "the coin" is this.
Unemployed rely on state/fed monetary support.
Unemployed rely on fed welfare programs.
Unemployed cause govt. to grow to support their increasing numbers.
Govt must collect more money to support growing welfare state.
Govt must either raise taxes or borrow money.
"The Rich" begin to protect their assets (eg: move assets out of the country, or move physically to a lower tax area).
The govt borrows more money to "feed" the welfare system ruining its already damaged credit rating, for lenders know that the US cannot pay what it owes now much less meet its obligations in the future.
Meanwhile.....
The unemployed begin to default on debt (credit card, medical, and housing to name a few).
Lending institutions wind up with worthless "assets" on their books and dwindling cash reserves; they must cut overhead to remain solvent.
They "lay off" (or fire if you prefer) employees.
This increases the unemployed.
The government falsifys the "unemployment" count by saying that 2.5 million jobs that have left the country no longer exist and therefore can no longer be counted.
The unemployed - ever increasing - buy nothing or far less than normal.
Factories manufacture less product causing factory closures; resulting in more unemployed.
The govt mounts a "spin" campaign damning "the rich" and demanding an increasing amount of money from them.
The unions join the campaign screaming for "workers rights" and raising the dues of the few employed members they have left; for they need money to retain their "lifestyles".
"The rich" protect their assets by moving them out of the country; shutting down factories, and physically moving to lower tax areas.
Need more???
Read "Atlas Shrugged" if you've not already. Enjoy the story....but look for the lessons.
Your biggest fear is this - in answer to the question, "Who is John Galt?"
There isn't one - we're on our own.
You need to continue...
The products that remain being manufactured here rise in price due to the low sales and government regulations raising prices.
The poor can only afford the cheap imported stuff.
Unemployed Americans ( mostly union people ) start to scream about how these cheap imports are driving american companies out of business, and a tariff needs to be slapped on everything imported.
The prices on imports rises, the poor can no longer afford anything but food, and damn little of that.
The resulting trade war ensures that the few American made products that are selling overseas are now priced too damn high.
The companies that have managed to stay alive by exporting their goods start to fail.
The companies that have to import parts / products for their own production lines find they can no longer manufacture at a profit. They begin to shut down.
more Americans are out of work.
When goods do not cross borders, armies do....