I've always thought #capitalism
was a divisive system, but now I think we're reaching the point where it's stopped working properly, even in its own terms. As birthrates fall, such as in Germany, the cracks start to show. There aren't enough consumers, so they're forced to export aggressively and to support that they keep lending other countries money at rates they can't afford. It's the Same with China and America and both pairs are trapped.
I never saw this so clearly before, but capitalism needs an ever expanding workforce because rising pay rates breaks the system. For a while we can move the people around, but eventually global birthrates will drop and this issue will be with us permanently. It also needs an expanding pool of consumers, or demand falls. In the same way, we can't keep making stuff, we can't keep generating consumption, even if we didn't have the Environmental angle, we still couldn't.
Surely, we can't keep generating more and more, we have to start sharing out what we have and capitalism has no model for that, does it? I'm thinking about this as an Economic newbie so please tell me what I'm getting wrong and how can this model keep working?