Inability to pay debt causes a contraction, a drawing in of expansion, a re-structuring never a total collapse not even a half collapse or a quarter.
Pay justice will always maximise spending, the efficiency of the cycle of production and consumption and reduce violence which is a waste of money, lives, property, energy, confidence. The giant sucking machine has taken spending away from most, breaking the cycle.
Fairpay justice will always be the only answer one can't steal and steal and steal without end. They saw this (to some extent) at the end of the 19th century, when economics practice changed from low wages to high wages. The Marshall Plan saw this, as the way to avoid loss of European markets and thus global loss of confidence.
Increasing the money supply say 1% a month and GIVING this to everyone equally (only to save the vast bureaucratic cost of distinguishing the 1% overpaid and 99% underpaid) which can be done by a computer, ie low bureaucracy - will increase spending, increasing production, increasing market confidence: you have to water the plants to make them grow. The gift (return of stolen earnings) overcompensates all the underpaid for the inflation effect and "robs' the overpaid gently, unobtrusively, automatically through their spending. If the superrich cannot understand pay justice, they can at least understand that you have to leave enough wool on the sheep so you can fleece them again.
Lastly, Hate is a luxury item when things are tough, people rally round, know they have to be tolerant, loving, cooperative, caring, communal. When things are tough there is a rise in that sort of attitude some turning from competition and antagonism to cooperation and compassion. Even if you do nothing, you have safety nets family, friends, society. Very, very few people in America will starve. When one is going down, one feels that "maybe I will keep falling forever', but there is the trampoline below the energy of people, the productivity, even in social disorder, nature's bounty. Things will come up again, even as they did after the last boom and bust and boom again. Life is a wave - the very fact of things going down stimulates people to turn things around. The 800 who own everything may even let Obama do an FDR the big enough bust makes even republicans more responsible and realistic. People may even feel some shame there has to be something good about the bottom of the wave because it is all up from there.
I am reading The Greening of America (1970) about the last time Americans tried to grow up, before the oil price hike made them scurry back into old patterns, shovelling heaps to their superrich father figures to get them out of the mess.
I saw the movie Sharpe's Challenge, with Sean Bean, about the struggles and dangers of the overpaid (and underpaid) in British Colonial India, wherein Sharpe says:
And I thought for a moment all this [trouble] might have been for more than just to make rich men richer.
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