So much of the economy is unnecessary. If you list the minimum items needed for an enjoyable and fulfilling life you find that a large percentage of our economy (in terms of GDP) is unnecessary. Starbucks coffee, vitamin water, cable TV, a car for every person.... the list goes on. What if one day we could only afford the essentials? Our GDP would be cut in half over night. Jobs that supported these unnecessary parts of the economy would disapear and people would have more free time. Less money but more free time. So far there is not a problem so what are we missing. Debt. Debt does not allow us to work less because it our debt load sets our minimum income requirements. If our income drops below our required debt payments and necessary expenses we enter the senario of default where by law lenders can seize assets.
Debt is the only thing preventing most people from having more free time. Until we value free time we will not solve the debt crisis. As long as the insubstantial economy continues, default will be an annomoly. However the longer we use debt to perpetuate the unnecessary economy the more inevitable the crisis becomes.