Europeans seem to be getting it right - you can't really employ everyone at high productivity levels. You can employ everyone and have huge inefficiencies (still pretending to be efficient) or employ a few and give out everyone else welfare checks or cut down hours for all.
I've been thinking about this for a while: Can we indeed go on with our type of economy, or we need to take a page from, say, the Europeans? This is not to say Europe doesn't have its own problems--just ask any young person between 20 and 35 years of age. It only means that we seem to only push harder in directions of diminishing returns, more expensive with less returns, that is. And this goes on for just about everything we do, from wars and foreign policy to K-12 education and local government budgets. The only question I have not been able to answer is whether we can improve the system gradually as it goes, or need a full stop. If history is of any use here, stop ahead--mind the gap! Yes, I do tend to side with history in uncertain times.