What would happen if their was economic collapse? | Forum

Just wondering what your guys opinion are for economy collapsing. If people spend less then business will lose money, so they will cut down their costs by firing workers. Those workers will have less money, and so they will spend less and it will be a downward spiralling cycle of more people being laid off, because businesses cannot support them. 

Can the government tax people who have no jobs or a source of income? I live in Canada, and I don't think it would be possible. Maybe if you can't pay your taxes you go to jail. 
People now do not have enough money, so they are having fewer kids, and therefore the population is declining further, so countries have more open immigration policy to counter declining birth rate. Only now when people come from developing nations to developed nations they have to jump through hoops to get ideal job. Sometimes they do not even find ideal job and are left in limbo. Finding job these days seems very difficult, because the process is extensive for desirable jobs, because they have a large pool of people applying. They cheery pick the best workers. 

Would we go back to using old form of 18th century technology. Gas prices, so high people resort to horses maybe. That would be pretty cool I guess. Until your cleaning horse poop. 

anyways your guys future prediction would be interesting to hear.