Because its built on bullshit. With the automation we have today we could easily satisfy the needs of everyone with fewer workers. Its the obscene demand for constant growth that causes these issues.
The economy will also collapse if climate change keeps going, the oceans are empty, topsoil is gone, aquifers depleted, insect populations decimated...
> The economy will also collapse if climate change keeps going, the oceans are empty, topsoil is gone, aquifers depleted, insect populations decimated...
Yeah, there's a tension here it seems. But it's harder to fix a pension system with technology, and the system is much more socially fragile. There are policy approaches available in the US that might not be available elsewhere (e.g., lifting income caps on social security and medicare taxes) that will kick the can a bit further down the road, but it's challenging to make diverse societies peaceful and cohesive.
On the other hand, private enterprise and technology have a bevy of tools that aren't as readily available to policy makers. Government in principle can encourage more environmentally-friendly energy and food production, but they're not in the business of actually innovating.