[mcguire]

"Historically this has lead to wars, either internal or external."

War is always a safe prediction, but do you have a specific historical precedent for large-scale, long-term, structural unemployment? I cannot think of one.

(Subsistence agriculture is not unemployment.)

[virmundi]

French revolution within Paris and other large cities at the time. We also see riots (small war-like-things) throughout Europe during the mid-financial crisis. Riots around the US that were largely race based during the 60s and 70s. Race == poor at this time. Eventually the nanny state woke up and tried to take care of them better as a result.

As far as outward wars: WWII. Massive economic for German. War helped create jobs.

Edited to add German example.