Bobby,
Imploding might be a proper word for it. You simply cannot have "growth" when so many people are unemployed, underemployed, and underpaid. The economic system does not work because so many people are undervalued. That's really is the crux of the matter. The remedy, to this point, has been credit, but that can only last so long, as we know. The next alternative is poverty, as you rightly suggest.
The two-party system is to the liking of the ruling elite. It is easy for them to control. In the past, when the prevailing parties did not meet the needs of the people, a new party sprang up. I am not sure why that doesn't work today. Perhaps, as you also suggest, too many people are baited into thinking the two current parties can really bring change. We certainly know that that isn't true.
The times are certainly interesting. I keep hearing about this "fiscal cliff". I don't know what that really means. It seems that the answer is always more debt. I don't see how this time will be any different. I guess until the bond rates start shooting off the charts, we won't see any real "action".
Chris