The bad news with the financial crisis is not it will continue to spiral down (it still possible, but this catastrophic scenario will not be discussed for now). Sign seems to point to a recovery, but for taxpayer this is not the end it’s just the start. Job lost will not be recovered immediately. Then 10% unemployed will be there for 1-2 years and return to a bit better figure~8% will takes 5 years. Then job seeker will have hard time for some times. In the other hand the taxpayers will need to pay more to pay the large debt the government are accumulating to try to avoid a deeper downturn. Since government already had a not so good financial bottom-line with heavy debt. The bad times make the bottom-line very bad. Tax will need to be higher. But this alone can be sustained. The reality of ageing people will add to government spending and to tax to pay for it. With less and less taxpayer this is pretty difficult to predict how government will be able to prepare their bottom-line for the next crisis.
