Is there an economic spiral down effect happening everywhere?

I've been searching for jobs and everywhere I look there are widespread layoffs and very little rehireing and if they do rehire they are hiring and at a wage which no one could afford to work at because gas prices have gone so high. Yet if no one has any disposible income then companies layoff more people causing a complete collapse because since our economy is driven strictly by profit and every last cent is already spent and everyone is feeling the sqeeze then, how do you stop a spiral down effect? It does not seem like there is any relief in sight for any of us and if our Government depends on the profit from us too then collapse is inediable. So what do you think we could do to stop this spiral down effect?