The problem isn't golf's economy, its this blind urge to "grow the game". It is a short sighted goal much like the cities that are constantly seeking to "grow the tax base" for their own purposes, and use tax incentives as giveaways to lure new businesses or development to town in a zero sum game.
This drive to grow the game succeeded in getting some new golfers with marginal attachment to it to take it up. Or, perhaps more likely, they did so merely because of the Tiger hype. Now that those marginally attached golfers have left the game, it is seen as a big problem by the powers that be, when the simple fact is that most of those new golfers were never going to become lifetime golfers. It takes more than a first tee program to get kids interested enough in the game to leave them with the desire to stick with it for life. Once that subsidy and easy access is over, and they discover the true cost of the game (which has been made worse by the push to "grow the game") they either can't afford it or have other priorities.
I'm not trying to promote an elitist attitude and keep the "riff raff" out of the game - I say that because undoubtedly some people will read it this way. I just don't think that there's any particular reason the game of golf, overall, needs to grow, and I've stated so here on GCA for many years. Its not a bad thing if it does, the problem is that it is taken as gospel that this is goal #1, and everything else follows from that.
This ignorant push (along with the housing bubble in the US) caused the creation of many more golf courses than would or should otherwise have been built. While it lasted, that was great for architects and those depending on them for work, but as with every bubble, they are now paying the price for that excess, just like many developers and construction workers are paying the price for the housing bubble's excess.