Well, I didn't say it was a hot take for nothing.
I guess a better word or phrase than "collapse" would be a "forced restructuring". Definitely not a reset, which is very different and impossible to achieve.
As for the result, it depends on how you measure "better" and "worse".
If we do things right, we'll never end up as wealthy as we are now, because our current wealth and luxury is unsustainable and valueless. A "better" economy would be a sustainable one, not a wealthy one.
To clarify: Say you have two neighbors.
One lives in a tiny trailer, works a 9-5 blue collar job that they bike to, and has no debt.
The other lives in a large (mortgaged) home, has a new (financed) car, sells printed nail designs on etsy, and is deep in debt.
Extreme examples, but I think it gets the point across.
The first, while not the wealthiest or most luxurious, can live comfortably as they are for decades.
The second, while living an incredibly luxurious and "wealthy" life, cannot possibly stay that way, and will one day be forced to "restructure" if they don't start soon.
Currently, almost our entire first world economy, especially the US, is living like the second neighbor. Producing nothing of true value, living well beyond means, and impossibly deep in debt.
Either we start restructuring our economic setup now before the inflatable stilts pop, or we'll be forced
to restructure it in much less favorable conditions.
As far as I can see, people are only going to learn if it's forced, and it looks like that's coming soon. In fact, I think it has already started.