Many of the posters I believe have come close to the mark in identifying the many problems of GA. There is no single answer, other than we must work together with the aim of getting Canberra on side and showing that we are a responsible industry.
I understand that in 1935 an hours flying cost about a weeks wage.. By that mark it is too cheap these days..???
Why does almost every insurance policy have an exclusion for non airline aviation activity? The most dangerous part of an airplane journey is driving to the airport, but it seems nobody has convinced the insurers of this.
Today there are many alternative activities for young people to spend their money on. Many of these did not exist 20 + years ago so the number of entry PPLs now is much less - because they choose to do something else. Just look at the average age at your local aero club etc.. Most would be well over 40 and many clubs it would be over 50. The average age of LAMEs recently was around 55 or so I understand. Who is going to maintain your aeroplane in 10 yrs time??
There are far too many flying schools. Someone once said there is around 400 places to learn to fly, but only a dozen or so where you can train to be a lawyer. If this is anywhere near correct it shows there is a problem within the training industry – and perhaps how it is regulated.
You cannot stop people spending their money and learning to fly but you can raise the bar on entry to professional licence training. Doing this would significantly reduce the number of schools providing CPL> training. I think perhaps the bar is there but the regulator does not enforce it. Certainly the standard at the end of the sausage machine these days is way down on the standard 15+ yrs ago. It was said not long back that an average CPL doing a test today would not have passed a PPL 15 yrs ago. From what I have seen of late, I would have to agree.
Efforts to get the industry to act with one voice (such as AUSAC) have either failed or not had the support of all the industry. Why is this so? Well the ego's and the failure of many to want to act as part of a team is part of the reason. The desire to push single agenda's and programs that might only benefit part of the industry dominate the desire to act in the greater good. There must be some give and take. Many don't want to give (guess?).
What can be done? I suggest that the only salvation will come from Government when they are presented with collective representation on the problems and what the options might be.
Many of the answers have been listed above, but obviously include those relating to costs and charging policies. Have a look at the depreciation schedule for aircraft in the USA and compare with here and you have one potential answer.
Unless the industry get together and work for the greater good I don't see any light in the tunnel. The training standards issue is one for the regulator, but I don't hold my breath on any real change there. Too much commercial pressure!
We need to work at it collectively and hope for some luck along the way, otherwise it will continue to get worse.