England's decline can be attributed to a number of factors; from the increase in foreign managers and players, the cost of quality English players available, and the preference of managers to purchase players rather than coach their own kids.
How are we meant to compete at international level if our kids are stuck in the reserves, or lower leagues? If they are not playing at the highest level domestically at home, and they are capable of doing so, they will have move abroad. But unless they are of the highest quality, teams abroad won't make a move for them!
Do English players have a future in the english game?
England do have a number of quality players coming through the ranks. Ross Barkely, Jack Wiltshire, Daniel Sturridge, Danny Wellbeck, Raheem Sterling and Wilfred Zaha are all signs of fantastic young players, and the future of English football. However, the number of English managers in the Premier League is dwindling, with only 4 teams currently being coach by an Englishman. They are: Crystal Palace by Ian Holloway, Hull City by Steve Bruce, Newcastle United by Alan Pardew and West Ham United by Sam Allardyce.
This doesn't mean that English managers are any worse than their foreign counterparts. Bobby Robson mentored Jose Mourinho and Andres Villas-Boas, and they are currently managing top, top teams in the Premiership. This mentoring took place after he was forced to leave England after he stepped down in 1990.
The limited amount of English managers is a driving force in the number of foreign players joining clubs, as foreign managers like to stick with what they trust by buying players from the market they know best.
Foreign players are often cheaper than home grown players, just take Michu for example, he cost Swansea City just £2 million last season, and scored 22 goals in all competitions. Andy Carroll cost Liverpool £35 million in 2011, and scored just 6 times.
What is the impact on the National team?
This is obvious - if players don't play, they won't get better. If English players don't compete in the first team domestically, they will not be able to compete at international level.
Players improve by gaining experience, but it needs to be the right experience. You can't loan out a centre mid to a lower league team, who then plays him out of position at left back because they are lacking cover in that area, and expect him to have improved as a midfielder. It doesn't work like that. The same goes for playing in the same position though.
A non league player won't be selected for the national squad, because 1) he isn't good enough, and 2) his experience isn't good enough. The higher up the divisions a player plays, they better they will become. In the olden days, England selected players from the best teams in England - Liverpool, Manchester United, Chelsea etc. But nowadays, they come from numerous teams and from different divisions. The impact is clear - England has slumped the 17th in the world rankings, their lowest position for 12 years. Chile lie above them, as do USA, Greece and Columbia.
In summary...
Foreign teams do their transfer business in the local markets, unlike England, who prioritize foreign players over home grown talent.
Unless the FA do something about this, i.e. implement some sort of meaningful legislation that will allow the development of English players, then whether we like it or not, the national team will suffer.
We are not as good as we think we are, and this will only change if we nurture our youngsters and coach them into being world class footballers.
We need to act now, while we still can because in the next 10 years, English talent will dry up and we will struggle to compete at international competitions.
The English Premier League will just become an international 'dream' league, where all the best foreign players play together for teams in English cities, with no English players in them. This cannot happen!
It is down to us to develop the best young players possible, to give us the best chance of saving the future of English football!