The Rich are doing well in this recession

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this does not suggest in any way that the upper class was failing, though. in fact, they weren't, at all.

I never clamied that they did in fact my family was part of the upper class in the 90s now we are not.

Either way that would be the result. Even if you were to distribute money through government projects in a Keynesian strategy, the main benefactors would be the people who sell things (own stores etc) not the people who buy things (consumers). It seems to me that many economic theories haven't adequately been updated to account for a modern global marketplace. Cutting taxes in the US in the 1950s would have promoted job growth because there was already a growing demand and there were few if any places the jobs could be outsourced to. However, in a modern economy with American tax rules, it makes a hell of a lot more financial sense to build a factory in China for both international export and satisfaction of the domestic market.

The sooner people realize that manufacturing is extremely vulnerable to cost of labor and furthermore that labor costs are the main current factor in manufacturing they will start to come around to the fact that the only way to ensure that jobs stay in a country is to have those jobs be tied to that area through natural resources or infrastructure that is expensive to rebuild/move or where the product cannot be more effectively shipped to its consumer.

Construction of nuclear plants, wind farms, solar farms and other such products lead to the establishment of a labor demand within that specific area. Production of trinkets, cars and so on can be outsourced.

Good.

People who naively think that it's somehow a bad thing that money is still being made in a bad economy by those who actually create the jobs for everyone else should watch this:

[youtube]http://www.youtube.com/watch?v=Wi-D24oCa10[/youtube]

If we didn't rescue the banks then a lot of people would loose a lot of their money. It would be pretty terrible for them. The alternative is to nationalize the banks that failed, a la Iceland. I can't imagine you'd be thrilled about that.

Hey, I never said that banks should not have been bailed out, I fully agree that letting banks go under or nationalizing them would have been a bad idea. My contention is with QE 1 and 2 (Quantitative Easing programs by the fed) and similar programs in Europe, which resulted in a lot of capital which didn't have the desired effect. It built the market back up and gave companies a ton of liquidity. However they don't really appear to have created a lot of jobs or demand, because the money went "Government - Banks - Commodities markets" rather than "Government - Banks - Small/medium/large business loans".

f**k, let me borrow as much money as I want at 1% interest or so from a central bank and I know I can get a bigger return than my cost on that in derivatives, commodities or common stock. Hell, at that rate I could put it in various bonds and have a comfortable and relatively safe 7 - 11% return per year, very few investments can compete with that.

Exactly If they didn't do well, they wouldn't be "the rich" anymore. That's why the rich will always do well, in every country on this planet, no matter how poor.

then you have just undermined your own point, no?

Hey, I'm doing just fine. Then again, my cash-flow depends on how well the stock market is doing.

Maybe the reason the middle-class aren't making money anymore is that...

THEY KEEP VOTING FOR GOP POLITICIANS AND BELIEIVING THEIR LIES!! !

Now, if you want to try to go back to the innovation-based economy we had in the 1990s...

THEN QUIT VOTING FOR GOP POLITICIANS AND BELIEVING THEIR LIES!! !

Peace

Hey I liked your video. I think its true the UK has lost its principles. I am not religious but I can see how you mean "Den of Sin". We have dismissed our social ethics in favour of personal wealth. Thatcher and her me me me ideals have turned the british into a nation of selfish tw*ts. The housing crisis in our country has reached the point where even those who earn a decent wage can not afford a mortgage. Immigration, a lack of social investment, and corportate power have made britain NOT great.