It was bound to happen - only a matter of time until the greed of the elites began to reverse itself and their money flow dwindled for the first time in decades. Those who were complicit in outsourcing American manufacturing are now feeling the pinch, and it's because they forgot one sobering fact that now is becoming evident as the wealthy begin their spiral into the necessity of watching every penny they spend, and many are selling off assets to pay bills. Tisk, tisk, what a shame as they begin to reap what they have sown"
Their arrogance and greed was mind-numbing as they outsourced America's light and heavy manufacturing to increase their bottom lines, but they forgot to factor the American consumer into their quest for money - and instead of acknowledging that the United States was the largest consumer of goods in the world, it takes money to purchase those items, necessities and luxuries alike - and in order to keep on buying, our country had to give them well paying jobs to sustain their growth. Instead, awash with power and greed, the forgotten American had to quit buying anything more than the barest of necessities, and whether it's cheap junk from China or quality American made goods, both take money to purchase, and the bulk of Americans are almost flat-out broke!
Now that reality may be dawning on the wealthiest of Americans, digging themselves out of the hole they created may be harder than they might have thought. It takes money to bring back our manufacturing sector - and there is far too little of that available - and those that do have it are holding on to it for dear life, further complicating the situation. The old adage that "It takes money to Make Money" has never been more of a truism - and like us, the wealthy are now beginning to face the reality of their folly.
Rise of the Super-Rich Hits a Sobering Wall- Advertisement -- Advertisement -
They began to pull away from everyone else in the 1970s. By 2006, income was more concentrated at the top than it had been since the late 1920s. The recent news about resurgent Wall Street pay has seemed to suggest that not even the Great Recession could reverse the rise in income inequality.
But economists say -- and data is beginning to show -- that a significant change may in fact be under way. The rich, as a group, are no longer getting richer. Over the last two years, they have become poorer. And many may not return to their old levels of wealth and income anytime soon.
For every investment banker whose pay has recovered to its prerecession levels, there are several who have lost their jobs -- as well as many wealthy investors who have lost millions. As a result, economists and other analysts say, a 30-year period in which the super-rich became both wealthier and more numerous may now be ending.
The relative struggles of the rich may elicit little sympathy from less well-off families who are dealing with the effects of the worst recession in a generation. But the change does raise several broader economic questions. Among them is whether harder times for the rich will ultimately benefit the middle class and the poor, given that the huge recent increase in top incomes coincided with slow income growth for almost every other group. In blunter terms, the question is whether the better metaphor for the economy is a rising tide that can lift all boats -- or a zero-sum game. MUCH MORE- Advertisement -
As much as many of us believe it's poetic justice, think long and hard before you rejoice in their demise. History has shown, time and time again, that when our economy falters, the winds of war awaken - a sure fire fix to an economy which was often called a "War Economy" in the 1960's. We no longer use that description, but it's still there, lurking in the background - and to fix this ailing economy, history suggests that a wide-ranging conventional war will be the answer, and if our war planners choose the wrong target, it could easily escalate into themo-nuclear war where there are no winners - only death and destruction.
President Obama was warned not to bail-out the financial sector, to make it a bottom-up bailout that included the people who would have to spend their money on American made goods, thus providing the stimulus needed to bring back our manufacturing and the pride of American made goods - but he chose to save the bankers and financial sector, the very people that drove us into this recession. Reward the criminals and hope for the best was his philosophy, and now we can all see where that has brought us to - and it doesn't bode well for his Presidency - and certainly not the nation.
I do have a solution; sit yourself firmly on the nearest chair, bend-over and kiss your financial A@@ goodbye, because it will take decades - if ever, for the United States to recover from the greatest theft of our wealth in recorded history, and unfortunately, even though this pillage of our economy began in the Reagan/Bush/Clinton/Bush years - it was brought into its last phase by America's first Black President who has turned out to be a monumental failure to his people and the nation alike.