Capitalism Hits the Fan: A Lecture on the Economic Meltdown

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Comment by Willie on February 4, 2009 at 4:17pm

Basically the key idea is that coeporations have made huge amounts of money by freezing the wages of employees since around 1970. With the huge profits corporations are making by not paying their employees as much, corporations are putting that oney into banks. The banks then loan the money to the employees who are not making as much money, but now can access money with interest needed to be paid.

Basicaly, the corporations are getting rich by not paying the employees as much. The corporations take their huge profits and put it inot banks which then loan the money to the employees who don't make as much anymore. The employees don't make as much anymore so they can't pay back the banks. The banks have now lost a lot of the money and can't pay back the corporations who now can't pay even the meager salaries of their employees.