... in China.
The rich have no loyalty to any country. The government (hopefully) does have loyalty to the country.
Also I think that the whole mess we're in was caused by the rich having too much money. They had so much money to invest in stuff there wasn't anything left to invest in. So they started investing in sub-prime mortgages and the like, which didn't really work out.
The financial sector has become this huge scam where they encourage people to put their retirement funds into bad investments, while saving the good investments for themselves. They create bubbles, make loads of money off it, then pull out before it bursts, letting people's retirement funds take the hit. This is not a sign of a healthy financial sector.
In capitalism you want a good balance between investors and consumers. If there's too many consumers there will be demand for stuff that can't be made because companies can't borrow the money needed to build factories to build stuff. Of course this will correct itself over time because when there is a shortage of products, then companies will increase the price, which results in higher profits which results in more money companies can invest. Shortage -> Price Increase -> Transfer of money from the consumers to the Investors. Ideally you'd rather have just the right amount of money in the financial sector to make sure there isn't shortages at all. But even when there is shortages, its a temporary situation which the market can correct.
But what we're seeing now is investors have huge amounts of money, but consumers don't have enough. So people aren't buying stuff which results in no new factories being built (in fact factories closing down), and that means there's nothing to invest that money in. We've learned from the Great Depression that the market doesn't have the ability to correct this situation.
So if you want to error on the side of caution, you should be lowering taxes on the lower and middle class, while raising taxes on the upper class. If the lower and middle class has too much money, the market will correct that. If the rich have too much money, the market can't correct it. So its always safe to tax the rich. The worst that can happen is you have temporary shortages, which the market can correct.
You really need to stop thinking of capitalism as a religion. It is just a tool that our society uses to get stuff done. Its not a magic wand that you just wave around and it solves all of our problems. Like any tool it works well for some purposes but not so well for other purposes. And you need to maintain it. Put a little grease in the cogs every now and then. If you let any machine run without any maintenance whatsoever, it will break down.
Capitalism is breaking down. Its been over a decade since they last changed the oil and the engine light is on. And you're saying that the problem is caused by that damn mechanic that always want to mess around with the engine. But you've managed to keep him away for a decade, but shit, now he's back again telling you that you need an oil change. I know! Let's weld the hood shut and that will solve the problem forever!
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