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Obama did not say capitalism does not work, he said Trickle Down doesn't work.
Perhaps it's you who do not understand, or more likely, you're hearing what you want to hear.
Since the 80's and "Supply Side" the rich have gotten richer and the wages of the middle class have stagnated. That's trickle UP, not trickle down.
It's said that a rising tide lifts all boats. In this case, the tide is the middle class, and failed "supply side", or "voodoo" economics, has failed to bring that tide in.
The President is right.
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