Wednesday, November 2, 2011

OWS: Tea Party's Crazy Cousin?

What exactly is the occupy Wall Street movement? Is it disenfranchisement with the wealthy? Wall Street? Student loans? Unemployment? The current economic conditions?

I believe that the OWS movement parallels the tea party movement in this regard. In the early days of the tea party movement, there was no clear-cut agenda. Was it frustration with taxes? Bailouts? Social policies? Government in general?

While the specific goals and objectives of the tea party movement varied from place to place and from individual to individual there was a resonating tone of dissatisfaction with an increasingly growing and increasingly intrusive government. Similarly, there is a broader, more generic message coming from the OWS movement that also seems to echo dissatisfaction with the government.

But that's basically where the similarities end.

To me, OWS is the liberal response to the Tea Party, a movement that starts in the same place then heads in the opposite direction. It's as if liberal organizers like Adbusters are trying to say to Karl Rove and Dick Armey, "See, we can create a peaceful grass-roots protest, too." Except OWS protests actually turn violent.

I considered delving into speculation over whether the OWS movement is timed to help Obama politically or if it's secretly funded by spooky dude George Soros, but I'll leave that to Glenn Beck.

While the tea party wants, generally, less government, the OWS movement seems to want more. While the tea party movement favors lower taxes, the OWS movement seems to favor a higher tax rate, at least for the rich. Basically, it's the polar opposite of its tricorn hat-wearing cousin. Both movements purport to be grass-root and spontaneous, both were spawned by dissatisfaction with the current social, economic, and political climate, and both lack clear-cut objectives and leadership; however, while one thinks government is a large part of the problem, the other seems to think that government is the solution.

While OWS lacks clear cut, uniform objectives, there are some recurring themes in the movement:

1 - Wall Street seems to be above the law and in some cases, seems to run the government.

2 - Capitalism is a broken system and corporations are evil.

3 - There is too much income inequality. The rich are getting richer while the poor are getting poorer.

4 - Education costs too much

Wall Street is above the law and in some cases seems to run the government


I agree. The bailouts, the solyndra scandal, our current tax system, GE, and a slew of other gaffs, screw-ups and phony regulations reveal a government that gets in bed with big business and starts picking favorites. Banks and businesses that are failing just keep getting more cash from government coffers (BoA, Citi, GM), politicians dabble in venture capitalism with taxpayer money (Solyndra), and tax-codes are re-written and manipulated to reward friends of those in power (GE). All this is funded by taxpayer money - money that could have been used to pay down our deficit, build roads and bridges and for other…ahem…shovel ready jobs, and otherwise improve the quality of life of our nation's inhabitants.

Unfortunately, the OWS solution is irresponsible. OWS would have us empower the Wall Street-controlled government to implement tighter financial regulations and oversee a greater portion of economic activity in our country. In other words, OWS wants to give a corrupt government more government power, because they think that will make things better.

If a parent sees a child who is terrorizing others with a stick, he takes it away from the child. OWS is trying to give the kid a hammer instead of a stick. So long as the government is "run" by Wall Street, anything the government does will be designed and manipulated by Wall Street. New financial regulation from a Wall Street Lobbyist-controlled government will regulate everybody but the ones who really need the regulation, because the kids with the sticks will be the ones writing the rules.

The only way for the situation to improve is for us, the electorate, to take the hammer away. We must demand that politicians get out of bed with bankers and to fire the ones who won't.

Capitalism is a broken system and corporations are evil


Seriously? That old chestnut again? Capitalism is not evil or broken - it has generated more wealth and prosperity and improved the quality of life for more people than any other system. If you doubt that, move to Afghanistan where it's near impossible to find toilet paper and running water, then blog about your discomfort on the iPad or iPhone most Afghans have never heard of on the internet that is barely accessible there. Too many have been so spoiled by our exorbitant living standards that they take them for granted and assume that they just are and have nothing to do with our economic system.

Capitalism works because it allows anybody to create a good or a service that is of value to others and to make a living off it. The more valuable that good or service is, the more demand there is for it, and the better a living that can be made off of it. This is not evil - it's common sense. Yes, there will be winners and losers, but at least in a capitalist system, the deck is not stacked. It always works better when the consumer, not central planners decide what's valuable and what's not.

Just about every dart we see thrown at "capitalism" should actually be thrown at "crony capitalism."

Bailouts - not capitalism.
Government backed loans for solar cell producers that sell product for less than it costs to make - definitely not capitalism. Corporations that gross billions in profit but pay nothing in taxes because they "know people" - crony capitalism.
Mortgage companies that give loans to anybody and everybody because the government told them to, then liquidate that risk by bundling them into "mortgage backed securities" - you guessed it, not capitalism.
Corporations aren't evil either, just misunderstood. Corporations are simply legal representations of individuals or groups. Instead of "Steve", it's "Steve's Hot and Tasty Coffee." Not scary unless you spill it on yourself.

If a corporation is evil, it's only evil because its principals are. And in a capitalist system, nobody is forcing you to support the evil corporations. You can always buy your coffee at Starbucks instead.


There is too much income inequality.

The rich are getting richer while the poor are getting poorer.


I agree - kind of. There is income inequality in our nation. Some people are rich, some are poor, and most aren't rich or poor.

Frankly, I don't care that Bill Gates or Mark Zuckerberg is richer than me. The only thing that upsets me is that I didn't think of Facebook before the Winklevoss twins did. Who names their kid Winklevoss or a Zuckerberg anyway?

If anything, I applaud the vast sums of money that Gates accrued. Why? Well for one, if he can do it, then maybe I can, too. Secondly, he didn't steal it, he earned it.

Income inequality would only be an issue if the rich got richer at the expense of the poor - that is, if the rich got richer while the poor got poorer. While it is true that America's rich are accruing wealth at a faster rate then its poor, America's poor are also getting richer. American poor enjoy cell phones, microwaves, indoor plumbing, cable TV, government subsidized housing, healthcare, transportation and food, and many other luxuries. In fact, America's poor are among the richest in the world. Just think, would you rather be poor in America or Zimbabwe?

Education costs too much


Education doesn't cost too much - college does.

Okay, that was a smart-alek answer. It's undeniable that education costs are rising. I personally think that education is one of the next bubbles. We're all encouraged to go to college so we can get a good job. And many people have been convinced that student loans are the only way to pay for school. As demand for an education increases, the prices will, too. Eventually costs will equalize, or the bubble will burst as more and more students fail to repay their loans. Until then, those who want higher education will pay higher costs for it.

As with any expense, the cost has to be weighed against the benefits and the risk. Benefits - better jobs with better paychecks (hopefully). The risk - not finding a good-paying job. Getting a student loan only compounds that risk. What happens when you're unemployed with $34,000 in student loans (the average student debt of a current college graduate)? Student loans are virtually impossible to expunge, so they will almost definitely follow you for life, even after a bankruptcy.

OWS would have student loans forgiven. I would have students who make smarter financial choices.

I believe that a student should focus on a career path that will give him the best chances of financial success as well as personal gratification and only borrow as much as he can confidently pay back even if he never finds a good job. Then find other means to pay for the remainder of education costs (work, scholarships, grants, etc).

To the OWS protester who borrowed $90,000 for an education in anthropology and history I ask, "Are you stupid? What possessed you to think that would land you a job that would enable you to pay that kind of money back?"

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Recently, there has been speculation that the OWS crowd is more conservative than it thinks it is. I disagree. While OWS shares some of the same concerns as the tea party, the tea party presses for increased personal responsibility while OWS tries to run from it.
             

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