It seems people have to protest something. Oil, civil rights and wars tend to be among the favorite subjects of these rebel rousers, but from time to time they stumble upon something that really strikes a chord.
This go-around Wall Street is the target. Apparently some folks are angry at the US government and Wall Street for the 2008 bailout of the banks.
According to a National Public Radio (NPR) broadcast: “[the protesters] feel the American political system is being gamed by corporations and the wealthy, what they call the 1 percent. The demonstrators have no leader and so far, they don't have any solutions, either. But amid the air mattresses and sleeping bags scattered across the park, they discuss everything from income disparities to keeping their camp clean.”
The NPR report continues “But Mayor Michael Bloomberg says the protesters are playing the blame game.” Bloomberg then states in his own words “Our problem today is we keep going and vilifying the banks. They're not going to make any loans. If they don't make any loans, companies don't expand. If companies don't expand, people don't have jobs.”
And Bloomberg's right. Sort of. Without investment companies do not grow and people do not get hired. But that is not the issue at hand. In the mind of the protesters, the point of contention is the preferential treatment given to banks.
What Bloomberg is really saying is that he believes the banks are too big to fail, period. From his perspective, the bailout was a form of grace, extended from the hand of the US government to underperforming corporations at the expense of the tax payer.
Unfortunately private citizens who face the same economic miscalculations are not extended the grace given the banks. If, for example, you or I can't pay our credit card bills or lose our job we face an immediate assault on our credit rating. We lose the ability to obtain future credit or mortgages, have trouble applying for certain jobs, car loans, etc. Our lives become very stressful, very quickly.
And unlike those failed American banks, we serfs don't have option of going to the government in the hopes that they'll cover our overspending asses. Individually we're just not that important to the current economic system. Could you imagine selling your house, blowing the money at the races, and then asking the government to cover your losses?
But that's exactly what happened during the bailout. Trillions of dollars meant for building roads, bridges, schools, hiring teachers, and improving health care for current and future generations flowed out of the public chest and into the upper echelon of those already economically privileged individuals -- sustaining a system which benefits from the cheap labour of the lower class masses. And that is where much of the discontent comes from. But it doesn't end there.
Recently my seven year old son got his first paper route, the delivery of which is by no means a small feat. The papers are bulky and heavy due to the whack of fliers placed inside, and the route itself covers 149 homes. So my son recruited yours truly and his five year old brother to help him with his quest. “You know, you're going to have to pay your brother for doing half the work.” I told him. He did some quick math and came up with a figure that suited him just fine. “I will give Ethan five dollars" he replied. “What's seventeen minus five, Dad?” he inquired. “Hmm” I thought. I see the makings of a Wall Street hustler.
And that's the heart of it -- the distribution of wealth. The disenfranchisement of today's youth also corresponds to the inability to obtain a job with a livable wage. Financial reports regarding a forecast of “50,000 jobs created this month" gives a false assurance of economic well being. More often than not they omit that the majority of these newly created jobs are in the part-time service sector, which usually means a low income job with no benefits.
One of the Wall Street protesters summed it up this way. “I'm talking about people who have master's degrees, in a lot of cases, who have to work $8-an-hour jobs because there are just no jobs. My generation - I'm 23 - my generation is really like the lost generation.”
What is interesting about the recent $300 Billion job creation package being promoted by Obama was Republican Speaker of the House John Boehner's warning that the Democrats were engaging in “class warfare.” I thought that a peculiar comment. Seeing that Obama's plan sought to increase the tax “burden” on the wealthiest Americans by closing existing tax loop holes, I came to two conclusions.
The first was that there must be a lot of wealthy individuals in the Republican party that were likely to be affected by the proposed Democratic tax increase. The second conclusion was even more heinous: that the Republicans saw the current economic class order as an established and necessary structure of society, and that any tampering with that order was certain to result in some vague and undefinable battle between those groups.
I'm not sure what class warfare looks like, but my guess is it that it couldn't be any worse than the French Revolution of the 1790s or the 1917 Bolshevik revolution. In both cases, the underfed and suffering masses were tired of the unfair division of wealth that existed in the society of the time.
In fact, America's current state of affairs -- particularly the economy -- echoes that of France leading up to the Revolution. France's support of America during the American Revolutionary War had bankrupted the French treasury, adding to an already massive national debt. In an eerily similiar comparison to the stalemate faced by the dysfunctional American Government, Wikipedia explains of the French situation:
Now I doubt such a course of action is likely to happen in the US or Canada, although Greece is currently undergoing resistance to austerity measures being forced upon it at the hands of the EU. However, in the US, the current economic disparity among the classes does not bode well for a future peaceful coexistence. Here are just a few random statistics compiled by businessinsider.com:
For an in-depth look at the root of the protests, check out Al Jazeera's article entitled "Youth movement in a culture of Hopelessness".
This go-around Wall Street is the target. Apparently some folks are angry at the US government and Wall Street for the 2008 bailout of the banks.
According to a National Public Radio (NPR) broadcast: “[the protesters] feel the American political system is being gamed by corporations and the wealthy, what they call the 1 percent. The demonstrators have no leader and so far, they don't have any solutions, either. But amid the air mattresses and sleeping bags scattered across the park, they discuss everything from income disparities to keeping their camp clean.”
The NPR report continues “But Mayor Michael Bloomberg says the protesters are playing the blame game.” Bloomberg then states in his own words “Our problem today is we keep going and vilifying the banks. They're not going to make any loans. If they don't make any loans, companies don't expand. If companies don't expand, people don't have jobs.”
And Bloomberg's right. Sort of. Without investment companies do not grow and people do not get hired. But that is not the issue at hand. In the mind of the protesters, the point of contention is the preferential treatment given to banks.
What Bloomberg is really saying is that he believes the banks are too big to fail, period. From his perspective, the bailout was a form of grace, extended from the hand of the US government to underperforming corporations at the expense of the tax payer.
Unfortunately private citizens who face the same economic miscalculations are not extended the grace given the banks. If, for example, you or I can't pay our credit card bills or lose our job we face an immediate assault on our credit rating. We lose the ability to obtain future credit or mortgages, have trouble applying for certain jobs, car loans, etc. Our lives become very stressful, very quickly.
And unlike those failed American banks, we serfs don't have option of going to the government in the hopes that they'll cover our overspending asses. Individually we're just not that important to the current economic system. Could you imagine selling your house, blowing the money at the races, and then asking the government to cover your losses?
But that's exactly what happened during the bailout. Trillions of dollars meant for building roads, bridges, schools, hiring teachers, and improving health care for current and future generations flowed out of the public chest and into the upper echelon of those already economically privileged individuals -- sustaining a system which benefits from the cheap labour of the lower class masses. And that is where much of the discontent comes from. But it doesn't end there.
Recently my seven year old son got his first paper route, the delivery of which is by no means a small feat. The papers are bulky and heavy due to the whack of fliers placed inside, and the route itself covers 149 homes. So my son recruited yours truly and his five year old brother to help him with his quest. “You know, you're going to have to pay your brother for doing half the work.” I told him. He did some quick math and came up with a figure that suited him just fine. “I will give Ethan five dollars" he replied. “What's seventeen minus five, Dad?” he inquired. “Hmm” I thought. I see the makings of a Wall Street hustler.
And that's the heart of it -- the distribution of wealth. The disenfranchisement of today's youth also corresponds to the inability to obtain a job with a livable wage. Financial reports regarding a forecast of “50,000 jobs created this month" gives a false assurance of economic well being. More often than not they omit that the majority of these newly created jobs are in the part-time service sector, which usually means a low income job with no benefits.
One of the Wall Street protesters summed it up this way. “I'm talking about people who have master's degrees, in a lot of cases, who have to work $8-an-hour jobs because there are just no jobs. My generation - I'm 23 - my generation is really like the lost generation.”
What is interesting about the recent $300 Billion job creation package being promoted by Obama was Republican Speaker of the House John Boehner's warning that the Democrats were engaging in “class warfare.” I thought that a peculiar comment. Seeing that Obama's plan sought to increase the tax “burden” on the wealthiest Americans by closing existing tax loop holes, I came to two conclusions.
The first was that there must be a lot of wealthy individuals in the Republican party that were likely to be affected by the proposed Democratic tax increase. The second conclusion was even more heinous: that the Republicans saw the current economic class order as an established and necessary structure of society, and that any tampering with that order was certain to result in some vague and undefinable battle between those groups.
I'm not sure what class warfare looks like, but my guess is it that it couldn't be any worse than the French Revolution of the 1790s or the 1917 Bolshevik revolution. In both cases, the underfed and suffering masses were tired of the unfair division of wealth that existed in the society of the time.
In fact, America's current state of affairs -- particularly the economy -- echoes that of France leading up to the Revolution. France's support of America during the American Revolutionary War had bankrupted the French treasury, adding to an already massive national debt. In an eerily similiar comparison to the stalemate faced by the dysfunctional American Government, Wikipedia explains of the French situation:
“Necker [Comptroler-General of Finance] realized that the country's extremely regressive tax system subjected the lower classes to a heavy burden, while numerous exemptions existed for the nobility and clergy. He argued that the country could not be taxed higher; that tax exemptions for the nobility and clergy must be reduced; and proposed that borrowing more money would solve the country's fiscal shortages...
This was not received well by the King's ministers and Necker, hoping to bolster his position, argued to be made a minister. The King refused, Necker was fired, and Charles Alexandre de Calonne was appointed to the Comptrollership. Calonne initially spent liberally, but he quickly realized the critical financial situation and proposed a new tax code.
The proposal included a consistent land tax, which would include taxation of the nobility and clergy. Faced with opposition from the parlements, Calonne organised the summoning of the Assembly of Notables. But the Assembly failed to endorse Calonne's proposals and instead weakened his position through its criticism. In response, the King announced the calling of the Estates-General for May 1789, the first time the body had been summoned since 1614. This was a signal that the Bourbon monarchy was in a weakened state and subject to the demands of its people” (Wikipedia)
Despite the best efforts of the ruling elite and the overprivileged aristocracy to contain the lower classes brewing resentment, eventually “war” did break out. A proxy government sprung into being with the Tennis Court Oath, small gangs turned into mobs, mobs turned into organized resistance (much like the Arab spring) and soon peasants, youth and defected soldiers alike were battering down the doors of the Bastille and sharpening the blades of the guillotines.
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| Agents of the overprivileged? |
- In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1; since the year 2000, that ratio has exploded to between 300 and 500 to 1As much as the US Republican party tries to avoid the subject, maintain the economic status quo of the classes and stymie Democratic efforts to address the current economic inequality, protests like those in Wall Street will only intensify. The pressure is building, and the cork will not plug this geyser indefinitely.
- The bottom 50 per cent of income earners in the US now collectively own less than 1 per cent of the nation's wealth
- 61 per cent of Americans "always or usually" live paycheck to paycheck, which was up from 49 per cent in 2008 and 43 percent in 2007
- 66 per cent of the income growth between 2001 and 2007 went to the top 1 per cent of Americans
- 43 per cent of Americans have less than $10,000 saved for retirement
-24 per cent of American workers say that they have postponed their planned retirement age
-Only the top 5 per cent of US households earned enough to match the rise in housing costs since 1975
-More than 40 per cent of Americans who are actually employed are now working in service jobs, which are often low paying.
For an in-depth look at the root of the protests, check out Al Jazeera's article entitled "Youth movement in a culture of Hopelessness".
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