The combination of Occupy Wall Street and Social media may mark the end of the invisible hand. With the rise of crowd sourcing and location-based services it could be that the consumer actually solves the economic crisis. It would mean a paradigm shift from the losing battle of employee vs employer to “the customer is always right”.
Occupy Wall Street is a testament to the concept of “jobless recovery”. Higher stocks and corporate profits don’t constitute a recovery when states are cash strapped and American’s are experiencing stagnant wages and record unemployment. The fact that lower-income wage earners experience a recession first and recover last is as old as civilization, but this time things may be different. When the Occupy Wall Street movement began I was surprised only in that it wasn’t a response to a single event or catalyst. Now I’m beginning to think it could be the catalyst.
Some of OWS activities included asking customers to close their accounts at bailed out banks and switch to local worker-owned credit unions. At the Occupy Austin event a couple of speakers mentioned shopping farmers’ markets and buying local. There could be something to this, Austin not only weathered the recession better than most cities, but even corporate chains here know there are consequences to displaying a questionable commitment to the community.
People would have probably remained blissfully ignorant of wealth disparity as long the 40-hr work week paid the bills, insurance, mortgage and allows for modest savings. According to a Wall Street Journal article 53% of workers surveyed said they’ve taken on new roles, with just 7% getting a raise or a bonus. People are catching on to the more work less pay trend. Most American’s don’t want to be rich, they want to fulfill their own pursuits of happiness.
if U.S. businesses keep prospering while Americans are struggling, business leaders will lose legitimacy in society. He exhorted business leaders to find a way to link growth with job creation at home. –Harvard Business School Dean Nitin Nohria (Harvard Business Review Nov. ’10)
If our financial system were not on the brink of a double-dip recession and small businesses could get loans and hire people there would be no movement. Instead people have lost faith in their political and economic leaders whose only response has been to claim the climate is bad for “job creators”. The Wall Street Journal reports that US multi-nationals cut their work forces in the U.S. by 2.9 million during the 2000s and increased employment overseas by 2.4 million. It could be that if the current leadership doesn’t get it together and address the jobless part of this recovery the people just may take it into their hands.