GOP candidates on Occupy Wall Street

The GOP field on Occupy Wall Street:

Mitt Romney -“I think it’s dangerous, this class warfare,”

Rick Perry – 1.) “We understand the frustration with the Obama economy, but the protests don’t make sense or help create jobs.”

2.) “You know Liberals are now pointing the finger of blame at successful employers under the guise of fairness, but when they utter phrases like “fair share” you just know, heh, they’re once again playing fast and furious with the truth. And the truth is you can’t reve up the engine of economic growth by heaping higher taxes on job creators, you can’t spread success by punishing it, you can’t unite our country by dividing it.”

Herman Cain– “Don’t blame Wall Street, don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself. It is not someone’s fault if they succeeded, it is someone’s fault if they failed.”

Newt Gingrich– “I think the people who are protesting in Wall Street break into two groups: one is left-wing agitators who would be happy to show up next week on any other topic, and the other is sincere middle-class people who frankly are very close to the Tea Party people who care. And actually…you can tell which are which. The people who are decent, responsible citizens pick up after themselves. The people who are just out there as activists trash the place and walk off and are proud of having trashed it, so let’s draw that distinction.”

Ron Paul- “I think that civil disobedience, if everybody knows exactly what they are doing, is a legitimate effort. It’s been done in this country for many grievances. Some people end up going to jail for this. But to speak for a special group and say, ‘Yeah, I like what they are doing or they are not doing,’ but what I want to do is try to sort it out and tell people why they are struggling and that this was a predictable event.”

Michele Bachmann- “I don’t think that they’re similar to the Tea Party at all,” Bachmann said. “I ran across two of the protests in Washington, DC and one in Boston and they are nothing in common at all with” Tea Party agitators.

She added, “I think that if the Occupy Wall Street wants to be upset about something they should go in front of the White House.”

Jon Huntsman- Now, you can’t gather on street corners in China. You can’t create organized demonstrations in China. You can in this country, and may it always be that way,” said Huntsman. “And I have to say that some of what they’re talking about, a lot of Americans, I think, are sympathetic with. Trillions and trillions of dollars spent, with nothing to show for it in terms of any uplift in our economy.”

Rick Santorum- “I certainly understand the frustration,” he told reporters after his speech at the Values Voter Summit on Friday. “I think the answers they have with respect to solve that problem, I would go in a different direction.”

Donald Trump– “I was in New York recently where you had—I wouldn’t call it a riot, but it got—you had thousands of people marching down Wall Street,” Trump said. “This is a group of in many cases very well-dressed, and I look at it and I say something has got to be done to break it up.”

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Occupy Wall Street: Too Big To Fail?

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.

Mike Huckabee, Occupy Wall Street and how Supply-side Media works

In his monologue Mike Huckabee referred to Occupy Wall Street as ‘young and the wanna be young’ who would rather ‘yell’ than work. He continued, saying they should put down their iphones and get jobs in a field picking vegetables. He was trying to be clever and infer these people were hypocrites for using technology invented by billionaires. Its not clear where he got numbers on how many, “lived with their parents” or actually have iphones, but lets assume that most do in fact have iphones, facebook accounts and twitter; people do not go to protests to “yell” about products they like.

He knows exactly what Occupy Wall Street is about. He wrapped up his introduction with an assurance that he was against the bailouts and tax funded bonuses for corporate executes who ruined our financial system and violated the public trust. He also knows this is the majority sentiment in the country but its important that he condemn the protest and controls the message. This folks is how supply-side media works.

I will post a link to his monologue if it becomes available in the internet. It was from the Sunday Oct. 9th episode of “Huckabee”.

Rick Perry jabs Occupy Wall Street at Value Voters Summit

He may not have addressed it directly but Rick Perry referred to the Occupy Wall Street movement in his latest address to the Value Voters Summit.

You know Liberals are now pointing the finger of blame at successful employers under the guise of fairness, but when they utter phrases like “fair share” you just know, heh, they’re once again playing fast and furious with the truth. And the truth is you can’t reve up the engine of economic growth by heaping higher taxes on job creators, you can’t spread success by punishing it, you can’t unite our country by dividing it.

The answer to our troubles lies in a positive optimistic vision with policies rooted in American Exceptionalism.

He has the last part right but most Americans would not look at the state of the financial sector as a “success”. The lack of rules and ethics that allowed for multi-national credit card companies to prey on young people at college campuses putting them and our country further into debt is not my idea of American Exceptionalism.

Perry also mentioned a Wall Street Journal article that indicated, “Nearly Half of U.S. lives in household receiving government benefit”. Now, much like the famed “Rich people pay half of all income taxes” this claim also deserves some scrutiny. First it serves to point out that all but 18% of Americans will pay payroll taxes. This is a federal tax on working people, fine, but at least give them credit for paying into the system.  The headline infers that slightly more than half of the U.S. do not receive a government benefit. This is one of the many ways the supply-side media tries to have it both ways. They would have you believe the government is funded by the wealthy and they receive no benefits such as tax breaks, loan guarantees, bailouts, loopholes or special access to government officials.

The graph below represents how many American households are receiving specific government benefits like Social Security, Medicare and food stamps. Notice while the trend nears 50% in 2010 the unemployment rate hovers around 9%. This means that less than 10% of the working age population is unemployed yet nearly half the households still need additional government assistance, a clear product of stagnant wages. Juxtaposed against the next graph you can see as CEO pay increased dramatically employee wages remained level.  Now consider the rise of inflation, cost of living and loss of benefits over the past two decades and we have a recipe for economic malaise.

The Increase in executive compensation correlates almost exactly with the number of households receiving “a government benefit” for the same time period. I would contend that the Wall Street occupiers are not interested in taking money from the rich but when they work hard to create wealth for a company or institution they expect to share in their own success. If people continue to believe that working harder will not increase their standard of living or take home pay we will lose the motivating factors for free market capitalism.

Occupy Austin “This movement is about Democracy”

I returned to #OccupyAustin about dusk. The occupiers had grown in number to over 1,000 and the atmosphere was festive. The crowd skewed young but was at least as diverse as the city itself. There were impromptu sing-a-longs, home made signs and lots of folks who were clearly there out of curiosity.

I walked into City Hall which happen to have a council meeting in session discussing the possibility of moving May city elections to November.  Having worked as an election administrator for both the 2006 and 2008 elections I can assure moving elections to November amounts to increasing turnout. The city is also relieved of funding an additional election in the spring. Although this is a separate matter it deals directly with democracy and participation, two things that were going on in mass just outside. After speaking to one of the on-duty officers about his long day we walked to The Gingerman right up the street. We discussed what good if any could come from this gathering and all agreed supporting local business was a good way to “recycle our wealth”.  We would start with bars and breweries and dub it #occupintAustin. After a Peacemaker and a Rahr Gravel I left and headed back to City Hall.

At that point it was 11pm. I walked up to Univision doing an interview with a lady holding a POW MIA flag. The crowd had thinned some but the remaining occupiers looked as fresh and enthusiastic as I left them. I heard conflicting reports on whether the protests actually had to conclude by a certain hour but according to the chatters on their live feed they plan to be there all night. I will make my best attempt to go to City Hall and watch the march on Bank of America. There they plan to ask customers to leave BoA and join a local credit union. Should be interesting but I don’t think BoA is in the business of novel ideas. I suspect by now they’re aware of the plan and will have security or APD on hand to remove any trespassers. Its worth noting that unlike most protests I have attended this one felt it necessary to appear “pro” law enforcement. It is in at least part a branding effort but I saw multiple conversations between occupiers and officers, many speakers thanked them for being there and one read, “APD are the 99%”.

If you are interested in how to participate the General Assembly has posted list of items they need and how they can be donated. If you would like to learn more about what the General Assembly does you can read their minutes from today. The operations are growing increasingly complex and demanding and it appears to all be done by volunteers. There is a lot that can be said about these people but lazy is not one of them.

Slideshow of today.

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Occupy Austin at City Hall

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Occupy Austin, a set on Flickr.

I arrived about 11am at Austin City Hall for the #OccupyAustin event. The occupiers numbered about 300. There were about 5 news trucks from local Austin media who were browsing the crowd for interesting looking characters to interview. The APD was also out in force. After exchanging several emails last night with “organizers” (my word) I was most curious to see how organized this group actually was.  I spoke to “Ronny” after watching him address the crowd about the 3pm General Assembly. He said they are still working on an actual structure but they have formed committees that cover increasingly specific issues conducted by moderators and all decisions are reached by consensus. He handed me a print out of what had come of the first General Assembly held just a few days ago. It described the procedures, the structure of “facilliation teams”, hand signals for communications and an introduction to their purpose. It begins:

As a group we have decided to take n the form of Occupy Wall Street movement to have all planning and activities (from the logistics of the operation of the occupation to the planning of activities) take place through committees. The General Assembly is a gathering for these committees to report back to the group as a whole on their progress and receive consensus approval to move forward with activities that affect the occupation as a whole.

I asked about the trouble of “representing” a group that claims no leader and he acknowledged the obvious problem. Just minutes before a young woman with an Occupy Austin media pass addressed the crowd over a document being circulated that was not “approved” by the general assembly. You could immediately since her frustration as she was met with grumbles and comments from people who wanted to make it clear no one spoke for them.

My main issue with any protest movement is a lack of, whats referred to in the organizing world as, “action items”. Ronny assured me that each assembly ends with action items drawn from consensus. Tomorrow Oct. 7th they will march to Bank of America and ask customers to switch to a local credit union instead of supporting corporate banks. Another speaker suggested shopping at farmers’ markets and keeping money within the community. I think as long as the group stays flexible and organic enough to absorb the general discontent of Wall Street it can maintain successful less they fall in the trap of alienation by affiliation.

Occupy Wallstreet (Anywhere)

Today is #OccupyAustin and as I talk to local politicos about the burgeoning new “occupy[insertyourtown]” movement we speculate on how long it will be before some highly funded, issue specific group comes in and marginalizes it like the TEA Party. Within the Occupy Austin movement there is a clear structure being created with a General Assembly that meets daily and specific committees who democratically discuss issues and make plans. They have a website and are highly motivated and engaged. Their facebook page already has over 7,000 fans and today’s event has over 4,000 RSVPs. It will be interesting to see who is behind such a speedy effort to first occupy the URL OccuppyAustin.org then to create such a content heavy web presence.

The in-cohesive nature and lack of pure ideology are part of what gives these movements credibility. You can not cut the head from a headless snake, but groups like Move On are trying to shape themselves into just that. As we have seen so far celebrities and unions have “joined the fight” though no specific agenda has been outlined. Isn’t the point here though, that people are just tired of failed leadership at the hands of greed? Do they really need an agenda or specific reforms to push? Like a friend said,  “What matters is these people are getting off their asses.” At the end of the day public policy is no overnight read and is generally left for politicians, activists (which anyone with spare time can be) and business ‘leaders’ to work out. Average working class people, if they in fact have work, do not have time to become political scientists.

After a historic election of “hope and change” how did we get to a point where we have two separate organic movements against our nations establishment?  Ladies and gentlemen this is nothing new. It happened at the end of the Roman Empire as well. The young educated class who could not find work lost respect for “Roman virtue” when they saw it was really just a farce to keep the common order of things as they were. There was no real meritocracy. All any of these people want is a job where they do not feel like they are getting the screws. I see pundits refer to them as communist, socialists and anti-capitalist as if they just hate rich people. Sure those types are drawn to large gathers and protests in general. However, I suspect that these folks wouldn’t mind bonuses for bank executives if they weren’t just laid off by a bank, or if wasn’t funded by taxpayer bailout money. This is what people are tired of. Watching people who made bad decisions redistribute the nations wealth amongst themselves.

Simple question: Would our economy be in this shape if these financial executives were doing a “good job” or at least one worth 10 million a year?

Bush said it:

Some workers are being left behind in the booming economy and the disparity between the rich and the poor is growing…The fact is that income inequality is real. It has been rising for more than 25 years…The earnings gap is now twice as wide as it was in 1980. Bush said, adding that more education and training can lift peoples’ salaries.

Reagan said it:

Now try it yourself…

Why we tax the rich- for dummies

Why should we tax the rich? Its a question that reminds me of a childhood argument I had with my parents every time they bought me a new pair of shoes. I wanted the latest (and most expensive) Nike tennis so they would always remind me of how much it cost to make them, how much some poor kid got paid and how much us suckers were willing to pay.  My elementary response was, “would those kids even have a job if it weren’t for Nike?” Unfortunately at this point I can see any of the GOP candidates (with minor exception) respond the same way.  Even as a child I could see the Conservative and Republican ideological brands were shinier but it was years before I considered the substance inside the slick packaging. Where did all that money go, were these kids really being treated fairly, did my purchase really affect the price and does it all really even matter anyway? The answer is yes it does matter, because we have entered a world where regardless of your ideology or the corporate tax rate the American standard of living can not be realized for the same wages companies can pay workers overseas. This is my anecdote for the situation that has led to shrieks of ‘class warfare’ on all sides and the latest brewing economic movement to “#OccupyWallStreet“.  It comes down to the simple fact that if folks can’t feed there families and afford basics like transportation, education and insurance after working 40hrs a week there will be more working class uprisings. When working and middle-class people have jobs they don’t have time to riot, but give them 6 months of watching their family suffer and you bet they will take to the streets.
Continue reading “Why we tax the rich- for dummies”

Class Warfare: Do we have to pick sides?

We are hearing a lot about “job creators” but what about “wealth creators”? Those are the many hands that perform the jobs and create the wealth that gets funneled to the top and fails to trickle down. It isn’t about over-taxation, its about labor costs and the American middle-class standard of living is just too high for the bottom line. There are short term solutions to the economic recession like rebuilding infrastructure; but the foundation of our new economy’s longterm growth will be small business. They are the most likely to hire during growth, less likely to layoff employees without exhausting all other options and they provide character and tradition to communities.

Continue reading “Class Warfare: Do we have to pick sides?”

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