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.

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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”.

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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