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NationofChange / Op-Ed
Published: Tuesday 1 November 2011
“I remember the days when even raising the subject of inequality made you a ‘class warrior.’ Now, it seems, most Americans have become class warriors.”
The Occupiers’ Responsive Chord
A combination of police crackdowns and bad weather are testing the young Occupy movement. But rumors of its demise are premature, to say the least. Although numbers are hard to come by, anecdotal evidence suggests the movement is growing.
As importantly, the movement has already changed the public debate in America.
Consider, for example, last week’s Congressional Budget Office report on widening disparities of income in America. It was hardly news – it’s already well known that the top 1 percent now gets 20 percent of the nation’s income, up from 9 percent in the late 1970s.
But it’s the first time such news made the front page of the nation’s major newspapers.
Why? Because for the first time in more than half a century, a broad cross-section of the American public is talking about the concentration of income, wealth, and political power at the top.
Score a big one for the Occupiers.
Even more startling is the change in public opinion. Not since the 1930s has a majority of Americans called for redistribution of income or wealth. But according to a recent New York Times/CBS News poll, an astounding 66 percent of Americans said the nation’s wealth should be more evenly distributed.
A similar majority believes the rich should pay more in taxes. According to a Wall Street Journal/NBC News poll, even a majority of people who describe themselves as Republicans believe taxes should be increased on the rich.
I remember the days when even raising the subject of inequality made you a “class warrior.” Now, it seems, most Americans have become class warriors.
And they blame Republicans for stacking the deck in favor of the rich. On that New York Times/CBS News poll, 69 percent of respondents said Republican policies favor the rich (28 percent said the same of Obama’s policies).
The old view was anyone could make it in America with enough guts and gumption. We believed in the self-made man (or, more recently, woman) who rose from rags to riches – inventors and entrepreneurs born into poverty, like Benjamin Franklin; generations of young men from humble beginnings who grew up to became president, like Abe Lincoln. We loved the novellas of Horatio Alger, and their more modern equivalents – stories that proved the American dream was open to anyone who worked hard.
In that old view, being rich was proof of hard work, and lack of money proof of indolence or worse. As Herman Cain still says “if you don’t have a job and you’re not rich, blame yourself.”
But Cain’s line isn’t hitting a responsive chord. In fact, he’s backtracked from it (along with much of the rest of what he’s said).
A profound change has come over America. Guts, gumption, and hard work don’t seem to pay off as they once did – or at least as they did in our national morality play. Instead, the game seems rigged in favor of people who are already rich and powerful – as well as their children.
Instead of lionizing the rich, we’re beginning to suspect they gained their wealth by ripping us off.
Mitt Romney is defensive about his vast wealth (reputed to total a quarter of a billion). He’s reverted to scolding his audiences on the campaign trail for “attacking people based on heir success.”
The old view was also that great wealth trickled downward – that the rich made investments in jobs and growth that benefitted all of us. So even if we doubted we’d be wealthy, we still gained from the fortunes made by a few.
But that view, too, has lost its sheen. Nothing has trickled down. The rich have become far richer over the last three decades but the rest of us haven’t. In fact, median incomes are dropping.
Wall Street moguls are doing better than ever – after having been bailed out by the rest of us. But the rest of us are doing worse. CEOs are hauling in more than 300 times the pay of average workers (up from 40 times the pay only three decades ago), as average workers lose jobs, wages, and benefits.
Instead of investing in jobs and growth, the super rich are putting their money into gold or Treasury bills, or investing it in Brazil or South Asia or anywhere else it can reap the highest return.
Meanwhile, it’s dawning on Americans that in the real economy (as opposed to the financial one) our spending is vital. And without enough jobs or wages, that spending is drying up.
The economy is in trouble because so much income and wealth have been going to the top that the rest us no longer have the purchasing power to buy the goods and services we would produce at or near full employment.
The jobs depression shows no sign of ending. Personal disposable income, adjusted for inflation, was down 1.7 percent in the third quarter of this year – the biggest drop since the third quarter of 2009. Housing prices have stalled, home sales are down.
The only reason consumer spending rose in September is because we drew from our meager savings – mostly in order to pay medical bills, health insurance, and utilities. That’s the third month of savings declines, according to the Commerce Department’s report last Friday.
This can’t and won’t continue. Savings are now down to 3.6 percent of personal disposable income, their lowest level since the recession began.
Americans know a rigged game when they see one. They understand how much money is flowing into politics from the super rich, big corporations, and Wall Street — in order to keep their taxes low and entrench their privileged position.
The Occupy movement is gaining ground because it’s hitting a responsive chord. What happens from here on depends on whether other Americans begin to march to the music — and organize.
This article was originally posted on Robert Reich's blog.
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ABOUT Robert Reich
ROBERT B. REICH, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including his latest best-seller, “Aftershock: The Next Economy and America’s Future;” “The Work of Nations,” which has been translated into 22 languages; and his newest, an e-book, “Beyond Outrage.” His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His widely-read blog can be found at www.robertreich.org.
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16 comments on "The Occupiers’ Responsive Chord"
gitqfhq
November 01, 2011 3:30pm
good idea
November 01, 2011 2:31pm
There is nothing about this recession that hasn't been visited on this nation before in previous recessions. There is nothing novel about the conservative critique that hasn't been postulated before, albeit, rhetorically different. There are no rationales heard today that haven't been bandied about before. Mr Romney may believe he is standing on solid reasoning when he is "scolding" those who would be critical of he and his fellow wealthy douches. It doesn't alter the fact that these same rationale have been proffered before and for the same reasons; because they know the current economy IS a rigged game and he and his fellow empty suits don't want that to change, and god forbid they don't want to have to internalize any of the critiques of those who are not beneficiaries of the status quo. No big deal back in the gilded age, when the government had few rules to enforce and was justly regarded as a water boy for the monied elite. Not so any more. Then; there was barely a middle class to speak of to gut. Not so any more. ....... Mr. Romney; Mr. Perry; Mr. Cain..... Darwin was not promulgating a social theory. Its a theory about biology, right? Economics, particularly as they are practiced in this nation in the 21st century, is not a function of organic chemistry. There are quite a number of reasons that a person might find themselves poor in the United States of America in 2011, only a few of which might be related to lifestyles choices or lack of ambition. Several other reasons have to do with the venality and greed of people you may know. The idea of a meritocracy is lovely on paper but has little bearing in real world practice. Just witness the various hedge fund managers making billions for being essentially paper shufflers. Meritocracy? I think not. The rising tide means little to the guy who doesn't even have a life preserver much less a boat. Bootstraps are a meaningless concept to the guy that has no boots. And I haven't even touched on the invocations of Jesus, (remember him?) for those who can to help the poor. (Sorry Mitt! Mormons aren't Christians are they?)
I hear very few critiques of free markets or capitalism in the general. In fact I think they are such a good idea, that we should try them here, now. What we are living with today is capitalism most certainly, but its nothing like free. The market system can work but only if there is a check against it's inclination to serve only itself or its proclivity for killing people. That's the role of government. It is the yin to capital's yang. When it becomes one in the same, we have something that looks like what we have today.
November 01, 2011 5:53pm
Very Good! I Agreee!!!!
November 01, 2011 2:21pm
Both political parties have become corrupted by the addiction to money and power which flows from the corporate oligarchy to the point where these politicians think and act like the oligarchs who control them, and enact policies which will do serious, irreparable harm to the 99% of the population who are the real creators of the nation's wealth.
Our political system is riddled with greed, and both political parties have contributed to the disintegration of the social, political, economic and spiritual fabric which binds us together through the destructive forces of globalization and deregulation, and has also contributed to the growing chasm between the haves and the have-mores and the have-less and have-nots.
As long as those who have more continue to lord it over those who have less or who have nothing, this chronic social, political and economic imbalance cannot continue much longer, and sooner or later, something's got to break, and the Occupy movement is spearheading what could become a worldwide revolution against the corporate oligarchy's casino economy and a major shift back to a well-regulated, equal and just form of capitalism in which the real wealth-creators (the 99%) get to enjoy the fruits of their labors and to share them freely with those who are unable to create wealth themselves -- the elderly, disabled and others -- and in so doing, create a more humane economic and political system where all are included, including those whose voices have never been heard before or been taken seriously, such as women and people of color.
November 01, 2011 1:56pm
I have a tax plan that I wish people would consider. I had to be brief when I placed it on "We the People", so some details are missing, and many details to be worked out, but I believe it to a fair way to really start addressing our problems.
http://wh.gov/bTU
is the URL.
November 01, 2011 1:02pm
University of California(UC) hijack’s our kids’ futures: student loan debt.
I love UC having been student & lecturer. But today I am concerned that at times I do not recognize the UC I love. Like so many I am deeply disappointed by the pervasive failures of Regent Chairwoman Lansing, President Yudof from holding the line on rising costs & tuition increases. Paying more is not a better education.
Californians are reeling from 19% unemployment (includes: those forced to work part time; those no longer searching), mortgage defaults, loss of unemployment benefits. And those who still have jobs are working longer for less. Faculty wages must reflect California's ability to pay, not what others are paid.
Current pay increases for generously paid University of California Faculty is arrogance. Instate tuition consumes 14% of Ca. Median Family Income!
Paying more is not a better education. UC Berkeley(# 70 Forbes) tuition increases exceed the national average rate of increases. Chancellor Birgeneau has molded Cal. into the most expensive public university.
UC President Yudof, Cal. Chancellor Birgeneau($450,000 salary) dismissed many much needed cost-cutting options. They did not consider freezing vacant faculty positions, increasing class size, requiring faculty to teach more classes, doubling the time between sabbaticals, cutting & freezing pay & benefits for chancellors & reforming pensions & the health benefits.
They said such faculty reforms “would not be healthy for UC”. Exodus of faculty and administrators? Who can afford them and where would they go?
We agree it is far from the ideal situation, but it is in the best interests of the university system & the state to stop cost increases. UC cannot expect to do business as usual: raising tuition; granting pay raises & huge bonuses during a weak economy that has sapped state revenues & individual Californians’ income.
There is no question the necessary realignments with economic reality are painful. Regent Chairwoman Lansing can bridge the public trust gap with reassurances that salaries & costs reflect California’s economic reality. The sky above UC will not fall
November 01, 2011 12:02pm
If you want to get a realistic picture of what unregulated capitalism looked like at one time in the US, read "The Jungle" by Upton Sinclair. It is avaiable at most book stores new and online used. It is a quick read and it is very interesting.
In the days described in the book capitalists did not outsource jobs they brought in huge numbers of immigrants to glut the labor market. Strikes were broken by bringing in scabs who were simply turned out into the street once the strike was broken. Contaminated food was routinely sold to the public and to the military. An injury on the job meant loss of that job. A day out sick meant loss of job. As soon as one got a little age on him he was fired and replaced with a younger worker. Machinery was purchased that enabled children to do much of the work and so children wer hired to replace adult men at 1/3 the wages. Piecework was used to keep the working men at eah others throats.
Try the book.
How about if every single middle class and low class worker all claimed exempt...demand the govt reform or else get nothing from every single working American? Now that might get things moving!!!!
November 01, 2011 3:31pm
yes, yes
Abe Lincoln would never have been President today
No money NO pedigree NO Lobbyists NO PACS
November 01, 2011 3:31pm
you said it!! right
In order to heal our country
We must repeal ' Citizens United ' aka Corps United
Must Get rid of lobbyists who own and bribe our reps
Vote out GOP Bagger run Congress
Goldman B o A Citi Chase Wells Fargo must ALL must be broken up
or we will have another TARP scam to bail the crooks out.
Taxpayers will not be used as suckers / chumps again
November 01, 2011 12:21pm
How about if we got a lot of people together and drew up a prototype for a new constitution written to create a government that would do what this one refuses to do. The new governemnt should
1. Form a More Perfect Union - How perfect can the union be when a rigged electoral college system empoweres just a few states to dominate the election of the chief executive, the system of gerrymandering dilutes the representation of large racial and ethnic groups, and a seniority system in Congress fixes power in a few hands?
2. Establish Justice - How much justice is there when thousands of young and old protesters are arrested for pitching tents, holding up signs, shouting to elected representatives, and refusing to leave public property but billionaires who crashed the economy, stole the bailout money and riped off most of the world's working people are immune to prosecution?
3. Insure Domestic Tranquility - The peace of the United States is threatened and very much in danger of vanishing before the tear gas, rubber bullets, beanbag projectiles, and billy clubs of policement. There can be no insurance of domestic tranquility while millions cannot find work to pay for necessities, hundreds of thousands are homeless, and families cannot provide medical care for their loved ones because of insurance scams.
4. Provide for the Common Defense - The current government does not, and has not for a long time, defended the common people of this country. Ostensibly we were threatened by a bunch of ragtag peasants living in caves in Afghanistan and we build nuclear subarines. We have spent trillions on wars that only heighten the resolve of our enemies. We waste defense resources on illegal occupations to enrich the oil companies and defense contractors.
5. Promote the General Welfare - This government is promoting the welfare of the elite 1%. the welfare of big corporations, the welfare of bootlicking politicians but not the welfare of the general public.
6. Secure the Blessings of Liberty to Ourselves and Our Posterity - How is our posterity receiving the blessings of liberty? By graduating from college hundreds of thousands of dollars in debt and getting jobs at fast food restaurants and coffeeshops.
After we draw up the prototype of a new constitution, let's present it in such a compelling manner that it will be adopted! I can be reached at speed47633@aol.com
November 01, 2011 10:45am
It's easy to blame Republicans for this mess. Why? Because although both parties have contributed to the environment of deregulation, unclosed tax loopholes and parsing out jobs overseas, those on the fringes of the right seem to want to keep things exactly the way they are or, worse, keep making the disparity gap wider. Way to go to learn from history, 1%!
http://borderlessnewsandviews.com/
November 01, 2011 9:22pm
True, both parties made the mistakes that put us here. The Republicans were more to blame than the Democrats, but neither is blameless. The difference is their current attitudes. The Democrats are saying " O. K., we screwed up and we are lucky we aren't in a 1930's style depression and we're not at all sure that if we don't make huge corrections, that isn't still a possibility." The Republicans are saying that we should continue to do exactly what got us into the mess, and that those who were deregulated and caused the crisis should still be unregulated and untaxed. I'll vote Democrat.