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Occupy Wall Street protesters attacked and arrested at Times Square
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Throngs of participants with the Occupy Wall Street movement marched to Times Square in New York City on October 15 in a mass protest. Once there, however, t...
Occupy Wall Street tries to maintain message - video | World news | guardian.co.uk
via www.guardian.co.uk on 10/16/11
Demonstrators aim to reach those who 'freeload' at protests on day 24 of a grassroots movement that has spread through the country, now reaching 70 cities
The Social Contract - NYTimes.com
via www.nytimes.com on 10/16/11
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September 22, 2011
The Social Contract
By PAUL KRUGMAN
This week President Obama said the obvious: that wealthy Americans, many of whom pay remarkably little in taxes, should bear part of the cost of reducing the long-run budget deficit. And Republicans like Representative Paul Ryan responded with shrieks of “class warfare.”
It was, of course, nothing of the sort. On the contrary, it’s people like Mr. Ryan, who want to exempt the very rich from bearing any of the burden of making our finances sustainable, who are waging class war.
As background, it helps to know what has been happening to incomes over the past three decades. Detailed estimates from the Congressional Budget Office — which only go up to 2005, but the basic picture surely hasn’t changed — show that between 1979 and 2005 the inflation-adjusted income of families in the middle of the income distribution rose 21 percent. That’s growth, but it’s slow, especially compared with the 100 percent rise in median income over a generation after World War II.
Meanwhile, over the same period, the income of the very rich, the top 100th of 1 percent of the income distribution, rose by 480 percent. No, that isn’t a misprint. In 2005 dollars, the average annual income of that group rose from $4.2 million to $24.3 million.
So do the wealthy look to you like the victims of class warfare?
To be fair, there is argument about the extent to which government policy was responsible for the spectacular disparity in income growth. What we know for sure, however, is that policy has consistently tilted to the advantage of the wealthy as opposed to the middle class.
Some of the most important aspects of that tilt involved such things as the sustained attack on organized labor and financial deregulation, which created huge fortunes even as it paved the way for economic disaster. For today, however, let’s focus just on taxes.
The budget office’s numbers show that the federal tax burden has fallen for all income classes, which itself runs counter to the rhetoric you hear from the usual suspects. But that burden has fallen much more, as a percentage of income, for the wealthy. Partly this reflects big cuts in top income tax rates, but, beyond that, there has been a major shift of taxation away from wealth and toward work: tax rates on corporate profits, capital gains and dividends have all fallen, while the payroll tax — the main tax paid by most workers — has gone up.
And one consequence of the shift of taxation away from wealth and toward work is the creation of many situations in which — just as Warren Buffett and Mr. Obama say — people with multimillion-dollar incomes, who typically derive much of that income from capital gains and other sources that face low taxes, end up paying a lower overall tax rate than middle-class workers. And we’re not talking about a few exceptional cases.
According to new estimates by the nonpartisan Tax Policy Center, one-fourth of those with incomes of more than $1 million a year pay income and payroll tax of 12.6 percent of their income or less, putting their tax burden below that of many in the middle class.
Now, I know how the right will respond to these facts: with misleading statistics and dubious moral claims.
On one side, we have the claim that the rising share of taxes paid by the rich shows that their burden is rising, not falling. To point out the obvious, the rich are paying more taxes because they’re much richer than they used to be. When middle-class incomes barely grow while the incomes of the wealthiest rise by a factor of six, how could the tax share of the rich not go up, even if their tax rate is falling?
On the other side, we have the claim that the rich have the right to keep their money — which misses the point that all of us live in and benefit from being part of a larger society.
Elizabeth Warren, the financial reformer who is now running for the United States Senate in Massachusetts, recently made some eloquent remarks to this effect that are, rightly, getting a lot of attention. “There is nobody in this country who got rich on his own. Nobody,” she declared, pointing out that the rich can only get rich thanks to the “social contract” that provides a decent, functioning society in which they can prosper.
Which brings us back to those cries of “class warfare.”
Republicans claim to be deeply worried by budget deficits. Indeed, Mr. Ryan has called the deficit an “existential threat” to America. Yet they are insisting that the wealthy — who presumably have as much of a stake as everyone else in the nation’s future — should not be called upon to play any role in warding off that existential threat.
Well, that amounts to a demand that a small number of very lucky people be exempted from the social contract that applies to everyone else. And that, in case you’re wondering, is what real class warfare looks like.
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Economic Bleeding Cure - NYTimes.com
via www.nytimes.com on 10/16/11
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September 18, 2011
The Bleeding Cure
By PAUL KRUGMAN
Doctors used to believe that by draining a patient’s blood they could purge the evil “humors” that were thought to cause disease. In reality, of course, all their bloodletting did was make the patient weaker, and more likely to succumb.
Fortunately, physicians no longer believe that bleeding the sick will make them healthy. Unfortunately, many of the makers of economic policy still do. And economic bloodletting isn’t just inflicting vast pain; it’s starting to undermine our long-run growth prospects.
Some background: For the past year and a half, policy discourse in both Europe and the United States has been dominated by calls for fiscal austerity. By slashing spending and reducing deficits, we were told, nations could restore confidence and drive economic revival.
And the austerity has been real. In Europe, troubled nations like Greece and Ireland have imposed savage cuts, even as stronger nations have imposed milder austerity programs of their own. In the United States, the modest federal stimulus of 2009 has faded out, while state and local governments have slashed their budgets, so that over all we’ve had a de facto move toward austerity not so different from Europe’s.
Strange to say, however, confidence hasn’t surged. Somehow, businesses and consumers seem much more concerned about the lack of customers and jobs, respectively, than they are reassured by the fiscal righteousness of their governments. And growth seems to be stalling, while unemployment remains disastrously high on both sides of the Atlantic.
But, say apologists for the bad results so far, shouldn’t we be focused on the long run rather than short-run pain? Actually, no: the economy needs real help now, not hypothetical payoffs a decade from now. In any case, evidence is starting to emerge that the economy’s “short run” troubles — now in their fourth year, and being made worse by the focus on austerity — are taking a toll on its long-run prospects as well.
Consider, in particular, what is happening to America’s manufacturing base. In normal times manufacturing capacity rises 2 or 3 percent every year. But faced with a persistently weak economy, industry has been reducing, not increasing, its productive capacity. At this point, according to Federal Reserve estimates, manufacturing capacity is almost 5 percent lower than it was in December 2007.
What this means is that if and when a real recovery finally gets going, the economy will run into capacity constraints and production bottlenecks much sooner than it should. That is, the weak economy, which is partly the result of budget-cutting, is hurting the future as well as the present.
Furthermore, the decline in manufacturing capacity is probably only the beginning of the bad news. Similar cuts in capacity will probably take place in the service sector — indeed, they may already be taking place. And with long-term unemployment at its highest level since the Great Depression, there is a real risk that many of the unemployed will come to be seen as unemployable.
Oh, and the brunt of those cuts in public spending is falling on education. Somehow, laying off hundreds of thousands of schoolteachers doesn’t seem like a good way to win the future.
In fact, when you combine the growing evidence that fiscal austerity is reducing our future prospects with the very low interest rates on U.S. government debt, it’s hard to avoid a startling conclusion: budget austerity may well be counterproductive even from a purely fiscal point of view, because lower future growth means lower tax receipts.
What should be happening? The answer is that we need a major push to get the economy moving, not at some future date, but right now. For the time being we need more, not less, government spending, supported by aggressively expansionary policies from the Federal Reserve and its counterparts abroad. And it’s not just pointy-headed economists saying this; business leaders like Google’s Eric Schmidt are saying the same thing, and the bond market, by buying U.S. debt at such low interest rates, is in effect pleading for a more expansionary policy.
And to be fair, some policy players seem to get it. President Obama’s new jobs plan is a step in the right direction, while some board members of the Federal Reserve and the Bank of England — though not, sad to say, the European Central Bank — have been calling for much more growth-oriented policies.
What we really need, however, is to convince a substantial number of people with political power or influence that they’ve spent the last year and a half going in exactly the wrong direction, and that they need to make a U-turn.
It’s not going to be easy. But until that U-turn happens, the bleeding — which is making our economy weaker now, and undermining its future at the same time — will continue.
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Protesters Against Wall Street - NYTimes.com
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October 8, 2011
Protesters Against Wall Street
As the Occupy Wall Street protests spread from Lower Manhattan to Washington and other cities, the chattering classes keep complaining that the marchers lack a clear message and specific policy prescriptions. The message — and the solutions — should be obvious to anyone who has been paying attention since the economy went into a recession that continues to sock the middle class while the rich have recovered and prospered. The problem is that no one in Washington has been listening.
At this point, protest is the message: income inequality is grinding down that middle class, increasing the ranks of the poor, and threatening to create a permanent underclass of able, willing but jobless people. On one level, the protesters, most of them young, are giving voice to a generation of lost opportunity.
The jobless rate for college graduates under age 25 has averaged 9.6 percent over the past year; for young high school graduates, the average is 21.6 percent. Those figures do not reflect graduates who are working but in low-paying jobs that do not even require diplomas. Such poor prospects in the early years of a career portend a lifetime of diminished prospects and lower earnings — the very definition of downward mobility.
The protests, though, are more than a youth uprising. The protesters’ own problems are only one illustration of the ways in which the economy is not working for most Americans. They are exactly right when they say that the financial sector, with regulators and elected officials in collusion, inflated and profited from a credit bubble that burst, costing millions of Americans their jobs, incomes, savings and home equity. As the bad times have endured, Americans have also lost their belief in redress and recovery.
The initial outrage has been compounded by bailouts and by elected officials’ hunger for campaign cash from Wall Street, a toxic combination that has reaffirmed the economic and political power of banks and bankers, while ordinary Americans suffer.
Extreme inequality is the hallmark of a dysfunctional economy, dominated by a financial sector that is driven as much by speculation, gouging and government backing as by productive investment.
When the protesters say they represent 99 percent of Americans, they are referring to the concentration of income in today’s deeply unequal society. Before the recession, the share of income held by those in the top 1 percent of households was 23.5 percent, the highest since 1928 and more than double the 10 percent level of the late 1970s.
That share declined slightly as financial markets tanked in 2008, and updated data is not yet available, but inequality has almost certainly resurged. In the last few years, for instance, corporate profits (which flow largely to the wealthy) have reached their highest level as a share of the economy since 1950, while worker pay as a share of the economy is at its lowest point since the mid-1950s.
Income gains at the top would not be as worrisome as they are if the middle class and the poor were also gaining. But working-age households saw their real income decline in the first decade of this century. The recession and its aftermath have only accelerated the decline.
Research shows that such extreme inequality correlates to a host of ills, including lower levels of educational attainment, poorer health and less public investment. It also skews political power, because policy almost invariably reflects the views of upper-income Americans versus those of lower-income Americans.
No wonder then that Occupy Wall Street has become a magnet for discontent. There are plenty of policy goals to address the grievances of the protesters — including lasting foreclosure relief, a financial transactions tax, greater legal protection for workers’ rights, and more progressive taxation. The country needs a shift in the emphasis of public policy from protecting the banks to fostering full employment, including public spending for job creation and development of a strong, long-term strategy to increase domestic manufacturing.
It is not the job of the protesters to draft legislation. That’s the job of the nation’s leaders, and if they had been doing it all along there might not be a need for these marches and rallies. Because they have not, the public airing of grievances is a legitimate and important end in itself. It is also the first line of defense against a return to the Wall Street ways that plunged the nation into an economic crisis from which it has yet to emerge.
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Occupy Wall Street's 'Political Disobedience' - NYTimes.com
via opinionator.blogs.nytimes.com on 10/16/11
October 13, 2011, 4:15 pm
Occupy Wall Street’s ‘Political Disobedience’
By BERNARD E. HARCOURT
The Stone is a forum for contemporary philosophers on issues both timely and timeless.
Tags:
economics, Occupy Wall Street, Philosophy, Politics
Our language has not yet caught up with the political phenomenon that is emerging in Zuccotti Park and spreading across the nation, though it is clear that a political paradigm shift is taking place before our very eyes. It’s time to begin to name and in naming, to better understand this moment. So let me propose some words: “political disobedience.”
Occupy Wall Street is best understood, I would suggest, as a new form of what could be called “political disobedience,” as opposed to civil disobedience, that fundamentally rejects the political and ideological landscape that we inherited from the Cold War.
With the Cold War decades behind us, a new paradigm of political resistance has emerged.
Civil disobedience accepted the legitimacy of political institutions, but resisted the moral authority of resulting laws. Political disobedience, by contrast, resists the very way in which we are governed: it resists the structure of partisan politics, the demand for policy reforms, the call for party identification, and the very ideologies that dominated the post-War period.
Occupy Wall Street, which identifies itself as a “leaderless resistance movement with people of many … political persuasions,” is politically disobedient precisely in refusing to articulate policy demands or to embrace old ideologies. Those who incessantly want to impose demands on the movement may show good will and generosity, but fail to understand that the resistance movement is precisely about disobeying that kind of political maneuver. Similarly, those who want to push an ideology onto these new forms of political disobedience, like Slavoj Zizek or Raymond Lotta, are missing the point of the resistance.
When Zizek complained last August, writing about the European protesters in the London Review of Books, that we’ve entered a “post-ideological era” where “opposition to the system can no longer articulate itself in the form of a realistic alternative, or even as a utopian project, but can only take the shape of a meaningless outburst,” he failed to understand that these movements are precisely about resisting the old ideologies. It’s not that they couldn’t articulate them; it’s that they are actively resisting them — they are being politically disobedient.
And when Zizek now declares at Zuccotti Park “that our basic message is ‘We are allowed to think about alternatives’ . . . What social organization can replace capitalism?” ― again, he is missing a central axis of this new form of political resistance.
One way to understand the emerging disobedience is to see it as a refusal to engage these sorts of worn-out ideologies rooted in the Cold War. The key point here is that the Cold War’s ideological divide — with the Chicago Boys at one end and the Maoists at the other — merely served as a weapon in this country for the financial and political elite: the ploy, in the United States, was to demonize the chimera of a controlled economy (that of the former Soviet Union or China, for example) in order to prop up the illusion of a free market and to legitimize the fantasy of less regulation — of what was euphemistically called “deregulation.” By reinvigorating the myth of free markets, the financial and political architects of our economy over the past three plus decades — both Republicans and Democrats — were able to disguise massive redistribution toward the richest by claiming they were simply “deregulating” when all along they were actually reregulating to the benefit of their largest campaign donors.
This ideological fog blinded the American people to the pervasive regulatory mechanisms that are necessary to organize a colossal late-modern economy and that necessarily distribute wealth throughout society — and in this country, that quietly redistributed massive amounts of wealth to the richest 1 percent. Many of the voices at Occupy Wall Street accuse political ideology on both sides, on the side of free markets but also on the side of big government, for serving the few at the expense of the other 99 percent — for paving the way to an entrenched permissive regulatory system that “privatizes gains and socializes losses.”
The central point, of course, is that it takes both a big government and the illusion of free markets to achieve such massive redistribution. If you take a look at the tattered posters at Zuccotti Park, you’ll see that many are intensely anti-government and just as many stridently oppose big government.
Occupy Wall Street is surely right in holding the old ideologies to account. The truth is, as I’ve argued in a book, “The Illusion of Free Markets,” and recently in Harper’s magazine, there never have been and never will be free markets. All markets are man-made, constructed, regulated and administered by often-complex mechanisms that necessarily distribute wealth — that inevitably distribute wealth — in large and small ways. Tax incentives for domestic oil production and lower capital gains rates are obvious illustrations. But there are all kinds of more minute rules and regulations surrounding our wheat pits, stock markets and economic exchanges that have significant wealth effects: limits on retail buyers flipping shares after an I.P.O., rulings allowing exchanges to cut communication to non-member dealers, fixed prices in extended after-hour trading, even the advent of options markets. The mere existence of a privately chartered organization like the Chicago Board of Trade, which required the state of Illinois to criminalize and forcibly shut down competing bucket shops, has huge redistributional wealth effects on farmers and consumers — and, of course, bankers, brokers and dealers.
The semantic games — the talk of deregulation rather than reregulation — would have been entertaining had it not been for their devastating effects. As the sociologist Douglas Massey minutely documents in “Categorically Unequal,” after decades of improvement, the income gap between the richest and poorest in this country has dramatically widened since the 1970s, resulting in what social scientists now refer to as U-curve of increasing inequality. Recent reports from the Census Bureau confirm this, with new evidence last month that “the number of Americans living below the official poverty line, 46.2 million people, was the highest number in the 52 years the bureau has been publishing figures on it.” Today, 27 percent of African-Americans and 26 percent of Hispanics in this country — more than 1 in 4 — live in poverty; and 1 in 9 African-American men between the ages of 20 and 34 are incarcerated.
It’s these outcomes that have pushed so many in New York City and across the nation to this new form of political disobedience. It’s a new type of resistance to politics tout court — to making policy demands, to playing the political games, to partisan politics, to old-fashioned ideology. It bears a similarity to what Michel Foucault referred to as “critique:” resistance to being governed “in this manner,” or what he dubbed “voluntary insubordination” or, better yet, as a word play on the famous expression of Etienne de la Boétie, “voluntary unservitude.”
If this concept of “political disobedience” is accurate and resonates, then Occupy Wall Street will continue to resist making a handful of policy demands because it would have little effect on the constant regulations that redistribute wealth to the top. The movement will also continue to resist Cold War ideologies from Friedrich Hayek to Maoism — as well as their pale imitations and sequels, from the Chicago School 2.0 to Alain Badiou and Zizek’s attempt to shoehorn all political resistance into a “communist hypothesis.”
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More From The Stone
Read previous contributions to this series.
On this account, the fundamental choice is no longer the ideological one we were indoctrinated to believe — between free markets and controlled economies — but rather a continuous choice between kinds of regulation and how they distribute wealth in society. There is, in the end, no “realistic alternative,” nor any “utopian project” that can avoid the pervasive regulatory mechanisms that are necessary to organize a complex late-modern economy — and that’s the point. The vast and distributive regulatory framework will neither disappear with deregulation, nor with the withering of a socialist state. What is required is constant vigilance of all the micro and macro rules that permeate our markets, our contracts, our tax codes, our banking regulations, our property laws — in sum, all the ordinary, often mundane, but frequently invisible forms of laws and regulations that are required to organize and maintain a colossal economy in the 21st-century and that constantly distribute wealth and resources.
In the end, if the concept of “political disobedience” accurately captures this new political paradigm, then the resistance movement needs to occupy Zuccotti Park because levels of social inequality and the number of children in poverty are intolerable. Or, to put it another way, the movement needs to resist partisan politics and worn-out ideologies because the outcomes have become simply unacceptable. The Volcker rule, debt relief for working Americans, a tax on the wealthy — those might help, but they represent no more than a few drops in the bucket of regulations that distribute and redistribute wealth and resources in this country every minute of every day. Ultimately, what matters to the politically disobedient is the kind of society we live in, not a handful of policy demands.
Bernard E. Harcourt is chair of the political science department and professor of law at The University of Chicago. He is the author of several books, most recently “The Illusion of Free Markets: Punishment and the Myth of Natural Order.”
First Collective Statement of Occupy Wall Street
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First Collective Statement of Occupy Wall Street October 6, 2011 For all the talk from the various corporate media sources expressing puzzlement at exactl
occupy wall street - Google Search
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The Brains Behind 'Occupy Wall Street' - Forbes
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Meet the second most evilest man in the world (after George Soros).
This isn’t the 60s. And it isn’t the pre-Iraq War protests either. Occupy Wall Street, supposedly, is different. It has no leader. It has no political action committee behind it. One can argue that the protests against Wall Street this month really started in Tunisia. That’s where the idea came from. But the guys who took that Arab movement and ran with it are based in Vancouver.
Kalle Lasn, 69, is their quasi leader. He’s the publisher and editor of Adbusters magazine. It’s a small, non-influential critical and artsy magazine with a decent following of around 90,000 who call themselves “culture jammers”. Occupy Wall Street began in the conference rooms at that Vancouver mag.
I spoke with Lasn in July, right after the new edition of Adbusters hit the news stands with the now famous image of a ballerina balancing on the Wall Street bull. Above her head read the Twitter hashtag #OccupyWallStreet. Lasn didn’t know what this movement would become. Just two and a half short months later, it’s the talk on The Talk, The View and every major news channel.
I spoke with him again this afternoon about this weekend’s European wide protest, the G-20 and a worldwide Robin Hood tax.
Kenneth R: The Washington Post calls you the leader of Occupy Wall Street. What do you make of that?
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