Occupy Wall Street, Tea Party: United in Anger

From Seattle to Sydney, protesters have taken to the streets. They burn with dissatisfaction about the state of the economy, about the unfair way the poor are paying for the sins of the rich bankers, and, in some cases, capitalism itself. Certainly some of the protesters certainly would fit the stereotype of being "unemployed, uneducated, and uninformed". However, a survey of the demonstrators in Zuccotti Park on October 5^th showed that half of those who participated are employed full-time with 30% earning over $75,000 annually and 2% earning more than $150,000 per year. One-third of them in Zuccotti Park that day were over 35 years of age.

While the troubled economy is at the root of anger for both Occupy Wall Street ("OWS") and the Tea Party, there's a key difference. Tea party activists generally support free markets and want to limit the government. OWSers say the financial system is broken or nearly broken and the government can provide some solutions.

Protests against big banks and the men of Wall Street are not new in U.S. history. Scott Simon, of NPR's weekend edition recently interviewed Professor Steven Fraser of Columbia University. Mr. Fraser indicated that the first Wall Street panic happened in 1792. It was set off by an insider trading scheme engineered by a small group of aristocratic bankers. When their scheme collapsed the local economy collapsed with it, an enraged mob of citizens chased the leader through the streets of New York City and were about to hang him before the sheriff arrived. He was carted off to debtor's prison and died there several years later.

Professor Fraser suggests and that the current OWS movement includes common themes and slogans of the past. "People have been periodically very concerned with the disproportionate economic and political power wielded by the great financial institutions of the country. And, the protesters have been upset by the power of the Street to subvert the democratic process because their money brought them so much political influence.

OWS type protests have occurred in over 900 cities and 82 countries. In many cities, such as London and New York, the protestors have set up encampments that are meant to last indefinitely. Other protests came and went. Most were peaceful, except in Rome, where repair costs were estimated at $1.4 million. In Israel, the public unhappiness focused on the cost of food, housing and education. Spain's indignados, or indignant ones, have been going strong since May. In Asia, in places like Japan, Australia and Hong Kong, the focus is on the widening gap between the rich and the poor and how it is threatening the very tenets of capitalism and democracy.

Back home, if you listen to OWS and Tea Party protests, you might hear similar opinions on the 2008 bank bailout, the federal deficit and government spending, and the influence of corporations and money on Congress. Harvard Professor Lawrence Lessig says there is too much power in too few hands. "We have a government where members spend between 30 to 70 percent of their time raising money to get back to Congress, and Congress is increasingly dependent on the funders."

To date, the OWS movement does not appear to have clear leadership, a consistent message and specific policy objectives. Barry Ritholtz, author of Bailout Nation suggests OWS should focus on accomplishing a three part legislative solution:

1. No more bailouts: Bring back real capitalism. We cannot live in a society of privatized gains and socialized loses.
2. End Too Big to Fail Banks. They reduce economic competition, concentrate risks and raise costs for consumers.
3. Take Congress back from Wall Street. Mr. Ritholtz suggests that a Constitutional Amendment is needed mandating public financing of Congressional elections and criminalizing the purchases of politicians. Lobbyists need to be marginalized and voters need to be returned as the most important people in the nation.

These three goals should be issues that can be agreed upon by both the Left and the Right. And, if accomplished, they could have a real impact on legislation, the economy and taxes. Let's hope some of this financial rage actually results in a combined solution for needed reform.

For more information: www.economist.com/node/21533400

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