What motivates the Occupy Wall Street Movement?

To some it may appear that the Occupy Wall Street (OWS) movement has little or no message, a lack of direction, and a hap hazard way of presenting its message. I can agree that the above characteristics of the OWS movement bare some reality, but the big picture is that there is “Real trouble in River City” for most Americans. The intentions of the discontented, who are taking to the streets and public parks, are noble and just. They could better get their message across by employing a corporate public relations consultant and a professional group organizer. Having in hand a cache of big bucks would be a welcome boon to their cause also. There is indeed a new emerging and disparate class struggle growing in this country, even if the right wing elite refuse to publicly admit to the painful reality. The following data easily reveals why a major change in our present political system and unfair oligarchy is swiftly needed. First, let’s take a hard look at income disparity. Up until 1974 real incomes of working class people kept pace. Unfortunately after 1974, according to Bureau of Labor Statistics real incomes adjusted for inflation dropped to $550 per week in 1995. At the end of 2007 weekly incomes increased by approximately 10% to $612. From 1979 to 2006 the incomes of the top 5% who made more than $191,000 per year rose 87%, while the incomes of the bottom 40% making approximately $47,000 only rose 16%. As women entered the workforce family incomes increased a moderate amount, but never kept pace with the incomes of the wealthy. Second, the relative political influence in Washington has swayed way to the benefit of the elite. The amount of paid lobbyists by corporate America has increased by mega proportions to over 35,000. In 2010 political contributions by big business amounted to approximately $1.3 billion dollars, while the contributions from labor amounted to only $92 million, or 7%. Insidious people such as the Koch Bros. want to totally weaken the labor movement dismembering union organizations, holding down real wages, so as to ultimately cripple the ability of working people to have a financial say in the outcome of government. Traditionally labor unions have been the only major political arm of working people to press for their needs, improve workplace safety, and steward the environment. Big corporations, rarely if ever, champion for human or civil rights and take a strong position to improve human dignity or health care. Third, the income tax structure has favored the rich far more today, than it has in numerous decades. Our present tax structure would make the Reagan taxes paid by the elites look like the pejorative “Socialism”. From 1992 to 2007, according to IRS data, the top 400 elite households saw their effective tax rates drop from 27% to 17%. The effective tax rates of those earning over a million dropped from 26% to 22%. The ultra rich paid less percentage wise than ordinary millionaires. The top 400 taxpayers during the 1950s faced a 90 percent federal tax rate. By 1995 their effective tax rate – what they really paid after all deductions as a percent of all their income – fell to 30 percent. Now it’s barely 16 percent. Another disparity is the Social Security tax that caps off at $106,800. A person making $50,000 per year pays a full $7.65% or $3,825, while someone making $10 million pays only $8,170, or .008%, a mere cost of a dinner and wine for 12 at a posh restaurant. Fourth, productivity has increased at steep rate without the benefit of increasing wages at the lower end and middle. Admittedly globalization and the present economic downturn of the last few years have had a hand in influencing the metrics. Productivity output per hour in the 32 year period rose from $800 to $1200, a 50% increase. Productivity has also greatly increased due to industrial automation and the ever present fear of people losing their jobs. In reality economic downturns are a boon to the wealthy when distressed assets can be picked up at bargain basement prices, workers will work longer hours and harder, money can be borrowed cheaply, and hungry vendors and sub-contractors will greatly trim their profits and margins. Fifth, the big banks have gotten too big to fail, too politically influential, too diverse in services, and are becoming less competitive to the sacrifice of the consumer. With the Great Depression bank failures the Roosevelt administration and congress enacted the Glass-Stiegel Act for the purpose of regulating banks and limiting their abilities to expand horizontally and vertically. Up until the 80’s we had a relatively stable financial industry staying within limited geographic confines, with banks only lending, S&L’s lending on real estate, insurance companies only insuring, and the securities industry only selling stocks and bonds. During the Reagan and Clinton years that decimated the Glass-Stiegel Act, that caused the S&L crisis of the late eighties and the present mega financial industry crisis, and required hundreds of billions in bailouts and a meltdown of the real estate and other markets. Sixth, unemployment has reached dangerous levels. Fortunately there is a faint light of hope on the horizon with unemployment levels slowly dropping and real private job creation improving. There are two issues that create major challenges to lower skilled job creation; they are increasing globalization and a domestic educational and skill training system that needs major improvements. We need to follow the role models of Japan and Germany who have been able to maintain a positive trade balance through the major export of high quality automobiles, top quality hi-tech production machinery, and improved medical and scientific apparatus. Maintaining elevated employment through the Military Industrial Complex is an unhealthy, immoral, and unproductive choice for any society. Capitalism with reasonable regulations that protect the environment and the consumer foremost can be an effective financial model for innovation and economic growth. Basic needs of society such as health care, energy, minimal housing, food, and transportation infrastructure should be in the public domain; call it Socialism or whatever, but remember labels are very subjective; outcomes are what is most important. When government taxpayer funds and facilities are used for the benefit of the masses, it’s labeled Socialism. When these same resources are used to support corporations and the wealthy elite it is called economic stimulus, job creation, and improving the security of America, as in the excessive military spending. We bailed out the big Wall Street banks and protected the billionaires from ruin. Now we are being asked to make good on the debts they caused, while the super-rich get even richer, some making more than $2 million an HOUR! It would take over 47 years for the average family to make as much as the top 10 hedge fund managers make in one hour. In 1970 the average CEO made 45 times what the average worker made. In 2006 that disparity of CEO earnings rose to 1,700 times what the average worker made; that’s a very unfair 38 times increase, or approximately 100% per year. Power to the people! Thomas Jefferson said that a working democracy depends on a good revolution every 20 years. The elites have been left to feel too secure. I believe that some major non-violent intimidation and emotional discomfort is long overdue for these selfish corrupt “Fat Cats”. When the government is bailing out wealthy billionaires and starting unnecessary wars just to enrich the Military Industrial Complex there is definitely a call for assertive focused action on behalf of the critical mass of the population.