The Lesson the Left Can Learn on Inequality from Occupy Wall Street

Oct 17, 2011Mike Konczal

The protesters' particular focus on inequality is a perfect starting place for a progressive movement revival.

The protesters' particular focus on inequality is a perfect starting place for a progressive movement revival.

Right now Occupy Wall Street has favorable polling. So did the Tea Party at its beginning. As Seth Ackerman pointed out to me, once people saw that the Tea Party wasn't a new thing but this old, arch-conservative thing, one that wants to take our global historical moment and wage total war against public sector workers and uteri, they turned against it. One symptom that it was an old thing was the books that it circulated: from Hayek's underwhelming Road to Serfdom to Bircher Cold War tracts from the types who thought Eisenhower was a member of the communist conspiracy.

Ackerman noted that it isn't clear what will happen with Occupy Wall Street ideologically, if only because at this point the left-liberal project and progressivism more generally is chaotic and up for grabs. This makes for a fun, fascinating, and scary moment for a potentially insurgent left.

This movement is very focused on inequality. But why? A lot of different ideas have already surfaced. With so much of the debate about the 99% and the 1% framed in the context of extreme inequality, it might be worthwhile to step back and examine the liberal arguments against inequality and discuss what I see of them in Occupy Wall Street.

This is a great cheat-sheet -- a list of objections to inequality resulting from the high liberalism tradition from TM Scanlon's "The Diversity of Objections to Inequality" (article not free online, here's a summary). Liberals, in general, have five objections to inequality:

A sixth point will hopefully be added in the future: A more equal distribution creates a better economy. There's an assumption that the market, instead of creating concentrations of wealth and power that slow growth, assigns resources to where they are best used in both the short and long term. However, it is hotly contested whether income inequality causes crashes; researchers at the IMF found models where it can. And a whole other strain of research finds that equality causes growth to be more sustained (see summaries by Georgia Levenson Keohane and Brad Plumer).

As Scanlon is quick to note, only a few of these are necessarily egalitarian -- you can be concerned with relieving the suffering of the poorest without actually caring about disparity of incomes. And there is usually a huge emphasis on how the power referred to in number three is primarily a problem of electoral politics and policy instead of a problem of dominating, controlling power relations between individuals.

So where does Occupy Wall Street stand on these? What I find fascinating is that there is much more of a focus on forms of power and domination as opposed to the more general concerns of egalitarian liberalism, those focused on stigmatization and fairness. This is a healthy move for the debate.

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One of the major concerns you hear from people in occupations is that the political process has become fundamentally corrupted. This gets right at number three: Money has become so concentrated and such an overwhelming presence in our politics that we need some ways of reforming it at a structural level. The stakes are higher in Occupy Wall Street. The government blurs into the private sector, wealth is no longer a measure of contribution but instead rent extraction, and no party or individual can be trusted to work within the system. There needs to be a reboot. How did we get here? Hacker and Pierson's Winner Take All Politics is a good place to start when looking for the answer.

Another argument is that Wall Street itself is out of control. Having failed quite profitably in its sole responsibility -- allocating capital responsibly, not towards Pets.com, junk mortgage debt, strip-mining companies for short-term gains, and worthless housing stock nobody wants -- and then getting bailed out when it all collapsed, the sheer presence of the financial sector among the top 1% feels like a crime. This power is more ruthless than than that in the normal discussion. It drives the entire economy, and it appears to have just driven it off a cliff. For more, 13 BankersEconnedAge of Greed, and Wall Street from the 1990s all walk readers through this story.

What about the 99%? I've previously looked through the We Are the 99% Tumblr and found that the biggest emphasis was on debt, ranging from student loans to medical debt, and a lack of enough employment to get by month-to-month. Here inequality is less a problem related to the more traditional liberal concerns of fairness or the idea that a few are left behind, and more a problem in which inequality is making indentured peasants of a huge part of the population. Risks are shifted to individuals who are already struggling, opportunities and possibilities are ruthlessly revoked, employment is nonexistent, and month-to-month survival is a battle for more than the just the very bottom. Books such as Graeber's Debt: The First 5,000 Years approach this from an anthropological point of view. Other works include Elizabeth Warren's book on how fixed costs of the middle class drive even two-income families into poverty, as opposed to more general discretionary spending (read: "frivolous" spending), or Tamara Draut's Strapped.

This ties into traditional liberal concerns. Liberals want institutions that allow people to develop their talents and also ones that insure them against the bad luck of health and unemployment. These institutions have been unraveled, and their public nature has been replaced with debt. And when people involved in Occupy Wall Street talk about this phenomenon, they connect how debt functions as a new safety net with the experience of servitude and suffering. Not in a relative sense of inferiority and shame (although that's there too), but in actual deprivation and the feeling of powerlessness against creditors, bosses, and the top of the elite.

Indeed, these concerns are reflected in the format of the general assembly and other current, institutional characteristics of Occupy Wall Street. Without permanent, clear leaders, there is no one to arrest, corrupt, or otherwise take over. That address their concerns about political domination from sources internal and external. The focus on mass participation and consensus derives, in part, from inequality in political access. Resources and responsibilities are distributed in the most egalitarian manner because physical deprivation is just one bad month away for many in the occupations (indeed, in the country). Collective enterprises offer a potential solution to giving workers real power in the workplace, power that can be put into action across the country and isn't dependent on Obama and the Senate.

This strikes me as firmer ground on which to try and build up a resurgent left. What's your take?

Mike Konczal is a Fellow at the Roosevelt Institute.

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Occupy Wall Street's Middle Class Vision for the Left

Oct 17, 2011Joan Williams

occupy-journalOccupy Wall Street could bring disaffected blue-collar workers back into the progressive fold by recasting the left as the voice of the middle class.

occupy-journalOccupy Wall Street could bring disaffected blue-collar workers back into the progressive fold by recasting the left as the voice of the middle class.

When the second Google hit (after Wikipedia) for "corporate cronyism" links to a speech by Sarah Palin, you know why progressives need Occupy Wall Street.

Occupy Wall Street's power lies in the "We are the 99%" theme. The poignant and evocative stories on the Tumblr of that name feature hard-working, settled, middle-class families who have had the rug pulled out from under them by recent economic conditions. A single mom who put herself through college and grad school only to lose her job due to chronic illness, who now can't sell her house and worries that her children and grandchildren don't have much of a future. A 38-year-old cancer survivor, unemployed and with $50,000 in student loans, who can't get health insurance. A 21-year-old making $10.50 an hour at one job and looking for another so she no longer has to choose between paying bills and eating, who sleeps in her car because she can't get approved for an apartment. Her parents can't help because her father lost his job, "the bank took our house," and her mother is sick and can barely afford her medicine.

These are stories of the tremendous toll taken by the Great Recession on middle-class Americans who have done everything right: they work hard, seeking a second job if the first cannot support them; they scrimp and save to buy a house; they pay their bills on time. And then they tumble out of the settled middle class due to illnesses, or a lost job, or an accident -- things over which they have no control.

These are stories of the group that has shifted sharply Republican since 1970. Actually, it's only the whites in this group who have shifted: Blacks of all classes still vote overwhelmingly Democratic. But Democrats have lost many nonunionized whites in what Theda Skocpol has called the "missing middle" -- the middle 50% of Americans, whose median income is $64,000. I will call them blue collar, although the sad fact is that many of the blue-collar jobs that offered a stable middle class life have long since disappeared, leaving many in low-paid pink or routine white-collar jobs that offer very low pay and no benefits.

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Occupy Wall Street's focus on this group is a big change from the Democrats' focus, since about 1965, on the poor -- the bottom third of Americans whose median income is $19,000. While the poor no doubt need help, so do the missing middle. While the standard of living of blue-collar families doubled between the end of World War II and 1973, blue-collar jobs disappeared after that, and the standard of living in blue-collar families stalled out despite the fact that wives entered the workforce. Even more devastating, the cherished stability these families enjoyed in the 1950s and 1960s evaporated due to the "great risk shift" documented by Jacob Hacker. That's the message of the "We are the 99%" movement.

Understandably, Republicans are alarmed. They have launched a counteroffensive called "We are the 53%" -- that's the percentage of Americans who pay federal income taxes. This represents a move that, for Republicans, is tried and true: it seeks to bond the missing middle to the business elite. For once, progressives are contesting this narrative by articulating in very clear and concrete terms what blue-collar families share with newly vulnerable professionals.

So Occupy Wall Street has definite potential. It's worth pointing out, though, that this potential can easily be squandered. Republicans already have begun to malign the movement as composed of "trust fund hippies." This is a smart move. One of the things that drove blue-collar whites out of the Democratic camp was the rise of hippies and yuppies (or trustafarians) whose willingness to take risks were -- unbeknownst to them -- perceived as enactments of upper-middle-class privilege. It didn't help when hippies called the police -- who had good, stable, respected blue-collar jobs -- "pigs."

I hope that Occupy Wall Street avoids all this. If they reinforce the trust fund narrative, their activism will further reinforce the hold of Wall Street Republicans. But if they avoid that, and if the Democrats take the hint and begin to listen to the 99%, Occupy Wall Street could be the beginning of something big.

Joan Williams is the author of Reshaping the Work-Family Debate.

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We are the 99%: A Progressive Narrative in One Powerful Phrase

Oct 14, 2011Richard Kirsch

Occupy Wall Street's message goes a long way toward crafting a solid progressive story about the economy.

One of the most common criticisms of progressives is that, unlike the right, we don't have simple messages that tell our story. Our young leaders at Occupy Wall Street have come up with a powerful answer: We are the 99%.

Occupy Wall Street's message goes a long way toward crafting a solid progressive story about the economy.

One of the most common criticisms of progressives is that, unlike the right, we don't have simple messages that tell our story. Our young leaders at Occupy Wall Street have come up with a powerful answer: We are the 99%.

For the past several months, I've been working with a group of progressive leaders and communicators on the development of a "progressive economic narrative," a way of telling our story about the roles of the individual, business, and government in creating shared prosperity. The right has a well-developed view, to the point where after several decades it can now be summarized in three brief phrases: free markets, limited government, and individual liberty.

If we as progressives do our job well, we will also get to the point where we have three such phrases that are widely recognized. But that actually takes a long time. (Here are three candidates, but the fact that you may not nod your head readily when you read them is because you can't shorten the process: shared prosperity, government that works for all of us, and liberty and justice for all.)

For now, I'm celebrating the fact that we now have one phrase that tells much of our story: "We are the 99%."

This phrase's power is in the emotions it elicits. It is triumphant, not defeatist. It says, "We have the power and the moral authority, not you!" It conveys action -- we're standing up for ourselves and occupying your turf. It declares our common humanity. It is hopeful.

The progressive economic narrative I've been helping to draft has five conceptual pillars, and understanding them helps illustrate why "we are the 99%" also works intellectually. The first pillar of the narrative defines the progressive view of our economic problem: the crushing of the middle class by the rich and by corporate America. "The 99%" is a great unifying expression of inequality, as it avoids the separations that come from labels like "the middle class," "working class," and "poor." It says we're all screwed together by rising inequality and highlights those who are responsible: the super-rich and big corporations.

The second pillar defines what makes a successful economy: the well-being of our families in a big middle class and the productivity of our nation, not the stock market and corporate profits. "The 99%" is a simple declaration that our economy is driven by the vast majority of people, not a few super-rich.

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The fourth pillar (I'll come back to the third) defines the political problem: our government has been captured by the super-rich and corporate America, corrupted by big money and politics. "We are the 99%" affirms that we have to take our democracy back to ensure that our economy works for all of us, not just the richest few. This has been a consistent message from the Occupy Wall Streeters, who seamlessly link inequality, corporate power, and corruption.

The fifth pillar is a call to action. And here's where the triumphant power of "We are the 99%" works so well. It's no accident that the phrase took root in an action that people could easily do -- posting a picture of themselves with their story -- and was adopted instantly by a movement.

The third pillar explains the role of government in building a successful economy and the relationship of public action to individuals and business. It can be summarized thus: We build a large and prosperous middle class through the decisions we make together, investing in our people, expanding opportunity and security, paving the way for business to innovate, and doing business in ways that create prosperity and economic security for Americans.

This third pillar is essential to explaining how we should solve our problems and refuting the conservative view that the economy is driven by natural forces, best left on its own without government interference. "We are the 99%" opens the door for us to tell that story, but we need to fill in the blanks. When people say that Occupy Wall Street doesn't have demands, we should look at that not as a criticism, but as an invitation to complete the story. Everything about the phrase establishes the point that we build an economy that works for all of us when we make decisions that benefit the 99%.

Helping the American public understand a progressive worldview about the economy starts with our being clear on what we believe and telling that story consistently and widely. The best evidence that we're on the right track is when a simple message captures the hearts and minds of us, the 99%.

Richard Kirsch is a Senior Fellow at the Roosevelt Institute and a Senior Adviser to USAction, whose book on the campaign to win reform will be published in 2012. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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Is Occupy Wall Street Our Triangle Moment?

Oct 10, 2011Frank L. Cocozzelli

triangle-fireToday's outrage has the potential to be another turning point in American politics.

triangle-fireToday's outrage has the potential to be another turning point in American politics.

Frances Perkins, FDR's future Secretary of Labor, was an eyewitness to the Triangle Shirtwaist Factory fire of March 25, 1911. It was a tragic day in our history, one in which 143 workers lost their lives due the indifference of their employers.

Triangle was the culmination of licentious economic behavior. Powerful business interests fought on-the-job safety regulations; exit doors that were kept locked to keep out union organizers also kept workers from escaping the building; proposed fire safety standards were fought tooth and nail, all in the name of economic freedom.

But as tragic as the fire was, it was also a turning point. The tragedy of that horrible fire made Americans begin to truly realize that working people were not merely a means to wealth, but ends in and of themselves, worthy of being treated with dignity. On a political level, it was the singular event that transformed Al Smith and Robert Wagner Sr. from Tammany Hall hacks into champions of reform. It caused the Democratic Party to better live up to its moniker, “the party of the people.” It is why Perkins came to say that day of that fire was “the day the New Deal began.”

Similarly, today we now endure an economy set on fire by this same perverse notion of “freedom.” Freedom? What many on Wall Street call economic freedom is nothing more than anarchy and license. While workers see wages and benefits taken away, the top one percent live lives filled with conspicuous consumption -- and conspicuous waste. True freedom requires discipline, the structure of regulation, laws of oversight that curb and deflect destructive greed. And yet after thirty years of savings and loan failures, fraudulent CDOs, and Wall Street bailouts followed by million dollar bonuses, economic libertarians still want to tear down the very framework that provides order.

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But something has stirred in the American people. We are witnessing protests on Wall Street demanding that this stilted notion of freedom be revisited and revised. Despite what many free market types claim, a healthy form of capitalism cannot survive by being indifferent to the workers who physically build the products or provide the services. As Paul Krugman put it, “…we may, at long last, be seeing the rise of a popular movement that, unlike the Tea Party, is angry at the right people.”

Just as it was in the wake of the Triangle Shirtwaist Factory fire, the public is outraged and is demanding change. The rising of a popular movement comes at a moment none too soon. It is an opportunity for the Democratic Party to again turn out its present-day hacks and replace them with advocates of an already proven New Deal capitalism.

Then perhaps one day we will look back at the events of today and be able to say, “that was when the New Deal was reborn.”

Frank L. Cocozzelli writes a weekly column on Roman Catholic neoconservatism at Talk2Action.org and is contributor to Dispatches from the Religious Left: The Future of Faith and Politics in America. A director of the Institute for Progressive Christianity, he is working on a book on American liberalism.

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Occupy Wall Street’s Outrage at Greed Can Expand to Corporate Stock Manipulation

Oct 6, 2011William Lazonick

stockmarket-1500001Rather than invest profits in building a strong economy, corporate execs invest in their own pay.

stockmarket-1500001Rather than invest profits in building a strong economy, corporate execs invest in their own pay.

Occupy Wall Street is keeping our focus on the insatiable greed and undemocratic influence of those who run our major financial institutions. But the quest for personal wealth and political power by the top executives of U.S. business corporations goes well beyond the Wall Street banks. It pervades industrial as well as financial corporations.

Even though, as Table 1 shows, the pay of top corporate executives is down from its pre-financial-crisis levels, it remains out of control. The average remuneration of the top 100 highest paid corporate executives (named in annual proxy statements) was $33.8 million in 2010, up 10 percent from a 2009 average of $30.1 million (in 2010 dollars). Since the financial meltdown, executive pay has remained far higher than it was in the early 1990s, when it was already viewed as extraordinarily excessive.

Table 1.  Mean pay of the highest paid corporate executives and percent of pay from exercising stock options, 1992-2010

lazonick-table-1

As can be seen in Table 1, much, and in many years most, of this exorbitant pay comes from the exercise of stock options. The gains from stock options depend on rising stock prices. What better way for corporate executives to give a manipulative boost to a company's stock price than to spend hundreds of millions, or even billions, of dollars buying back its stock.

As Figure 1 shows, in 2003 buybacks were already substantial among S&P 500 companies, with an average of $300 million. But over the next four years, that amount quadrupled, so that on the eve of the financial crisis these companies averaged over $1.2 billion in buybacks. During the financial crisis, they dropped back down to about $300 million per company, but in 2010 doubled to around $600 million. In 2011, buybacks of S&P 500 companies are on pace to hit an average of $900 million, and there is every indication that they will continue to escalate in 2012 and beyond, as happened in 2003-2007. For overpaid U.S. corporate executives, this form of stock-price manipulation has become an addiction.

Figure 1.  Repurchases (RP) and dividends (DV), 1997-2010, of 419 companies in the S&P 500 Index in January 2011 that were publicly listed back to 1997; mean distributions and proportions of net income (NI)

lazonick-figure-11As shown in Table 2, the top 50 repurchasers from 2001-2010 represent a range of industries. Combined, over the decade they spent more than $1.5 trillion repurchasing their own stock.

Of these 50 companies, 11 spent more than 100 percent of their net income over the decade on buybacks, 32 more than 50 percent, and 43 spent 30 percent or more. When dividends are added to buybacks, half of these 50 companies expended all of their profits and more in distributions to shareholders from 2001 through 2010.

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Table 2. Top 50 stock repurchasers among U.S. corporations, 2001-2010

lazonick-table-2-revised

Research on these various industries and companies has revealed the deleterious impacts of stock repurchases on economic performance. For example, over the decade 11 of the 12 ICT companies on this list spent more on buybacks than on R&D, while for the twelfth, Intel, the proportion was 93 percent. Most of the financial services companies on the list had to be bailed out by the federal government in 2008-2009. Led by Exxon Mobil, the three petroleum refining companies in the top 50 wasted a combined $222 billion on buybacks while charging high oil prices and neglecting substantial investments in alternative energy. For the three aerospace companies, defense contracting generates much of the profits that they then use to manipulate their stock prices through buybacks. Pharmaceutical companies charge drug prices that are twice as high in the United States as in the rest of the world, yet use much or all of their profits for buybacks. Health insurers use their profits to jack up their stock prices, and executive pay, while giving us high cost, low quality health coverage.

Executives like to say that buybacks are financial investments that signal confidence in the future of their company as measured by its stock price performance. In fact, however, companies that do buybacks never sell the shares at higher prices to cash in on these investments. To do so would be to signal to the market that their stock prices have peaked, something that no executive would ever do. Executives often say that they do buybacks because of a lack of more attractive investment opportunities. Yet we live in a world of rapidly changing technology, burgeoning new product markets, and intense global competition. Any CEO of a major U.S. corporation who says that buybacks are the best investments that his or her company can make should take the next logical step: fire him or herself!

William Lazonick is director of the UMass Center for Industrial Competitiveness and president of The Academic-Industry Research Network. His book, Sustainable Prosperity in the New Economy? Business Organization and High-Tech Employment in the United States (Upjohn Institute 2009) was awarded the 2010 Schumpeter Prize.

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What Would Our Founding Radicals Have Thought About Occupy Wall Street?

Oct 5, 2011William Hogeland

american_colonial_flagOccupy Wall Street isn't just a threat to financial elites -- it's a challenge to lazy historians.

american_colonial_flagOccupy Wall Street isn't just a threat to financial elites -- it's a challenge to lazy historians.

Among other intriguing and possibly problematic features, Occupy Wall Street, now in its third week and spreading, seems to represent an inchoate attempt at reviving an American radicalism that has deep roots in our founding period. The Tea Party has of course made its own highly explicit and politically successful claim on that period. Because OWS, like the Tea Party, focuses on national economic and financial issues, the new movement offers a disquieting, potentially illuminating alternative to the Tea Party's right-wing interpretation of America's founding economic values.

I began writing New Deal 2.0's "Founding Finance" series last winter in hopes of shining light both on the financial elitism of the famous American founders, who we often wrongly cast as pioneers (or at least half-conscious seed-sowers) of equality, and on what I see as historical tendentiousness on the part of the Tea Party, whose claims on the founding period are meant to support a low-tax, small-government, anti-debt agenda. I've tried to show that this agenda, which may or may not have its merits as policy, in no way accords with the avowed purposes of the founders across their own political spectrum from Hamilton to Madison.

In the series, I've also tried to bring to the fore some routinely marginalized yet highly resonant 18th century economic thought, as well as the actions of those who sought to obstruct wealth concentration and make cash and credit more readily available to ordinary Americans. It's an unsettling fact that our founding democratic, economic activism was not against England but against the homegrown American investing and creditor class that was leading the resistance to England.

I've explored that founding economic radicalism in the debtor riots and "regulations" of the late colonial period; in the overthrow of Pennsylvania during the run-up to the Declaration; in the period after victory over England, when foreclosed Massachusetts debtors, the so-called Shays Rebels, marched on the armory at Springfield; and in the early Federal period, when the so-called Whiskey Rebels of trans-Appalachia, criticizing the new U.S. Constitution on bases very different from those of antifederalist elites, went so far as to fly their own flag, hoping to launch a new, more economically egalitarian country in what was then the American West.

Throughout those struggles, the activists' goal was to pressure and in some cases to use government to restrain the power of wealth and promote economic equality through legislation. They wanted to outlaw monopolies, build debt relief into currency, institute easy-term, small-scale government lending, and take banking charters away from crony insiders. Some wanted progressive taxation on income; some wanted what we call Social Security. Much later phenomena like the Square Deal, the New Deal, and the Great Society, which can seem hypermodern (and even, to the Tea Party, unconstitutionally anomalous), actually have deep American roots. However, those roots are not in the thinking of the famous founders -- New Dealers' claims on Jefferson possibly to the contrary -- but in grassroots, 18th century movements that, while little-known today, were of immense importance during our founding.

So important in their day were those now-buried radical movements, in fact, that much of the famous founders' behavior can't be understood without the context of elite dedication at times to collaborating uneasily with the economic radicals, at other times to squelching them and pushing back their political advances. Many historians of the period ignore that context. Hamilton's biographers, for example, do not deem the people's movement important. Hamilton did; he spent his career trying to kill it. We therefore learn almost nothing important about Hamilton's purposes by reading his biographies. Much founder biography, and much mainstream history, operates on just such comfortably foregone, ultimately useless conclusions.

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In place of founding radicalism, historians tend to emphasize the emergence, from the Revolutionary period through the Jackson era, of a rowdy, fluid, non-deferential, competitive America. They place developing ideas of American democracy almost solely in that 19th century context. But Thomas Paine, the best-known of the radical 18th century egalitarians, would surely have been crushed if he'd glimpsed the kind of society that passed for a democratic one in Jacksonian America.

Paine's intensity gives both liberals and radicals a problem. It was a widely held view in the Washington administration -- and it's been widely held in more or less liberal American history ever since -- that Paine's awful experiences in the French Revolution give us cause to celebrate the failure of Paine-ite radicalism in America. Fair enough: Today, as every day, it would be wise to recall not only crimes against humanity committed by bankers but also those committed on behalf of a supposedly collective, supposedly revolutionary "People," from the French Terror to the Stalinist mass murders and well beyond.

Still, the French Terror, which almost killed Paine, has served as a convenient pretext for exercising historical complacency about the suppression of his and others' fervently democratic visions for America in 1776. Without those visions, anathema as they were to the famous founding elitists -- anathema as they were, for that matter, to Jacksonian capitalism and are today to high-finance "neo-liberalism" -- we might never have declared independence at all.

So from a certain historical point of view, I think Occupy Wall Street rebukes, even more sharply than it rebukes rightist Tea Party claims on the founding, a familiar and complacent history of American democracy -- especially that history's failure to confront our long struggle over the relationship between high finance and government. Occupy Wall Street may be going about things all wrong, as some on what remains of the American left have asserted. I find those assertions hard to dispute. I've been critical of what I suspect may turn out to be a cultural premium, part and parcel of objections to elitism, on intellectual sloppiness and incoherence. That mode was never adopted by the activist 18th century working class, whose objections and demands (pace the lazy snobbism of Hamilton's biographers) took the form not only of action but also of crystal-clear, deeply informed, published resolutions. The 18th century activists remind us that resolutions don't have to be handed down from above; they can filter up and be adopted by majority or by consensus.

The very concept of "up" may be anathema to the new movement. We'll see.

But the most honest answer to any and all objections to Occupy Wall Street may be "So what?" Criticism often comes down to no-cost fantasizing about more appealing actions that nobody has actually bothered to take. When American high finance takes over America, "occupy" is what some American people do, and have always done.

William Hogeland is the author of the narrative histories Declaration and The Whiskey Rebellion and a collection of essays, Inventing American History. He has spoken on unexpected connections between history and politics at the National Archives, the Kansas City Public Library, and various corporate and organization events. He blogs at http://www.williamhogeland.com.

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What Occupy Wall Street and SlutWalk Have in Common: Raw Emotion

Oct 4, 2011Bryce Covert

Despite heavy criticism of both protests' tactics, they're serving their own important purposes.

Despite heavy criticism of both protests' tactics, they're serving their own important purposes.

If you live in New York City, this weekend was full of angry people out on the streets -- which, admittedly, is nothing that extraordinary, except for the sheer numbers. Occupy Wall Street, which has been camping out on Wall Street since September 17, moved to take the Brooklyn Bridge and saw the arrest of about 700 of its protesters. Meanwhile, uptown in Union Square, women and men marched as part of SlutWalk, an anti-rape protest. (I was out of town over the weekend and wasn't able to attend either, unfortunately.)

Both of these protests have come under heavy fire. SlutWalk has been criticized from feminists and antifeminists alike. From the feminist side, it has been rightly pointed out that there are complicated racial issues around the word "slut," particularly for black women. There are also those who were concerned about the political efficacy of women "stripping down to skivvies" -- even though the dress at the actual protests ranges from corsets to sweatpants. Occupy Wall Street has been most loudly called out for not having a clear list of demands, to which the response from some of the organizers -- and others -- has been to point out that that's not the point.

Protests happen for a variety of reasons and in a variety of ways. Betsy Reed, in her defense of the OWS protesters, remembered the last big March on Wall Street on May 12, which had big name backers such as unions and community organizers and  a concrete list of demands that would translate directly to policy. As she recalls, it ended up being pretty much a "nonstarter." I was also at a similar protest this year to protest the GOP's attempts to defund Planned Parenthood in Foley Square of New York City. That protest, too, was organized by big name groups like Planned Parenthood and NOW. Planned Parenthood hasn't had its government funding taken away (yet), so it may have been more effective.

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But Occupy Wall Street and SlutWalk are both different. They aren't organized by brand name groups; they are sparked by raw emotion, specifically anger. They are not focused on specific policies or bills; they are about calling out the culture at large. And they are about putting an issue on the map that isn't getting talked about enough. As Roosevelt Institute Fellow Dorian Warren put it earlier today in speaking about the OWS protesters, "they've already won by garnering media attention and putting the issue of economic inequality on the national agenda." The same can be said of SlutWalk. Say what you will about the use of the word slut and the way that word draws the media like a magnet, it's one of the more visible, global feminist movements in a while and is serving to spark conversations about rape and sexual consent.

Some protests are well thought out, organized with a host of big name coalitions, and carry a neat list of demands or even policy prescriptions. They serve their purposes. But some are about people being pushed over the edge from anger to action and getting on the street to display it. You might say OWS and SlutWalk are the id to the ego of the other protests. They're the raw emotion of a movement, as compared to the overly organized part of it. You need both in a thriving political movement.

I've honestly been amazed that it took this long for angry people, particularly the millions of long-term unemployed, to take to the streets in protest over the country's current policies. Income inequality is raging, growing worse in the aftermath of the crisis. And don't get me started on the absolute B.S. being thrown at women from Republicans and Democrats alike. Sometimes we don't need to overly analyze the strategy of people raising their voices. Sometimes they just need to be raised.

Bryce Covert is Assistant Editor of New Deal 2.0.

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Why No One Should Dismiss Occupy Wall Street

Oct 4, 2011Dorian Warren

Despite critiques, they've already deployed strategic tactics and put important issues on the radar.

"What do they want?" "It won't last." "They're just a bunch of hippie kids."

Despite critiques, they've already deployed strategic tactics and put important issues on the radar.

"What do they want?" "It won't last." "They're just a bunch of hippie kids."

Everybody is now weighing in with their take and critique of the Occupy Wall Street protesters, which is threatening to develop into a national and global movement. But at week three, many of those criticisms are unfair. From my experiences actually being among the protesters and talking with them, what they're building is an important movement that's already putting issues on the political map.

The Occupy Wall Street grievances that are motivating people to take action are based on the facts of growing inequality in the United States over the last 30 years. And contrary to sociologist Nina Eliasoph's contention that there's an "emptiness of the message itself so far," all of the protesters' complaints point to an overarching set of demands that fall under the themes of greater democracy in our plutocratic and oligarchic political system and greater equality and opportunity in the economy for the "99 percent" of Americans.

The criticism that they have no demands is also pretty ridiculous at this early stage. Protestor Hero Vincent points out the double standard of the charge: "Our constitution took a year to make. We've been here for three weeks and we're supposed to have an agenda? That makes no sense." Even if the protestors never came up with specific demands, they've already won by garnering media attention and putting the issue of economic inequality on the national agenda. This, in fact, is what movements do best: put issues on the political agenda that the two parties and our political institutions would much rather ignore. And this charge, as Betsy Reed points out, is beside the point. There are plenty of specific demands and policy proposals offered up by progressive and liberal groups, only to be ignored. It takes a social movement to put them on the agenda and in the national political discourse.

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This critique is also a bit hypocritical, especially when compared with the Tea Party. Remember that when the Tea Party first emerged, they had no clear demands. And what few demands they came up with weren't even based in fact: "President Obama is a socialist" or "Get your government hands off my Medicare."

The media isn't giving the protesters their fair due, either. It is striking that the coverage of Occupy Wall Street has underplayed how nonviolent and peaceful the protests are. Contrast that with the coverage of the Tea Party rallies in 2009 and 2010, where angry and older white Americans were showing up strapped with guns at town hall meetings. Can you imagine what would happen if any of the Occupy Wall Street protesters had any weapons on them? I can. (See, for an example, the vilification and outright repression by the police and FBI of the Black Panther Party in the 1960s and 1970s.) When old, angry white guys show up to public places with guns, they are patriots taking back America. When a diverse group of young, angry, yet fun protestors show up to public places unarmed and nonviolent, they are "hippies" and dismissed for two weeks before police overreaction sparks more media coverage.

Their tactics may seem unconventional to the establishment, but they threaten to have a lasting effect. Ignore them at your own risk.

Dorian Warren is a Fellow at the Roosevelt Institute.

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Occupy Wall Street: Not Anarchy, But Beautiful Sincerity

Oct 4, 2011Jeff Madrick

The media may mock the Wall Street protesters, but their commitment and their cause are no joke.

The media may mock the Wall Street protesters, but their commitment and their cause are no joke.

The contrast between the press accounts of Occupy Wall Street and the reality is stark. That is what I noticed first when I was invited there to speak on Sunday and joined Joe Stiglitz in a teach-in. At first it indeed looks like anarchy. People are sleeping there overnight. You think you may never find an organizer, but my wife and I were guided by the young man who invited me. Soon you find that amid the seeming confusion there is organization. It is, I must say, organization of a most beautiful kind.

There are “facilitators,” who somehow round up the people, pick a spot and, oops, spontaneously, the teach-in begins. These facilitators organize who will speak at the general assembly, which addresses the entire crowd. And they create the now-famous echo, which overcomes the seemingly major obstacle that the police have not allowed the protesters and their guests any microphones or other amplification.

The echo chamber is extraordinary. You must speak in half sentences, which the group then repeats. In the general assembly, each phrase is repeated twice, once by those nearest the speaker, then again for those behind the front group. This has produced surprising benefits: People are engaged, they pay attention, and they force the speakers to talk briefly and get to the points. Ah, the benefits of no technology.

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The other characteristic of the crowd is how friendly and courteous it is. The young people (though they were not all young) that Joe Stiglitz and I spoke to, perhaps a hundred or more, were very attentive, very much wanting to absorb what information and opinions we had to offer. We talked about income distribution, predatory lending, and ways to get out of the mess. They were eager and they were grateful. Finally, they asked good questions. They were also, after all, talking to a Nobel laureate standing on the wet grounds of Zuccotti Park.

Later, as dark descended, I spoke to the general assembly. It seemed like perhaps 500 people. I spoke briefly, telling them about how much money the top 1 percent make, about how steep the Great Recession is, about the lack of prosecutions, about the inadequacy of reregulation, and about how we need a serious conversation about what Wall Street is for.

As I left, I heard one sincere "thank you" after another.

Many criticize the protesters for not having formal objectives or an agenda. That is just fine for now. But many of the protesters are concerned about specific issues. They may well develop agendas over time, and people like Joe and myself may help them get better informed and focus their views.

What is most aggravating is how the press has mischaracterized this group and treated it as an event with no meaning and the participants as clowns. Even the progressive press often has a tone of condescension. Many of these people are educated, but all of them are frustrated and angry. Is there some reason they should not be? Try to get a good job if you are in your twenties today. Try to make sense of why Washington has not been harder on Wall Street. Try to understand why the unemployment rate is still 9 percent and may rise in 2012, not fall. Dressing up as zombies to mock Wall Streeters -- is that so wrong for capturing attention, letting off steam, and fighting wealth not with violence, but with humor?

Roosevelt Institute Senior Fellow Jeff Madrick is the author of Age of Greed.

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How Elizabeth Warren Put Bankruptcy on the Progressive Map

Sep 15, 2011Mark Schmitt

She's already had a knack for raising the profile of ignored but important issues, and the office of U.S. Senator can act as an even bigger megaphone.

She's already had a knack for raising the profile of ignored but important issues, and the office of U.S. Senator can act as an even bigger megaphone.

Elizabeth Warren, who yesterday announced her candidacy for the Senate in Massachusetts, is best known as the inventor and rightful director of the Consumer Financial Protection Bureau. In that role, and in appearances on The Daily Show, her disarming charisma -- made up of equal parts moral commitment, intellectual firepower, and a sense that she's listening as intently as she's talking -- became familiar to millions.

But I still think of Warren at least as much for a role she played earlier in the decade: bringing the issue of bankruptcy into the public debate, most notably in the Warren Reports, which she and some of her students and protégés at Harvard Law School set up as a subsection of Josh Marshall's Talking Points Memo blog in 2005. The Warren Reports set bankruptcy reform, which passed Congress that year, in the context of middle class families' struggles to stay afloat in the economy. It showed us how bankruptcy -- the chance to start over after a financial disaster -- is as essential a part of the social safety net as unemployment insurance or savings.

What Warren did with the CFPB -- put forward a specific policy idea and watch it pass into law -- is rare enough, given the American political system's resistance to good ideas. But what Warren did with bankruptcy is even more impressive. She took an entire issue that had no political salience whatsoever and helped make it matter. Bankruptcy was a classic example of an issue that had no constituency in the world of narrow interest groups except for the credit card companies and banks, all big political donors, that wanted to make it much harder for people to declare bankruptcy and start over with manageable debts. Unions didn't think it was important (it would affect their members, but not the unions themselves); anti-poverty groups were more focused on federal programs and most bankruptcies affected the working middle class, not the very poor; health care advocates knew that health crises were a leading cause of bankruptcies, but it was not their issue. A handful of bankruptcy lawyers pushed back, but they were plainly self-interested and no match for the credit card behemoths. Members of Congress, including many Democrats (especially those from states that you might see on the return address of a credit card solicitation), voted to tighten bankruptcy laws year after year before the bill finally passed, and rarely did they hear a protest from a constituent or an activist.

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But Warren, her TPM blog, and her other activism helped put the issue on the radar for the emerging "netroots." The most useful contribution from the online activists of the netroots has been to break that single-issue interest group model of progressive politics and look more comprehensively at everything that matters for the middle class and working poor in America as a whole. They don't say, "That's not my issue" if it's important. Key netroots blogs of that period, such as Daily Kos and Mydd.com, picked up Warren's message and began to blast Democrats who had voted for bankruptcy reform, and it was a major issue in Maryland Rep. Donna Edwards' successful 2008 primary challenge to Rep. Al Wynn. The bill had passed by then, unfortunately, but at last the issue mattered. Reversing the changes to bankruptcy law reform is now a major progressive priority.

I assume that lots of Warren's friends have asked her why she would want to bother being a senator. Until they become committee chairs after three or four terms, or unless they can wedge themselves into the position where they are the critical 60th or 50th vote on key legislation like Ben Nelson of Nebraska (the most conservative Democrat), each senator has very little clout. Former governors, accustomed to the limitless power of the executive, often chafe at the endless talk and indecision. But a very few Senators are able to have an impact far greater than their institutional clout because they ignore institutional power and treat the Senate as a platform for ideas. That's what Paul Wellstone did at the peak of his career (although it took him a while to figure it out), or the great liberal figures of the 1980s and earlier, Howard Metzenbaum of Ohio and William Proxmire of Wisconsin. On the right, Jesse Helms did much the same thing. Because any senator can introduce any amendment at any time, and with a subcommittee she can hold hearings on almost anything, she can force debates that the American political process doesn't want to have. Combine that with a good use of all the external platforms that are available to a person with the words "U.S. Senator" before his or her name, and it can become an enormous megaphone for what Warren did with bankruptcy and the CFPB: putting an issue or an idea on the agenda. And if she's elected, she might show some of her colleagues that if they want to make a difference, they have to do more than sit around and vote in committee meetings.

Mark Schmitt is a Senior Fellow and Director of the Fellows Program at the Roosevelt Institute.

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