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Mohamed A. El-Erian

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Listen to the Occupy Wall Street Movement

Posted: 10/10/11 07:52 PM ET

To those wondering whether to pay attention to the "Occupy Wall Street" (OWS) protests, the answer is yes. This is more than just a nascent movement that will grow in the weeks and months ahead. It is part of a worldwide drive for greater social justice.

Like recent examples of peaceful grass-root protests -- from those that delivered the Egyptian and Tunisian revolutions to the massive street demonstrations in Israel -- OWS has taken many by surprise. In just a few weeks, a self-organized group of diverse individuals planted the seed for what is becoming a national movement that exponentially gains energy and visibility.

Yet some observers seem to be repeating a mistake that many made in Egypt, Israel and Tunisia -- that of falling hostage to an outmoded way of thinking about seemingly-leaderless grass movements.

Such observers are quick to dismiss OWS because it is fragmented and lacks a detailed list of demands. They argue that it is long on criticisms of the past and short on solutions for the future. They note that it is not structured to navigate the current political setup. Accordingly, they conclude that the impact will be transitory and inconsequential.

While these reactions are understandable, this conclusion about OWS is likely to be proven wrong as it ignores a powerful reality: A peaceful drive for greater social justice can unify people from diverse cultural backgrounds, political affiliations, religions, and social classes.

If you doubt this, go ask the Arab governments overthrown by secular forces that they were slow in understanding and inept in reacting to. You could also ask an Israeli government recently forced to modify its policy stance in an attempt to pacify a national movement that, only a few months ago, did not even register on its radar screens.

OWS may pale in comparison to these country examples. Yet it would be both foolish and arrogant to dismiss three important similarities:

First, the desire for greater social justice is a natural consequence of a system shown to be blatantly unfair in its operation and, to make things worse, incapable of subsequently holding accountable people and institutions.

In the US, it is about a system that privatized massive gains and then socialized huge losses; allowed bailed-out banks to resume past behavior with seemingly little regulatory and legal consequences; and is paralyzed when it comes to alleviating the suffering of victims, including millions of unemployed (too many of whom are becoming long-term unemployed, slipping into poverty, and losing access to safety nets). The result is a visible and growing gap between the haves and the have-nots in today's America.

Second, OWS's followers will grow as our economy continues to experience sluggish growth, persistently high joblessness, and budgetary pressures that curtail spending on basic social services (such as education and health). Other internal and external realities will also play a role.

At home, our elected representatives seem incapable as a group to respond properly to severe economic and social challenges. Continuous (and increasingly nasty) political bickering undermines the required trio of common purpose, joint vision, and acceptance of shared short-term sacrifices for generalized long-term benefits.

Internationally, Europe's deepening debt crisis amplifies headwinds undermining an already sluggish American economy that, in the absence of better policy responses, is on the brink of another recession, Should the economy slip from treading to taking on water, the social implications would be profound given that we already have high unemployment, a large fiscal deficit and, with policy interest rates already floored at zero, little policy flexibility.

Third, advances in social media help overcome communication and coordination problems that quickly derailed similar protests in the more distant past.

Facebook and Twitter are huge enablers of a movement fueled by legitimate popular concerns about inequities. Particularly in OWS's initial phases, they compensate for its lack of leadership structure, financial resources, and access to traditional media outlets.

For all these reasons, OWS will likely gain momentum in the coming weeks, growing in size and scope. It will develop deeper roots and more branches; and it will encourage similar protests in other western countries.

Indeed, the most consequential question is not whether, but how OWS will morph. Judging from international experience, there are two main alternatives.

OWS could (and, hopefully, will) coalesce on a common agenda, helping the current political and institutional setup to course correct. Alternatively, it could fragment, thus failing to make the tricky transition from a protest movement to an effective agent for much needed change.

This is where the media and politicians come in. Rather than dismiss OWS as "noise," they should listen to it as a "signal" of the challenges America faces as a compassionate society, and as a democracy built on the importance of fairness and opportunity.

It is important to understand OWS better and engage it appropriately. Through constructive collaboration, the movement's energy and intensity can - and hopefully will -- be combined with other influences to formulate forward-looking solutions for an America that must desperately regain its economic vigor, provide more jobs, and deliver better on its traditional commitment to social fairness and equal opportunities.

 
 
 
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09:25 PM on 10/17/2011
Occupy wall street can turn into positive force if they soon get a leader with vision, and a plan, which is not happening now. However these gatherings will most likely gain momentum in future but could turn out to be very dangerous (some of the them may resort to roiting) if they do not have sincere leaders soon.
Wupta
Parent
02:50 PM on 10/17/2011
Finally someone who actually gets it. This is a global revolution and it will have it's growing pains but it will get through as we all know there is no other alternative.
01:03 PM on 10/17/2011
Why are they protesting Wall Street? Wall Street didn't redistribute the money and privatize gains while socialising losses. The government did. TARP, stimulii, bailouts, etc. All those served to take money away from us and give it to bug business failures. Go protest the people who created and perpetuated this system, they are in D.C.
03:15 PM on 10/12/2011
"We have met the enemy, and the enemy is us." (Pogo)
Some people are more equal than others...I know I can't play football, basketball, etc. like athletes, but
I am happy to watch the best do their thing. Doctors and lawyers practice their discipline and are rightly
rewarded, as well, for something that they spent many hours and dollars to earn their diplomas. The un-
fortunate disparity we see or actually feel, is a wide margin of reward for finding CEO's, COO's, etc. to actually contract for such a huge possibility of failure in their job, and still be rewarded with the cash that many times gets raided from 401k pensions. My wife and I have both seen pensions simply paid back exactly what we put in, when a CEO bailed with his parachute promised in a contract. He/she then went on to take another job with yet another parachute promised with others' pensions in hock.
The common excuse is that companies have to lure talent in with huge promises to run the monster.
This user has chosen to opt out of the Badges program
02:08 PM on 10/12/2011
bush and Paulson blackmailed congress into SOCIALIZING the banks losses.Those banks were BY LAW supposed to go into receivership...BY LAW!!
bush and Paulson then Geithner ignored the LAW!!
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HUFFPOST SUPER USER
capitaldysfunction
White male never voted Republican
04:09 PM on 10/12/2011
The middle class was bled dry by corporate interests, then what is left of ordinary people are being auctioned off by corporate-pleasing free trade agreements. The American people don't have a lot of time left to wake up.
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frank1946
Tell the Truth
06:34 AM on 10/12/2011
Why Not Borrow 50 % of every Budget instead of just 42 % ?

Tax the Rich ? You Bet !

Where are they ?
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02:12 PM on 10/12/2011
Pay for your wars.
10:29 PM on 10/11/2011
This rally or potintial movement is heart rending to my 68 yr old self. They are hitting at the truth about the lack of values demonstrated by the ones in power of Government and Finance. I for one have been disgusted with the patronizing attitude of the politicians toward "the American people"..Run them all out of office.
And while we are running lets run the goldman sachs people out of town on a rail...tared an feathered :)
08:21 PM on 10/11/2011
This is why they occupy Wall Street!

The Declaration of Independence
IN CONGRESS, July 4, 1776.

" We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, these are Life, Liberty that among and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.--Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government.
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free reign
My country tis of thee!
08:42 PM on 10/11/2011
It IS our RIGHT and DUTY to throw off despots.
We are just identifying the despots, coddled by Washington, feeding on us through Wall Street.
Careful and deceitful misinformation and misdirected anger have enabled a prolonged feeding frenzy on our property and rights.
As a proud follower of Anonomous, I can say we are just getting to the throwing off.
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free reign
My country tis of thee!
08:46 PM on 10/11/2011
Thank you so much for this post! It is the best inspiration for Americans and the OWS movement,
We are reeling from the prolonged unprosecuted, abuses, and usurpations.
08:01 PM on 10/11/2011
One of OWS’ primary goals should be to remove or minimize the influence of money over politics.

While clearly there are many issues motivating OWS, the most troubling is the apparent role that government has played in helping the rich while not helping others. The actual or apparent influence of the rich over government must stop if our system is to maintain the sense of fundamental fairness on which it depends to exist.

OWS should demand public financing of Federal and state elections and major limitations on how individuals and organizations can spend their money in support of candidates, parties or causes. Without such reforms, our system will lack this necessary fundamental sense of fairness.

If people do not believe the system is fair, they have no reason to support it. Indeed, when you have a huge portion of the population suffering with no end in sight and a belief that the government will not only not help them, but instead it is responsible for creating and perpetuating the problems, you have a volatile cauldron of discontent waiting to boil over. If it does, the rich will have a lot more to lose than the rest of us.
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freedomny
99% = TBTF
09:34 PM on 10/12/2011
One of OWS’ primary goals should be to remove or minimize the influence of money over politics.

First fan for you.....yes, that should be the primary goal.
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Linda Tift
07:48 PM on 10/11/2011
OWS is a peaceful movement with most of america in agreement. keep up the peaceful movement.
04:33 PM on 10/12/2011
Please encourage the anarchists to be peaceful, when they say they want everything to be run into the ground, started over from scratch. That has no order, and rioting will be the norm.
The only widespread agreement is about the condition of the Nation being in crisis, and Senators saying "good for you OWS" in the media, with no answers. That's like telling the Goths to raid Rome
and leave something for us to eat after plundering and trashing retail stores and groceries.
shessomoney
Liberal Elite-Made In U.S.A.
07:41 PM on 10/11/2011
I read this in the morning and thought about it all day. I also listened to right wing radio in the car which clarified my position. About a month ago, our President said that "this behavior that caused the collapse was technically legal". When we stopped and asked ourselves, how could this be, we came to this conclusion. The monied interests have bought our government and have tilted the field in their favor. The wealthy pays a lower tax rate on unearned income than the average worker pays for their labor, earned income. On top of this advantage, the banks made loans they knew could never be paid back to people who thought banks would never make a bad loan on purpose. Then the banks proceeded to not only sell these bad loans as derivatives to our pension funds but they embarrassed the American people by defrauding the entire world. Wall Street has stolen out future and we want it back. If it was technically legal to defraud the world, we want to make it illegal. Our President said to stand up and be heard, and we are. Occupy!
01:04 PM on 10/17/2011
Why don't you protest Obama, who gave plenty to Wall Street, and who is the biggest receiver of Goldman Sachs donations?
06:53 PM on 10/11/2011
Banks have paid back the loans with interest; GM and Chrysler have taken new loans from the government to pay the old ones; I do not see the “people” questioning the government of how they spent the windfall (the interest). Wait, I know – they poured the money into two government entities - FanieMae and FredieMac – nationalized and given over 125 Billions (more to follow, and no chance of recuperating it.)
Did the financial sector created the crisis? No doubt about it! Did they pay for it? Some!
Old houses either closed their doors or have been acquired; still others are in trouble.
We should be less dramatic ( 91% of the work force is employed; 63% or so owned their homes.) We do not want to destroy a system that served us well for centuries. And if you see computers, smart phones, mainly the new iPad and iPhone, in the hands of those who Occupy Wall street– you should remind them that a bank lend the money, an investment banker made the deal so that a company could create, produce and bring the stuff to the market – and that companies like Apple(75 Billions cash) have been successful paying their employees very well because of a financial system that works.
Slow down on the banks – ask for punishment of illegal behavior and keep an eye on the government – it is spending us into Third World.
05:47 PM on 10/11/2011
The OWS movement is a welcome and long overdue addition to the American political scene. But the long-term direction of the movement is somewhat uncertain. Nevertheless, I hope the ultimate direction will acknowledge the impact of money on the American political process. The use of money to win votes and influence Congress has all but completely replaced the Supreme Court's dictum of "one man, one vote". The denizens of Wall Street are major players; but the use of money to buy elections and dictate legislation is not restricted to Wall Street. This Country needs a serious dose of Campaign Finance Reform. I hope the ultimate message (and mantra) will be something akin to: VOTES TALK; DOLLARS WALK!
04:46 PM on 10/12/2011
I have heard some of the same rhetoric from Tea Party activists, except for OWS adherents calling for literally cutting off the heads of CEO's and financial managers, not the Senators or Cabinet members who had previously worked or backed these planned failures. No one is hearing that part of the story, or the current Senators' flip-flopping the issue to appear like they had nothing to do with it, but they actually did. Madames Pelosi and Clinton decried cronyism, but have dropped subsidies in kickbacks to supporters. Especially check up on Ms. Pelosi's relatives and offshore industry on American territories. If I showed those dividends on the wrong side of this one-sided crusade, it would be plastered on mainstream TV and major news venues, and they would be at my front yard with megaphones blasting.
05:04 PM on 10/11/2011
"In general, the art of government consists of taking as much money as possible from one party of the citizens to give to the other."

Voltaire
04:47 PM on 10/12/2011
Don't steal, the government doesn't like competition. (bumper sticker)
03:53 PM on 10/11/2011
OWS is ok in theory but without real violence nothing will come of it.