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Ralph Gomory

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Occupy Wall Street Deserves Our Respect

Posted: 10/31/11 05:21 PM ET

I must admit that there is something about Occupy Wall Street that makes me think of the American Revolution. Not the fully developed American Revolution complete with an army, George Washington, and Valley Forge; I'm thinking of the earlier days, when there were only sporadic protests and occasional clashes.

All those historic events took place in a world very different from the modern world. The economy of the colonies was based on farms, and most people were farmers. And when those people rebelled, it was clear that they were rebelling against what they saw as oppressive government.

For me the most remarkable thing about Occupy Wall Street is that it is not protesting against the government. Its people are not in Washington marching down the Mall to urge change on a reluctant Congress. No, they believe that Wall Street and the major corporations have Congress in their power; so they are going to where the power is and where they believe the problem originates.

And they could be right in their choice of target.

Some American History -- Political Parties

The world of 1776 was a largely agricultural world, mainly small farms. There were few large organizations. There were almost no corporations.

Far from worrying about corporations and their possible political power, our founding fathers were even dubious about political parties themselves.

George Washington was against having political parties; he thought that people could simply vote and elect those they thought best suited to run the government. This was easier to imagine in the agriculture-dominated world in which he lived than in today's complex society. However, even in that simpler world, political parties sprang up almost immediately and they have been with us ever since.

We still think of government today in pretty much the same terms that were used then. When we think of governing, we think of the government, the voters, and the political parties.

But that way of thinking about today's world is wrong; it leaves something essential out.

Government in Today's World -- the Power of Money

We are no longer a nation of farmers; we are today a nation of corporations. In today's world, unlike the world of 1776, there are many centers of economic power. And those centers, such as the major banks and great corporations, use the power of money on a large-scale to affect the actions of government.

Today's political candidates with enough money can reach directly to anyone in the country, but without that money they believe they cannot win elections.

And between elections, because of the complexity of modern finance and industry, bills relating to their interests can be loaded with special sections intelligible only to those who benefit from them. These centers of economic and political power have enormous influence on the actions of government. And that influence is often used for their own benefit.

We need to get used to the idea that in addition to voters and political parties affecting government, there is in today's world the often decisive influence of money. And that power is being used.

Global corporations influence our governmental policies on trade and the offshoring of jobs. Financial industry money influences how much or how little change will be imposed on Wall Street. The tax code has been gradually restructured and loopholed so that the wealthy often pay lower rates than those below them on the economic ladder.

The Goals of Corporations

Furthermore, starting in the 1980s, corporations narrowed their own purposes. Instead of sharing productivity gains with their work force and considering also their effect on the community and the country, they shifted to a single focus, maximizing profit. Their executives became large-scale shareholders through stock options so that the corporate leadership and the shareholders united on a single goal, maximizing profits to raise the stock price. However, since as Professor Edward Wolff of New York University has shown, two-thirds of all corporate shares are held by the wealthiest five percent of Americans. The focus on maximizing profit means that the effect of corporate activity is to make the wealthy wealthier.

Effects

These factors explain why, despite the economic hardship that Wall Street's self-serving policies inflicted on the nation, Wall Street and the major corporations are having record years while the rest of the country struggles. They have demonstrated clearly that their fortunes are not linked to those of most Americans. And this gap between the richest and the rest is not the product of the recent crash, but has been growing over the last 30 years.

So Occupy Wall Street may be right not to waste its time on a government that it sees as a tool of the few, and instead to go directly to what it sees as the true source of political power.

Goals and Plans

One reproach leveled against Occupy Wall Street is that it has no plan. And that is probably correct. But it does have a goal. Goals and plans are different: a goal is where you want to get to; plans explain how you are going to get there. Goals are the effect you want; plans are the means to produce that effect.

Occupy Wall Street has a goal that is probably best expressed by the phrase "Democracy not Plutocracy." While their people don't have a plan, they do have a goal. They want to change the system so that its wealth and power are not so concentrated in the hands of a few.

In having a goal and no plan they are the exact opposite of Washington where plans abound. But it is often much less clear what goal those plans serve or what effect they will actually have.

The Significance of Occupy Wall Street

The Occupy Wall Street focus on Wall Street, not on government, points out to us that in today's world, in addition to voters and the very visible political parties, there is also the less visible but often decisive influence of money. Very often this money is from the wealthy and the great corporations.

Occupy Wall Street has brought to our attention the goal of lessening the concentration of economic and political power. In short form, they are for Democracy not Plutocracy. Doing something about the concentration of power is not a subject discussed in Washington. But sometimes a country needs worthwhile goals, even worthwhile goals without a plan. It is up to us to find ways to get there.

If we choose to do nothing, the factors that are causing the present extreme concentration of power will continue to operate with the same effect. We are still in the early days of dissatisfaction with the political process, but we may not have forever to solve this problem.

Occupy Wall Street deserves our respect for stubbornly refusing to let us avert our eyes from what is happening to our country.

 
I must admit that there is something about Occupy Wall Street that makes me think of the American Revolution. Not the fully developed American Revolution complete with an army, George Washington, and ...
I must admit that there is something about Occupy Wall Street that makes me think of the American Revolution. Not the fully developed American Revolution complete with an army, George Washington, and ...
 
 
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HUFFPOST SUPER USER
jamesvw
02:18 PM on 11/01/2011
Wall street may be based in the US
but its effects are global

A financial lie told a hundred times becomes a financial truth
Those on Wall Street have convinced themselves
have sold out their own humanity, believing their own distortion that greed is good
and see no evil, hear no evil convinces them that there is no evil

The network of lies and the duration they have been told
leaves them unable to grasp their own distortions
buying into them, hook line and sinker

Occupy Wall Street should go the next step
and Occupy CEO's neighbourhoods
to let them know
that they cannot live in peace
while stealing without a conscience
from 99% of the world

Occupy Bank Manager Neighbourhoods next!
05:33 AM on 11/01/2011
Indeed!! Anti-Semites and others willing to stand around for free food and a PayPal pittance deserve little more than the push-polls and manufactured media kids glove treatment that was given them. The scary, violent side of this effort has ruined it for the small group of sincere people present.By 2012 this will be little more than a series of slam ads for the 427's and a back peddling albatross for democrats everywhere!!!
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ReadThomasSowell
resist we much and we much about that be commited!
02:31 AM on 11/01/2011
From the article: "For me the most remarkable thing about Occupy Wall Street is that it is not protesting against the government. "

That's why these protesters are a joke. Crony capitalism CANNOT happen w/o government creating the rules. They are protesting the symptoms, not the disease.
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Michael D Ballantine
Texas Justice Party - Chairperson
01:36 AM on 11/01/2011
A goal is pointless without a plan to accomplish it. OWS needs a plan and that includes finding people willing to serve as standard bearers in a new government. Taking the money out of politics is only the first step, we need to fundamentally restructure how we distribute wealth and that takes political power.
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laoshi
my micro-bio is now not empty.
05:54 AM on 11/01/2011
I suggest step one first. Your plan is?
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jamesvw
02:22 PM on 11/01/2011
I suggest that the 99% should inspire those in the 10% who sympathize and the even fewer of those in the 1% itself who sympathize to join forces and actually put their resources together to put a coherent plan together. Those in the 10% and the 1% who sympathize know exactly how the 1% have gamed the system....it's like employer hackers to do your security...who knows better than they?
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R Davis
“The truth is rarely pure and never simple.”
01:07 AM on 11/01/2011
http://www.youtube.com/watch?v=S880UldxB1o it is only the beginning.
Wib
Liberal former Marine who loves fly fishing and is
07:44 PM on 10/31/2011
If Gomory is correct, then there is little left to do other than get our guns and man the barricades. However, while he does have a good point in that OWS is focusing on the true source of our pain, I hope that guns and barricades are not needed and that some of the people in Washington will begin to do their job and that we voters can elect others this next election to help them, enough to bring about the change so badly needed. I note that Ratigan's push for an amendment to "Get Money Out of Politics" is steadily gaining more signatures, however, it is going to take 10s of millions to get the attention of Washington -- unless maybe OWS takes up that cause and pushes it as part of their effort to correct the economic chasm now existing in this nation. Also, I would like to ask Gomory a question: If small farmers carried that first Revolution, where are the small business people now? Do they not understand their stake in this battle to rein in the power of the giant corporations that have put so many small businesses out of business?
07:07 PM on 10/31/2011
Hey, we all want a plan of action, right? I posted this on the NYC General Assembly forum and Occupy Together forum and I seriously hope they listen. To start attacking the elite, we need to start attacking the industries where they exploit us the most and I have a plan for how to do this.

Textiles: Most of the clothing and such that is produced is done on the backs of outsourced & underpaid labor and they excessively mark up the price when they sell their finished goods to us. Instead of just having people arrested, brutalized by police, and camping out in 30 degree weather, we can perhaps get better results in VOLUNTEERING our services to drive these companies out of communities and put them out of business. We can work with small businesses to create a place where people can buy the fabric and raw materials, and then we will make the clothing for free.
09:17 PM on 10/31/2011
Computers/Electronics: All Dell and HP do is buy all the parts to make a computer and then produce an absolute piece of junk that breaks or malfunctions very easy. And Sony produces junk too and marks up the price because of the name brand. I've had a family member work at one of those companies and they are very unethical toward their own employees and lay them off without a second thought. I figure we may be able to provide a better service by having a "free computer/electronics assembly" booth and direct people where to buy the parts online.

Auto Services: There are a lot of small businesses and ethical entities who provide auto services... but there are some that aren't. What comes to mind is Jiffy Lube, charging $40 an oil change or something ridiculous like that and then underpaying their employees. In the Occupy communities surrounded by Jiffy Lubes and other corporate entities, we should get them to leave by providing free oil changes and free repairs (as long as they buy the parts).
03:34 AM on 11/01/2011
HAHAHAHAHAHAHA, yeah make clothing for free. Talk about income disparity.....I hope you're five years old.
07:07 PM on 10/31/2011
Computers/Electronics: All Dell and HP do is buy all the parts to make a computer and then produce an absolute piece of junk that breaks or malfunctions very easy. And Sony produces junk too and marks up the price because of the name brand. I've had a family member work at one of those companies and they are very unethical toward their own employees and lay them off without a second thought. I figure we may be able to provide a better service by having a "free computer/electronics assembly" booth and direct people where to buy the parts online.

Auto Services: There are a lot of small businesses and ethical entities who provide auto services... but there are some that aren't. What comes to mind is Jiffy Lube, charging $40 an oil change or something ridiculous like that and then underpaying their employees. In the Occupy communities surrounded by Jiffy Lubes and other corporate entities, we should get them to leave by providing free oil changes and free repairs (as long as they buy the parts).

This by itself might not get the problem of wages and outsourcing fixed, but it will really start a fight and we can hit them where it hurts. This will build off our momentum.
06:28 PM on 10/31/2011
While watching a livestream from Occupy Atlanta a young lady put it quite eloquently, stating that if your car was broken the you couldn't simply get it going again by switching drivers. You actually have to fix the car and so it is with our government. Electing new politicians and expecting them to get things going again is a worn out approach. The system is broken to the point that people must resort to such an occupation in order to be heard. The Occupation is the real "Citizens United".
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laoshi
my micro-bio is now not empty.
05:59 AM on 11/01/2011
A constitutional convention is the approach that is civil.

Callaconvention.org
05:54 PM on 10/31/2011
The Occupy movement is a quintessentially American uprising quite similar to many over more than a century in which ordinary citizens challenged power and greed when it offended our belief in fairness and equity. It is similar to the Populist movement, including the rise of the Populist Party of 1891 to 1908. Millions of working people fueled a strong anti-trust agenda. Like today, its target was the elite, most particularly banks and railroads. Whatever its flaws – all interest groups have them – Populism’s short-lived movement helped moderate out-of-control capitalism with doses of regulation. Similarly, the Progressive Party of 1912 to1916 had its “Contract with the People” platform, calling for a “national health service;” social insurance for the elderly, the unemployed, and the disabled; an eight-hour work day; and a minimum wage for women; workers’ compensation insurance. Again, Americans demanded fairness against greed in our capitalist system. Need one even mention the reforms of the New Deal? Again, the target was the elite. More revealing is the social justice strain of America Protestantism. Think of it in the context of the Rev. Martin Luther King, Jr. King emphasized the idea that his religious belief was not just concerned with saving the individual soul but confronting the social evils that corrupt the soul. Occupy is, at its core, an American movement that is calling for a dose of social responsibility to address unchecked individualism and greed that has brought us unemployment, underemployment, poverty, homelessness and despair.
03:39 AM on 11/01/2011
What is significantly different, however, is that globalization has redefined the domain. Can the US government really control, or even influence, operations in other countries?
11:42 AM on 11/01/2011
Good point -- and one we do not think enough about in the U.S.
05:27 PM on 10/31/2011
There's a much more recent point in history where populist orators specifically blamed a minority class of rich bankers and financiers, blaming them for the collapse and misfortunes of the poor, that they were fleecing the entirety of the nation to fatten their own wallets. Their machinations were blamed for massive monetary inflation, and even the collapse of the worldwide economy. There was an orator who spoke out on the street to these grassroots protesters, who laid blame at the financier's feet. It didn't matter that the large majority of this class weren't particularly rich, who just get up to go to work day after day. They were guilty by association. What mattered is that when he spoke, people believed. And they gathered in mobs to occupy the homes of these financiers and their relations. That time and place was 1930s. Before long, those bankers and financiers were being rounded up, incarcerated, and executed without due process. 1% is still 3 million people. It's little wonder that Jews view #Occupy with more than a little fear. Blaming and exiling the lenders of society and all their race is an ancient story.
06:06 PM on 10/31/2011
Bogus. Sounds like American Enterprise Institute propaganda. Next you'll be sure to tells us that the only way for OWS to elicit any successful outcome is for a GOP victory in 2012.
06:35 PM on 10/31/2011
Kensei98, saying that these people need to be kicked out of power and saying that they should be executed are two different things. Most of the country wants these actions to stop and the worst offenders parties to be jailed. We AREN'T looking for a mass holocaust of our elite.
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lgillooly
05:04 PM on 10/31/2011
OWS is the best thing to happen in a long,long time. The Democrats have NO excuse to not fight for the middle class any longer. The polls are with progressive action, taxing the most wealthy, spending on infrastructure to produce jobs and modernize our country, reinstate Glass Steagal and most of all HOLD PEOPLE ON WALL ST ACCOUNTABLE. NOt just with fines, but with jail sentences.
Also, public financing of elections is a must.
02:28 PM on 11/01/2011
That is so true. Republicans fight for the wealthy and Democrats fight for the poor. No one was representing the Middle Class who were bearing the majority of the tax burden. The wealthy did pay the politicians but did so directly by Lobbying to keep their tax breaks and special interests. It's almost as if the rich think, well if they are stupid enough to let us. And the poor say, well if they are stupid enough to keep giving us welfare year after year for doing nothing. And the Middle Class just kept plugging along with their values for fairness and justice thinking everyone was like them with those same values. Occupy Wall Street is giving a voice to the fact that our system needs to reform and we're not taking it anymore. Yes, hold people accountable and shed light on it!
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jamesvw
02:33 PM on 11/01/2011
Unfortunately, they do have an excuse....Obama is a puppet of Wall Street.