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Robert Reich

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The Occupiers' Responsive Chord

Posted: 10/31/11 05:25 PM ET

A combination of police crackdowns and bad weather are testing the young Occupy movement. But rumors of its demise are premature, to say the least. Although numbers are hard to come by, anecdotal evidence suggests the movement is growing.

As importantly, the movement has already changed the public debate in America.

Consider, for example, last week's Congressional Budget Office report on widening disparities of income in America. It was hardly news -- it's already well known that the top 1 percent now gets 20 percent of the nation's income, up from 9 percent in the late 1970s.

But it's the first time such news made the front page of the nation's major newspapers.

Why? Because for the first time in more than half a century, a broad cross-section of the American public is talking about the concentration of income, wealth, and political power at the top.

Score a big one for the Occupiers.

Even more startling is the change in public opinion. Not since the 1930s has a majority of Americans called for redistribution of income or wealth. But according to a recent New York Times/CBS News poll, an astounding 66 percent of Americans said the nation's wealth should be more evenly distributed.

A similar majority believes the rich should pay more in taxes. According to a Wall Street Journal/NBC News poll, even a majority of people who describe themselves as Republicans believe taxes should be increased on the rich.

I remember the days when even raising the subject of inequality made you a "class warrior." Now, it seems, most Americans have become class warriors.

And they blame Republicans for stacking the deck in favor of the rich. On that New York Times/CBS News poll, 69 percent of respondents said Republican policies favor the rich (28 percent said the same of Obama's policies).

The old view was anyone could make it in America with enough guts and gumption. We believed in the self-made man (or, more recently, woman) who rose from rags to riches -- inventors and entrepreneurs born into poverty, like Benjamin Franklin; generations of young men from humble beginnings who grew up to became president, like Abe Lincoln. We loved the novellas of Horatio Alger, and their more modern equivalents -- stories that proved the American dream was open to anyone who worked hard.

In that old view, being rich was proof of hard work, and lack of money proof of indolence or worse. As Herman Cain still says "if you don't have a job and you're not rich, blame yourself."

But Cain's line isn't hitting a responsive chord. In fact, he's backtracked from it (along with much of the rest of what he's said).

A profound change has come over America. Guts, gumption, and hard work don't seem to pay off as they once did -- or at least as they did in our national morality play. Instead, the game seems rigged in favor of people who are already rich and powerful -- as well as their children.

Instead of lionizing the rich, we're beginning to suspect they gained their wealth by ripping us off.

Mitt Romney is defensive about his vast wealth (reputed to total a quarter of a billion). He's reverted to scolding his audiences on the campaign trail for "attacking people based on their success."

The old view was also that great wealth trickled downward -- that the rich made investments in jobs and growth that benefitted all of us. So even if we doubted we'd be wealthy, we still gained from the fortunes made by a few.

But that view, too, has lost its sheen. Nothing has trickled down. The rich have become far richer over the last three decades but the rest of us haven't. In fact, median incomes are dropping.

Wall Street moguls are doing better than ever -- after having been bailed out by the rest of us. But the rest of us are doing worse. CEOs are hauling in more than 300 times the pay of average workers (up from 40 times the pay only three decades ago), as average workers lose jobs, wages, and benefits.

Instead of investing in jobs and growth, the super rich are putting their money into gold or Treasury bills, or investing it in Brazil or South Asia or anywhere else it can reap the highest return.

Meanwhile, it's dawning on Americans that in the real economy (as opposed to the financial one) our spending is vital. And without enough jobs or wages, that spending is drying up.

The economy is in trouble because so much income and wealth have been going to the top that the rest us no longer have the purchasing power to buy the goods and services we would produce at or near full employment.

The jobs depression shows no sign of ending. Personal disposable income, adjusted for inflation, was down 1.7 percent in the third quarter of this year -- the biggest drop since the third quarter of 2009. Housing prices have stalled, home sales are down.

The only reason consumer spending rose in September is because we drew from our meager savings -- mostly in order to pay medical bills, health insurance, and utilities. That's the third month of savings declines, according to the Commerce Department's report last Friday.

This can't and won't continue. Savings are now down to 3.6 percent of personal disposable income, their lowest level since the recession began.

Americans know a rigged game when they see one. They understand how much money is flowing into politics from the super rich, big corporations, and Wall Street --- in order to keep their taxes low and entrench their privileged position.

The Occupy movement is gaining ground because it's hitting a responsive chord. What happens from here on depends on whether other Americans begin to march to the music -- and organize.

Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.

 
 
 

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A combination of police crackdowns and bad weather are testing the young Occupy movement. But rumors of its demise are premature, to say the least. Although numbers are hard to come by, anecdotal evid...
A combination of police crackdowns and bad weather are testing the young Occupy movement. But rumors of its demise are premature, to say the least. Although numbers are hard to come by, anecdotal evid...
 
 
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05:54 PM on 11/02/2011
politicians call it waste/we know the disappearing money act is pure theft/this may be the last chance we have to oust these politicos whose only acts have been greed and self interest
11:58 AM on 11/02/2011
The current political atmosphere is often described as "divisive" because it is divisive, highly divisive! Robert Reich puts it this way: "I remember the days when even raising the subject of inequality made you a "class warrior." Now, it seems, most Americans have become class warriors."

Maybe so; but the guardians of coporate power have also become warriors. They are now fully engaged in a winner-take-all struggle for control of Government; and they know a final battle will soon come to a decisive conclusion.

This conflict began at some earlier date when conservative wisdom said, "Government is the problem". Over time, this said-to-be fundamental truth was eventually expanded to, "What's good for Corporate American is good for American". And now, neo-conservative wisdom says, "What's good for America is Corporate control of America".

The "warriors in battle" analogy reminds one of the ancient battle at Thermopylae where 300 Spartans (and their allies) took a stand against a hoard of invading Persians in 480 BCE. Corporate America has allies too; but we all know what happen at Thermopylae.
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TRex86
Enjoying life in West Ohio
08:56 AM on 11/02/2011
The American people are finally doing their math homework. Thirty years of trickle-up Reaganomics have created an economy worthy of the Gilded Age. A fraction of a percent of the population corral half of the nation's wealth and a huge proportion of its income. What is worse is that 40% of our economy is the financial industry, swapping worthless pieces of paper (electrons actually). We are a consumption driven economy with no visible means of support--and no consumers.

Moreover, our ruling plutocracy are multi-national. They have no loyalty to our country. In contrast to the hold-outs in Germany, who have protected their highly expensive work force we are heading towards feudalism. That Republicans whine about class warfare is their fearful acknowledgement that in a democracy being outnumbered 99:1 usually means that you lose--even if you control the media. Hence, they are desperately trying to suppress the vote.

Fortunately, the truth is out. Thank you Occupiers! You are aligned with the Greatest Generation, kicking the rear ends of the lackadaisical Boomers. You're doing what is expected of your generation, starting to rebuild this country from the bottom up.
12:55 PM on 11/02/2011
da ya think the "occupiers are going to tell folks that the instigators of the housing crisis that got 2 Trillion in taxpayer money and blew it and are now NOT regulated by Frank - Dodd and owe us 175 BILLION will be paying big bonuses? Lets not bet on it....

A Republican senator is calling on President Obama to cancel the $12.8 million in bonuses that were approved for 10 executives at the government-seized mortgage giants Fannie Mae and Freddie Mac that received a $170 billion taxpayer-funded bailout.

Read more: http://www.foxnews.com/politics/2011/11/01/republican-senator-calls-on-obama-to-cancel-fannie-mae-freddie-mac-bonuses/#ixzz1cZFi1Q2z
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TRex86
Enjoying life in West Ohio
02:46 PM on 11/02/2011
You oversimplify the housing crash with the Republican "blame fannie and freddie meme." There is plenty of blame to go around--in both parties. Clinton, Greenspan, Paulson, Bernanke, Geithner, Bernie, Chris, and all the deregulation fanatics. The crash was the result of very cheap money and no adult oversight.
06:17 AM on 11/02/2011
It's surprising to me that I can go out on the street and the majority of the 99% don't even know they are the 99%. They think it's just gonna get better one day, when the economy fixes itself. IDK about you, but it sounds to me like the real issue is a lack of appropriate education. The keyword there is APPROPRIATE. The public school system is highly ineffective except for mass-producing an army of workers, programmed to get up in the morning, go to school/work/whatever pays the bills, then go home have dinner go to sleep and do it all again with no real hope of ever safely retiring with a few million dollars of their own. Public school as it stands today lacks the inclusion on teaching the right philosophies in life, like how to THINK like a winner or to think success. Instead it teaches mundane repetition through a long process that seems almost like it was designed to kill the human spirit. I noticed, after thinking about it for a while, that I was an ambitious little boy with no fear and a decent self-respect right up until I started public school. Then every year I got a little more disconnected from myself and my dreams, from the world I thought existed before I was introduced to the cruelty of a broken society. This entire world could be "fixed" with APPROPRIATE education... but who am I, right? ;)
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CanadaStan
Cogito ergo spud, I think, therefore I yam
10:18 PM on 11/01/2011
How many rapes so far?
Or are we not supposed to know about that?
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HUFFPOST SUPER USER
MeRainyday
Green Progressive for Equality
09:39 PM on 11/01/2011
REMEMBER BANK TRANSFER DAY folks: Move your money to a Credit Union let it help people instead of be gambled away! You can save fees and make a difference. http://tinyurl.com/3g25c7z
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HUFFPOST SUPER USER
Allen Jenkins
Virtual Ferroequinologist
08:32 PM on 11/01/2011
The so-called "redistribution of wealth" does not ring well around here, in fact it is un-American.

Are you actually suggesting confiscation of wealth by taxes and giving benefits to folks that have not earned them? That is also un-American.

Imagine telling that to the illegals as they enter this country...."Come and prosper, so we can take your earnings and give it to people that won't work."

Some of the "protesters," the ones that don't know what they are protesting, are college students. They should be riding their liberal leftist influences out of town on a rail, because they "can't get a job."

There is plenty of work for those who will work...spend time flipping burgers & making pies and you will suddenly get a lot of motivation to rise up above your temp. job and get a life!
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robertaruth
The answer is in the music
10:38 PM on 11/01/2011
Do you really believe that the accumulation of wealth at the top is because of lazy welfare cheats who don't want to work? Either you are ignorant and misinformed, or you are one of those on the right wing payroll spewing the taking points of the day.

Greed and corruption is the reason for the protests. Greed and corruption are the cause of everything that is wrong with the economy. Where are the jobs that the "job creators" who rebel and lobby against an increase in their taxes were supposed to provide if only their taxes don't go up?

As to your last paragraph -- do you know something the Dept of Labor doesn't? Are their statistics false?

Aww --
12:58 PM on 11/02/2011
do you really believe that anyone who works hard is stuck at the bottom and cannot accumulate wealth? If so you are totally clueless...

Greed and corruption could not have happened if the people we trusted to Regulate the housing market did so. Instead dir bags like Barney Frank perverted the market and allowed it to happen.
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Allen Jenkins
Virtual Ferroequinologist
01:25 PM on 11/02/2011
Take your head out of the sand and look at the environment this administration has created for business....

Obamacare has turned out to be the largest confiscation of wealth and invasion of privacy ever imposed...and it is MANDATORY.

The energy producers are still faced with a tax on production and consumption.

EPA is so strong, it takes about ten years to open for business.

There are other nations, that are not imposing offensive environments for business.

President Bill Clinton says that imposing taxes on an economy without a strong rate of growth is a bad idea....

All nations forget about the greed and corruption whilst the economy is booming...it's when a recession happens that the tendency for Socialist control is suggested.

Remember too, that the same greedy & corrupt folks at the helm are literally itching to make $B's...get the threat of confiscation of their wealth removed, and everything changes...according to history...and they absolutely cannot do so without workers to do the labor.

Forcing a labor contract upon a good employer is not conducive to a healthy economy, it only forces an employer that actually takes care of their workers (we still have those), to employ attrition as a tool for business. Good employers don't have to worry about unions.
06:41 AM on 11/02/2011
With 25 million Americans looking for full time work.

47 million living in poverty.

50 million with no health insurance.

Blame the victim???????????????
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Allen Jenkins
Virtual Ferroequinologist
03:08 PM on 11/02/2011
When full-employment don't happen, take two part-time jobs. But if you turn down even one part-time job, don't hassle me about your unemployment...

The poverty level is what...$40K?

Get Obamacare off the backs of business and you'll see an increase in business resulting in more health care coverage.

Victim of what? There are many sources of help to establish a business such as Small Business, etc.

Satchel Paige who played baseball back in the day, said "Ain't no man can avoid being born common, but they ain't no man got to stay that way."

Greed and corruption will unfortunately continue. When the economy is strong, nobody cares about how greedy or corrupt it gets.

You are correct in identifying government as the seat of the housing bust, yes, Mr. Frank did this amongst others. That's what happens when you vote a one party ticket for so long.

Bush warned of the risk, but nobody listened so he gets the blame...

Yes, the Department of Labor lies every day. They don't count out-of-work people unless they register for unemployment each week, their ONLY measure of their success...that emperor wears no clothes also...if they don't register as when the funds run out, they are counted as EMPLOYED. Is that a blatant, public lie? We don't protest that, so no change will come soon enough...
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TomTheSeal
Represent our wishes; best interests are arguable
06:46 PM on 11/01/2011
Governance has been taken from the governed; typically, that governance will not yield unless forced to.
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HUFFPOST SUPER USER
Allen Jenkins
Virtual Ferroequinologist
08:34 PM on 11/01/2011
Don't worry, lawyers and insurance companies have it all under control....
01:00 PM on 11/02/2011
did you vote? If so you lost nothing - and last November showed us that the governed are moving - and next November will bring the change we need.....
05:53 PM on 11/01/2011
It is a growing movement and cultural phenomenon, watch this music video; "One Percent Feeling Lonely" http://youtu.be/qscP3c27yBE
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Elijah A Alexander Jr
Elijah NatureBoy
05:09 PM on 11/01/2011
Corporation's controlled Government and Media are finally telling the truth & not down playing the facts as usual. Since Occupation Wall Street by the 99% are exposing the truth are "the string pullers" backing up from keeping the lie in place? Since "the string pullers" were exposed in August 1999 [Nostradamus' 1999 & 7 months prophecy] during Republican's convention as "the King of Terror" once Bush got into office and signed off on the 9/11 BLACK OPERATION to destroy the WTC and Pentagon as the second Peal Harbor for the 2 wars we are in, I suppose they are allowing the truth out believing the plan is too near success to fail, but it hasn't happened yet.

Look at most of the laws made by congress to see "the bottom line" is about the poor financing the rich. Almost all recent laws has loopholes for the rich which cost the poor, that's how the rich keeps extending the amount of wealth they control, government keep imposing laws on the poor to increase the rich's income.

That is TREASON & includes the president who sign them into law. Paraphrased the Preamble says every action by the US Government is to benefit WE THE PEOPLE of the USA and not only them Corporations. There's but one way to eliminate that, a Constitutional Election in 2012 or sign http://www.change.org/petitions/eliminate-capitalistic-military-regime for immediate eviction of congress and the president. My vote goes on the latter, WHO'S WITH ME?
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intellectualTradition
corruptisima re publica plurimae leges
04:58 PM on 11/01/2011
until the 60's anyone could make it in America. then we foolishly gave the left a seat at the table. 1 generation later, voila......the new diluted no one has anything America

go progressives and liberals !!
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kennethhdeome
Why can't both sides be wrong?
06:11 PM on 11/01/2011
Diluted by what? Exactly what occurred during the 60s that caused this "dilution"?

We had the Vietnam War, which was a politically sustained conflict where policies did not allow for a winning strategy or effort. Like political policy toward domestic police efforts, the idea in Vietnam was to keep the enemy at bay and force an accord like in Korea.

Instead of a stalemate though, we lost; but the good news is the whole drawn out affair whetted the appetite of defense contractors, who have been looking for a new Vietnam ever since.

And what do you know, they got not just one, but two in the form of Afghanistan and Iraq. Well, except that one was so we could chase a few thousand people through the mountains hoping to kill a few bad guys amongst all the civilian casualties, and the other, it was a bonus war brought to us by the Republican president who had a personal issue with Iraq's leader.

So, since the MIC has only grown and become half the nation's budget since the sixties--which includes 36 years out of the last 50 with Republican presidents--I ask again what dilution occurred in the sixties that has left you blaming the left for our present situation?

I remind you, in the sixties Wall Street was not yet the powerhouse it is now.

Please be specific.
12:34 AM on 11/02/2011
The Viet Nam War was brought to you by Democrats. Lyndon Johnson is to blame. At least George Bush had a reason. We were attacked. Remember? It is true that we have a big Military. Should it be smaller and weaker than China's? Should it have been weaker than the old Soviet Union's?
Now, back to the 60s. It was the revolt of the liberals at the 1968 Democrats Convention that moved the party to the fringe left. Moderate and conservative Democrats moved to the Republican party. The Democrats of today are the leftist fringe folks of the 60s. JFK was a conservative conpared to any Democrat today. Today's Republicans want a return to a moderate political climate but are wrongly accused of being Right Wing. Debt reduction, spending only what you have, individual freedom, less governmental intrusion and all the rest. Only fringe, un-American, and socialists can be against that. It's definitional. Now you know!
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stefan dangelo
06:16 PM on 11/01/2011
Historic studies have shown that of all the people with more than 1mm in assets in the late 19th, 97% came from parents that had over 1MM in assets ... and 97% of those parents came from parents that were considered wealthy in the colonial period. There is plenty of proof that the American narrative that someone born poor could become rich is largely a myth. I would bet if you looked a the family histories of the top 1% today you would find that the 97% rule still holds ....
12:41 AM on 11/02/2011
Bill Clinton, Barack Obama, Nancy Pelosi, Harry Reid, Barney Frank, and most of the Democratic leadership came from poor backgrounds. They all enriched themselves at the public trough. More Democrats are in the upper income brackets than Republicans. It's a fact.
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Jophoenix
04:52 PM on 11/01/2011
This fact is a decade old so now its talked about, I'm sure you get the point!! Think about it, ten plus years where have the reports been ?? PBS has been reporting this old news, to bad for America our media helps keep the game going on. Thanks!
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stefan dangelo
06:19 PM on 11/01/2011
Never forget that media companies are for profit corporations ... they live or die on advertising dollars from the very people this newws is about
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SteveM39
That's how dad did it, that's how America does it
04:28 PM on 11/01/2011
"Mitt Romney is defensive about his vast wealth (reputed to total a quarter of a billion). He's reverted to scolding his audiences on the campaign trail for "attacking people based on heir success.""

"heir success"? Becoming successful because you are an heir?

Is this a typo or a pun or was he serious?
04:16 PM on 11/01/2011
Republicans gotta go...no more trying to analyze the destructive lies they tell No more saying "they don't get it" when they do get it,they just don't give a damn No more listening to them call my friends & neighbors that work for an honest living names No more enabling education to be a financial profit-making machine on the backs of college students No more listening to them try to invalidate the value of government workers that we respect - the post office workers cops firemen teachers and others No more watching them take from the poor the elderly the disabled our innocent children No more of the financial fraudulent criminal acts they have committed against us... I could fill pages of the atrocities the GOP has committed against the working class of the USA. They just gotta go. The Republicans gotta go. The discussions and arguments are over. The Republicans gotta go,everybody. They just gotta go...
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kennethhdeome
Why can't both sides be wrong?
04:07 PM on 11/01/2011
Using the U.S. Census Bureau population clock I rounded the nations present population at 312,537,200.

If we multiply that number by 1% (of the population), we get 3,125,372.

If we divide that result by 20 (% of the income), we get 156,268 people per one percent of the nation’s total income.

Now we multiply the nation’s population by 99%, and we get 309,411,828.

We then divide that result by 80 (% of the total income), and we get 3,867,648 people per one percent of the nation’s total income.

That’s a ratio of 156,268 : 3,867,648 , or 1 : 24.75.

That means the average 1%er makes almost 25 times the average 99%er.
09:47 AM on 11/02/2011
That's not the half of it. When you look at assets instead of income the disparity is much larger. The top 1% controls more assets than the bottom 80%. The top 0.1% controls more assets than the bottom 50%. So that's 300,000 people with more assets than 150 million. That's a 500 to 1 ratio.
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kennethhdeome
Why can't both sides be wrong?
02:27 PM on 11/02/2011
Thanks, now I'm really depressed.

Nice info, income disparity is a bit of a misnomer, given asset disparity.
01:13 PM on 11/02/2011
wrong. Top 1% = 388K and up AGI. They pay 39% of all Federal Taxes.

divide by 25 = 15,500 - you claim is what the rest of the 99% make.

Give us a freaking break - please

http://www.taxfoundation.org/news/show/250.html#table3

http://taxfoundation.org/files/sr196.pdf
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kennethhdeome
Why can't both sides be wrong?
03:31 PM on 11/02/2011
WHERE DO YOU SEE A DOLLAR SIGN IN MY POST?

Do you know anything about statistics--you know, percentages, averages and such?

I was offering a DIFFERENT perspective than individual income or income ranges.

Persons per one percent of the total national income means how many incomes on average comprise said one percent.

FOR EXAMPLE, if people in the 99 percentile made and AVERAGE of $1 per hour, it would take 100 such persons to make $100 dollars per hour total. On the other hand, if people in the 1 percentile made an AVERAGE of $25 per hour, it would only take 4 such persons to make $100 dollars per hour total.

A 1:25 ratio.

Got it now?

My post had nothing to do with actual earnings; rather it was a different perspective illustrating income discrepancy.

Give us all a break by taking a minute to think about our posts before you respond.

http:attentionspanofaknat.com