“Occupy” Some Common Sense

By: on November 16, 2011 |

 

The news that the New York City police department has evicted “Occupy Wall Street” protesters is a positive sign that that parks meant for the general public will now be given back to that same public.  In light of the eviction of the two month-old tent city in lower Manhattan’s Zuccotti Park, and Oakland’s recent eviction of Occupy squatters, perhaps sanity and civility will return to the town squares across North America. That said, as per usual, Canada’s city councils are taking their sweet time in evicting our own squatters.

Let’s be honest. Much of the Occupy movement was recycled 1960s activism (and in some cases, recycled 1960s activists) who hate business, despise capitalists and bathe themselves in envy. Insofar as they had an occasional point—governments should not rescue banks and automotive companies—they overlooked others: governments didn’t get economies around the world into trouble by spending too little, but by spending too much. And they massively borrowed on top of the existing tax take to do it both where taxes were moderate (America) and where they were not (Greece).

Such unconscionable borrowing for decades is why Greece, Italy, Portugal and Spain are a fiscal mess, and why California and other American states are broke.

If the Occupy movement returns, we suggest they come back with a coherent set of demands and common sense. They can start with recognizing that governments in the United States, Europe and even Canada have put the younger generations into a severe disadvantage, not through too little government intervention but by too much.

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Discussion

  • lobbyman

    I think you need to be more aware of what is really happening in the United States. What’s happening in congress is frightening. Your article clearly reveals how little you know.

  • Oldie49

    For his type of right-wing commentary, understanding what is really happening isn’t necessary to expressing an opinion! The only necessity is the desire to espouse a narrow, self-righteous and self-serving point of view and to shout down dissenters. If he is not one of the 1% group, he aspires to be and will stomp all over any attempt to block his success in joining them! He is part of the real problem because he denies that the democratic deficit is anything but a figment of our imagination, unless of course he concedes it is a necessary part of capitalism!

  • Frank Gue

    It is instructive to use Iceland’s amazing recovery from 2008 as a backdrop to the “Occupy” movements.  The President of Iceland, Mr. Olafur Grimson, explained how they did it.Iceland’s banks were hopelessly involved in the meltdown of sub-prime and other  high-risk investments and were in effect bankrupt.  The IMF and the international financial community were urging Iceland to go the conventional route, i.e. bank bailouts, tight austerity measures, etc.Mr. Grimson’s explanation of his solution was lucid and simple.  In brief, it was:1.  The banks failed; let them fail (i.e. their investors took their chances; they can’t be allowed to reap the profits when they succeed but transfer their losses to the taxpayers when they fail in what economists call the “moral hazard”).  Mr. Grimson was emphatic about banks:  he said flat-out that a strong and successful banking sector is “bad news for the creative components of any economy” (my emphasis).  His context clearly indicated that, by “creative”, he meant the goods-producing real economy, not merely the foolishly narrow definition usually used, i.e. the arts community.2.  The national currency unit is not worth what we officially thought it was.  Let it float to its natural (much lower) price (i.e. accept a markedly lower standard of living, uniformly and fairly imposed on all, rather than enact masses of new regulation).3.  The free market is the servant of democracy; democracy does not serve the free market (i.e. don’t make taxpayers bail out banks).4.  Ignore the excruciating pressures from the IMF, World Bank, other governments and similar bodies to go the bailout route and instead submit the question of bailing out the banks to a referendum (closely related to #3 above; the Icelandic citizens returned a resounding No!)5.  Watch the talent and resources previously devoted to the non-productive financial sector migrate to the real economy (i.e. devote resources to value-added (VA) activities, e.g. fisheries, infrastructure, rather than non-value-added (NVA) activities e.g. churning the financial system).The results of these policies have been that Iceland’s financial system is back on its feet, low unemployment is the envy of the rest of the world, and investment is flooding into Iceland.Now, how does this relate to “Occupy”?It turns out that Syd’s union was financing the “Occupy Toronto” bunch.  Wouldn’t you know it.  Ryan hijacked “Occupy” for his purposes.  The sad fact is that the “Occupy” people had and have a very sound (though amorphous) objective, which is to draw to public attention the fact that there are literally thousands of undeserving millionaires/billionaires who have plainly and simply stolen, by financial trickery, the savings of millions of undeserving investors (including me and doubtless the reader of this). Here is one – only one of several – cunning way they did it.
    Citi Bank pleaded nolo contendre (no plea of any kind) to an SEC charge that they deliberately assembled a CDO comprising worthless mortgages, which they marketed and sold at a profit.  They then sold-short those same CDOs knowing (the SEC says) that the CDO would collapse, which it duly did; so Citi made money on the sale and another $100M-odd on the can’t-lose short sale.  SEC then, rather than drag Citi into court, which is long drawn out and costly, plea-bargained and had Citi pay a big fine – $250-odd million I think it was, for SEC to withdraw charges.Upshot:  SEC avoids an immensely costly action, Citi is able to say “We have never been convicted of ….. (whatever)”, and thousands of investors have been defrauded of their money.If you could find the paper trail, you might find that a few bucks of yours and mine went down that drain.Goldman Sachs did exactly the same thing before the 2008 crisis, but didn’t get nailed for it ‘cuz SEC couldn’t prove it was deliberate.You need only a few of those and, even if the average small retail investor, or citizen even if not an investor, is not aware of the detail above, public unfocused frustration grows until there is an “Occupy” movement.  They aren’t sure how they are being screwed, they just know they are being screwed by banks and bankers who are making billions.  This unfocused frustration is what Syd Ryan hijacked and turned into a far-left public disturbance.And so, to sympathize with Occupy (which I do, to a certain extent as above), one gets the undeserved label of a leftie.If a government of any stripe – red, blue, or polka-dotted – were to do exactly the right economic thing by soaking the undeserving  rich, anyone applauding it risks being labeled a leftie.  This is what may have happened to Grimson when Wikipedia calls him “left wing”.  Pure economic theory has no “left” or “right”; it just is what it is.  The fact that vast numbers of people (including me) believe that we should  ”Soak the undeserving rich” (the Citsi and Goldman Sachs of this world) gets us labeled as “left” because the NDP and their ilk think the undifferentiated rich should be soaked.  Wrong, wrong, wrong.  The Bill Gateses and Bill Boeings of this world deserve their billions; more power to them.  The Bernie Madoffs of this world don’t and richly deserve to be in jail.  Trouble is, we don’t catch enough of them being actively criminal; they are too clever and cunning.All this causes us to ask: who and where is Canada’s Olafur Grimson?Cheers,F.Frank Gue, B.Sc., MBA, P.Eng.2252 Joyce St.,Burlington, ON L7R 2B5905 634 9538