Occupiers' anger is all that makes sense
- Ivo Vegter
- 08 Nov 2011 10:09 (South Africa)
“Hey hey! Ho Ho! This Wall Street dirt has got to go!”
The chant was catchy, certainly. Marching down the narrow shadows of Wall Street, a few dozen protesters sprayed soap and scrubbed the pavement. One hopes nobody slipped and broke an ankle after Occupy Wall Street had made whatever point it was making, but it was entertaining.
A local I met in a simple Irish pub where I stopped for lunch told me numbers had dropped markedly since an unexpected spot of snow on Halloween weekend. However, he added that fewer protesters didn't make it any clearer what exactly they wanted. It appears to be a motley assortment of entirely random anti-establishment causes: organic foodies, homoeopaths, crystal-gazers, radical feminists, climate doom-mongers, vegans, and hardcore communists all drumming upon the cosmic consciousness. It's all very colourful and, like, full of love, man. The man at the bar, like the brokers and bankers outside, went about his business with an indulgent smile.
And right they are, to be condescending. Clues about what's wrong with the economy – let alone what to do about it – seem to be in short supply among Occupy Wall Street protesters. There are no leaders among the collectivist crowd, so it isn't clear who might speak for the group.
All I could gather from a few random conversations were some vague notions about how unfair it is that bankers issue loans, or expect them to be repaid, or worst of all, both. Also, they get paid a lot. I had to hand it to the big fellow with the gold chains who said this: it was a fair allegation, judging by the suits and the cars and the imposing porticos. Also, banks get bailed out instead of just failing and taking everyone's unpaid debt with them. (It didn't seem to occur to my interlocutors that banking crises used to cause runs on banks by depositors, not drumming parties by student debtors.)
None of the protesters I met got even close to the core of the issue, let alone offering proposals for what, exactly, they thought should be done.
It doesn't help their contrived, self-conscious image as “the 99%”, that even the poorest Americans, living as they do in a relatively free, capitalist society, would find themselves in the top quartile of a global income distribution. The world's 99% don't hang out in Manhattan.
As one wit put it in a satirical Twitter message: “@OccupyFS: We desperately need iPhone chargers at the smash capitalism demo... Drop them off at Starbucks please”.
That makes the protesters amusing, but not necessarily wrong. They're rightly dissatisfied with the global economy. Who isn't? The question is at whom they direct their justified anger. They're as confused about that as those who marched with Julius Malema two weeks ago. They, too, misunderstand the meaning of “economic freedom”.
The rather shoddy clean-up crew moved briskly along, obediently following the instructions of half dozen police officers. Ironically, the only occasions on which protesters have run into opposition weren’t when they yelled at bankers. It was when the police had enough of them, as happened in Oakland, California, or when they got too close to government institutions such as the Houses of Parliament in London, England. While I doubt the protesters are all innocent lambs who'd never dream of provoking a policeman, governments are the ones responding to the protests the only way they know: with violence.
Scrubbing Wall Street: protesters make a song and dance about “cleaning up” New York's most famous financial street.
This ought to be a hint as to who the real enemy is. Occupy Wall Street attacks the easy targets – bankers who merely took advantage of the central bank's cheap credit and government's implicit loan guarantees. Surely, not all bankers are entirely innocent in this debacle, but by focusing on them, protesters give their hope-and-change politicians a free ride.
The Wall Street Journal has a great list of alarming quotations from politicians who were sure they could manipulate the market without causing a crisis. My personal favourite quote is from Barney Frank, chairman of the House Financial Services Committee, who said: “I want to roll the dice a little bit more in this situation towards subsidised housing...”
The Occupiers don't want to vote them out of office, of course, which shows that they have no idea how it all got to this.
By contrast, the Tea Party has been largely coherent in its message. Like the Occupy movement, it is angry about the credit crunch, high unemployment, stimulus excess, and banking bailouts. However, instead of just ranting about it, it points fingers. It blames easy money for undermining savings and encouraging reckless borrowing, it blames bankers for exploiting the perverse regulatory incentives that reward risky lending, it blames government for using “stimulus” as an excuse to fund pet projects and special interests, and it blames the Federal Reserve for bailing out the banks that were guilty of the excess.
They understand that bubbles are created by the government, and that as sure as night follows day, a crash must follow a bubble. This, no matter what private fraud and greed characterised the boom, remains the fault of the government policies that caused the boom in the first place.
They distrust corporate lobbying, and believe, like the Occupiers, that the private sector has to an alarming degree captured regulators and politicians for their own ends.
The difference is that the Tea Party blames the government that lets itself get bought when it was elected to serve the people, instead of blaming the companies who are only serving shareholders and customers – as they ought to – when they lobby for regulation that benefits them and harms competitors.
Ron Paul, the leading intellectual light of the Tea Party revolution, has made the distinction between corporatism and a free market very clear. Bailouts, loan guarantees, cash-for-clunkers programmes and stimulus funding are hallmarks of state-corporatism, not of the free market he advocates.
Tea Party protesters object to crony-capitalists and politicians of both parties. Thanks to consistent messages from Paul and others who predicted the housing bubble and the subsequent crash (see Don't blame those who saw it coming), know at least in principle that they ought to reject inflationary monetary policy (quantitative easing and low interest rates), counter-cyclical deficit spending (stimulus), and the dogmatic belief in a mythical Keynesian multiplier.
They probably read the journalists whom I met that evening, which brings me back to my reason for visiting New York. The International Policy Network flew me over and put me up as one of the finalists for the Bastiat X Prize. The prize is awarded annually to journalists who support free markets and individual liberty, and who, like the economist Frédéric Bastiat, can explain apparently complex issues in clear language. The people I met at a swanky dinner at the Four Seasons stood in stark contrast to the confused socialists I spoke with in the morning.
Occupy Wall Street protesters could do worse than read the winners. Joint first prize went to Virginia Postrel of Bloomberg and the Wall Street Journal, and Tom Easton of the Economist. Second went to Jeff Jacoby of the Boston Globe, and third was awarded to Salil Tripathi, of the Mint in India and the National in the UAE. DM
Tom Easton's winning article:
Virginia Postrel's winning articles:
Jeff Jacoby's winning articles:
- A deadly organ donor system
- Clunker Q&A [or: The Truth about Cash for Clunkers]
- A ride in Big Brother's Audi [or: Big Brother out of control]
Salil Tripathi's winning articles:
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- How Mmusi Maimane swindled a vote out of me
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- New Year’s resolutions for other people
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- In defence of Donald Trump
- My old South African flag
- Fearful Fukushima fiction fatigue
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- In defence of a lion killer
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- Forever blowing bubbles: shale gas economics
- Promotion and Protection of Investment Bill: When “certainty” means “wait and see”
- This land is my land: a revolution
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- How mind-numbing numbers whip up fear
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- The girl who kicked the hornet’s nest
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- An open letter to President Zuma
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- In defence of vegans
- The population explosion implodes
- Environmental backpedalling picks up pace
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- The elusive libertarian enclave
- The Gathering: Ivo Vegter
- The hidden overemployment crisis
- The case for constructive environmentalism
- Privatise the Western Cape's shacks
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- Hurricanes fuel climate sensationalism
- Next: Gross-out warnings on food
- No new deal: The failure of Zumanomics
- Benoni has a bright idea
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- Public food gardens: Where dumb ideas thrive
- Rethinking the costly food label madness
- Give hunting a chance
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- Buy a 1Time ticket now
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- The myth of the competent apartheid government
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- Smokers? Get 'em up against the wall!
- Inflating the obesity scare
- Bring a Shotgun to School Day
- GMOs: Hacking genes to feed the world
- The hidden dangers of charity
- Fracking: the unread paper debated
- Fracking: The “U-turn” paper nobody has read
- Eco-cronyism is as dangerous as any other
- SKA: Be grateful Karoo residents didn't object
- Energy: Get cracking on fracking
- Fair trade, unfair trade-off
- Casual labour is only bad for Vavi's unions
- 'Externalities', the catch-all justification for regulation
- 'Externalities', the catch-all justification for regulation
- How do we fix our dismal education?
- Barter: the rebirth of sound money
- Rights are not entitlements
- Debunking 'limits to growth' inanities
- Tax: Why align with "most other countries"?
- Newspaper sensationalism doesn't help rhinos
- Rolling Stone reprises Gasland's fracking fantasies
- Cosatu's manipulative march move
- Why do 16 million people not constitute an economy?
- The age of smear politics
- Does fracking cause earthquakes?
- The Chinese model is morbidly obese
- Green tech: doubling down on a losing bet
- Rape, pornography, and hell's grannies
- Petrol taxes won't hurt the poor
- Jailtime mooted for bad weather warnings
- Let's ban bans, and start with CITES
- In defence of overpaid sport stars
- On the death of Kim Jong-Il
- COP17: Let's ban fire
- Cancer gets you when nothing else can
- COP17: The 'party on' agenda
- COP17: The Blue Line of Death
- New seven natural inanities
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- The Luddites and Technocrats live on
- Malema marches for economic slavery
- Profitable purveyors of pudendal prettiness
- Sense? Us?
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- "Stimulate" economy by ending telco abuses
- Executive pay makes nobody poorer
- Malema's real persecution
- Mogoeng: Lock up your daughters
- Don't mandate insurance, deregulate healthcare
- I sympathise with Malema's persecution complex
- Short selling: panicked pols ban proof of failure
- Don't blame those who saw it coming
- What's obscene about profit?
- In defence of Bombela
- Dear president Zuma, you are not above the law
- The economics of love
- Treasure the Karoo? Ban the SKA!
- Malema is right, you know
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- Kumi Naidoo is no hero
- LeadSA fails to lead when it matters
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- A response to fracking critics
- Don't vote. It's your right.
- Welcome Walmart
- If you're happy and you know it clap your hands
- Buy local, support poverty
- Ubuntu, the free-market way
- Karoo fracking scandal exposed!
- I'm ashamed for my profession
- The bill of bunkum
- Being gay: a brand new concept!
- Who's afraid of the nuclear wolf?
- The nationalisation canard
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- The new robber barons
- A classy revolution: Why we cared
- Bombastic Bombela balks
- Liberty is more than mere democracy
- Gautrain has a law unto itself
- The irony of 'services for all'
- How to hire a hitman in SA
- Arrive alive and neurotic
- The oppression of taxis
- Protection of Information Bill and why WikiLeaks is so dangerous
- Fifa, Russia and Qatar deserve each other
- One day, we'll all hate WikiLeaks
- The cycling mafia strikes again
- What Julius got for Christmas
- Let's return the beads
- Away with fascist seat belt laws
- Tintin Mbeki in the Sudan
- How the ANC can make everyone happy
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- Hurrah for national healthcare!
- Give Zimbabweans citizenship
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- That finger-licking, lip-smacking taste
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- Green tax: another raid is coming
- Do strikers deserve anything?
- The media will lose this battle
- Global warmism needs a fisking
- A glass half-full
- Go ahead, have a baby
- Stop the handouts - end xenophobia
- The right to fire
- FIFA's heart of darkness
- Have some self-respect
- I ordered an orange skirt
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- The stupendous Gautrain: a rare marvel!
- The Fifa conquistadors are coming!
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- Really, boycott the FIFA farce
- The climate dominoes fall
- Lessons in ethics from Dick Cheney
- Screw the consumer
- In defence of bankers
- Break the banking cartel
- Julius Malema, the walking contradiction
- Boycott FIFA
- Climate clarity
- In defence of Boney M
- Pray Copenhagen fails
- Capitalism is not unkind
- Climate fraud kills people
- Pop goes the hot air balloon
- Peace, love and schadenfreude
- The irony of the left
- Too late to cool it?
- Going cold turkey