Posted by
Richard Larsen in Idaho on Tuesday, October 25, 2011 10:14:32 AM
By Richard Larsen
Published - Idaho State University, 10/23/11
I find myself in absolute agreement with one component of
the demonstrators defining themselves by the acronym OWS (Occupy Wall Street).
The government bailouts which buoyed up failing bank, brokerage, and insurance
firms, as well as the auto industry must stop. Bailouts of states, of education
entities, and unions must stop as well. Which leads me to wonder, why are they
demonstrating on Wall Street rather than Pennsylvania Avenue or Capitol Hill?
Bad government regulation and bad corporate decisions led to
the recent recession, which is statistically over although it doesn’t feel like
it. One of the best protest signs from the OWS people read, “It’s wrong to
create a mortgage-backed security filled with loans you know are going to fail
so that you can sell it to a client who isn’t aware that you sabotaged it by
intentionally picking the misleadingly rated loans most likely to be defaulted
upon.”
The protestor in front of that hand-made sign, in the spirit
of full disclosure, should’ve gone to the root of the problem with a poster
reading something like, “It’s wrong for the government to force lenders to make
loans to people they know are going to default on, and for the government to
implicitly guarantee those loans through their mortgage agencies which forces
securities companies to do everything listed on the next sign.”
Wall Street firms didn’t create the regulation that brought
us to this juncture; they had to live with it. And they didn’t do the bailing
out, they benefited from it. So why not go to the source of the bad regulation
and the bailing out nonsense? Blaming Wall Street firms for the bailouts is
like blaming the vagrant for accepting a handout or blaming parental
overindulgence on the child that accepts his umpteenth iPad.
Bad behavior, whether on Wall Street or in the walls of our
own homes should never be rewarded, regardless of the causal elements that
contributed to it. Yet that’s precisely what the bailouts did. And if the OWS
crowd could look past their ideological underpinnings they could see the causal
forces of bad government regulation which led to the bailouts. Which when you
think about it, actually represented a congressional bailout of their own
failed policies related to the mortgage industry.
The illogic of the OWS folks gets even more interesting and
hypocritical from there. Many of the protestors express the sentiment that
their higher education should be given to them, or decrying the income gap
between the rich and the poor. So what are they asking for? Money? A block
grant for educational expenses? That sounds a great deal like a personal
“bailout.” This duplicity shouldn’t surprise us, as logical homogeneity has
never been a characteristic of the radical left.
The theme for the occupiers is straight out of a Socialism
101 textbook, “We are the 99%.” Lamenting the fact that they’re losing their
jobs, losing their homes, and not getting paid enough, they aim their scorn in
typical socialistic class-envy fashion to the “wealthy.” Considering that it
was Washington regulation and policy that created the housing crisis, and it’s
Washington politics the past five years that have turned off the spigot of
private sector jobs, the fact is underscored that they should be protesting on
the steps of the capitol rather than on Wall Street. If they wanted their
protests to resonate with mainstream Americans, they would focus their efforts
on the causal influences of their discontent, rather than the symbolic
representations of what they don’t have.
This practice of demonizing the “haves” by the “have nots”
is characteristic of all the socialist revolutions and is usually couched in
terms like “social justice” in U.S. politics. Based on little more than
covetousness, the notion is that the assets of the “haves” should be taken and
redistributed to the “have nots.” While theoretically appealing from an
egalitarian perspective, it is a classic Nirvana logical fallacy, for it
assumes that such wealth redistribution is possible, even though it’s never
succeeded even when it’s been attempted.
And to illustrate the inanity of such “social justice,” what
happens when those who think, create, and produce are penalized inordinately
for doing the very things that earned them their pecuniary reward? As with any
legal activity for which there is a punishment, it will reduce its occurrence.
And what happens to incentive, initiative, and productivity when all workers
are compensated at the same level, regardless of output? What happens to
individual self-worth and self-affirmation when compensation levels are equal
and have no connection with productivity?
Clearly the Wall Street occupiers are little more than 21st
century Bolsheviks, embracing and advancing an ideology based on egalitarian
class-envy, narcissism, and covetousness, all of which are distinctly
antithetical to the American tradition.