#OWS Signage: Question for Bloomberg

h/t Charles Bivona

UPDATE: State of Seized Library

From the blog of #OccupyWallStreet’s People’s Library:

UPDATE: State of Seized Library.

The movement will no doubt survive, even if its flagship camp is forced to move elsewhere. But its flagship library is not as easily replaced.  More than any other aspect of Bloomberg/Kelly’s Monday night raid on Zuccotti Park, the thoughtless destruction of the People’s Library symbolizes the soullessness of the authorities threatened by our wonderfully rebellious American Fall.

May the embers of this shameful moment be kept alive in our hearts and minds to kindle an even more wonderful American Spring.

#OWS Economics: Ron Paul on Wealth and Privileges

4. Government may not redistribute private wealth or grant special privileges to any individual or group.

–from The Ten Principles of a Free Society

Continuing my gradual critique of Ron Paul’s Ten Principles, the next in line is relevant to what I’ve been talking a lot about these past few weeks, the great impetus behind #OccupyWallStreet: income inequality.

It’s significant that the godfather of the Tea Party movement (the original form of it, anyway) includes wealth redistribution in his principles of liberty. It points up an area where these two movements can either come together or get driven apart.  There’s no question about where #ows stands on this point. Income inequality is a key symptom of the disease #0ws arose in response to, and one of its goals, I would argue,  is to force a correction of what it views this to be: a moral wrong. If Paul is any indication (and I’m sure he is), the Tea Party is not so much troubled by this gap as it is by the idea that government should try to close it. Continue reading

#OWS Economics: Who’s to Blame?

Here’s an interesting video from a Texas-based libertarian, John Barksdale (my spelling may be incorrect), who calls himself order9066. I’m impressed with the research he put into this subject, and I take his point very well that it was not just Republicans who were responsible for throwing out the Glass-Steagall Act of 1933, which prohibited financial holding companies insured by the FDIC from owning other companies engaged in financial speculation such as Wall Street investment firms or insurance companies, with the Gramm-Leach Bliley Act of 1999.

While this video does serve as a corrective for the idea that Democrats share little or no blame in the gutting of New Deal protections that set-up the disaster of 2008, it goes overboard in pushing Republicans into the background of the blame picture. After all, the three authors and main sponsors of the bill were all Republicans, and both houses of Congress were, in fact, controlled by the GOP.  But it does highlight two main points: The fingerprints of “Third Way” Democrats in Clinton’s White House (including Clinton himself, of course) are as much in evidence on the financial deregulation of the late 1990s as the Republicans’ are; and Congressional Democrats were ineffective, at best, in preventing (and, at worst, complicit in bringing on) Glass-Steagall’s demise. Continue reading

Unleash the Entrepreneurs?

US Chamber of Commerce's major contribution to jobs creation dialog: A giant banner taunting the White House across Pennsylvania Avenue.

What’s wrong with this rosy picture of entrepreneurship painted by the Manhattan Institute’s Edward L. Glaeser in his article “Unleash the Entrepreneurs” at City Journal?:

Three years have passed since the financial crisis of 2008, and unemployment rates remain painfully high. As of August 2011, America employed 6.6 million fewer workers than it did four years earlier. To try to fix the problem, the Obama administration has pursued a variety of Keynesian measures—above all, the huge stimulus package of 2009, which included not only direct government spending but also such features as tax credits for home buyers and temporary tax cuts for most Americans.

Such policies ignore a simple but vital truth: job growth comes from entrepreneurs—and public spending projects are as likely to crowd out entrepreneurship as to encourage it. By putting a bit more cash in consumers’ pockets, the tax cuts in the stimulus package may have induced a bit more car- and home-buying, but the next Steve Jobs is not being held back by too little domestic consumer spending. Tax credits for home buyers and the infamous program Cash for Clunkers encourage spending on old industries, not the development of the new products that are likelier to bring America jobs and prosperity.

Unemployment represents a crisis of imagination, a failure to figure out how to make potential workers productive in the modern economy. The people who make creative leaps to solve that problem are entrepreneurs. If we want to bring America’s jobs back, our governments—federal, state, and local—need to tear down barriers to entrepreneurship, create a fertile field for start-up businesses, and unleash the risk-taking innovators who have always been at the heart of our economic growth.

Isn’t the default position of American economic policy precisely what Glaeser is selling as the solution to the nation’s economic problems? It looks to me like advocating hitting oneself in the head with a baseball bat to prevent injuries caused by hitting oneself in the head with a hammer.  Glaeser and all “free marketers” are slaves to the notion that entrepreneurship in itself is a panacea for all economic and social ills. What they seem to ignore is that some entrepreneurship can cause economic and social ills. As an example, consider the many franchise-based companies (think food-service) that pay their employees unlivable wages with flimsy benefits packages, forcing many  to supplement their incomes with public services like food stamps or to use emergency rooms as primary doctors offices. Continue reading

#OWS Economics: Neofeudal Reality and the Free Market Myth

A little follow up to the last post about Damon Vrabel and his critique of neoclassical economics.

After concluding the Renaissance 2.0 series of lectures, Vrabel wrote a farewell on his blog at his Council for Spiritual, Psychological and Economic Renewal, explaining why he was no longer going to keep posting on the world situation. Among his reasons:

As I said in previous articles, IF we participate in the system, I’m not opposed to it at all. How could I be? I’d be a tyrant if I wanted to force hundreds of millions of people to change their behavior. And the fact is, that “IF” was answered long ago. We Americans have chosen the material benefits of being managed by the financial system for generations. We like demand-side freedom, i.e. choosing between Coke and Pepsi, but don’t want supply-side freedom. We like the supply-side to be taken care of for us. We love the benefits that come from it being imperially run—the credit card always works, the gas station is always open, our water faucets and light switches do what they’re supposed to do, the markets keep going up (oops…maybe not). All of our economic needs are outsourced to others, so we have the luxury of spending our time pursuing wants. And if these types of benefits are good for us, they’re good for the rest of the world. We have no moral authority to stand opposed just because we’re now going to lose our privileged position—a rather childlike perspective.

Do I detect some sarcasm? Many of the items Vrabel ticked off as buying our disinterest in changing the imperial system are, of course, threatening to stop working in the near-long term, if they haven’t already stopped working for many of us, which is why, I suspect,  #OWS has resonated so deeply so fast.

In any case, perhaps responding to the Arab spring and certainly responding to questions from viewers of Renaissance 2.0, Vrabel returned to YouTube with a new series titled “Debunking Money.” Again, I highly recommend it to anyone wanting to understand how the world really works and why we, the people (or the peasantry, as the case may be), are experiencing a diminution of our liberties. In this series, Vrabel makes explicit his rejection of various ideas from the left and right, including Austrian school economics and Milton Friedman’s neoliberalism.

The lesson below is particularly interesting as it debunks the notion, popular among Libertarians and popularized by Ron Paul, that “ending the Fed” is a viable solution to the problem. Vrabel says the American people would be “cutting their own throat.” If you have difficulty following this, I strongly suggest starting from the first video and hanging on his every word, if possible. Not to say this is the ultimate truth, of course, but it is certainly much closer to the truth than anything you will be hearing from Republicans or Democrats: