October 28, 2011

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The study that shows why Occupy Wall Street struck a nerve - The Washington Post If Americans were to realize they’ve been the victims of Republican-style redistribution — stealing from the poor to give to the rich — the whole political atmosphere might change. I believe that’s one reason why the Occupy Wall Street protests have struck such a nerve. The far-right and its media mouthpieces have worked themselves into a frenzy trying to disregard, dismiss or discredit the demonstrations. Thus far, fortunately, all this effort has been to no avail. The right maintains that inequality is the wrong measure. To argue about how the income pie should be sliced is “class warfare,” and what we should do instead is give the private sector the right incentives to make the pie bigger. This way, according to conservative doctrine, everyone’s slice gets bigger — even if some slices grow faster than others. Indeed, the CBO report says that even the poorest households saw at least a little income growth. Why is it any of their business that the high-earners in the top 1 percent saw astronomical income growth? Isn’t this just sour grapes? No, for two reasons. First, the system is rigged. Wealthy individuals and corporations have disproportionate influence over public policy because of the often decisive role that money plays in elections. If the rich and powerful act in their self-interest, as conservative ideologues believe we all should do, then the rich and powerful’s share of income will continue to soar. Second, and more broadly, the real issue is what kind of nation we want...
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More ruptures in the mainstream: The big questions raised by anti-capitalist protests - FT.com Once again, much of this debate is over use of macroeconomic policy tools: should one tighten or loosen fiscal policy in a recession? Are unconventional monetary policies a path to hyperinflation or effective policies in extreme circumstances? Again, just as radical Keynesians emerged in the 1930s and afterwards, proponents of more intervention in markets are now emerging. This is a debate we need. In my view, both perspectives are useful. The Tea Party is wrong on the future of government. Even the US is not going back to the 19th-century state. But its more coherent members are right – and even agree with today’s protesters – that we have promoted an insider form of capitalism which exploits and indeed creates subsidies and tax loopholes on which the insiders prosper. The need to rescue banks was horrifying. The role of money in politics is disturbing. The danger is that we are moving from what the Nobel laureate economic historian, Douglass North, calls an “open-access order” to its opposite, a system in which political influence is decisive. This is not merely inefficient. It is unjust. Few begrudged Steve Jobs his fortune. The view on those who emerged rich from rescued businesses is very different. The era of bail-outs must end. Restructuring finance to make this credible is of huge importance for the future. Yet this is not all. Market capitalism creates inherent difficulties. The two most obvious are macroeconomic instability and extremes of inequality. The tendency of a market-oriented financial system to...

Jodi Dean

Jodi Dean is a political theorist.

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