Tuesday, December 27, 2011

A Tale of Two Classes: The One Percent and the Occupiers

Despite all the bad press, the one percent is alive and well, buying and building $100 million mega-houses and McMansions in the Silicon Valley area an hour south of San Francisco (see the Bay Citizen link here). The Bay Citizen adds that this manic level of activity in the high end housing market will continue. “These people have essentially infinite money,” exclaims a realtor.
Zynga went public on Friday with a $1 billion stock offering. Facebook is widely expected to file a $10 billion offering early next year.
These stock offerings will create even more multimillionaires in the area. All of this new wealth is from Facebook and the creator of a bunch of inane games--ah, capitalism at its most creative in the United States! I'm sure my life is much better off because of these companies. After all, what wasteful activities would I be doing--playing games with my kids, reading history books, writing, practicing drums, working on lesson planning--if I wasn't reading about the careers and love affairs of my middle-aged high school classmates.

Seriously, I have no criticism of the rich buying stuff. Purchases of goods and services (increase aggregate demand and tax revenues) echo throughout the economy, growing the GDP. The more big purchasers we have, the better. The property taxes paid on these high end properties will also be stupendously large, supporting public services such as police and fire and school districts. A mere five-million dollar shack house in Atherton would create revenues of around $75,000/year in property taxes. You have to be rich just to afford the property taxes on a nice place in California. (Note to people lining up to give me property. Do not give me a mansion. I can't afford the property taxes and would be forced to sell it.)

As the Silicon Valley nouveau riche buy their expensive castles, their nemesis, the Occupy Wall Street (OWS) Movement attempted to take over church property (link here). Trinity Church supported the OWS movement with hot drinks and blankets but halted their support when the Occupy movement tried to take over Trinity Church's space, next to a public park.Supporting the mob with hot chocolate may be the Christian thing to do, but letting them use a piece of land worth millions, rent free...well, that is something altogether different.
“O.W.S. protestors call out for social and economic justice; Trinity has been supporting these goals for more than 300 years,” [the Church's rector] Dr. Cooper said in a statement. “We do not, however, believe that erecting a tent city at Duarte Square enhances their mission or ours.”
What? Of course the "occupation" of Duarte Square enhances the "get something for nothing" mission of OWS. It's also a great location, close to Wall Street, the right place to protest against income inequality. However, it seems that even supporters of "social justice" have their limits.

Since OWS members find it increasingly difficult to find a good location to park their sleeping bags, they might consider working against income in equality the old fashioned way--by making money, a lot of it. Unfortunately, working for money takes effort, and they will be increasingly tempted to find ways to usurp the noveau riche's millions instead. In 1932, FDR "pushed through a tax increase on the wealthy that included a hike in the top rate to 63% from 35%." It could happen again. In California, three competing measures to raise taxes will be on the ballot. The California Federation of Teachers' Millionaire's Tax may be the most likely to pass. Additionally, at this writing the OWS movement is planning to disrupt Republican caucuses in Iowa. The OWS movement knows who should be wealthy and who should be blessed with the right to hold political office--certainly not those who receive votes and money from the one percent.

January 30, 2012 Postscript: The West Coast Occupy movement has been thoroughly discredited and now acts as an instrument of violence and anarchy. Even the ultra-leftist San Francisco Chronicle's writes, Occupy Oakland Has Lost Credibility. See the article here. Hopefully OWS will remain focused on inequality.

3 comments:

  1. You don’t need to be Christian, or even religious, to understand -and embrace- the idea that "Whatsoever you did for one of the least of these brothers and sisters of mine, you did for me." But many of the 1%, in blind greed and endless schemes, have forgotten this. They have closed their eyes to what the word "society" should really mean, and what it can mean. But due to Occupy Wall Street, we are finally talking less about CUTS and more about BLEEDING. Instead of demanding m-o-r-e budget cuts -to be borne by the middle class and poor- we are FINALLY focusing on the shameful bleeding that the poor and middle class has endured, for all too long. Instead of talking about even m-o-r-e cuts in the taxes of millionaires....we are now talking about fairness and justice - about an economy and a political system that is increasingly run for the rich, and by the rich. Instead of talking about LESS government, we are talking about a government that WORKS FOR ALL OF US, not just a favored few. Thank you OWS, for reminding us that people -ordinary working people- really DO matter. The attempt by OWS to occupy Duarte Square (the empty lot owned by Trinity Church) is an attempt to carve out a protected space in a city where control-freaks would sweep us under the rug, and out of the way. In a city where they would pen us in, and try to permit us to death. In a city that tells us to “move on, move on”..... you don’t belong, you don’t count, you don’t have a right to be here...don’t assemble, don’t block the street, don’t trespass, don’t EXIST! They would deny us, deny our lives, deny our very futures. IF WE LET THEM. But OWS responds, both in word and in DEED: it says we’ve had ENOUGH - we BELONG, we STAND our ground, and we DO matter! This IS our land, and we want it BACK! The word OCCUPY...says it all! That’s why OWS has captured our imagination. That’s why a living breathing OCCUPIED public space is important for OWS- why it needs to have a concrete, persistent, in-your-face presence: to continually remind us of what we’ve lost, of what we are, and what we can be. Trinity Church, with its oft-proclaimed ideals (and its huge land holdings), should look deep into its collective soul, do the right thing, and help OWS secure a sanctuary. For the old ways are not working...

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  2. Thank you Stanchaz for reading, caring, and responding. I appreciate it.

    As you passionately stated, OWS and all of us have a constitutional right of assembly. Does that right extend to inconveniencing the many in New York City, and through political theater, disrupting the political process to better publicize the plight of the middle and lower classes? These are the more difficult questions, IMHO much harder to solve than making Trinity Church do the right thing.

    Again, I appreciate your involvement in the process. All the best from the San Francisco Bay Area. MS

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  3. Mike,
    As you know the OWS began,somewhat spontaneously,mostly by young people, as a response to the idiocy of the TeaParty Movement and the insanely high incomes of the top 1percent. Sadly, as do most movements with little or no organization nor clear goals,it deteriorated into a fiasco and alienated the neighbors. N.Y.C.is also home to many kooks who jumped at the opportunity to have a place to have some fun.I am sure the original organizers were serious about their goals.As for the right wingers crying,"Go get a job!"They're out of touch with reality.I know people who have been unemployed for over a year.

    I have very little sympathy for the fat cats making millions and taking advantage of endless tax loopholes while I and the rest of the middle class pay more than our share!

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