Occupy Wall Street: What’s it All About?

The economy isn’t exactly what someone would consider an enjoyable topic at the dinner table. As much as we can appreciate the fact that we have food on the table, there’s the harsh realization that not everyone in our country is so lucky. The unemployment rate has seen record highs. The housing market is in the toilet. And behind it all is the dark, looming figure of the federal budget deficit, which has both local and global ramifications.

It’s no wonder then that we saw the recent Occupy Wall Street protests take place all across the globe, but it’s hard to get a bead on what they’re all about.

A Decreased Labor Share

In a recent article, Peter Orszag, who is the vice chairman of banking at Citigroup, mentions the first of Kaldor’s facts, which state the basics of economic growth. The first rule states that the shares of national income received by capital and labor remain roughly constant over a period of time. In other words, the work that goes into producing capital should garner as much income as the capital itself.

However, as Peter Orszag notes, recent events have proven otherwise, which is one of the reasons many of the Occupiers are so frustrated. In 1990, 63 percent of business income in the country took the form of labor compensation (wages, etc.). In 2005, that number dropped to 61 percent, and in the past year, it dropped to 58 percent.

You might think that Peter Orszag is just being nitpicky here, but a five percent drop is actually quite substantial. Five percent amounts to over $500 billion a year. That means that without the drop, income would be $500 billion higher this year.

A Call to Action

Aside from the economic inequalities and a challenge to the political system, the Occupy movement is a call to action. The fact is millions of people believe our current system to be broken, and yet the people in charge seem unable to create any solutions to fix the economic and social inequities and injustices that have begun to shape our world.

Many of us grew up on the idea that if we worked hard and played by the rules, we would be rewarded accordingly. That’s the basic idea of the American Dream, but in this day and age, it’s no longer something we can trust or believe in. Numerous people, some just out of college, others supporting families or approaching retirement, who have worked hard and have acted as model citizens see themselves shot down by corruption and injustice. In the current state of things, it’s hard to see why others aren’t joining the fray.

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3. Jay-Z’s new Occupy All streets T-shirts will not benefit Occupy Wall Street Movement
4. Global Good Exclusive: Occupy Wall Street Movement at A Glance (Videos + Pictures)
5. Presidential Candidate Michele Bachmann is Interrupted by Occupy Wall Street Protestors