In defence of the one percent

As the Occupy Wall Street protests began in October, the insightful Republican Herman Cain said: “Don’t blame Wall Street, don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself”. These words resonate in the back of the minds of the protesters as they try to sleep at night in their tents under the snow. Although I am a Democrat who would never normally quote a Republican, in these difficult times only a Republican would voice such a harsh truth.

The main issue with the Occupy Wall Street protests is that there is no clear, feasible goal. Protesting for rational reasons is admirable, but rallying with empty claims and exaggerated demands is a waste of everyone’s time. The slogans and demands across the world are to the tune of “more equality”, “the end of capitalism” or even “free hugs”. Yes, these are valid ideas, and we would all love to live in a hug-filled, utopic society; and yes, the images of large gatherings of protesters are shocking and impressive. Let us not forget however that marches will always attract groups who protest for the sake of protesting. With 98% of protesters in Washington supporting civil disobedience, and an unknown percentage participating in the protests only for the free food, occasional violence, gratuitous whining and available drugs, the movement has slowly lost its credibility.

In fact, it can be argued that the protesters, and not the bankers, are the greedy ones here; free education, free healthcare, no unemployment and less working hours are all wonderful ideas, but these demands are completely incompatible and unaffordable. Raise the taxes they say? The top 10% in the US already account for 70% of federal income tax – if federal funds need to be spent, does it not make sense to use them on a bailout that will keep the 70% inflow steady?

Indeed, it really is all about greed; as one protester says, “a career in finance is just a justification for inequality and greediness – you guys are no different than the mentalities of third world nation leaders”. It has been argued that banks facilitated the creation of financial instruments and manipulated the rating agencies for the sole purpose of collecting bigger bonuses. Nonetheless, we can’t ignore what these instruments were based on – consumer greed. The lower-middle class, seeing a flaw in the system, took out excessive loans and mortgages they knew they would never be able to pay back. Had the “99%” understood that one cannot live dramatically above one’s means, and rationally limited their real estate consumption, this credit bubble would not have happened.

Of course, no one can disagree with the fact that Wall Street pays its executives very well. But if it’s just about the pay, why are there not similarly socialist revolts when sports players, movie stars or politicians are paid 7-figure salaries? People love to say that “it’s different”, and that bankers destroy society, without adding value. I don’t know how many times it must be repeated that banking is an integral component of our society, which has allowed for the rapid development of businesses and a significant increase in our standard of living.

If it weren’t for banks, Google would not have the funds it has today to allow protesters to search for anti-capitalistic websites. If it weren’t for banks, Facebook’s IPO would not be possible, meaning not enough Facebook servers to host event requests for marches in Zuccotti Park or St Paul’s. The list continues, but this article’s word limit is strict.

I should also add that the Occupy Wall Street protests have inspired many counter-movements, which reveal the humanity of the other side, and offer excellent responses to the insubstantial claims of protesters (see “We are the 53%” and “OccupyOccupyWallStreet”). Moreover what has the recent crisis really shown us? The government does not control all that happens in our capitalist system – the people are often in control. If you work hard and are determined to succeed, you can achieve what you want. Bankers work harder than a big chunk of “the 99%”, and the lower-middle class that truly wishes to succeed will work overtime in order to prosper. And if truly 99% of the population want the Western values of wealth, success and freedom wiped out for communist mottos, red flags and the rise of the proletariat, then the people will vote for the corresponding party in the upcoming elections.