Time magazine had it partially right when it named “the protester” its person of the year. The image of an Arab woman on the issue’s cover suggested an emphasis on the Arab spring movements that have toppled several autocratic regimes and threaten several others.
But closer to home, indeed, at home, the protesters of note were, and are, the Occupiers of the Occupy Wall Street movement. The Arab spring movement will change the face of the Middle East, hopefully for the better (much on that score remains to be seen). But the Occupy Wall Street movement might save America from the march toward plutocracy that it has been on for the last thirty years.
Properly understood, the Occupy movement is aimed at reining in the excesses of rampant greed in a corporate-dominated capitalist system that has lost its bearings.
That sentence is a mouthful, but it is an accurate statement of the purpose of the Occupy movement, and with a little historical perspective, it will make sense.
As everyone knows, the United States emerged as a nation after rebelling against British colonial rule. In forming their new union, the founders drew heavily on the writing and thinking of the Age of Enlightenment that had swept Europe in the preceding century. That movement was based on the pursuit of intellectualism and was embodied by the goal of egalitarianism.
In drafting the Declaration of Independence and the country’s Constitution, the founders sought to effectuate what many European countries were struggling (against reigning monarchies) to achieve: a democratic form of government in which the citizens were in control and decided the rules by which their society would be governed.
The new American society was to be bound by a basic concept, encapsulated in the Bill of Rights’ Due Process Clause, which was best expressed as “fundamental fairness.”
But when the founders put the finishing touches to the Constitution, the fledgling country was an agrarian society. Commerce was largely limited to bartering for goods and services. Money was of less value than property and property was primarily of value for what it could produce.
In fact, the Industrial Revolution did not reach America’s shores until the nineteenth century was well underway. It had its beginnings with the War of 1812, but didn’t really start to change the economic landscape of the country until later in the century. And even then, the basic economy of the country was still a mix of agriculture (principally in the south and midwest) and the commercial (in the northeast).
Seen in this historical light, capitalism must be understood to have been little more than an irrelevancy in the founders’ minds as they constructed the form their new country would take. And corporations, if they were thought of at all, were hardly intended to be recognized and protected in the founding documents of the new country.
But the country did ultimately move from an agrarian economy to an industrial one, and with that change came the proliferation of corporations. The principal purpose of the corporate structure was to allow businesses to exist in which the owners were shielded from personal liability. This protection allowed for innovation.
Innovation in an industrial society is good, because it promotes progress. And progress is good, because it allows the citizens of the society to live better, fuller, richer lives. But without the corporate shield from liability, many businesses would avoid the risks of innovation, thereby thwarting, rather than promoting, progress.
And so, as the nation became more focused on its industrial economy, capitalism became the economic model it adopted. Simply stated, capitalism is the best way to recognize the value and benefits of corporations. It rewards innovation by allowing the owners of the businesses to keep their profits. It allows the most successful of the innovators to expand and thereby increase the amount of progress they create.
But unchecked capitalism also has its downside. Corporations exist for the sole purpose of producing profits. They promote, in that sense, the unfettered greed that in individuals is usually mitigated by the other side of humanity’s nature (its “soul,” if you will). Corporations are soulless. They only want to maximize their profitability, and without controls on the way businesses conduct themselves, the drive for profits can be all consuming.
The Occupy Wall Street movement seeks to curtail the ravenous lust for profits that have produced the gross income disparity that exists in the country today. In essence, the equilibrium that a well-functioning capitalist system requires has been lost, as evidenced by the growth of mega-corporations that award multi-million dollar bonuses to their top executives while paying their workers no more in inflation-adjusted dollars than those same workers would have made decades ago.
The United States has become a nation of haves and have-nots, which is the very antithesis of what the founders envisioned. The middle class, which used to be the country’s great strength, is shrinking. A recent government report indicated that as many as sixty percent of America’s population barely gets by or lives in poverty. That kind of report isn’t too different from what might be found in some third world countries.
And so, to speak of the ninety-nine percent and the one percent is not far-fetched. The ninety-nine percent are struggling to maintain the lifestyle they have, while the one percent are getting ever wealthier.
It’s simple math when you get right down to it — simple math built on simple history. The Occupy Wall Street movement wants equity. It wants a system that honors hard work and gives everyone a chance to succeed. It wants what the one percent refuses to let them have: the ability to live a better life than their parents lived and to provide for their children a better life than they have, which, simplistic though it may be, is the embodiment of the American dream.
That dream has been increasingly difficult to realize for the last thirty years, and America’s current brand of capitalism is largely to blame.
Unfettered capitalism is not guaranteed by the Constitution. Fundamental fairness is.