The #OccupyWallSt movement, and their single grain of truth [updated]
Phoebe Fletcher, Tumeke’s little-seen token feminist,
Martin Bradbury, the grown-up child known to other children as “Bomber”, is upset that too few are too disinterested in “the #OccupyWallSt movement... The protests have had little coverage in their initial days by mainstream media,” she whines, “and are only know beginning to be discussed.”
Well, let’s then. I doubt the overgrown children protesting outside Wall Street even know why they’re so angry at the bankers and financiers. They’re angry that the bankers are getting rich while all around them are growing poor? Well, isn’t it their own big-government heroes who’ve been shovelling out the money in the bankers’ direction? They’re angry that bankers have been shovelled trillions while all around them there are people struggling to make ends meet. Well, isn’t it their own economic theories (if so they can be called) that call for those trillions to be shovelled that way?
Don’t you think they might pause to contemplate that for a moment?
But if they only knew it, or were prepared to sit still for a minute to learn something [something the grown-up children are congenitally unable to do, for which I for one blame their (mis)education] there is a very good reason to be very angry indeed at the bankers. It comes down to the way money is created in our fiat money fractional-reserve system, and who gets to start spending it first…
As George Reisman explains in his comprehensive book Capitalism [online here], their anger should not be directed at capitalism but instead at the system that caused the collapse, and those who benefit from it:
Their anger should be directed only at that which makes it more and more difficult to [buy the necessaries]. What they should be angry about is not the existence of a market economy and the way the market economy works [or would work, if it had been allowed to] but at the presence in the market of a vast gang of dishonest bidders and dishonest buyers, a gang that bids and spends dollars created out of thin air in competition with their earned dollars… The source of those dollars created out of thin air is none other than the government. And the dishonest gang consists of it and everyone else who demands and received such fiat money.
In other words, it is [ artificial credit expansion ] and the pressure-group demands for it that the victims should denounce, not the market economy … It is the entry of newly created money into the economy that they should seek to stop… Instead of, in effect, calling for the closing of the market, they should simply call for an end to the government’s inflation of the money supply, and thus for an establishment of a fully free market. [pg. 205, emphasis in the original]
That’s where their wrath should be directed. Instead, to the extent their protests were to be successful, they would succeed only in giving even more power to those who have presided over the present system.
Such is the result of a lack of real learning.
UPDATE: “#OccupyWallStreet Is a Church of Dissent, Not a Protest,” says Matt Stoller at the Naked Capitalism blog. [Hat tip Vodka Pundit]