Occupiers’ primary outrage seems to be against poor stewardship. They use the language of “increasing inequality,” but more precisely they may object to the unreliable correlation between productivity and compensation. Few resented Steve Jobs his wealth, given the value created by Apple, but who does not resent golden parachutes paid out to senior executives of unprofitable, much less failed, companies? Occupiers will garner powerful and unexpected allies ”” big shareholders, hedge funds, and activist investors ”” if they use this language of just stewardship rather than a resentful Robin Hood rhetoric.
In trying to uncover the causes of today’s crisis, occupiers would also do well to apply their axe to the roots of the problem, which an even cursory study of economic history would reveal is hardly the prominent branch of banker malevolence. During the last Great Depression, people and governments wanted to consume more and grow faster than their productivity allowed. If you are unwilling to accept the financial limits of your own productivity, you borrow. But from whom? Contrary to populist belief, the private sector is not generally eager to lend to parties lacking income, assets or collateral. Consequently, ever since Franklin D. Roosevelt created “government sponsored entities” (like Fannie Mae), GSEs and their ballooning balance sheets have encouraged new loans to parties the “greedy banks” would not generally have lent to of their own volition. These GSEs promise to buy much of the debt generated by politically evocative but generally not creditworthy groups ”” veterans, students, low-income and first-time homebuyers, farmers in a rapidly industrializing economy. While a case can certainly be made for using government to encourage constructive behavior or to help disadvantaged groups, there are ways to do this without so profoundly distorting the economy.
How about Occupy Hollywood and Sports to protest the obscenely high salaries of entertainers and sports celebrities?
Neither Hollywood nor the Sports industry have been bailed out by the federal government (though I agree with you on the principle, assuming you posit it seriously).
Both Hollywood and Big League sports are often subsidized by State and local governments. ( Stadiums and Film subsidies come to mind). I hardly think that the Occupy Whatever cohort could be considered proponents of confederalism, so perhaps charges of hypocrisy are appropriate here.