5 Reasons Why Occupy Wall Street Won’t Change Anything in Big Business

 

The past three years have been, to put it mildly, a little depressing for Americans.  We’ve seen an economic collapse unmatched in generations shred our finances and job opportunities.  We’ve watched as unemployment ticked slowly higher and our wages stagnated.  We looked to Washington for some sort of solution, and they responded by bickering like children, starting fights about things that don’t create jobs, and some of them were even bald-facedly making a shit ton of money off our misery.   

And then for a brief moment in Zuccotti Park, it seemed like Americans were finally fed up with the bum deal they’d been getting from big businesses and Washington, and decided to do something about it.  The Occupy Wall Street (OWS) protests spread across the country, and then across the world, as people filled the streets to protest the unholy marriage of big business and government; a system that gave billions in bailouts, then ground to a halt when someone proposed something as preposterous as better benefits for the average American.  The protests have persisted for months, even through repeated clashes with police.  It seems now that OWS isn’t just a flash in the populism pan, but may actually be a genuine movement out to represent the interests of the common man, after all, how can you stop the will of 99% of the country?  With ease and a lot of money, is the unfortunate answer. 
 

Money Still Talks Louder Than Anything Else

 

 

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One of the biggest and most salient points coming out of the somewhat muddled ideology of the OWS protestors is that big business has far too great an influence on government.  This leads to policies that benefit the biggest campaign contributors, since its their money, not their constituents votes, that ultimately guarantees re-election.  It’s a difficult argument to refute, especially after you see the massive amounts of money companies put into their lobbying activities, and the subsequent benefits they see in legislation. OWS protestors have even proposed a constitutional amendment to allow only public funding for political campaigns.   

Why it won’t have any effect: 
Because money always finds a way into politics.  Sometimes, money isn’t even needed, only the promise of future wealth.  The disgraced former lobbyist Jack Abramoff’s favorite tactic was to simply dangle the possibility of a lucrative private sector job and doors across Washington would open for him.  Not a cent needed to go to a campaign to get what his clients wanted (or we’re talking about Abramoff here so whatever lined Jack Abramoff’s pockets).   

So say we go scorched-earth and ban anything resembling any sort of lobbying activity (presuming this would be possible).  Well it turns out money doesn’t even need politicians to get what they want.  A good example is the recent row over taxes on sugary drinks to fight obesity.  The industry that makes their bread and butter off of these drinks went directly to the public with PR campaign blasting the tax.  Even the loathed Citizens United v. FEC decision that’s predicted to open gigantic floodgates of private money onto Washington, was argued over a documentary that ostensibly just presented the facts about Hilary Clinton (the film’s claim to impartiality was dismissed by the court).  As terrible as Citizens was for the flow of private money into Washington, the dicey problem it raises is how do you determine if something is fact-based or politically motivated to influence an election?  Could a documentary about poverty in America that rightly criticizes Republican policies be considered politically motivated if it’s aired the week before an election?  The point is, something needs to be done, for sure, but even if OWS does manage to get a legitimate mouthpiece in Congress, the money will always find a way to get what it wants.  It may be possible to fix, but it’s an steepest, most treacherous and ancient edifice to surmount on the way to better politics. 

The Average American Doesn’t Have a Lobbyist

 

 

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The second giant, systemic hurdle OWS would need to overcome in order to significantly affect big business, is the fact that business will always have vast, lucrative interests they’re willing to spend gobs of money on.  The average American has vast, sweeping interests that involve what is on TV tonight.  There is no counterpart to the interest of business that is fighting to preserve worker rights, income growth, and greater benefits.  (If your response here was “our Representatives are the counterpart and we pay them in votes”, you are so adorable).  Wait that sounds familiar, could we be talking about these Unions I hear Republicans say are the root of all our economic ills even though neither myself or anyone I know has ever been remotely involved with them? 

Why it won’t have any effect: 
Unions are dead.  The latest figure stands at 11.9%, of American workers, the lowest in 70 years.  And this isn’t just some nefarious plot by big business to rob Americans of their protections (though they try their damnedest), the truth is many Americans are voluntarily abandoning Unions — especially in government.  It’s a classic example of a Public Good that everyone enjoys the benefit of — in this case worker protections, higher wages, shorter work weeks etc…– that no one is willing to pay for.  Like a superhero that is now irrelevant because he threw all the criminals in jail, Unions struggle to get the average American to understand their importance in a world where working conditions are halfway decent.  Problem is, all the criminals escaped from Arkham in 2008. 

Fixing Income Inequalities and Balancing the Budget Will be Messy, Messy Fights

 

 

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Another big criticism heard from the OWS camps is that the highest earners control a vastly disproportionate share of the wealth in the US, and the influence that brings with it.  They then are able to use this influence to make even more money.  The gripe here isn’t that rich people have money, a certain amount of inequality is to be expected and even lauded in any well-working capitalistic system.  The point is that with the cost of college ballooning, and government programs designed to help the poor evaporating, the meritocratic system underlying capitalism is disintegrating.  On top of that, the government has a massive debt burden that would preclude any large-scale plans to even the playing field. 

Why it won’t have any effect: 
Because helping the 99% get better access to education, healthcare, unemployment insurance and other programs that have proven economic net benefits requires money.  And that means a fight over a budget that needs to first be balanced.  And that means a shit hurricane with shit hawks dropping shit bombs over Washington.  No less than Warren Buffett has warned as such.  Just to get the budget back to sustainable numbers involves cuts to medicare, medicaid, the military, and, yes, tax increases.  This means that any money going into, say, more Pell grants to help with college expenses is going to come from a very limited pool of funds that everyone in America will be fighting tooth and nail for a piece of.  When even something as obvious and simple as more funds for disaster relief following God’s personal vendetta against the east coast this year nearly causes a government shut down, OWS certainly has its work cut out for it.   

The response to this is usually something along the lines of “make the wealthy pay their fair share”.  While it’s true that wealth individuals, and big businesses especially, pay very low taxes compared to history and the rest of the world, it’s not going to cover the gap, and if it gets too high they’ll just find ways around it

No One Understands the Budget

 

 

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On paper, balancing the budget is actually really easy.  Seriously, take a whack at it using this New York Times calculator and in a few minutes you can probably come up with a plan that balances moderate tax increases with cuts that don’t absolutely gut social programs or the military.  It seems pretty reasonable looking at these numbers that some of the more modest fixes to education and social programs demanded by OWS can be achieved with relative ease. 

Why it won’t have any effect: 
No one understands the budget.  The average American thinks that foreign aid ranks above medicare spending when in fact it constitutes less than a percentage point.  The same is true of NASA, which commands a whopping 0.5% of the budget, while Americans believe it’s as high as 20%.  Ask a Republican presidential candidate how they will bring the budget into line, and they’ll start by attacking the National Endowment for the Arts, which has a budget of $154 million, or 0.004% of the total budget.  That’s about the cost of a single F-22 Raptor a year, of which the air force has 173, after spending $66 billion to develop them—roughly enough money to fund the endowment for the next 400 years.  

Obviously, we’re dealing with some pretty screwy numbers here.  But what does it have to do with big business?  Simple, because no one understands how much money we do or do not have to spend, whoever shouts the loudest that “This will hurt/help economic growth and hurt/help our industry” will be the most right since apparently the majority of Americans have no ability to judge the difference.  There is some hope, however.  A 2005 study that showed respondents the composition of the Bush budget plan found that they were quite reasonable and proficient in coming up with a balanced budget. 

They Aren’t the Tea Party (And That’s a Bad Thing)

 

 

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In light of all these huge systemic obstacles to OWS changing the dynamic between money and politics in America, we can take heart in the idea that at least a discussion is being started.  Hopefully politicians will see angry, disenfranchised Americans in the streets and begin to think that maybe these people will in fact vote against them in the next election.  Or, you know, vote at all.  At the very least, OWS is shifting the conversation away from the Tea Party’s cut everything rhetoric to a let’s examine how to make life better for the 99% rhetoric.  That has to be a good thing right? 

Why it won’t have any effect: 
In order to enact the large-scale regulatory, tax code, campaign finance, etc… rules that would have an effect on big businesses’, OWS still needs asses in congressional seats that share their views.  The Tea Party shifted very quickly from (cough) grass roots (cough) to a well-funded, well-organized group backed by powerful interests.  They went straight for the ideological foundries of America’s political parties: the primaries.  In this way, they controlled conversation surrounding the 2010 elections from day one, and made sure that their views weren’t lost in the swarm of other powerful interests in a party’s base that influence primaries.  Rallying in the streets has and will continue to alter the political conversation, but OWS is going up against powerful and well-entrenched corporate interests.  Unless OWS is committed to winning elections, no policy will result, and things will only change in small ways very slowly.  Or not at all but we’ll be told that the problem has been addressed so we can all stop worrying and go back to wondering what’s on TV tonight.


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Occupy Wall Street: Hurting Small Business?

Small business owners seem to be getting sick of the Occupy Wall Street movement. Though it claims to represent the 99 percent of Americans not in millionaire status, small business owners only see the trouble that has been caused for them in communities where the protests occur. See the report on small business’s concerns with the movement and hear what the Chairman of the Fed has to say about the importance of small businesses to economic recovery. It’s all coming up with plenty of small business tips thrown in for good measure in today’s roundup.

News

How Occupy Wall Street may be hurting small businesses. It’s been talked about before, but there is tangible evidence that from New York to Oakland protest encampments may be hurting small businesses even though protesters claim these folks as part of the 99 percent and certainly not the elite. Has your small business been hurt? The Christian Science Monitor

Bernanke: we’re important to the recovery. Regardless of articles circulating in the mainstream press recently, it would seem the Chairman of the Federal Reserve still realizes the vital role our small business community plays in any long term economic recovery. Read what he has to say. WSJ

Finance & Education

When seeking investors, don’t do these things. Investment isn’t the only way to start or expand your small business, but if you decide that seeking investors is the route you wish to take, be sure to avoid these pitfalls in the process. Seeking investors the right way will save you many frustrations and headaches down the road. Open Forum

Online sources offer continuing education. Entrepreneurs need to keep learning, from updating new skills to more information about their companies and business in general. Today, the Internet offers many options and more are on the way. Entrepreneurs Unpluggd

Marketing Basics

How listings, maps and reviews in Google Places make all the difference. If you want to get business from your listing in Google Places, you’d better be able to maximize that listing with SEO, reviews and other Google Places optimization to be sure your company gets the attention it deserves. Capture Commerce

You’re on social media, but are you listening? Fred Caballero recently decided to test whether three major gaming companies would reach out to him while he considered which of their gaming consoles to buy. Guess what! These brands may have huge Facebook followings, but they’re not listening. Are you? Channelship

Resources

Exploring Google Plus business pages. You’ve heard the long awaited Google Plus business pages are here. We now look at some of the features these pages have to offer for the small business community. Have you created a page for your company? Resonance

How to grow your small business crop. Dr. Shannon Reese shares these ideas for small business owners about how to grow your business starting with the “seeds of peak performance.” You’ll want to check out her detailed planting instructions to see that you reap a bountiful small business harvest. Strategies & Tactics for Women

Branding

Always have fun with your small business. Whatever you do, it doesn’t need to be boring. Here David Siteman Garland shows that even an invoice can be fun and can show off your creativity. Your small business is a reflection of your own personality. Make sure you use that personality to brand your business in a way customers can’t ignore. The Rise To The Top

Innovative ways to market your brand. Along with shaking things up in other departments, marketing should never be boring. One option, says Torrey McGraw, is to use the exciting format of video to take your small business marketing to a whole new level. See Torrey’s list of tips for enhancing your video efforts. CreateHype

From Small Business Trends

Occupy Wall Street: Hurting Small Business?

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Is this what’s feeding the Occupy Wall Street protests?

We’ve seen it mentioned several times over the last week so we thought we’d pose this question to our readers:

Should the real targets of the Occupy Wall Street protests be the fat cats in our institutions of Higher Education?

The fact is that it’s nearly impossible to untangle the causes of the economic mess we’re in. Whether the cause is government (according to the libertarians) or the financial industry (according to the progressives) or an economically ungrounded system of higher education and student loans (according to all of us with a degree, no job and big student debt), there’s a pretty clear message… everyday people are getting tired of getting jerked around.

Higher Education Bubble
From: Best Colleges


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Review of The Wall Street Journal Guide to the 50 Economic Indicators That Really Matter

I’ve received a rather interesting book to review this week; it’s called The Wall Street Journal Guide to the 50 Economic Indicators That Really Matter – From Big Macs to “Zombie Banks,” the Indicators Smart Investors Watch to Beat the Market. It’s a long title for what is actually a rather short and compact book.

In the book Flash Foresight, Daniel Burrus taught us how to distinguish between hard trends and soft trends so that we can make better predictions.  And in The Wall Street Journal Guide to the 50 Economic Indicators That Really Matter, authors Simon Constable (@SimonConstable)  and Robert E. Wright (@RobertEWright) teach us how to watch indicators and make smarter market investments.

50 Economic Indicators Follows Unlikely, Entertaining and Unusual Indicators

My business book reading addiction rarely takes me to the hallowed halls of Wall Street.  But this book piqued my interest when my eyes fell on the back cover blurb: “An entertaining must-have guide to the indicators most investors aren’t following – but should be.”  It was the “should be” part of that sentence that got me to read more.  That’s when I learned that there was such a thing as a “Vixen Index” – an index that tracks the number of attractive waitresses in your home town.  Really? This counts as an indicator upon which to base an investment decision? OK, I have to read more–and you should too.

50 Indicators reads almost like Super Freakonomics.  And if you liked the Freakonomics books, I think you’ll like this one too.  Early in the book, the authors state that no one they interviewed or talked to was aware of every one of the 50 indicators.  In other words, even the folks who live, breathe and measure the economy on a daily basis were entertained and surprised!

Rather than go into a boring dissertation on common indicators such as Consumer Price Index or unemployment rates, 50 Economic Indicators has chosen 50 off-the-beaten-path indicators based on the following criteria: timeliness (how enduring is the information?), accuracy (can you rely on the information?), exoticness (uniqueness or unusualness) and correlation to the real economy (does it work?).

Consumption Indicators – 70 percent of the U.S. economy is grounded in consumption, making this an indicator you can’t ignore.  Here are just a few consumption indicators mentioned in the book:

  • Track the UNDERemployment rate.  This number is released the first Friday of the month.  When this number goes up, start buying stocks in pharmaceuticals, food and alcohol.

Business Investment Indicators – this sector comprises between 15 and 20 percent of GDP. Even though consumers cut back in the short run, ultimately they have to purchase these items over the long run.

  • The Book-to-Bill ratio tracks the semiconductor industry.  Since microchips go into nearly every device we use, the ratio of semiconductors booked (ordered) compared to those delivered (billed) becomes valuable.

Multiple Components Indicators – This is where you’ll find the “fun and interesting” indicators.

  • Fertility rates are a leading indicator.  As countries get richer, fertility rates are reflected in investments in education, cars and houses.  As baby boomers age, you should buy health care stocks and as small baby bulges enter college, buy education stocks.

Inflation, Fear and Uncertainty Indicators — These indicators are also called the three horsemen of the financial apocalypse because they presage major shifts in GDP.

  • The Vixen (Hot Waitress Index) is an invented index created by Hugo Lindgren who noticed that as the economy tanked restaurants were able to hire better and better looking staff.  This is by no means official, but it goes to prove the point that with a little research and financial tracking, you can create your own index.

50 Economic Indicators Is a Super Handbook for Any Investor

I thoroughly enjoyed 50 Economic Indicators.  This isn’t a book so much as a handbook that any investor regardless of his or her level of expertise will be able to put to use.

Since many of the indicators mentioned in the book are frequently mentioned in the news, you might consider having this book close at hand – maybe even on a Kindle – because you’ll want to refer to it whenever some of these stats are reported so that you can decide how to invest your money.

Even if you’re not an avid investor or trader, but are interested in economics, you’ll find this book interesting and entertaining.

From Small Business Trends

Review of The Wall Street Journal Guide to the 50 Economic Indicators That Really Matter

View full post on Small Business News, Tips, Advice – Small Business Trends

The Trader Pro System – Trade Like a Wall Street Professional

Complete trading system shows how Anyone can make consistent monthly income trading. With over 40 high quality Dvd Packs, Evergreen product, high conversion rate. Complete Affiliate page with promotional tools http://traderprosystem.com/affiliates.php
The Trader Pro System – Trade Like a Wall Street Professional

The Trader Pro System – Trade Like a Wall Street Professional

Complete trading system shows how Anyone can make consistent monthly income trading. With over 40 high quality Dvd Packs, Evergreen product, high conversion rate. Complete Affiliate page with promotional tools http://traderprosystem.com/affiliates.php
The Trader Pro System – Trade Like a Wall Street Professional

The Trader Pro System – Trade Like a Wall Street Professional

Complete trading system shows how Anyone can make consistent monthly income trading. With over 40 high quality Dvd Packs, Evergreen product, high conversion rate. Complete Affiliate page with promotional tools http://traderprosystem.com/affiliates.php
The Trader Pro System – Trade Like a Wall Street Professional

The Trader Pro System – Trade Like a Wall Street Professional

Complete trading system shows how Anyone can make consistent monthly income trading. With over 40 high quality Dvd Packs, Evergreen product, high conversion rate. Complete Affiliate page with promotional tools http://traderprosystem.com/affiliates.php
The Trader Pro System – Trade Like a Wall Street Professional

A Wall Street Tabloid – Business News Headlines and Financial Gossip

So, any ideas? Shall he serve a a butler for every shareholder for a few days? Some courtesy reach arounds? Or, he could tell us more about the…
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Heard on the Street: India’s Internet Promise

India’s demographics provide ample reason to get excited about the Internet market’s potential for stellar growth there.
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