News & Media in Toronto written by Ian Chow:
In response to the CBC article written about the occupation Occupy Economics; is the system broken? Posted Oct 17, 2011, written by Don Pittis:
There were some important issues raised here. Especially about bailing out banks. But there are many more that couldn’t be covered under the span of the CBC article. But first to answer the bailing out question: “So was it a good idea to spend $800 billion in taxpayer cash to bail out the U.S. banks? Is it a good idea for the Europeans to do it all over again now?”
It is inherently bad economics to bail out banks. Yes it’s understandable that it is to save the economy, but it goes against the “rules” of economics. In that respect, it’s not fair that banks are being bailed out. Why are they more “special” to be entitled to a bail out? I don’t see bail outs handed out to individuals that are starving and can’t buy food due to high inflation rates and static salary income.Two major issues arise with this. And both show the inconsistency and flaws of a capitalist system. 1) If things fail (market crashing), they should fail and thus shows maybe the system has a flaw. 2) Bailing out goes against economics and “equality”. Why are they being bailed out and not us? (I suppose the answer is obvious; to save the economy, but you can also save us! We are the economy!) Favourism shouldn’t flow with free enterprise, exposing another flaw.
This article is written surrounding the idea that the economy should be saved. I say for true capitalism, it should go laissez faire – we’ll really see how good the system is then, instead of extended debt, bail outs and high tax rates for the poor and tax cuts for the rich. Even Warren Buffet, one of the richest man, had said to raise their taxes to help save the economy.
To answer the question from the title: Is the system broken? That’s a difficult question. There are certainly many flaws (inherently placed by the creation of the system itself – there is NO PERFECT SYSTEM)
BUT there can be reform to help ease it.
Aside from that some other major things the protesters are standing against is the mis-use of their tax money. Not everyone would like to support wars that are being waged overseas; these wars that are raged are to bring oil from the Middle East. This military industrial complex completely spans over the CBC article and what is written here – but understand that is one thing the protesters are standing for as well. In short, it’s war for profit.
(For more information on what is a “military industrial complex”)
Another one would be the hypocritical statements of free speech. Democracy SHOULD allow free speech, yet there are riot police arresting peaceful protesters. They haven’t done anything (at the time of writing) and they are being peppered sprayed and beaten with batons and dragged to the confinement area set out by the police. Why does Obama, Harper, Hilary Clinton all stand for freedom of speech, support the riots in Egypt and Libya and many many other countries YET they still allow the arrests of peaceful protests in North America. This is one thing the protesters are standing for as well. A faux image of freedom of speech.
Moreover, speaking of Wall Street (and implied American politics), politicians are no longer voted on, but they are not supported by corporations. The big budget election campaigns are all funded by corporations to try and get the public support to elect the President who will pay them back via policy making and regulation control. This creates extreme bias to who has more airtime during the campaign, who can go across the country and show their face, and who can win the elections. The business and governments are sleeping in the same bed. Take business out of politics.
These are just a few huge things that the Occupy Movement represents. It is not only against the big banks and corporation, but also the ideology of the faux freedom of speech our country seems to spew out and the governing of our world in general. It covers a wide span of things and each individual there has their own reason.
An easy fix? Be transparent and accountable with everything. Ie. With the G20 – have an official release of what is discussed in those rooms, instead of having media blackouts. But of course that won’t ever happen. Being transparent and accountable can allow what the public has to say about how the state of things is being run. That is true democracy. But that extends over the scope of this piece.