Jared Bernstein <http://www.huffingtonpost.com/jared-bernstein>
Senior Fellow, Center on Budget and Policy Priorities
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Wall St.: This Is Not a Head Scratcher  Posted: 10/4/11 01:09 PM ET 
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Last night I heard a story on NPR about the Wall St. protest that is now
spreading
<http://www.washingtonpost.com/business/economy/wall-street-protesters-h\
ope-to-plant-seeds-of-a-national-cause/2011/10/03/gIQAiBmKJL_story.html?\
hpid=z2>  to other cities. The gist of the story was: "what are these
protests really about? What do they want?"

I'm sorry, but that's just not a head scratcher. Do these news analysts
think it's a coincidence that they're occupying Wall St. as opposed to
Columbus Ave north of 79th?

As Andrew Sorkin put it
<http://dealbook.nytimes.com/2011/10/03/on-wall-street-a-protest-matures\
/?ref=business>  today (after writing that the message was "at
times...hard to discern"):
... the demonstrators are seeking accountability for Wall Street and
corporate America for the financial crisis and the growing economic
inequality gap.
I'm not saying everyone down there is ready to give a clear exposition
of the facts of the case, but commentators can stop scratching their
heads now.

I've been writing about these problems for decades. Sometimes they've
gotten a little better, but mostly they've gotten worse. Before the
downturn, the share of income held by the top 1% was 23.5%, the highest
since 1928 and more than twice the 10% level of the late 1970s.

These are growth shares, as in they have to sum to 100%-when one group's
share goes up like that, everybody else's has to shrink.

That doesn't mean real income values can't rise for other groups, of
course (though it does imply slower relative growth, compared to the
high end). But in fact, the middle class and the poor haven't seen that
either... the decade of the 2000s saw middle-incomes decline
<http://jaredbernsteinblog.com/the-lost-decade-for-the-middle-class/> 
in real terms for working-age households. The recession just made those
incomes fall faster.

Protest movements are often born of two interacting injustices: the lack
of opportunity and the lack of accountability by the persons perceived
to be blocking that opportunity.

Given the facts of the income distribution, the trends in real
middle-class incomes and poverty, the failure of policy to do much to
change these trends, the government bailouts of the only class that's
benefited
<http://jaredbernsteinblog.com/a-tale-of-two-economies-and-the-inequalit\
y-dragon/>  from the recovery so far, the absence of clear
punishment/accountability for the financial and political institutions
that helped inflate the debt bubble that continues to squeeze economies
across the globe, and the dysfunctionality of the current political
system (they're arguing more about whether they can keep the lights on
than whether they can help solve the economic problems), the more
interesting question is what took so long for such protests to show up?

Update: A colleague sends me to this site
<http://wearethe99percent.tumblr.com/>  which puts a face on much of the
above (hat tip: HS).

This post originally appeared at Jared Bernstein's On The Economy
<http://jaredbernsteinblog.com/>  blog.
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