Talk:Occupy Wall Street/Background
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Long term background[edit]The movement have complained about various issues, with core issues being the regulation of Wall Street speculation, the limitation of the lobbies influence on law makers and law making, to reduce inequalities and implement or restore a fairer taxe system.[1][2] US Financial sector and corporates[edit]
In 1933, following the Great recession, Sen. Carter Glass (D—Va.) and Rep. Henry B. Steagall (D—Ala.-3) co-sponsored the Glass–Steagall Act. This law was signed in by Democratic President Franklin D. Roosevelt and introduced banking reforms, some of which were designed to control speculation. It make compulsory the separation between investment banking which issued securities and commercial banks which accepted deposits. In 1999, the Republican sponsored Gramm–Leach–Bliley Act and signed into law by the US President effectively removed these limitations. The deregulation also removed conflict of interest prohibitions between investment bankers serving as officers of commercial banks. Some economists believe this repeal directly contributed to the severity of the Financial crisis of 2007–2011 by allowing Wall Street investment banking firms to gamble with their depositors' money that was held in commercial banks owned or created by the investment firms.[3][4][5][6][7][8] However, regulating or reforming the financial sector have proven difficult or impossible. Only 38 out of 400 Dodd-Frank regulations have been written by the Congress in a year. Lobbying and perceived corruption in the US[edit]
Corporate greed and the United States’ corrupt political system were Adbuster's initial reasons to call for the Occupy Wall Street protests. Adbusters' Kalle Lasn describes it as "there is something about the financial speculators on Wall Street that brought us this mess, that not a single one has said, ‘I’m sorry for what I’ve done,’ and that they all got away with it while we the people are suffering."[9] Political activist Lawrence Lessig argues that the problems on Wall Street have been caused by corruption in Washington that has been perpetuated by a deep conflict of interests. He further states that because both parties depend on Wall Street's money to fund their campaigns, they will not dare to cross the interests of Wall Street.[10][11][12][13]. As the protest grew, conversations on the specific size and nature of corruption grew and various reports were often cited.[14][15][16][17] The Sunlight Foundation, a nonpartisan watchdog group that tracks lobbyist spending and influence, found that from 1989 to 2010, campaign funding from Wall Street totalled $1,188,664,055 and $823,559,224 was spent on lobbying efforts.[18] Reports also indicate that President Obama has received more money from Bank of America than any other candidate dating back to 1989.[19] In addition, The Center for Responsive Politics reported that among Obama’s biggest contributors in 2008 included Goldman Sachs ($1,013,091); JP Morgan Chase & Co. ($808,799); and Citigroup Inc. ($736,771). For Obama's re-election efforts, 244 elites are directing at least $34,950,000 -- money that has gone into the coffers of his campaign as well as the Democratic National Committee. Bundlers include Jon Corzine, former Goldman Sachs CEO and former New Jersey governor; Azita Raji, a former investment banker for JP Morgan; and Charles Myers, an executive with the investment bank Evercore Partners.[20][16][21][18] Thus, [Importance and questions over US lobbies and democracy. $500 millions for 2010, multiple bailouts from Obama and Bush[22]] [Conflict of interest found in the partial audit in 2008 during the times of the crash and bailouts] The Federal Reserve has been another point of discussion and protest among many Occupy Wall Street activists. After years of advocacy on the part of Congressman Ron Paul, the first ever partial audit of the Federal Reserve was released in July 2011. The report uncovered that in just one year, $16 trillion in total financial assistance were provided to some of the largest financial institutions and corporations in the United States and throughout the world, including banks that were owned by members of the Federal Board Reserve such as the CEO of JP Morgan Chase. The Federal Reserve also paid $659.4 million to the very financial institutions which caused the financial crisis to help the Fed manage all of emergency loans. Some of the other findings include $3 trillion bailouts to foreign banks, a $500 million interest free loan to a large hamburger company, and millions to a company that owns one of the television networks. Senator Sanders said in a statement, “this is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.” The Fed’s general counsel, Scott Alvarez, said in a letter responding to the audit that officials will “strongly consider” the recommendations. [23][24][25] Based on these findings, many Occupy Wall Street protestors have been attempting to raise awareness and advocating for a full audit or the end of the federal reserve.[26] Wealth and taxes inequalities[edit] The top 1 percent control 34% of the nation's wealth, the top 10 percent control about 65% of the nation's wealth. An unprecedented grab by the most powerful on the national wealth's pie since 1928.[27] In late 40's, for every dollar raised in taxes on individuals, Washington raised $1.50 in taxes on business profits. Today, for every dollar from taxes on individuals, Washington raises $0.25 in taxes on business. In the late 2000's, the federal taxation burden have massively moved from both corporate and individuals onto American individuals and families. The federal income tax rate on the richest individuals fell from 91% to the current 35%.[28] Following the late-2000s recession that left many countries on the edge of bankruptcy, with weakened economies and unemployment at very high levels, the government looked for both reducing costs, and increases incomes. However, it is proven very difficult to move back and raise up corporate taxes by 5%.[28] The Occupy Wall Street movement started with the believed that the much needed financial reforms and taxes reforms were staled mainly due to corporate lobbying. [Recent unemployment] Sources[edit]
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Fall of Capitalism and Rise of Islam by Dr. Mohammad Malkawi
http://www2.xlibris.com/bookstore/bookdisplay.aspx?bookid=75395