But What Are They For?

Critics of the Occupy Wall Street movement, and even many sympathizers, have complained since the beginning that the protesters are only shouting about what they are against, rather than making any coherent, positive proposals. Unfortunately, they have a point.

In response, I propose a plan for the democratic regulation of capital, consisting of the following policies:

Raise the capital gains tax. – This will not only provide more revenues for social spending, it will redirect capital from destabilizing short-term speculation and into productivity-enhancing, long-term fixed capital investment. Also, investors should be audited more frequently and rigorously.

Raise upper-income taxes. – The millionaires benefit more from the services government provides, so they should pay more.

Better regulation. – Expand government regulation of speculative finance, and enforce existing laws more strictly. Direct the regulation through the Justice Department, which is directly accountable to the President and Congress, rather than through independent and quasi-independent commissions like the SEC and the FTC.

More stimulus spending. – President Obama's original stimulus plan, which has since been pared down under Republican broadsides, was woefully inadequate. We need to put more of our people to work, preferably on socially constructive projects like building schools and clinics, rather than on military spending and business-friendly public works projects.

Bail out the little people. – We need a nationalization policy, like Japan and Sweden. Create a formal procedure whereby broke, too-big-to-fail banks and businesses will be placed completely under government control as a condition of aid. The government will replace corrupt and incompetent executives and determine whether the bankrupt company should be rescued or gradually dissolved. Another condition of assistance will be to prioritize the welfare of employees, homeowners, and small investors. Profits will be automatically reinvested, and executive bonuses and severance packages strictly forbidden.

Capital controls. – Currency speculation should be heavily taxed and regulated. The government should regulate the value of the dollar through diplomatic negotiations with other major economic powers.

These demands could be slapped together under a pithy slogan that might fit on a placard. I suggest something like “Capital for the people!”

Of course, there would have been political limitations on all these measures even in much more progressive eras. The rightward tilt in political sentiment – which may have recently bottomed out, but has not completely dissipated – as well as the inevitable lobbying power of big business, unfortunately make full enactment of this program impossible. Such is the Laodicean temper of our times.

Nonetheless, as Teddy Roosevelt said, “Do what you can, with what you have, where you are.”