They Are the One Percent… and We Should Be Worried
by Dr. Brian BaugusTo the extent that the Occupy Wall Street crowd has a core cause, it is an economic one. However, its title and location are the only real clues, because when it comes to demonstrating their vast economic knowledge, these people cannot.
They claim to be among the 99% of Americans who are victims of various legal and moral crimes committed by the financial sector, and that has risked their futures. But, what sort of future do they have?
What they are truly demonstrating is the vast failure of the education system. They have no global perspective or understanding of their historical position. They fail to understand THEY are the 1%. My Che Guevara looking friend to the left here stands to earn $1.6 million more in his lifetime than his high school party buddies who did not go to college. This means, on average he will earn $35,500 more a year than his high school counterpart will, and this is just the American part of the story. The average world citizen earns $7,000 a year right now and that is highly skewed, the median income is much lower. Only 19 percent of the global population lives in a country with mean per capita earnings greater than $7,000. Che is among the 20 to 25 percent of Americans that attend college and, assuming he graduates, will be in the upper income strata, likely the upper 20 percent. So, Che here is in the upper 20 percent of the upper 19 percent, which means, globally speaking, he will be among the wealthiest 4 percent in the world. Just like his Woodstock grandparents who became the BMW driving yuppies, he will protest and rail against the man or rage against the machine or whatever and then go earn a very good living over his lifetime and all of it brought to him by capitalism.
Historically, his case is worse. The fact that he has the time to go and camp out and not have to hunt, forage or farm speaks volumes that his twenty years of schooling do not seem to have prepared him to realize. While he is standing on the pavement thinking about the government and what it owes him, he does not realize that his urban camping trip is costing more than most people who have ever lived earned in a lifetime. As Deidre McCloskey points out in her book Bourgeois Dignity, Americans spend on average $120 a day, if this were 200 years ago the figure would be lucky to be $3 a day in current dollars. Living before the advent of wide spread free market capitalism would be like trying to live in the current economy on $3 a day, Che’s visit to Starbucks cost more than $3.
The sad aspect is not so much that Che is protesting but that he does not know any of this. His teachers and professors either do not know it or do not believe it.







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