The Occupy Wall Street protest which began on September 17 in New York City’s Zuccotti Park has now spread and become a nationwide movement. Occupy Boston, based in Dewey Square Park across the street from South Station, joined the movement in its early days and has been a very active participant. Although the Occupy Movement is still in its infancy, it is already helping shape the national debate about the economic and social challenges facing our country and how we move forward.
At its heart, I believe the movement is driven by a loss of faith in the enduring promise of the American dream. In the past, each generation of Americans has believed that if they worked hard and played by the rules they would enjoy a comfortable middle class life and their children would have access to even greater economic opportunities. Today, however, Americans are confronted by an economic and political system that seems to work well for an ever smaller share of the population while tens of millions of people struggle to survive.
One powerful indicator that the American dream is slipping away for many people is the dramatic rise in income inequality over the past three decades. According to data from the Congressional Budget Office, from 1979-2007 the average annual income of the top 1% of Americans nearly quadrupled to $1.9 million, while the income of the bottom 80% of Americans showed almost no growth. As a result, by 2007 the top 1% controlled 35% of Americans’ total net worth, while the top 10% controlled 73% of all our country’s wealth. This level of inequality exceeds all other developed nations (except for Singapore) and puts the United States in the company of many developing nations like China, India, Egypt and Nigeria.
Another troubling indicator is the increasing unaffordability of higher education. College tuition and fees have outpaced inflation for many years and the problem has been exacerbated in recent years by state budget cuts caused by the recession and falling tax revenues. As a result, families are struggling to send their children to college and students are being forced to take on ever greater debt burdens. According to the Federal Reserve, the amount of outstanding student loans has doubled in just the past five years from $500 billion to $1 trillion, leaving many graduating students with crippling levels of debt that threaten their economic stability for years to come.
High income inequality and lack of affordability of higher education should be cause for deep concern for all Americans, rich and poor alike. A vibrant democracy with a prosperous economy depends on a strong, well educated middle class whose workers can earn a living wage with decent benefits, send their children to college, and one day retire with dignity. The American dream has long been based on the premise that with hard work anybody can enjoy economic success, but today the United States actually ranks behind many other countries in social and economic mobility, including Germany, Spain, Australia and Denmark.
There is no doubt that powerful global economic forces are among the underlying causes of these troubling trends. In an increasingly interconnected world, corporations can easily move their factories and other operations to countries where they gain a competitive advantage, and lower wages in developing nations like China and India help to suppress wages in richer countries. Technology has also caused the gap between well educated knowledge workers and less skilled workers to widen significantly.
Most economists also believe that U.S. government policies over the last thirty years have contributed to the growth in income inequality and the decline in social mobility. The Occupy Movement is rightly calling attention to the undue influence that wealthy special interests and big corporations have on our federal government. Through armies of lobbyists and millions of dollars in campaign funds, they are often able to tilt the playing field in their favor and against the interests of average Americans.
It is too soon to tell what impact the Occupy Movement will ultimately have on our political and economic systems, but it is already clear that the movement is focusing on the most important issues of our day and positively influencing the national debate.
I welcome your feedback on the Occupy Movement. Share your thoughts on our Facebook page at Facebook.com/RepJasonLewis. You can also reach me at 617 722-2017 or by email at Jason.Lewis@mahouse.gov.
Jason Lewis
State Representative
31st Middlesex District – Stoneham and Winchester