To touch on the subject of the recent Wall Street protests, I read an article published in the editorial section of USA Today on October 12th titled 5 Good Reasons Why Wall Street Breeds Protesters. The article tells us 5 good reasons why the protesters have the right to be angry.
The author agrees that the protests are over the top. Protesters have been fairly quiet except for during corporate bailouts of 2008. While the author agrees that they offer no substantial solution, he claims that "financial institutions that should be the enablers of economic growth have become, at least in part, destructive".
Reason #1: Economic Recession- caused by reckless mortgage lending, the consequences of which are still being felt today.
Reason #2: Bonus Excess-staggering bonuses paid to New York City-based securities industry employees paid out in this time of economic need.
Reason #3: Brain Drain- Entrepreneurs are lured to jobs at banks where they are focusing on trading rather than building businesses and creating jobs.
Reason #4: Too Big to Fail- Failure of any of the largest banks would be too damaging for leaders to allow it. Recent bank reform gives CEOs incentive for risky behavior.
Reason#5: The Washington Racket- With a history of help from big government, as well as extensive tax breaks, why would banks expect any other but their own way of doing things?
The author here is obviously on the side of the protesters, but not outwardly so. I believe he is trying to make light if the situation and make some valid points as to why there is a problem. The author offers relevant statistics as well as a link to the oppositions view on the subject. He makes some very good points and I agree that there is a reason for action.