– How do they propose to replace capitalism?
(Click for AUDIO VERSION)
To use this segment in a Radio broadcast or Podcast, send TIM a request.
To observe May Day (May 1st), Sean Hannity of the Fox News Channel invited as a guest on his show Harrison Schultz of the Occupy Wall Street (OWS) movement to explain his organization’s objectives and motives. According to his LinkedIn profile, the 29 year old Schultz is a General Co-Organizer of the OWS and self-described “Anarchist.” Needless to say, the interview with Hannity, the polar opposite of Shultz politically, was rugged. Shultz argued, “The problem here is capitalism. That’s what needs to change. That’s what is failing all of these people.”
During the interview he went on to say he believes the government and big companies should provide the citizens free education, free health care, free dental care, free day care, free housing, and free transportation. “The government and corporations should get off our backs, stop enslaving us through debt, …”
Schultz’ comments on capitalism provides some rare insight into how the OWS movement perceives business and economics in general. Let’s consider the impact of each of Shultz’ proposed freebies:
In terms of EDUCATION, the average salary for a public school teacher is approximately $50.4K, High School teachers are $54.3K, and college professors average $80K to $120K depending on their specialty. This of course does not include school administrators, bus drivers, and maintenance personnel, nor construction costs for facilities, all of which has to be paid by someone, either the taxpayer, the consumer, or private benefactors.
For HEALTH CARE, the average salary for a nurse is $71.7K, and a doctor is $174.9K. This too, does not include office staff, medical technicians, or the cost of facilities, equipment and research. Likewise, this has to be paid by someone, either the taxpayer, the consumer, private benefactors, or insurance companies. On the average, the annual health insurance premium for a single person is $2.9K and $6.3K for a family.(1)
For DENTAL CARE, the average salary for a dentist is $141.7K and $61.7K for a dental hygenist. This too does not include the costs for facilities, equipment and support staff.
DAY CARE teachers average a salary of $27.8K and, of course, need facilities and equipment. Further, the national average cost for full-time day care is $611 a month.
As to HOUSING, single apartments range from $127-$360/month on the average; $616-$823/month for family apartments. This does not include utilities ranging from $60-$190/month. Then there is the matter of the salaries of the construction workers, architects, planners, engineers, managers and inspectors required to build the facilities, not to mention the materials needed for construction.
CNN recently reported, spending on public TRANSPORTATION totals roughly $50 billion a year, and noted that 75% of those dollars find their way to private companies in the form of construction contracts, fuel purchases and other expenditures.(4)
As an aside, the average cost for a bus is $424.8K, a railroad car averages $1.9M/car, and locomotives average $2.4M each.(5) Finally, the average cost for compact automobile ranges from $10K-$17K.(3)
This is how business works. If you perform a service, you expect to be compensated accordingly. If you build a product, you have to market it. All work involves competition and risk. The person who markets and delivers a better product or service at a more cost effective price will succeed while others fail. It also means nobody is irreplaceable; if you stumble and fall, someone will surely take your place. This is capitalism and if it sounds remarkably like Darwin’s theory of evolution whereby the strong survive and the species evolves, it is.
If we did everything Shultz suggests, the country would go broke at warp speed. There is a big difference between lending a hand or providing a safety net and giving everything away. People expect to be paid for services they render. Perhaps the OWS movement would want all of the people in the professions listed herein to waive their salaries and perform their services on a gratis basis. Unfortunately, this will not support their living requirements. The OWS have many complaints but no solutions other than Socialism which would do nothing but increase our debt. I do not believe they grasp the significance of debt as a concept. You do not spend what you cannot afford, for at some point your creditors will come knocking at your door demanding payment. You tighten your belt when times are lean, and you loosen it when you can afford to do so.
We have somehow developed a generation of people who sincerely believe they are entitled to everything as opposed to earning it, which is why they do not comprehend the concept of austerity. They want it all, they want it now, and they sincerely believe they deserve it. After all, if others can have nice possessions, why shouldn’t they? Envy has turned to rage. This is why the thought of earning and paying your own way is a foreign concept, not just to OWS, but to the Socialist Europeans as well.
To illustrate the point, following the Fox interview, it was reported Hannity offered Shultz a job which he refused as he wouldn’t settle for anything less than a starting salary of $80K. I wish I could have started at $80K. Don’t we all? You have to walk before you can run. It’s called “paying your dues.” Unfortunately, we are saddled with a country of Whizz Kids who believe they should start at the top. I don’t know where they were imbued with such genius, or perhaps it is nothing more than naive stupidity.
The one harsh reality the people do not want to recognize is, you are entitled to nothing. If you want something, you are going to have to go out and earn it. An education is not a right, it is a privilege. So is health care, dental care, housing, and transportation. Nothing is free. Forget what the promotion says, people do not offer something without wanting something in return. In the United States, the only thing you are entitled to is the freedom to try and hopefully succeed, but there is also the distinct possibility you might fail, a concept that frightens the laziest of people.
There is one last thing you are not entitled to, a helping hand. But if one is extended, you should definitely thank God and the person or institution offering it, but do not be so naive as to believe it is a right or free.
Keep the Faith!
1 – About.com
2 – Salary data from Salary.com
3 – Car costs from Motor Trend
4 – CNN – March 12, 2012, “Mass transit use rises as gas prices soar”
5 – American Public Transportation Association (2007-2008 figures)
Note: All trademarks both marked and unmarked belong to their respective companies.
Tim Bryce is a writer and the Managing Director of M&JB Investment Company (M&JB) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com
For Tim’s columns, see:
timbryce.com
Like the article? TELL A FRIEND.
Copyright © 2012 by Tim Bryce. All rights reserved.
NEXT UP: VOTER IDENTITY CARDS, WHAT’S THE BIG DEAL? – Ever stop and consider the role identification plays in our lives?
Many years ago there was a President so exceedingly fond of hyperbole that he spent all his money on political spin. He cared nothing about preparing a balanced budget, or tending to matters of state, except to campaign for his next election. He had a catch-phrase for every hour of the day, and instead of saying, as one might, about any other ruler, “The King is in council,” here they always said, “The President is on the campaign trail.”
The presidential race is now in full swing, and we didn’t even have to wait for the party conventions which normally denote the start of the official race. Then again, I don’t think anyone is really surprised the race would be between President Barack Obama and Governor Mitt Romney. Obama is the unchallenged incumbent, and Romney has been begging for this opportunity ever since he lost to John McCain in 2008. The differences between the two candidates are startling.
Are Information Technology Workers Blue Collar? Interesting question. I was recently asked this by some executives who were concerned with improving the productivity of their I.T. departments. I asked them to explain why they thought this way. They contended their I.T. people (e.g., analysts and programmers) exhibit a lot of blue collar characteristics, e.g., repetition in types of work performed, they do not dress or act like professionals, and regularly punch in and out of work with little interest in going above and beyond the call of duty.
Sushi has been a favorite of mine since I began visiting Japan back in the 1970’s. When I first tasted it, I was somewhat surprised by the hot wasabe mustard carefully hidden between the fish and the rice cake, but as I am somewhat of an aficionado of hot and spicey food, I adapted to it quickly. For the uninitiated, sashimi is simply raw fish, but sushi consists of a small rice cake, usually the size of a pinky finger, topped with green wasabe mustard and sashimi. Sushi comes in as many varieties as there are fish in the sea, and I’ve tried just about everything from eels and fish heads to Dancing Shrimp. “Dancing Shrimp?” you might ask. Actually it’s an interesting story.
It used to be that picking a vice presidential running mate was somewhat of an inconsequential undertaking as the president basically ran everything and the vice president collected dust somewhere in Washington, DC. This all changed when Franklin Roosevelt died unexpectedly in 1945 thereby thrusting Harry Truman into the Oval Office and placing the mantle of responsibility squarely on his shoulders, including our participation in the second world war. As VP, Truman knew nothing about the atomic bomb or Roosevelt’s dealings with Churchill and Stalin. Fortunately, Truman rose to the occasion and carried on admirably. However, this forced people to rethink the importance and role of the vice president. No longer was it considered inconsequential, but potentially had huge ramifications. Since then, the role of vice president has evolved and there is now a closer working relationship with the president. In fact, the selection of vice president is indicative of the presidential nominee’s judgment and ability to make decisions.
A couple of years ago I created somewhat of a ruckus when I wrote an article on 
The original purpose of our company was to develop and market a methodology to walk people step-by-step through the design and development of information systems, from soup-to-nuts. We implemented this as a series of manuals and forms for people to reference during the process. Actually, there were three manuals in the set which were housed in 22-ring binders: a manual to explain the methodology, another to show examples, and a third with training materials and an installation guide. This was done at a time before there were quick copy shops. Based on our artwork, a printer would produce copies of the manuals and forms on an offset press which was returned to us for collating, punching, and insertion into the binders. This was certainly not a glamorous job, but it had to be done regardless. To implement it, we setup long tables and organized the pages around them. We then began the arduous task of collating and inserting the paper by encircling those tables for hours. On a good day, we could assemble forty manuals which was considered a respectable pace. Inevitably, we began to experience the effects of monotony and boredom. You couldn’t go on autopilot completely during this assembly as you didn’t want to make a mistake, but it certainly wasn’t complicated either. We did this for several years until we were able to automate our manuals for access via the computer. I cannot honestly say I miss those days, but I appreciate the necessity of the work.
Last month I had mixed emotions as I watched the flight of the “Discovery” space shuttle orbiter on television as it was being retired to the Smithsonian Institute in Washington, D.C.; on the one hand I was proud of our achievements in space, but on the other, I was sad to realize the shuttle’s mothballing represented an end of an era, that our space program for all intents and purposes has stalled and we are now dependent on others to get us into space, a service we used to perform with great regularity. This icon from our past made me think how our country has changed over the years. Whereas not too long ago America was considered the premier engine for business, the model for democracy, and a beacon for hope and freedom in the world. Now, I am not so sure.
THE BRYCE IS RIGHT! 