Wall Street Protesters Half Right

[Geee]

TownHall:

What's there to say about Occupy Wall Street? The answer isn't so simple. Some complain about taxpayer bailouts of businesses. Good for them. In a true free market, failing firms would go out of business. They couldn't turn to Washington for help.
But many protesters say they're against capitalism. Now things get confusing. What do they mean? If by "capitalism" they mean crony capitalism (let's call it crapitalism), a system in which favored business interests are supported by government, I'm against that, too.

But if they mean the free market, then they are fools. When allowed to work, the market has lifted more people out of the mud and misery of poverty than any government, ever.

The protesters are also upset about income disparity. Here again we should make distinctions. To the extent the country's income disparity is the result of crony capitalism, it's bad.

Yet even if America had a true free market, there would be income disparity. It's a byproduct of freedom. Some people are just more ambitious, more energetic and more driven, and some have that ineffable knack of sensing what consumers want. Think Steve Jobs.

But it shouldn't matter if the income gap between you and rich people grows. What should matter is that your living standard improves.

Your living standard many not have improved lately. Over the past decade, median income fell. But that's an aberration largely caused by the bursting of the real estate bubble. Despite Wall Street protesters' complaints about rich people gaining at the expense of the poor, the poorest fifth of Americans are 20 percent wealthier than they were when I was in college, and despite the recession, still richer than they were in 1993.

And income statistics don't tell the whole story. Thanks to the innovations of entrepreneurs, today in America, even poor people have clean water, TV sets, cars and flush toilets. Most live better than kings once lived -- better even than the middle class lived in 1970.