Occupy Wall Street - The New Hooverville

The Occupy Wall Street movement is not the first time in this country's history that demonstrators have gathered to create a protest "settlement". It happened back in the Great Depression when the "Bonus Army" created a protest settlement in Washington called Hooverville (after the president of that time who refused to help hurting Americans). Frank Rich has written an excellent article for New York Magazine comparing the Occupy Wall Street site to Hooverville, and musing about the effect it might have on next year's election. He doesn't think it'll have much effect since neither party is really discussing real solutions to our economic mess, and sadly I agree with him. Here is part of his excellent article:

During the death throes of Herbert Hoover's presidency in June 1932, desperate bands of men traveled to Washington and set up camp within view of the Capitol. The first contingent journeyed all the way from Portland, Oregon, but others soon converged from all over--alone, in groups, with families--until their main Hooverville on the Anacostia River's fetid mudflats swelled to a population as high as 20,000. The men, World War I veterans who could not find jobs, became known as the Bonus Army--for the modest government bonus they were owed for their service. Under a law passed in 1924, they had been awarded roughly $1,000 each, to be collected in 1945 or at death, whichever came first. But they didn't want to wait any longer for their pre-New Deal entitlement--especially given that Congress had bailed out big business with the creation of a Reconstruction Finance Corporation earlier in its session. Father Charles Coughlin, the populist "Radio Priest" who became a phenomenon for railing against "greedy bankers and financiers," framed Washington's double standard this way: "If the government can pay $2 billion to the bankers and the railroads, why cannot it pay the $2 billion to the soldiers?"

The echoes of our own Great Recession do not end there. Both parties were alarmed by this motley assemblage and its political rallies; the Secret Service infiltrated its ranks to root out radicals. But a good Communist was hard to find. The men were mostly middle-class, patriotic Americans. They kept their improvised hovels clean and maintained small gardens. Even so, good behavior by the Bonus Army did not prevent the U.S. Army's hotheaded chief of staff, General Douglas MacArthur, from summoning an overwhelming force to evict it from Pennsylvania Avenue late that July. After assaulting the veterans and thousands of onlookers with tear gas, ­MacArthur's troops crossed the bridge and burned down the encampment. The general had acted against Hoover's wishes, but the president expressed satisfaction afterward that the government had dispatched "a mob"--albeit at the cost of killing two of the demonstrators. The public had another take. When graphic newsreels of the riotous mêlée fanned out to the nation's movie theaters, audiences booed MacArthur and his troops, not the men down on their luck. Even the mining heiress Evalyn Walsh McLean, the owner of the Hope diamond and wife of the proprietor of the Washington Post, professed solidarity with the "mob" that had occupied the nation's capital.

The Great Depression was then nearly three years old, with FDR still in the wings and some of the worst deprivation and unrest yet to come. Three years after our own crash, we do not have the benefit of historical omniscience to know where 2011 is on the time line of America's deepest bout of economic distress since that era. (The White House, you may recall, rolled out "recovery summer" sixteen months ago.) We don't know if our current president will end up being viewed more like Hoover or FDR. We don't know whether Occupy Wall Street and its proliferating satellites will spiral into larger and more violent confrontations, disperse in cold weather, prove a footnote to our narrative, or be the seeds of something big.

What's as intriguing as Occupy Wall Street itself is that once again our Establishment, left, right, and center, did not see the wave coming or understand what it meant as it broke. Maybe it's just human nature and the power of denial, or maybe it's a stubborn strain of all-­American optimism, but at each aftershock since the fall of Lehman Brothers, those at the top have preferred not to see what they didn't want to see. And so for the first three weeks, the protests were alternately ignored, patronized, dismissed, and insulted by politicians and the mainstream news media as a neo-Woodstock for wannabe collegiate rebels without a cause--and not just in Fox-land. CNN's new prime-time hopeful, Erin Burnett, ridiculed the protesters as bongo-playing know-nothings; a dispatch in The New Republic called them "an unfocused rabble of ragtag discontents." Those who did express sympathy for Occupy Wall Street tended to pat it on the head before going on to fault it for being leaderless, disorganized, and inchoate in its agenda.

Despite such dismissals, the movement, abetted by made-for-YouTube confrontations with police, started to connect with the mass public much as the Bonus Army did with a newsreel audience. The week after a Wall Street Journal editorial claimed that "no one seems to care very much" about the "collection of ne'er-do-wells" congregating in Zuccotti Park, the paper released its own poll, in collaboration with NBC News, finding that 37 percent of Americans supported the protesters, 25 percent had no opinion, and just 18 percent opposed them. The approval numbers for Occupy Wall Street published in Time and Reuters were even higher--hitting 54 percent in Time. Apparently some of those dopey kids, staggering under student loans and bereft of job prospects, have lots of parents and friends of all ages who understand exactly what they're talking about. . .

Elections are supposed to resolve conflicts in a great democracy, but our next one will not. The elites will face off against the elites to a standoff, and the issues animating the class war in both parties won't even be on the table. The structural crises in our economy, our government, and our culture defy any of the glib solutions proposed by current Democrats or Republicans; the quixotic third-party movements being hatched by well-heeled do-gooders are vanity productions. The two powerful forces that extricated America from the Great Depression--the courageous leadership and reformist zeal of Roosevelt, the mobilization for World War II--are not on offer this time. Our class war will rage on without winners indefinitely, with all sides stewing in their own juices, until--when? No one knows. The reckoning with capitalism's failures over the past three decades, both in America and the globe beyond, may well be on hold until the top one percent becomes persuaded that its own economic fate is tied to the other 99 percent's. Which is to say things may have to get worse before they get better.

Over the short term, meanwhile, the Democratic Establishment is no doubt wishing that Occupy Wall Street will melt away with the winter snows, much as its Republican counterpart hopes that the leaderless tea party will wither if Romney nails down the nomination. But even in the unlikely event that these wishes come true, it is not likely to be the end of the story. Though the Bonus Army was driven out of Washington in the similarly fraught election year of 1932, the newsreels they left behind turned out to be previews of coming attractions for the long decade still to come.