Bloomberg today features an article by an Indian author who begins by wondering why protests against “The System” in developed nations has not found traction in places like China, India and other rapidly growing, aspirational nations. He cannot seem to deal with the fact that few people in these booming economies appear unhappy with capitalism. It finally has motivated me to comment on the “Occupy Wall Street” phenomenon, which I find rather annoying. The article in question demonstrates a strong desire to twist facts. The author suggests the lack of an “Occupy Wall Street” faction in financially expanding nations, ignores the plight of suffering masses. This suits his message supporting oppressed workers. The two groups are, in my view, entirely different. Sure, working conditions in the “Third World” are far from ideal as they once were in the United States,during it’s heyday as a blue collar nation, growing rapidly, a century or more ago. Undoubtedly protests by workers have been brutally suppressed, particularly in China. Likely, these difficult conditions will be addressed by those societies with time. By contrast, in my perception, the “Occupy” people appear to be driven by an entitlement mentality unknown to a miner in India or a trucker in Brazil. Folks in the Third World are grateful for jobs, and too busy working to show up at protests.

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I strongly believe that if many of the Occupy people would put down their iPhones and pick up a shovel or a plow they could find dignified jobs. But then, they would have little time to sit in Starbucks and Tweet, a lifestyle to which they feel entitled. They would also have to accept lower wages and benefits, something to which they feel entitled. They feel entitled to a lot of things, but my sense is, many of them have not done a hard days work in their lives. I say this from experience. Most clients do not know that I was kind of a socialist in my student days, and participated in my share of protests. But I was, in the end, inspired by the example of my immigrant father to develop useful job skills, try out different occupations* and once focused, obtained a higher education aimed at finding gainful employment. As I experienced life, my belief that good intentions and big government could solve the ills of mankind became considerably more balanced by a faith in free market capitalism. To paraphrase Winston Churchill, “if a man is not a socialist in his youth, he has no heart, if he is not a capitalist in maturity, he has no brain.”

As clients and readers of our newsletter and blog know, I’m always ready to criticize crony capitalism and self aggrandizing corporate management. This behavior was more of a plague during the period before about 2002, when financial scandals (e.g. Enron,Tyco Intl.) stripped thousands of investors of their life savings. Since then, government regulations have mandated fuller disclosure, abusive practices with stock options have been curbed and activist investors have found their voice. I’d love to see even more activism among investors. When I screen an investment, one of the important things I look at is the pay practices and corporate governance ratings applied by independent third parties. There are plenty of greedy, uncaring management teams that need to be avoided.I often listen to and occasionally participate in quarterly earnings conference calls for corporations, to see how open and honest management sounds when answering analyst’s questions. I usually avoid a business that appears unwilling to disclose more than the bare minimum of information. Still, finding quality investments in businesses operated by sharp people, largely aligned with shareholders, has never been easier than today. So, the inchoate whining of protestors camped out in a city park who attack capitalist fat cats is, in my opinion, aimed largely at the wrong people. Capitalism is the very system that is raising hard working people around the planet to a better standard of living. It is feeding a planet of 7 billiion people, something socialism/communism failed to do during a miserable 70 year experiment in the 20th century. If you could ask a North Korean how well communism works for her and her family, she would beg you for a bowl of rice and vegatables.

Ironically, the Occupy Wall Street folks and many Tea Party activist share an anger at the “bail out” of Wall Street that took place in 2008. While this is at first understandable, anyone who appreciates the fundamental importance of free flowing liquidity to GDP growth would not attack TARP and the decisions of the Bush administration and Congress during those pivotal days. The banks were kept from failing in 2008 because had they collapsed, there would be thousands more long term unemployed today than now. Further the banks have paid back practically every dime they borrowed from Uncle Sam (have union strapped companies in the auto industry done the same?) Banks, Wall Street and Capitalists are not motivated by altruism, it is true. But for centuries now, a balance between the profit motive and society’s needs has produced what still is one of the most prosperous nations in history. Sorry, if I can’t feel much sympathy for out- of- work screen play writers or social workers. They generally don’t know why they are unhappy, and rather than looking within, rather than develop needed job skills, rather than relocate to where the jobs are to be found, many simply choose to apply their entitlement world view to their own failures. Today, thanks to the proliferation of computers, internet and mobile devices, this minority of misfits has organized to protest. Has it occurred to them that the very instruments they use for communication were all funded by Wall Street bankers and investors who, like my clients, were seeking to earn a profit on their investments?

* these occupations included mowing lawns, slinging “mud” for masons, cleaning out sewer drain pipes, construction labor work in winter,radio announcer,rehabilitating a rental property, making cold sales calls and many, many 60-70 hour work weeks.