Occupy Wall Street
The costs of a port shutdown
Despite noble intentions, Occupy's tactic hurt a wounded economy more than it hurt the 1 percent
A Chinese container ship at the Port of Oakland (Credit: Beck Diefenbach / Reuters) Why did the Occupy movement attempt to shut down West Coast shipping ports on Monday? In their own words, the goal was to strike at the 1 percent. From the San Jose Mercury News:
Barucha Peller, a member of the Occupy Oakland blockade assembly… said. “When we withdraw our labor, we make a (dent) in the 1 percent. Economic boycotts are very effective. The occupation movement is moving into a larger and more coherent strategy of how to disrupt the profits of the 1 percent.”
“By shutting down work at the ports this [is] one more day that Goldman Sachs and Wall Street firms are unable to create profit,” said Occupy Portland spokeswoman Kari Koch, according to the Portland Tribune.
There is no question that the thinking behind the Occupy movement’s evolving strategy has chosen a vulnerable point at which to apply pressure. The West Coast ports that handle trans-Pacific trade are an economic marvel. They boast the world’s most technologically advanced infrastructure for moving vast amounts of goods between freighter and truck and rail lines. But their very size and sophistication makes them irreplaceable. Close them down, and everything stops.
We’ve known this since at least as far back as 2002, when, in the middle of a fierce labor dispute, the Pacific Maritime Association closed all 29 West Coast ports and locked out the International Longshore and Warehouse Union for 11 days. Estimates of the cost of the lockout to the U.S. economy ranged between $6 billion and $20 billion — and if the lockout had lasted longer, the damage would have spiraled far worse.
Half of all containerized U.S. trade goes through the West Coast ports and there is simply nowhere else for all those containers to go if the ports are shut down. Add into the mix the just-in-time logistics of modern global supply chains — goods sitting around in warehouses are goods that are just burning money — and the conclusion becomes obvious: Shut down the ports, and you shut down the economy.
A study published by the Berkeley Roundtable on the International Economy in 2002, Economic Impact of a West Coast Dock Shutdown, painted a stark picture:
In brief, there is simply no way that the enormous volume of waterborne cargo handled at West Coast ports and distribution centers could be rerouted, unloaded and distributed in a time frame and within cost parameters that would radically reduce the risk of international financial crisis or domestic economic shock…. A West Coast port shutdown, will quickly shut down production lines in factories across the United States (and across Northern Mexico) and empty the shelves in the malls.
A study by the consultancy Martin Associates, quoted in the BRIE report, delivered ugly numbers:
If the work stoppage lasted 10 days, the national cost would increase to $19.4 billion, 181.2 million hours would be lost by the nearly 4 million workers throughout the United States that depend on containerized cargo handled at West Coast Ports, and $693 million of federal, state and local tax revenue would be lost. By the time the duration of the work stoppage increased to 20 days, the cost to the United States economy would grow to $48.6 billion, over 480 million hours would be lost and $1.8 billion of federal, state and local tax revenue would be lost.
The problem, however, with attempting to target the 1 percent with a port shutdown is that the 1 percent are the best situated to ride out any extended shutdown. There’s no way to avoid it. Shutting down “Wall Street on the Waterfront” would have some serious collateral damage. The immediate impact of any port stoppage would be felt by the workers who transport the goods from ports to their final destinations, the retail outlets where those goods are sold, the workers at those outlets, and of course, anyone involved directly in the export trade. California, a state that still sports an unemployment rate above 11 percent, would be particularly devastated by a port shutdown that lasted any meaningful amount of time. Goldman Sachs would hardly notice.
Symbolically speaking, the threat to shut down the ports is evidence of a keen understanding of the location of the weakest points in the global economic infrastructure. If we are looking for fresh evidence of how cobbled together and contingent the system through which we exchange goods across the world is, Occupy’s waterfront threats are a nice wakeup call. But practically speaking, success shutting down the ports would invite a failure of a much different kind — a kick in the head to an already crippled economy.
Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard.
Dissent, à la Québécoise
The student strike in Quebec has generalized, and solidarity is spreading in the U.S.
Demonstrators in Montreal on Tuesday. (Credit: Reuters/Christinne Muschi) For the past eight months, when chants of “Anti-Capitalista!” have echoed through New York streets, they’ve tended to emanate from crowds with a penchant for black clothing. But on Tuesday night, when once again a march of around 300 snaked through the streets around Washington Square Park, the color scheme was different: red flags, red banners, red clothes, red masks and little red felt square pins adorned the marchers — a mixture of long-term Occupy participants, students and others taking the streets and donning some red in solidarity with the Quebec student strike.
Continue Reading CloseNatasha Lennard covers the Occupy movement for Salon. A British-born, Brooklyn-based journalist, she has been covering Occupy Wall Street since before the first sleeping bag was unrolled in Zuccotti Park. One of the first journalists arrested at an Occupy action, she has managed to enrage Andrew Breitbart, Rush Limbaugh and Glenn Beck. You can follow her on Twitter (@natashalennard), and email her any Occupy updates/videos/ideas to natasha.lennard@gmail.com More Natasha Lennard.
Protest music’s odd conservative turn
A 100-track, four-CD Occupy collection assembles generations of icons. So why does it sound shapeless and safe?
“In this hour of the ever-changing season, may our tears not douse the fire in our hearts.”
That’s a guy named Michael Pless singing “Something’s Got to Give.” Even without hearing the song, you can surely imagine the essential elements: Plaintive acoustic strumming, an earnest vocal, and an air of polite outrage to match the stilted syntax and hoary platitudes. Welcome to “Occupy This Album,” the collection of protest-minded songs released by Occupy Wall Street. Sprawling across four CDs and a slew of bonus digital tracks, this behemoth set includes 100 (why not 99?) new and previously released tracks from artists representing a range of generations, genres, backgrounds, settings, and styles. Folkies join hands with rappers; ominous post-rock marches alongside peppy radio pop. There’s spoken-word poetry, tribal percussion, earnest singer-songwriter fare. Even a bit of jazz.
Continue Reading CloseFirst NATO protest targets Obama
A small rally kicks off a week of protests in Chicago and makes clear the president is a target in his city
Rahm Emanuel and President Obama (Credit: Reuters/John Gress) In the first week of November 2008, tens of thousands of people gathered in Chicago to watch dewy-eyed as Barack Obama won the presidential election, believing, as the then-president-elect said in his victory speech, that “this time must be different.” This week, the Windy City is welcoming large crowds again — but as was made clear by a small protest action Monday — the president is not the sweetheart of these Chicago masses, which are assembling for a week of actions and protests surrounding the NATO summit.
Continue Reading CloseNatasha Lennard covers the Occupy movement for Salon. A British-born, Brooklyn-based journalist, she has been covering Occupy Wall Street since before the first sleeping bag was unrolled in Zuccotti Park. One of the first journalists arrested at an Occupy action, she has managed to enrage Andrew Breitbart, Rush Limbaugh and Glenn Beck. You can follow her on Twitter (@natashalennard), and email her any Occupy updates/videos/ideas to natasha.lennard@gmail.com More Natasha Lennard.
Occupy: A Tea Party for the left?
The Mississippi Freedom Democratic Party didn't succeed by electing candidates. Occupy doesn't need to either
An Occupy Wall Street demonstrator chants during a march to celebrate the protest's sixth month, Saturday, March 17, 2012, in New York. (AP Photo/John Minchillo) (Credit: AP) As long as there has been a thing called Occupy Wall Street, there have been people who’ve suggested it should become the left’s version of the Tea Party. Josh Harkinson’s piece is a notable contribution to the conversation because it comes after eight months of in-depth reporting on the movement. Harkinson, like Jennifer Granholm, suggests that Occupy should recruit and run candidates, so the left has champions in Congress and can credibly threaten less ideologically aligned Democrats. According to this logic, it doesn’t matter if Occupy does this itself or essentially outsources the job to our progressive allies — the point is to find ways to elect more good Democrats.
Continue Reading Close“Occupy Cop” under attack
Retired Philadelphia Police Capt. Ray Lewis could lose his life insurance for wearing his uniform to a protest
Ray Lewis (Credit: AP/Joseph Kaczmarek) On Occupy Wall Street’s Nov. 17 Day of Action, the NYPD arrested nearly 250 protesters. Ray Lewis, however, stuck out: the retired Philadelphia Police captain was dressed in uniform. He was holding a sign that on one side encouraged people to watch the Charles Ferguson financial crisis documentary “Inside Job.” On the other: “NYPD Don’t Be Wall Street Mercenaries.”
Continue Reading CloseDaniel Denvir is a staff writer at Philadelphia City Paper and a contributing writer for Salon. You can follow him at Twitter @DanielDenvir. More Daniel Denvir.
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