A group that divides the world between the pure 99 percent and the evil 1 percent will have nothing to say about education reform, Medicare reform, tax reform, wage stagnation or polarization. They will have nothing to say about the way Americans have overconsumed and overborrowed. These are problems that implicate a much broader swath of society than the top 1 percent.They will have no realistic proposal to reduce the debt or sustain the welfare state. Even if you tax away 50 percent of the income of those making between $1 million and $10 million, you only reduce the national debt by 1 percent, according to the Tax Foundation. If you confiscate all the income of those making more than $10 million, you reduce the debt by 2 percent. You would still be nibbling only meekly around the edges.
The 99-versus-1 frame is also extremely self-limiting. If you think all problems flow from a small sliver of American society, then all your solutions are going to be small, too. The policy proposals that have been floating around the Occupy Wall Street movement — a financial transfer tax, forgiveness for student loans — are marginal.