Margaret Wente, Globe and Mail:

These people make up the Occupier generation. They aspire to join the virtueocracy – the class of people who expect to find self-fulfillment (and a comfortable living) in non-profit or government work, by saving the planet, rescuing the poor and regulating the rest of us. They are what the social critic Christopher Lasch called the “new class” of “therapeutic cops in the new bureaucracy.”

The trouble is, this social model no longer works. As blogger Kenneth Anderson writes, “The machine by which universities train young people to become minor regulators and then delivered them into white-collar positions on the basis of credentials in history, political science, literature, ethnic and women’s studies – with or without the benefit of law school – has broken down. The supply is uninterrupted, but the demand has dried up.”

It’s not the greedy Wall Street bankers who destroyed these people’s hopes. It’s the virtueocracy itself. It’s the people who constructed a benefit-heavy entitlement system whose costs can no longer be sustained. It’s the politicians and union leaders who made reckless pension promises that are now bankrupting cities and states. It’s the socially progressive policy-makers in the U.S. who declared that everyone, even those with no visible means of support, should be able to own a home with no money down, courtesy of their government. In Canada, it’s the social progressives who assure us we can keep on consuming all the health care we want, even as the costs squeeze out other public goods.

The Occupiers are right when they say our system of wealth redistribution is broken. But they’re wrong about what broke it. The richest 1 per cent are not exactly starving out the working poor. (In the U.S., half all income sent to Washington is redistributed to the elderly, sick and disabled, or to those who serve them, and nearly half the country lives in a household that’s getting some sort of government benefit.) The problem is, our system redistributes the wealth from young to old, and from middle-class workers in the private sector to inefficient and expensive unions in the public sector.

Among the biggest beneficiaries of this redistribution is the higher-education industry. In Canada, we subsidize it directly. In the U.S., it’s subsidized by a vast system of student loans, which have allowed colleges to jack up tuition to sky-high levels. U.S. student debt has hit the trillion-dollar mark. Both systems crank out too many sociologists and too few mechanical engineers. These days, even law-school graduates are having trouble finding work. That’s because the supply has increased far faster than the demand.

The voices of Occupy Wall Street, argues Mr. Anderson and others, are the voices of the downwardly mobile who are acutely aware of their threatened social status and need someone to blame. These are people who weren’t interested in just any white-collar work. They wanted to do transformational, world-saving work – which would presumably be underwritten by taxing the rich. They now face the worst job market in a generation. But their predicament is at least in part of their own making. And none of the solutions they propose will address their problem.

If the Occupy Movement had any sense at all, they’d be reliving the 60s more directly and taking over university buildings.

The government, the public sector union bosses, and the crony capitalism created and now regulated by the government, is directly responsible for the pressuring of the American Dream.

And until we identify the problem correctly, we’ll never solve it. Which is why the federal government works so hard to shift attention to an endless stream of scapgoats and keep scrutiny from itself.

(h/t TerryH)