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Hullabaloo


Wednesday, October 08, 2014

 

Picking sides

By Tom Sullivan

The Boston Globe's Noah Bierman examines the struggle between the populist, Elizabeth Warren Wing of the Democratic Party and corporate-backed, Third Way centrists. When critics charge there is no difference between the major parties, Democrats have their Wall Street Wing to thank:

Third Way’s founders dispute that they are doing Wall Street’s bidding or are trying to leave the poor behind. They also insist their financial supporters on the board of trustees do not influence the organization’s political and policy positions.

And yet, Bierman points out,

Third Way’s insistence on linking tax hikes to a grand bargain — which has been impossible to obtain in the Obama era — has a direct bearing on the wallets of the group’s wealthy funders.

Among those are Goldman Sachs Gives. The charitable fund donated a total of $850,000 in 2010 and 2011. So even as the middle class erodes and the party itself moves further left, "financial dependence on Wall Street effectively ties the hands of the Democratic Party,” contends former Clinton labor secretary, Robert Reich.

In a surprising attack on the Warren Wing in the The Wall Street Journal last December, Third Way warned that Warren-style economic populism is a dead end for Democrats. Populist candidates may appeal to the party's liberal base, writes Bierman, but sound anti-business to the party's corporate funders.

“That really has never generated a hell of a lot of support on Election Day,” said former JP Morgan Chase senior executive, former Obama chief of staff, and Third Way board member, William M. Daley — no doubt also an authority on neighborhood organizing.

Or not. Especially since the country hasn't heard a Warren-style populist message since FDR. And you know how that worked out.

As a matter of fact, while Third Way defends the Democrats' right flank, the rest of the party is moving left, according to Harold Meyerson in The American Prospect. Since 2000, Gallup reports, as party moderates shrank from 44 to 36 percent, the ranks of self-described liberals swelled from 29 to 43 percent. Shifting demography fueled by immigration is one reason.

Nonetheless, business-cozy groups such as Third Way (supposedly concerned with electing Democrats) favor trade agreements unpopular with the Democratic base, but that cater to the "job creators" who bankroll them. But those agreements tend to create more new jobs offshore for people who cannot vote in U.S. elections! Meanwhile, the profit creators — American workers themselves — see fewer of those rising corporate profits in their paychecks. Therefore, as the American middle class continues to shrink, Meyerson believes it's time for the party to — as both Roosevelts did — pick a side.

Meyerson offers several prescriptions you can read about here.

Village Democrats are consistently about a decade behind their base. Their dependency on corporate money is a big reason why. Money has such a nice, insulating effect that way. But it's time party leaders caught on and caught up. Perhaps defending the status quo is the real dead end.