M ost discussions about the Democratic party in this election cycle focus on the remarkable rise of progressive Democrats , such as the Florida state representative Angie Nixon, a democratic socialist who scored an upset win in the Democratic US Senate primary on Tuesday.
But an equally big story is the remarkable decline of corporate Democrats.
Some Democrats worry about this. My old friend James Carville compares the current wave of progressive primary wins to progressive campaigns in 2016 – especially that of Bernie Sanders – that he believes fractured the Democratic coalition.
“Bernie Sanders is the reason that Donald Trump is president,” the Democratic strategist said recently, claiming that Bernie’s primary challenge to Hillary Clinton convinced voters in battleground states that establishment Democrats were no different from establishment Republicans, thereby weakening her prospects in the general election.
Even if James is right about 2016 (and I don’t believe he is), his assessment is irrelevant now because we’re at a radically different point in US politics than we were 10 years ago.
The silver lining in the dark storm cloud of Trump and his detestable regime is that it has exposed the greed, venality, cupidity and corruption of the US’s corporate elite.
Trump has allowed the CEOs of giant corporations and the titans of Wall Street to do whatever they want as long as they suck up to him. And he’s providing all sorts of corporate welfare to those who generously woo him – no-bid government contracts, exclusive licenses, tax loopholes, tariff exemptions, use of public lands, and permission to become even bigger monopolies.
Trump has thereby unveiled a truth about corporate America that for many years has been hidden behind a soothing blanket of corporate PR bullshit about social responsibility, corporate charity and “trickle-down” economics.
That truth is the captains of corporate America are so rapacious that they’re willing to throw average working Americans under the bus to make billions more.
Corporate avarice under Trump has become so blatant and corporate America’s contempt for the needs of average Americans so flagrant that most Americans are now catching on.
The silver lining in the dark storm cloud of Trump and his detestable regime is that it has exposed the greed, venality, cupidity and corruption of the US’s corporate elite They’re voting for progressive Democrats not because they want socialism, support the Democratic Socialists of America, or reject candidates called “moderate”.
They’re voting for candidates whom they believe will fight to make housing, food, healthcare and childcare affordable to average working families. And who’ll take on Trump’s billionaire backers, CEOs and Wall Street titans who are rigging the economy against them.
Much of the corporate media won’t tell this story. When Dr Abdul El-Sayed won Michigan’s Democratic primary over Haley Stevens, the media overflowed with accounts of how much smaller El-Sayed’s margin of victory was than polls had predicted.
Yet the most remarkable thing about El-Sayed’s victory was that he won despite being dramatically outspent by Super Pacs arrayed against him.
Stevens benefited from tens of millions of dollars in outside spending, including the largest investment in a senatorial race ever made by the American Israel Public Affairs Committee, which traditionally supports pro-Israel candidates but in recent election cycles has supported candidates most favored by corporate America. Aipac’s ads in favor of Stevens and against El-Sayed never even mentioned Israel.
Outside Super Pacs put an estimated $54m to $60m into backing Stevens and opposing El-Sayed, compared with only about $5m for El-Sayed. Pro-Stevens groups outspent El-Sayed on TV advertising alone by more than 12 to one ($26.9m to $2.1m) in the closing weeks. An average of $95 was spent for every vote against El-Sayed versus just $9 per vote for him.
The race between Stevens and El-Sayed was a proxy fight over the future of the Democratic party. The Senate minority leader, Chuck Schumer, backed Stevens and encouraged donors to back her campaign, as did other corporate-aligned politicians such as the Michigan senator Gary Peters. On the other hand, Bernie Sanders and Alexandria Ocasio-Cortez supported El-Sayed, as did progressives such as the US senators Chris Van Hollen and Elizabeth Warren.
El-Sayed justifiably made a campaign issue out of how much corporate money was backing his rival. He argued that Democrats should reject corporate influence and embrace an agenda that helps average Americans. His campaign centered on providing Medicare for All, lowering prescription drug costs, and banning corporate Pac money. “We’re in a situation right now where the rich keep getting hyper-rich on the backs of figuring out how to monetize everyday people,” El-Sayed told the Associated Press while supporters chanted: “Money out of politics! Money in your pockets!”
El-Sayed’s victory marked a turning point for the corporate wing of the Democratic party.
I saw the start of the corporate Democrats in the early 1980s, when Democrats in Congress began drinking from the same campaign funding trough as the Republicans, mostly from big corporations.
“Business has to deal with us whether they want to or not,” crowed the Democratic representative Tony Coelho, who then headed the Democratic congressional campaign committee. Democrats had controlled Congress since 1955 and assumed they’d continue to run the House for years. They thought they could take advantage of their seemingly permanent power to raise cash for their campaigns.
Coelho’s Democrats soon achieved a rough parity with Republicans in contributions from corporate and Wall Street campaign coffers, but it proved a Faustian bargain as big corporations and Wall Street gained increasing influence in the party. It is a truism in politics as in nature: one dares not bite the hands that feed.
Corporate Democrats thereafter stopped the Democratic party from pursuing an agenda that would have dramatically helped America’s working class.
To be sure, over the last three decades Democrats have scored some important victories for working families – the Affordable Care Act, an expanded Earned Income Tax Credit, and the Family and Medical Leave Act, for example.
Yet they’ve done little to alter the widening economic inequalities that have taken a huge toll on working-class families.
Both Bill Clinton and Barack Obama ardently pushed for free-trade agreements, for example, but didn’t provide the millions of blue-collar workers who thereby lost their jobs means of getting new ones that paid at least as well.
They also stood by as corporations hammered trade unions, the backbone of the white working class. Clinton and Obama failed to reform labor laws to impose meaningful penalties on companies that violated them, or to enable workers to form unions with a simple up-or-down vote.
In his 1992 campaign, Clinton promised such reform but once elected didn’t want to buck corporate Democrats by spending political capital on it. In his 2008 campaign, Obama made the same promise but never acted on it.
Partly as a result, union membership sank from 22% of all workers when Clinton was elected president to fewer than 10% today, and the working class lost bargaining leverage to get a share of the economy’s gains.
The Obama administration also protected Wall Street from the consequences of its gambling addiction through a giant taxpayer-funded bailout but left millions of underwater homeowners to drown.
Both Clinton and Obama allowed antitrust enforcement to ossify – with the result that large corporations have grown far larger and major industries far more concentrated.
And they turned their backs on campaign finance reform. In 2008, Obama was the first presidential nominee since Richard Nixon to reject public financing in his primary and general election campaigns. And he never followed up on his re-election campaign promise to pursue a constitutional amendment overturning Citizens United v FEC, the 2010 supreme court decision that opened the floodgates to big money in politics.
What happens when you combine free trade, shrinking unions, Wall Street bailouts, growing corporate monopoly power, and the abandonment of campaign finance reform? You get an economy favoring the wealthy and a political system favoring the powerful, while workers without college degrees suffer declining real wages and dwindling job security.
John F Kennedy was the last Democratic president to depend on lower-income, less educated white voters while losing the votes of higher-income, college-educated Americans. Sixty years later, Joe Biden depended on the votes of college-educated Americans while losing the votes of the white working class by two to one .
Trump has exposed the venality and cupidity of corporate America, while large swaths of the working middle class struggle to make ends meet. As a result, Republicans appear likely to face some major defeats in the midterm elections. Corporate Democrats are on the defensive because their campaign cash isn’t working the way it used to.
Now, finally, the Democratic party has an opportunity to once again become the party of working Americans, as it was under Franklin D Roosevelt, rather than the party of corporate America. It is more urgent than at any time since the Great Depression that Democrats act on this opportunity.
Robert Reich, a former US secretary of labor, is a professor of public policy emeritus at the University of California, Berkeley. He is a Guardian US columnist and his newsletter is at robertreich.substack.com . His new book, Coming Up Short: A Memoir of My America, is out now in the US and in the UK
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