Are We Seeing The Demise Of Corporate Democrats?

Former Labor Secretary Robert Reich comments on why Democrats are voting for progressives this year:

Most discussions about the Democratic Party in this election cycle focus on the remarkable rise of progressive Democrats (such as Florida state Rep. Angie Nixon, a democratic socialist who yesterday scored an upset win in the Democratic contest for the Florida Senate).

An equally big story is the remarkable decline of corporate Democrats. 

Some Democrats worry about this. My old friend Democratic strategist 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,” Carville 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 American politics than we were 10 years ago.

The silver lining on the dark storm cloud of Trump and his detestable regime is that it has exposed the greed, venality, cupidity, and corruption of America’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 bribe 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 bullsh*t 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. 

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 poured an estimated $54 million to $60 million into backing Stevens and opposing El-Sayed, compared to only about $5 million for El-Sayed. Pro-Stevens groups outspent El-Sayed on TV advertising alone by more than 12 to 1 ($26.9 million to $2.1 million) 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. Senate Minority Leader Chuck Schumer backed Stevens and encouraged donors to back her campaign, as did other corporate-aligned politicians such as Michigan senator Gary Peters. On the other hand, Sen. Bernie Sanders and U.S. Rep. Alexandria Ocasio-Cortez supported El-Sayed, as did progressives such as Sens. 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 AP during a Sunday afternoon march, as his supporters chanted behind him, “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 Democratic Rep. 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 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 percent of all workers when Clinton was elected president to fewer than 10 percent 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 reelection 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 the votes of working-class Americans while losing the votes of white, college-educated Americans by 2 to 1. Sixty years later, Joe Biden depended on the votes of college-educated Americans while losing the votes of the white working class by 2 to 1. Kamala Harris lost the working class by an even larger margin.

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. 

The Progressive Leadership Of Teddy & Franklin Roosevelt & Lyndon Johnson Is NOT Communism

After tariffs, inflation, a cruel immigration policy, and another forever war, the Republicans are left with nothing to run on in the 2026 campaign, so following Trump's lead they are now trying to label the Democrats as communists. Thom Hartmann (The Hartmann Report) exposes the ridiculousness of that. Here is part of what he wrote:

So, let’s set the record straight. There’s not a single “far left” progressive position held by actual elected progressive Democratic politicians that has less than 50% support among the Democratic base, most have well over 80% support, and virtually all are supported above 50% by the majority of Americans of all political stripes.

This isn’t “far left”: it’s the radical middle! We’ve been “radicalized” by 45 years of neoliberal policies by both parties that have gutted the American middle class and the American Dream, and want actual fighters who’ll make our country safe for working people again.

We want politicians who’ll return us to the ideal of a single full-time paycheck, regardless of educational attainment, paying enough to buy a house, a car every few years, take an annual vacation, put our kids through college, and have a comfortable retirement.

Two-thirds of us had that when Reagan was sworn into office in 1981 and launched the Republican War on Working People™. Hell, that’s the “Square Deal” that Teddy Roosevelt campaigned on over 100 years ago, and the vast majority of Americans still want it!

While corporate-money-dependent Democrats may oppose Medicare for All or ending student debt or taxing the rich in a meaningful way, progressive Democrats — the ones being vilified right now by Trump, the GOP, the media, and their own on-the-take peers — are clear about most all of their positions. They are that:

— Every worker should have the right to democracy in their workplace (a union), and that nobody who works full time should have to live in poverty because the minimum wage hasn’t gone up in a stupid amount of time.

— Retired people shouldn’t have to pay income taxes on their Social Security (the way it was before Reagan and, no, Trump did not fix that), that morbidly rich people should pay into the system like the rest of us, that Social Security should pay enough to live modestly on, and that Medicare should cover all our expenses with minimum hassle.

— Every American citizen should be able to vote without a hassle, and taking away your vote should require a judge’s action to prove why, just like the Supreme Court has ruled it now works if a state wants to take away your gun.

— Speaking of guns, it’s obscene that the leading cause of death for our children is bullets, and we shouldn’t have to regularly terrorize our children with active shooter drills. We need rational gun control laws, like every other developed country in the world has.

— It’s crazy that one man owns more wealth than the bottom half of America (165 million of us) and he and his peers typically pay less of their income in taxes than your average teenager. If we want the general prosperity of the 1950s, we should have the same tax rate that Republican President Dwight Eisenhower so loved: 90% on the morbidly rich after they’ve made their first few million dollars a year.

— Our children and grandchildren deserve a world where they needn’t fear being killed by climate-change-driven wild weather, drought, or wildfires, and the air and water are clean. And it’s nuts that we’re subsidizing the fossil fuel industry that’s preventing this.

— Every other country in the world helps their young people go to college; in most it’s as cheap as it was here in the 1960s when you could put yourself through school with a weekend job. Some countries even pay people to go to college, like the $100/month stipend my dad had with the GI Bill after WWII that built our 20th century scientific and business prowess. And it’s morally and politically wrong to cripple entire generations with trillions in student debt.

— Across the 34 richest (OECD) countries in the world, over a half-million families are wiped out every year because somebody got sick. All of those families are here in America. Healthcare should be a right, like in every other developed country in the world, instead of a privilege that depends on how much money you make.

— Starting a small family business, once the backbone of every American town and city, should once again be possible; we need to break up the massive monopolies that have come to dominate every single industry. See: Republican Presidents Teddy Roosevelt and William Howard Taft.

— Every person in America should be free to practice their own religion (or, like Thomas Paine, no religion) and raise their kids that way without government interference, government promotion, or their tax dollars subsidizing local megachurches’ religious schools. Like the Constitution says.

— People should be judged, hired, and promoted based on the quality of their minds, their work, and their integrity, not the color of their skin, their ethnicity, or their religion.

— Women should have the same rights and privileges as men, from the workplace to the boardroom to the doctor’s office to the voting booth.

— Our queer brothers and sisters should have the same rights and privileges as everybody else and be free to live their lives without discrimination or harassment. 

— America is a nation of immigrants, and we have been strengthened in every generation by the diversity of talent and humanity that have come here to participate in the American dream. We need comprehensive immigration reform to clean up our system, not a brutal regime that’s literally killing people while it tears our nation apart.

— And it’s completely insane that five corrupt Republicans on the Supreme Court would say that corporations are persons and money is the same thing as free speech, which is why most Democrats think Citizens United needs to be overturned.

Sadly, many of the corporate-dependent Democrats oppose many of these positions because they’d conflict with the interests of their donors. This is something the Party needs to work out, particularly as voters increasingly make their desires known in primary elections. But few of these positions would have been alien to FDR or LBJ; most are simply a call for a return to the middle.