Can the Democratic Party Come Back?

January 12, 2017

A tectonic shift in the political landscape is taking place and the Democrats are in danger of being left out in the cold.  Just as the civil rights movement in the 60’s completely rearranged and upended what it meant to be a Democrat and Republican, a new alignment is taking place over America’s place in the global economy and in global affairs.

The two victories by Barack Obama obscured a party that was dying on the vine.  We all (now) know the numbers.  The oval office, both houses of congress, governorships, state legislators; the Democratic Party is in full retreat.  It is a party so desperately clinging to the past and past leadership that we need to ask if this party can right itself before it becomes irrelevant and obsolete.

The Democratic Party is psychologically wounded, lashing out at everyone and everything that they feel is to blame for the horrible injustice that has befallen Hillary Clinton, denying America the benefit of her obvious superior leadership, it was Trump the demigod, the GOP, sexism, racism, the media, the electoral college, the Comey letter, the Russians, the list goes on and on.  All of this thrashing about on the ground in a pile of tear-filled rage is pointless and ultimately harmful. We look like fools and sore losers, most importantly it makes us incapable of seeing our own faults that has led to this debacle.

Democratic vs. Republican has been usurped by globalization vs. populism. This realignment is occurring in the US and around the world.  Globalization has been uncovered as a cruel hoax.  Free trade, the global banking system, capital-friendly tax systems and mass immigration are doing real harm to the middle class.  The system is designed to drive down the cost of labor while exacting profits that flow to the 1%.  It is a system that is of course, unsustainable but the donor class is not interested in introspection on the society that is being created, or should we say being destroyed, and neither it seems is the leadership of the Democratic Party.

It is a bigger and much more dangerous mortgage lending crisis being played out over the course of decades.  When Bill Clinton took up the cause of NAFTA as a way to raise money for his presidential bid, the Democratic Party bought into free trade hook, line, and sinker.  Globalization became the defining economic policy of both parties right through to today.

Barack Obama missed this realignment, continued pressing forward with trade deals and wars when the voters were begging for relief.  This is the problem when you take your cues from the donor class whose interests are not in line with the voters.  The undercurrent of populism has been building for a long time but the donor class and the media manage to keep it from the light of day.  By playing to a system where it is verboten by the donor class to offer any alternative to globalization, the Democratic Party became a tool of the 1%.  Corporate Democrats may be more right on social issues but are really no different from corporate Republicans on the fundamental operating principles of our economy.

Obama/Clinton made no effort to address the concerns of the middle class.  They talked about the income inequality but refused to define a cause because that would have led to the only real conclusion; globalization is exactly the wrong policy to build broad-based middle-class prosperity in a developed nation.

The rise of Bernie and Trump was a direct result of the fact that they were operating outside the normal system of campaign finance and were free to tap the populist mood that lay dormant and unaddressed, the sleeping Giant of American policies.  The Democratic establishment just did a better job killing off the candidate of real change.  Whether Bernie could have won is missing the point, Bernie was the only Democratic alternative that broke through the donor class blockade. The Democrats are just as responsible, if not more responsible, for the Trump Presidency because we turned our back on the working families of America.

Democrats if you want to know why we lost it’s time to stop crying, passing the blame and look in the mirror.  Hillary lost because she was a product of the corporate establishment elitist globalist party system and Trump was not!!

The Democratic Party faces an existential crisis, can we break free from the clutches of the globalist donor class and if so where do we get the money to rebuild?  If the Democratic Party cannot come to terms with its failed and rejected policies and make real change in its’ policies and leadership, (and so far it seems wholly unwilling to do either), it is in danger of being a non-entity in American politics.  Without real substantive charge in the Democratic Party, the battle for power in American politics will be waged between the globalists and populists of the Republican Party.

 

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The Immigration Reform American Workers Deserve

February 23, 2016

Democrats have wholeheartedly taken up the issue of income inequality and stagnant real wages of working class families.  Bernie Sanders has criticized our current trade policy; making it a centerpiece of his campaign. He does not support the purposed TPP (Trans-Pacific Partnership) trade agreement.

Here in Ohio, Sen. Sherrod Brown has been a longtime opponent of “free trade”.  Former Gov. Ted Strickland, who has a good chance of unsetting Sen. Rob Portland (r) in the upcoming election, is also campaigning against trade deals that put Ohio workers in direct competition with cheap foreign labor and sends Ohio jobs overseas.

What does it matter if we send American jobs overseas for foreign labor to fill or we bring foreign labor into the U.S.?  This is the disconnect of progressive economic labor policy.

In the relatively recent past, prominent liberals agreed that rapidly expanding the labor pool by bringing in millions of immigrants was not in the best interests of working Americans. Labor union leaders and civil rights luminaries, for a century right through President Bill Clinton, supported reducing the number of work permits for foreign laborers. They understood that such a move would spur wage growth and expand job opportunities for Americans.

A 1995 congressional commission, chaired by the charismatic civil rights leader and Democratic Texas congresswoman Barbara Jordan, recommended limiting immigration to 550,000 individuals a year. President Clinton praised the recommendation as a “balanced immigration policy that . . . protect[s] the American work force.”

There is no good reason to continue giving out one million new lifetime work permits every year, supporting guest worker programs and having a permissive attitude towards illegal immigration when over 15 million native and immigrant Americans already here are currently unable to find full-time jobs.

From 1924 to 1965, America sharply scaled back the number of immigrants it accepted. Without competition from a large pool of foreign-born laborers, American workers were better able to unionize and demand improved wages and benefits.

The share of income going to the wealthiest 1 percent of Americans dropped from 43 percent in 1924 — the year lower immigration quotas were implemented — to less than 32 percent in 1965 — the year the quotas were replaced with the current immigration system.

The post-1965 influx of workers helped freeze wages. In fact, inflation-adjusted wages have actually declined over the last forty years. The average worker in 1973 earned a higher real wage than the average worker does today.

Economists have concluded that high levels of immigration are partially responsible for wage stagnation. Harvard professor George Borjas, an immigrant himself, has shown that expanding the size of any working cohort — as defined by age or education — by 10 percent through immigration reduces the wages of all native-born folks in that group by 2.5 percent. The effect on native-born men is even greater — a decline in wages of 3.7 percent.

For Americans without a high school degree, the wage losses are even more pronounced — about $1,200 for the years between 1990 and 2010.

Immigrants themselves are not at fault. The overwhelming majority of immigrants are industrious people who work hard. It is just that in America, hard work often is not rewarded.  The strongest work ethic in the world cannot defeat the law of supply and demand. The more workers who need a job, the less employers have to pay to attract employees.

Our leaders have the power to stop this economic race to the bottom and boost wage growth. Scaling back the pace at which our nation admits new laborers from abroad would help disadvantaged immigrants who are already here. It would take job-market realities into account and give native and immigrant American workers the leverage to win back the wages and benefits they’ve lost over decades.

America has been and must continue to be a nation that does not discriminate on the basis of race, religion, or national origin, but there’s no need to bring in one million permanent immigrants every year, allow guest worker programs, on top of illegal immigration when current residents cannot find good-paying jobs.

If progressive candidates are serious about standing up for American workers, they must consider greatly reducing the number of foreign laborers who have access to the American labor market through trade policy and immigration policy.


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