It's unfair:
there are idiots to the right and reformers to the left; what's a
Wall Street Plutocrat to do? The Republican demagogues are eager to
do the plutocrats' bidding, but the idiots they exploit are so
viciously retrogressive and nihilistic that the Republican demagogues
cannot win national elections. Come on, Carson and Trump, you have
to be kidding! Ah, but hope springs eternal for the Wall Street
Plutocrats. They still have the power of money. They can still
create super-packs, and they can create think tanks to tell the
bought politicians what to say. The progressives, like Bernie
Sanders and Elizabeth Warren, may be pushing Democrats like Hillary
Clinton to the left, but those progressives have not won yet! The
Democrats that are sympathetic to the Wall Street plutocrats or who
are financially dependent on those plutocrats offer a third way
between the idiots and the progressives.
In other words,
the plutocrats are trying to take advantage of a split they see in
the Democratic Party. Of that split JIm Tankersley wrote in the
Washington Post:
“... One side
believes what's gone wrong for the middle class is that wealthy and
powerful players have rewritten the tax code, trade deals, labor law
and other policies in order to advantage themselves, at the expense
of workers. Middle-class stagnation, in this view, is a choice that
can be corrected by shifting power back to workers, at the bargaining
table and elsewhere.
The other side,
the Third Way side, believes [or wants us to believe] that the
stagnation is a natural consequence of a globalizing economy, which
has disproportionately benefited people with high skills and people
who own stock, businesses and other forms of capital. That's the
story Kodak is meant to represent. Its demise wasn't imposed by
someone else's policy choice, it was a failure of the company to
adapt. To boost the middle-class, by that logic, workers need to be
given the means to adapt.”
Notice that in the preceding paragraph Mr.
Tankersley referred to the non-progressive side as the “Third Way”
side. This is because the Plutocrats have established a “ Wall
Street-funded D
emocratic think tank
called Third Way.” As Richard Eskow reports in commondreams.org:
“Third
Way has released a lengthy report that argues an inequality-based,
populist theme will doom Democrats. Its board member, former White
House Chief of Staff (and JPMorgan Chase executive) Bill Daley, even
insisted to HuffPo’s Stein that Sanders’ political positions are
“a recipe for disaster.
The Third Way
report is available
online. It introduces a number of catchphrases, often paired in
threes: the Hopscotch Workforce, the Nickel-and-Dimed Workforce, and
the Asset-Starved Workforce; Stalling Schools, the College Well, and
Adult Atrophy; the Upside-Down Economy, the Anywhere Economy, and the
Malnourished Economy.
Sadly, most of
the content amounts to Misleading Minutiae, Gimmicky Wordplay, and
Downright Deception.”
As Mr. Tankersley
so aptly wrote: “Third Way’s argument against inequality as a
leading source of our current economic woes puts them directly at
odds with leading economists, including Nobel Prize winner Joseph
Stiglitz. “Politicians typically talk about rising inequality and
the sluggish recovery as separate phenomena,” Stiglitz wrote
in 2013, “when they are in fact intertwined. Inequality stifles,
restrains and holds back our growth.”
So now we come
down to the Democratic Debate held last night and what we can learn
from it (besides the fact that it was an incredibly stupid idea to
schedule it at a time that put it up against college football,
particularly Pac 12 football, particularly in the second largest
television market in the nation where NFL stands for No Football
Locally and fans really follow the college teams!).
What the
Democratic debates have revealed so far is that even Hillary Clinton
with her connection to Bill Clinton, Barack Obama, and Wall Street
has embraced the Progressive explanation for what “has gone wrong
for the middle class.” The one thing no one can accuse Hillary of
being is stupid. She would not have moved to the left if she did not
think a progressive agenda is a winner!
“Hillary
Clinton and Bernie Sanders had an argument about financial regulation
during Tuesday’s
debate — but it wasn’t about whether to crack down on
banks. Instead, it was about whose plan was tougher. The contrast
with Republicans like Jeb Bush or Marco Rubio, who have pledged to
reverse even the moderate financial reforms enacted in 2010, couldn’t
be stronger.
“For
what it’s worth, Mrs. Clinton had the better case. Mr. Sanders has
been focused on restoring Glass-Steagall, the rule that separated
deposit-taking banks from riskier wheeling and dealing. And repealing
Glass-Steagall was indeed a mistake. But it’s not what caused the
financial crisis, which arose instead from “shadow banks” like
Lehman Brothers, which don’t take deposits but can nonetheless
wreak havoc when they fail. Mrs. Clinton has laid out a plan
to rein in shadow banks; so far, Mr. Sanders hasn’t.”
During the last debate Hillary pointed out what Paul Krugman wrote in this article. What Hillary did not mention was this important caveat from
Robert Borosage in his July 17 article in Campaign For America's Future:
“... in what is becoming a signature of the Clinton campaign, the fundamental problem is addressed with underwhelming reforms. To abandon the culture of short-term speculation, Clinton does not call for a financial speculation tax that might slow computer-driven, nanosecond trading programs. She does not endorse taxing the income of investors at the same rate as the salaries of workers. She doesn’t mention breaking up too-big-to-fail financial institutions or reducing the bloated size of our financial community that helps drive risky financial transactions. She doesn’t penalize companies for excessive CEO compensation packages.”
I might add here that most economists, including Paul Krugman, say that repealing Glass Steagall was a mistake.* I favor restoring Glass Steagall, but I would not argue with Mr. Krugman about what else needs to be done. I cannot tell you whether Hillary Clinton will strengthen what Mr. Borosage called "underwhelming reforms," but her rhetoric is making Wall Street nervous. The bottom line is that the incompetence of the Republican Party and the emergence of Roosevelt Democrats is dreadful news for the Wall Street Plutocrats who are afraid that their privileged position might actually become middling.
*There are also economists who disagree with Mr. Krugman about whether the repeal of Glass Steagall was a cause of the crash of 2008. See
Glass Steagall Matters!