How Progressive Will Hillarynomics Be?
The center-left think tank "Center for American Progress" recently issued a report entitled the "Report of the Commission on Inclusive Prosperity." Overall, the report presents a multi-pronged approach to boost middle-class incomes, and calls for a more progressive public policy through promoting labor unions and fiscal stimulus...
The political center of gravity has recently shifted in the Democratic Party, and there are reasons to hope that Hillary Clinton will embrace a progressive, far-reaching agenda. The 2008 supbrime mortgage meltdown perpetuated by Wall Street and the subsequent recession have caused inequality to dominate the party's policy agenda in a way it did not before...
Even among the traditionally centrist wing of the Democratic Party, there has become widespread recognition that exorbitant income inequality must be addressed to prevent "insufficient aggregate demand" from restricting economic growth and prosperity...
Due to the efforts of progressives like Elizabeth Warren, the Democratic Party has not only defended entitlement programs, but has called for expanding them. Hopefully this shift among the party's establishment will have a long-lasting impact that will encourage future party leaders to embrace a more ambitious role for government, the likes of which we haven't seen since the heyday of postwar liberalism...
Establishment Democrats will undoubtedly look to the Summers report as a blueprint for crafting their economic agenda in 2016. The policy regime put forth in Summers report is referred to as "inclusive capitalism." "Inclusive capitalism" seeks to fundamentally alter the rules of the marketplace by shifting America from its shareholder model of capitalism based on short-term profits to a more stakeholder model of capitalism that invests more in employees, the environment and communities. Inclusive capitalism posits that the middle-class does not want to punish the rich; just that middle class families want a chance to succeed and take in some of the new income generated by the economy. The market-oriented reforms and legislative endeavors of "inclusive capitalism" seek to counter inequality, wealth concentration, and promote opportunity and upward mobility. If these policies become central to the party's platform, it will be the Democratic Party's strongest commitment to boosting middle-class incomes since FDR's New Deal...
However, while Hillary Clinton won't turn into a social democrat, there is no need for there to be a lasting, intractable schism between progressives and establishment Democrats. If Hillary successfully crafts an economic message that exploits the recent convergence in thinking between the center and center-left, she can definitely construct an inequality agenda that satisfies both the establishment and progressive Democrats even if she doesn't give the latter everything they want. Progressives are already being heard by the establishment more they've been in a long time. If Hillary channels Elizabeth Warren, she'll solidify her support among the liberal base and increase voter turnout during the general election...
In order to effectively lead and represent her party, she will have to settle for the policy preferences of the median Democrat. With the Democratic Party becoming more populist in both the electorate and among elected officials, Hillary will be forced to embrace a progressive agenda in the 2016 campaign. Her personal views are irrelevant; regardless of whether Hillary is genuinely a progressive or a DLC Wall Street Dem, structural factors will prevent her from advocating for corporatist policies if she seeks to be the party's standard bearer. She cannot be a "Third-Way" Democrat in an operational sense. Again, she can only lead the Democratic Party in directions the party is willing to follow.
Of course, her policy preferences in the abstract won't reveal much about how she would govern in office, although it appears she would take a harder-edged approach to leadership and negotiation than President Obama. She may stand firm and pursue her agenda through creative uses of executive power. She may instead focus more on bipartisanship and trying to stake out compromises with the GOP wherever possible, although that is unlikely given party polarization and GOP intransigence. While the Democrats have a structural advantage in the 2016 Senate election and can retake that chamber, due to gerrymandering, the GOP may well hold the House until 2022. Even if the Dems retake the Senate, they may not have a filibuster-proof majority, denying Hillary an easy path for enacting her agenda. She may very well have to resort to executive actions.
Having said that, I am positive that due to the growth of progressives as a juggernaut force within the Democratic Party, Hillary's starting point on policy negotiates will be more far-reaching, transformative, and progressive than what we've seen in a while from mainstream Democratic Party leaders.
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http://policywonkroy.blogspot.com/2015/04/hillarynomics.html