“Wobbled by Wealth?” – Krugman 11/5/07

Are the Democrats becoming corrupted by the influx of cash from wealthy supporters? This question is becoming more pertinent in the Democratic Party, as for the first time in recent history; the Democrats have raised more cash than the GOP from the business world. Are the Democratic officials selling out their progressive base by accepting the largesse of corporate America, or are they taking advantage of a political opportunity to broaden the power base?

The answer to this question will likely not come until sometime after 1/20/09, when a new president (likely Dem) will be able to develop an agenda for the nation. Will this agenda feature a more equitable tax structure with fewer loopholes and deductions for the rich? Will health insurance reform see the light of day? Will insurance reform to ensure that long-term policyholders aren’t dropped without cause become law? Or will hedge fund managers call on Mr. Schumer, drug companies on Hilary, and insurance on Mr. Dodd? Though this sounds a bit doomsdayish, the biggest concern I have is that progressives will fail to support the Democratic Party because they view it as the same as the GOP. Krugman hit the nail on the head on this point:

“O.K., some perspective. I sometimes hear people say that there’s no difference between Democrats and Republicans; that’s foolish. Look at the fight over children’s health insurance, and you can see how different the parties’ philosophies and priorities really are. All of the leading Democratic candidates are offering strongly progressive policy proposals; the Republicans are, if anything, running to the right of the Bush administration.

Perspective is key here, and I am not convinced that the Democratic presidential hopefuls are completely devoid of progressive principles. They have shown a willingness to at least espouse progressive ideals on the campaign trail. I am, like Krugman however, worried.

I have hope that opening the doors to business will generate immense electoral gains, arguably solidifying a governing coalition that can make a positive globalization effect for America into the future. I also have my concerns - Business is a bit of a serial monogamist, where nothing is forever. If the Democrats pursue this path of working closely with business, they may just cut some of the power out from under themselves were they to pursue a progressive agenda viewed as too extreme by the business community. Conversely, if they pursue an overly business friendly agenda, the possibility of losing unions, labor, and progressives is also real. I don’t believe in entrenched party lines, as they tend to make compromises more and more difficult as absolutes are embedded in party platforms. I do, however, find some cause for concern when the party that is stopping big boy hedge fund managers (all 150 of them) from being equitably taxed on their sizable income is the same party that for years has claimed to represent all the little guys out there.