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Monday, November 11, 2013

Hillary's Nightmare? A Democratic Party That Realizes Its Soul Lies With Elizabeth Warren



By Noam Scheiber, The New Republic
We’re three years from the next presidential election, and Hillary Clinton is, once again, the inevitable Democratic nominee. Congressional Republicans have spent months investigating her like she already resides in the White House. The New York Times has its own dedicated Clinton correspondent, whose job it is to chronicle everything from Hillary’s summer accommodations (“CLINTONS FIND A NEW PLACE TO VACATION IN THE HAMPTONS”) to her distinct style of buckraking (“IN CLINTON FUNDRAISING, EXPECT A FULL EMBRACE”). There is a feature-length Hillary biopic in the works, and a well-funded super PAC—“Ready for Hillary”—bent on easing her way into the race. And then there is Clinton herself, who sounds increasingly candidential. Since leaving the State Department, Clinton has already delivered meaty, headline-grabbing orations on voting rights and Syria.
Yet for all the astrophysical force of these developments, anyone who lived through 2008 knows that inevitable candidates have a way of becoming distinctly evitable. With the Clintons’ penchant for melodrama and their checkered cast of hangers-on—one shudders to consider the embarrassments that will attend the Terry McAuliffe administration in Virginia—Clinton-era nostalgia is always a news cycle away from curdling into Clinton fatigue. Sometimes, all it takes is a single issue and a fresh face to bring the bad memories flooding back.
The last time Clinton ran, of course, the issue was Iraq and the gleaming new mug was Barack Obama’s. This time the debate will be about the power of America’s wealthiest. And, far more than with foreign policy, which most Democrats agreed on by 2008, this disagreement will cut to the very core of the party: what it stands for and who it represents.

Christopher Gregory/The New York Times/Redux
Elizabeth Warren

On one side is a majority of Democratic voters, who are angrier, more disaffected, and altogether more populist than they’ve been in years. They are more attuned to income inequality than before the Obama presidency and more supportive of Social Security and Medicare.1 They’ve grown fonder of regulation and more skeptical of big business.2 A recent Pew poll showed that voters under 30—who skew overwhelmingly Democratic—view socialism more favorably than capitalism. Above all, Democrats areincreasingly hostile to Wall Street and believe the government should rein it in.
On the other side is a group of Democratic elites associated with the Clinton era who, though they may have moved somewhat leftward in response to the recession—happily supporting economic stimulus and generous unemployment benefits—still fundamentally believe the economy functions best with a large, powerful, highly complex financial sector. Many members of this group have either made or raised enormous amounts of cash on Wall Street. They were deeply influential in limiting the reach of Dodd-Frank, the financial reform measure Obama signed in July of 2010.
But as central as this debate is to the identity of the party, Democrats won’t openly litigate it until they’re forced to ponder life after Obama. Partly out of deference to the president, partly out of a preoccupation with governing, and partly because there is no immediate political need, parties rarely conduct their internal soul-searching when they control the White House. It’s only when the president finally contemplates retirement that the feuding breaks out with real violence. Think of the Republican Party after George W. Bush. Or, you know, Yugoslavia.
Judging from recent events, the populists are likely to win. In September, New York City Public Advocate Bill de Blasio, running on a platform of taming inequality, routed his Democratic mayoral rival, Christine Quinn, known for her ties to Michael Bloomberg’s finance-friendly administration. The following week, Larry Summers, Obama’s first choice to succeed Ben Bernanke as Federal Reserve chairman, withdrew his name from consideration after months in which Senate Democrats signaled their annoyance with his previous support for deregulation. Not 48 hours later, Bill Daley, the former Obama chief of staff and JP Morgan executive, ended his primary campaign for governor of Illinois after internal polls showed him trailing his populist opponent.
All of this is deeply problematic for Hillary Clinton. As a student of public opinion, she clearly understands the direction her party is headed. As the head of an enterprise known as Clinton Inc. that requires vast sums of capital to function, she also realizes there are limits to how much she can alienate the lords of finance. For that matter, it’s not even clear Clinton would want to. “Many of her best friends, her intellectual brain trust [on economics], all come out of that world,” says a longtime Democratic operative who worked on Bill Clinton’s 1992 campaign and then for Hillary in the White House. “She doesn’t have a problem on the fighting-for-working-class-folks side”—protecting Medicare and Social Security—“but it will be hard, really wrenching for her to be that populist on [finance] issues.”
Which brings us to the probable face of the insurgency. In addition to being strongly identified with the party’s populist wing, any candidate who challenged Clinton would need several key assets. The candidate would almost certainly have to be a woman, given Democrats’ desire to make history again. She would have to amass huge piles of money with relatively little effort. Above all, she would have to awaken in Democratic voters an almost evangelical passion. As it happens, there is precisely such a person. Her name is Elizabeth Warren.

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