Robert Reich’s “Republicans aren’t going to tell Americans the real cause of our $31.4tn debt” at The Guardian includes some message points Dems should find useful, including: “In the first full year of the Trump tax cut, the federal budget deficit increased by $113bn while corporate tax receipts fell by about $90bn, which would account for nearly 80% of the deficit increase….Meanwhile, America’s wealthy have been financing America’s exploding debt by lending the federal government money, for which the government pays them interest….As the federal debt continues to mount, these interest payments are ballooning – hitting a record $475bn in the last fiscal next year (which ran through September). The Congressional Budget Office predicts that interest payments on the federal debt will reach 3.3% of the GDP by 2032 and 7.2% by 2052….The biggest recipients of these interest payments? Not foreigners but wealthy Americans who park their savings in treasury bonds held by mutual funds, hedge funds, pension funds, banks, insurance companies, personal trusts and estates….Hence the giant half-century switch: the wealthy used to pay higher taxes to the government. Now the government pays the wealthy interest on their loans to finance a swelling debt that’s been caused largely by lower taxes on the wealthy….This means that a growing portion of everyone else’s taxes are going to wealthy Americans in the form of interest payments, rather than paying for government services that everyone needs….So, the real problem isn’t America’s growing federal budget deficit. It’s the decline in tax revenue from America’s wealthy combined with growing interest payments to them….Both are worsening America’s already staggering inequalities of income and wealth….What should be done? Isn’t it obvious? Raise taxes on the wealthy.”
NYT columnist Thomas B. Edsall addresses a pivotal question facing the Democratic Party, “How Much Longer Can ‘Vote Blue No Matter Who!’ Last?” and quotes University of Mississippi political scientist Julie Wronski, who who sees Democrats as “a coalition of racial minorities (especially Blacks) and whites who are sympathetic to the inequities and challenges faced by minority groups in America. Racial identities and attitudes are the common thread that link wealthier, more educated whites with poorer minority constituencies….The Democrats’ biracial working-class coalition during the mid-20th century, in Wronski’s view, “was successful because racial issues were off the table.” Once those issues moved front and center, the coalition split: “Simply put, the parties are divided in terms of which portion of the working class they support — the white working class or the poorer minority communities.” But do Republicans really “support” the white working-class in any substantial way? Edsall continues, “the level of educational attainment is the line of demarcation between the two groups of white voters….By 2020, the white working class — defined by the Federal Reserve of St. Louis as “whites without four-year college degrees” — voted for Donald Trump over Joe Biden, 67 to 32 percent, according to network exit polls. In the 2022 election, white working-class voters backed Republican House candidates at almost the same level, 66 to 32 percent.” The Republican’s ability to win 2/3 of the white workers who actually show up to vote is unchanged.