The following article by Ruy Teixeira, senior fellow at the American Enterprise Institute, politics editor of The Liberal Patriot newsletter and co-author with John B. Judis of the new Book “Where Have All the Democrats Gone?,” is cross-posted from The Liberal Patriot:
Last week, I started revisiting my “Three Point Plan to Fix the Democrats and Their Coalition” from October of 2022. A brisk tour of the polling and political data suggested the Democrats are still in need of serious reform and that the three point plan is as relevant as ever. Here’s the very short version of the plan:
1. Democrats Must Move to the Center on Cultural Issues
2. Democrats Must Promote an Abundance Agenda
3. Democrats Must Embrace Patriotism and Liberal Nationalism
Last week I discussed cultural issues. This week I’ll discuss abundance and conclude next week with patriotism.
The Abundance Problem
Abundance means just what you think it means: more stuff, more growth, more opportunity, being able to easily afford life’s necessities with a lot left over. In short, nicer, genuinely comfortable lives for all.
That’s what voters, especially working-class voters, want. But that’s not what they feel they’re getting. Consider these poll results, all from the last month.
1. In the latest New York Times/Siena poll, only about a quarter (26 percent) describe economic conditions today as excellent or good, compared to 74 percent who say they are only fair or poor. This represents some modest improvement from the middle of last year, but it is obviously still quite low. Among working-class (noncollege) voters, sentiments are particularly negative: just 20 percent have a positive view of economic conditions, while 80 percent are negative. These views are actually slightly more negative among nonwhite working-class voters: 19 percent positive vs. 81 percent negative.
Voters are more positive about their personal financial situation, about split down the middle between excellent/good and only fair/poor. But they are far more likely to say that Biden’s policies have hurt them personally (43 percent) than helped them (18 percent) and that Trump’s policies helped them personally (40 percent) rather than hurt them (25 percent). Less than a quarter (23 percent) believe the economy is better than it was a year and less than a fifth (19 percent) believe it is better than four years ago. And voters’ attitudes are very negative in a wide range of economic areas: prices for food and consumer goods (88 percent only fair or poor); the housing market (79 percent); gas prices (83 percent); and wages and incomes (70 percent). On all these economic questions the views of working-class voters are distinctly more negative than voters overall.
2. In the latest CBS News poll, just 23 percent say their personal financial situation has gotten better in the last few years compared to 55 percent who say it has worsened (29 percent say no change). Looking back on the economy during the Trump presidency, by 65 to 28 percent respondents characterize it as good rather than bad, while the Biden economy is viewed as bad by 59 to 38 percent. The same pattern is evident on whether prices will go up or down under the policies of a future Biden or Trump presidency: people overwhelmingly feel prices will go up rather than down under Biden (55 to 17 percent) while believing prices will go down rather than up under Trump (44 to 34 percent).
3. In the latest Wall Street Journal poll, by 57 to 31 percent voters believe the economy has gotten worse rather than better over the last two years. They believe by 68 to 28 percent that inflation has gone in the wrong rather than right direction over the past year, by 50 to 43 percent that their personal financial situation has gone in the wrong direction, and by 65 to 25 percent that the ability of the average person to get ahead has gone in the wrong direction. And in a final finding, which perhaps best captures what all these data are telling us, when voters are given the choice between what has increased more in the last few years, their household income or the costs of everyday goods and services (or both at the same rate), they choose everyday costs over household income by a whopping 74 to 7 percent.
There’s a lot more recent data along these lines but you get the idea. Abundance this ain’t. Now it’s possible that improving conditions may produce a sudden positive spike in voters’ feelings about the economy in general and Biden’s stewardship of it. But so far we just haven’t seen this (though as noted, there has been some modest diminution in the intensity of negative feelings).
There has been some debate about the significance of consumer sentiment and changes thereof during the Biden administration. The two main trackers of consumer sentiment are the University of Michigan’s Index of Consumer Sentiment and the Conference Board’s Consumer Confidence Survey. Both have been depressed through much of Biden’s term but the Michigan index much more so because it is more closely tied to pocketbook conditions and hence more sensitive to inflation. But both started moving sharply in a positive direction in last December and this January, leading to a spat of optimism that voters’ views of the economy and Biden’s stewardship might improve dramatically. As noted, that hasn’t happened and disappointingly the upward movement in both measures stopped in February (actually down slightly) and March (flat).
In Democratic circles, there are two main responses to this (so far) bleak record on the abundance front. The first is what I call the “deluded, ungrateful wretches” theory. The idea here is that the economy’s recent record has been stellar: very low unemployment, strong job creation, smartly rising wages and inflation that has declined sharply from recent highs (though it is still significantly elevated from normal rates). Given all this, why do voters still believe the economy is so bad? They’re deluded! And why don’t they give the Biden administration the credit it richly deserves for this stellar performance? They’re ungrateful! The shockingly high number of deluded, ungrateful wretches is variously attributed to partisanship, the baleful influence of the media (especially conservative media), and voter distrust of economic experts and official statistics. Pretty much anything other than things aren’t—and haven’t been—all that great.
But there’s quite a strong case that, in terms of the “lived experience” of voters, particularly working-class voters, things have not in fact been great. The primary suspect of course is inflation which is still relatively high and in June of 2022 reached 9 percent, the highest inflation rate the country had experienced since 1981. People absolutely hate inflation since it directly undercuts living standards and they are reminded of this fact when they do mundane things like go to the grocery store. Heather Long of the Washington Post recently collected data on changes in inflation, hourly earnings and household purchases since Biden took office, shown below.
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As the chart shows, cumulative inflation has outpaced average hourly earning growth and the rise in many consumer prices have been even larger than overall inflation: rent and meat (up 20 percent); restaurants and groceries (21 percent); electricity (28 percent); gas (35 percent); and eggs (37 percent). These are facts of economic life that voters have a hard time forgetting.