by Blair Goodman, MADSA member, co-chair of Equador Working Group on the DSA International Committee and chair of the Training Subcommittee of the DSA Growth and Development Committee
As we urgently grapple with Trump’s return to the White House, it’s crucial to swiftly understand the economic and political factors that led to this outcome. The Democrats’ failure to promptly address the real economic concerns of working-class Americans has paved the way for Trump’s populist rhetoric to once again resonate with voters.
The Disconnect Between Wall Street and Main Street
Despite the rosy picture painted by macroeconomic indicators – a booming stock market, low unemployment, and steady GDP growth – the reality for average Americans has been starkly different. Under the Biden-Harris administration, we witnessed a shocking 20% increase in consumer prices, the biggest slump in living standards since the 1930s[1]. While the rich got richer, most Americans struggled to keep up with inflation.
The disconnect between official economic data and workers’ lived experiences is staggering. According to a recent poll, 62% of respondents rated the economy as “not so good” or “poor”[2]. This “vibecession” – where public sentiment doesn’t match official economic data – has been a critical factor in the Democrats’ downfall.
The Failure of Bidenomics and Harris’s Neoliberal Approach
Perhaps most damning is the decline in real wages for union workers under Biden. Using the Bureau of Labor Statistics’ Employment Cost Index, we see that inflation-adjusted wages and salaries for union workers decreased during Biden’s term while increasing under Trump. No wonder 56% of Americans thought the country was in a recession, with 72% believing inflation was still rising.
Going back to Bill Clinton the Democrats’ embrace of austerity policies has deeply betrayed their working-class base. They’ve continued catering to Wall Street and big business instead of pushing for transformative economic policies that benefit the majority. Harris’s refusal to support a single-payer healthcare system, her backtracking on fracking, and the maintenance of Trump-era tax cuts for the wealthy all demonstrate the party’s shift away from progressive economic policies.
The Shift of Traditional Democratic Voters
One voter’s quote summarizes why sufficient numbers switched from Democrat to Republican: “I’ve been a Democrat my whole life, and I haven’t seen any benefits. Democrats have been sending funds to wars and resources to migrants rather than to Americans who are struggling. I trust Trump to put us first.”[2] This sentiment reflects a broader trend of disillusionment among traditionally Democratic voters, particularly regarding economic issues and the perception that the party wasn’t prioritizing struggling Americans.
The Immigration Paradox
Ironically, much of the US outperformance in economic growth results from a sharp increase in net immigration, twice as fast as in the Eurozone and three times as fast as in Japan. Yet, the Harris campaign failed to capitalize on this economic benefit, instead caving to anti-immigrant sentiment and supporting the continuation of border wall construction, which contradicted the economic benefits of immigration and alienated potential supporters.
The Looming Debt Crisis
Both candidates have ignored the elephant in the room: the ballooning public debt. Currently estimated at $35 trillion, or around 100% of GDP, the debt load is set to soar higher – potentially reaching $50 trillion within the next 10 years. This rising debt will inevitably lead to higher taxes and cuts in government spending, regardless of who is in power, posing a significant economic challenge for the future.
The Need for Socialist Policies is Urgent
Join a socialist organization. I prefer a mass multi-tendency organization like the Democratic Socialists of America, but if you need something more focused, go for it. Learn to be active in your organization and promote outward-facing, mass work.
To rebuild and move forward, we must embrace truly socialist policies that unite the working class:
- Implement a wealth tax on the ultra-rich to fund social programs and infrastructure investments.
- Establish a single-payer healthcare system to eliminate medical debt and ensure universal coverage.
- Enact a Green New Deal that creates millions of good-paying union jobs while addressing climate change.
- Raise the minimum wage to a living wage and strengthen workers’ rights to organize.
- Invest in affordable housing and public transportation to improve the quality of life for all.
The Road Ahead
While the Democratic Party has failed us, we must strategically consider whether it can still be a vehicle for progressive change. Our immediate focus should be building grassroots solid movements and labor organizations that can exert pressure on political institutions from the outside. Of course, we should use the Democratic line where it is strategically convenient and pursue reform that transfers power from the owning classes to the working classes.
We must also concentrate our defenses against the coming onslaught of right-wing policies. Concentrating our defenses means making choices about where we can protect voting rights, defend reproductive freedom, and safeguard the rights of marginalized communities. We must recognize that unions will likely face a much more hostile environment under a Trump administration, forcing labor into a defensive position. We will need to find a strategy to resume the offensive.
As we move forward, we must remember that the underlying forces of capitalist production, investment, and profit are much more powerful than any particular policy adopted and implemented by a government. However, this doesn’t mean we should give up on political action. Instead, we must work tirelessly to build a movement that can challenge the foundations of a system that continues to fail most Americans.
The road ahead is challenging, but we must channel our anger and sadness into organizing and action. Only by uniting the working class around a truly progressive economic agenda can we hope to reverse the tide of right-wing populism and build a more just and equitable society for all.
Sources:
Kamala Harris Is Not Doing Well With Union Voters
How Bad Would a Trump Presidency Be for Labor?
The US presidential election: part one – the economy – Michael Roberts Blog
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