Richard Kirsch

Roosevelt Institute Senior Fellow

Recent Posts by Richard Kirsch

  • Van Hollen Tax Proposal An Economic and Political Home Run

    Jan 12, 2015Richard Kirsch

    By forcing Republicans to admit their support for Wall Street over working families, Van Hollen's proposal opens the economic debate the Democrats need.

    By forcing Republicans to admit their support for Wall Street over working families, Van Hollen's proposal opens the economic debate the Democrats need.

    Rep. Chris Van Hollen’s (D-MD) proposal to tax Wall Street speculators and CEO millionaires to put money in the pockets of working families and the middle class, the engines of our economy, is a political and economic home run. It allows Democrats to focus on economic growth and fairness at the same time, sharply defining the debate on the key question voters ask: “Which side are you on?”

    Leading politicians from both parties are all expressing sympathy for the stagnant prospects of the middle class. If you need evidence, here is Jeb Bush sounding like Elizabeth Warren: “Millions of our fellow citizens across the broad middle class feel as if the American Dream is now out of their reach … that the playing field is no longer fair or level.”

    Where the two parties split – and where the core debate that will define the next two years and the 2016 election lies – is on who is to blame and what to do about it.

    Americans believe we need economic growth, but they are more likely to place the blame for stagnant wages on the super-rich and powerful who game the system at their expense. That is why they told pollsters they prefer “an economy that works for all of us, not just the wealthy” over “growing the economy” by 22 points.

    Van Hollen claims both grounds – growth and fairness. As he says, “What our country needs is a growing economy that works for all Americans, not just the wealthy few.”

    The heart of the plan is providing a $1,000 tax credit for workers, phased out as income rises, along with an additional $250 tax credit when workers save. He would pay for that by taxing Wall Street speculation (with a tiny financial transactions tax) and closing loopholes that allow millionaires to pay lower taxes than average people.

    It’s clear that this is great politics: taxing Wall Street gambling and the super-rich to put more money in the pockets of working families and the middle class.

    Republicans tell another story, placing the blame for middle-class woes on government and focusing on lowering taxes and cutting government regulation to grow the economy. In opposing the Van Hollen proposal, they are forced to defend the wealthy and deny tax breaks to the middle-class, as we saw from Speaker John Boehner’s spokesperson's comment opposing the Van Hollen plan.

    This is the economic argument Democrats want to have. Republicans say we grow the economy by taking the side of the Wall Street banks that wrecked the economy and the corporate CEOs who cut our wages and shipped our jobs overseas. Democrats say we move the economy forward by putting more money in the pockets of working families and the middle class.

    Van Hollen adds another proposal, which is also brilliant politics and sharp economics. He would not allow corporations to get tax breaks for million-dollar executive pay unless they shared the rewards of soaring corporate profits with their workers. Van Hollen accomplishes this by proposing to end corporate tax deductions for executive compensation of over $1 million, unless the corporation’s wages are raised enough to keep up with worker productivity and the cost of living. Another way that corporations could deduct higher executive pay is by providing employees with ownership and profit-sharing opportunities.

    With this proposal, Van Hollen puts the focus squarely on the corporate behavior that has driven down wages and crushed middle-class aspirations. His proposal would boost worker income, which drives the economy forward. When Republicans oppose this, the choice will again be clear to Americans: CEO millionaires or working families.

    As Van Hollen recognizes, his proposal is not the complete solution to creating an economy of broadly shared, sustainable prosperity. He recognizes the need to raise wages and job standards, which directly turn today’s low-wage, economy busting jobs into economy boosting jobs. He reinforces the necessity of investment in infrastructure, research and education.

    It will be important to do all these things. We need to raise wage standards and strengthen the ability of workers to organize, to make sure that every job pays enough to care and support a family in dignity. It is essential that we make huge investments in transportation, clean energy, communications, and research to build a powerful economic foundation for the future. That investment will take revenues, which can be raised from closing corporate loopholes, raising tax rates on the wealthy, or other progressive tax measures. We can also discuss whether some of the revenues Van Hollen raises would be better spent on infrastructure rather than tax breaks for upper-middle income people.

    Simplicity is key to political communication. In its simplest terms, Van Hollen is saying that we drive the economy forward by putting money in the pockets of working families and the middle-class, not Wall Street and the super wealthy. And then his proposal invites Americans to ask their elected officials: “which side are you on?”

    If Democrats around the country are willing to stand up to their big campaign contributors and ask that question with such a powerful proposal in 2016, they will triumph. And in triumphing, they will move the country toward an America that works for all of us, not just the wealthy. 

    Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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  • Chuck Schumer and the Democrats' Identity Crisis: Economic Policy vs. Rhetoric

    Dec 22, 2014Richard Kirsch

    A populist message won't be enough to save the Democratic Party if its leaders continue to serve Wall Street.

    A populist message won't be enough to save the Democratic Party if its leaders continue to serve Wall Street.

    Two weeks before New York Senator Charles Schumer once again delivered for Wall Street with the omnibus budget deal, he gave a major speech in which he sounded like a progressive champion. Schumer offered a stirring defense of government as the only force that can stand up to the private sector’s attack on the middle class, and argued that for Democrats to “roll to victory in 2016... First, we must convince Americans that government can be on their side and is not just a tool of special interests.”

    Schumer is not just any Democrat. He led the successful election efforts for Democratic senators in 2006 and 2008, is number three in the Democratic Senate leadership, where he is responsible for policy and communications, and he sits on several of the most powerful Senate committees. His speech at the National Press Club on November 25 was billed as a major analysis of why Democrats did so badly in the midterms and how they should chart a path to victory in 2016.

    Unfortunately, Schumer embodies the contradictions that will tear the Democratic Party apart over the next two years. He understands the need to embrace a populist, progressive narrative and program, but his ties to Wall Street and big money lead him to blunt any real moves by Democrats to take a bold stand for working people against corporate power.

    The budget proposal to allow more government bailouts of banks that gamble with their depositors’ money was a huge lost opportunity for Democrats to paint Republicans as being on the side of the big banks that wrecked the economy. That opportunity was negated by President Obama’s pushing for the budget and Senator Schumer’s stealth maneuvers (widely known in Congress) to keep the Wall Street deal intact. As a result, the leaders of both parties demonstrated, as they’ve done before, that government is in fact on the side of the rich and powerful.

    Schumer knows that this is a problem if Democrats hope to win at the polls. While his speech at the National Press Club got a lot of attention for his negative comments about the President’s strategy on the Affordable Care Act, those remarks were only a small part of a long analysis that has a lot in common with progressive views of the economy and the role of government. Some highlights:

    The most salient factor in our political economy is that for the first time in American history, middle-class incomes have been in decline for over a decade… The powerful have much more access and influence over government and specific and strong actions must be taken to curb that influence so government can really represent the average person… We must illustrate that government can provide solutions by delineating specific concrete programs that if enacted would actually improve lives and incomes… We must convince the middle class that the only way out of their morass is by a stronger and effective government, not by demeaning or running from it…

    When large forces harness power and push you around, you need a large after force to stand up to -- to stand up for you. The only force that can give you the tools to stand up to the large tectonic forces that can mitigate the effects that technology creates on your income is an active and committed government that is on your side.

    Schumer highlights the same key economic fact that progressives emphasize: wages have not kept up with productivity. But it is in his explanation of what is behind stagnant wages that he departs from progressives. For Schumer, “it can be described in one word -- technology. Technology allows capital to garner [a] far greater share of increases.” He goes on to note globalization as another factor.

    Schumer leaves out the powerful political forces that drove down wages. The biggest omission is his total failure to discuss the role of Wall Street in wrecking the economy and, more broadly, in driving down wages at the expense of corporate profits. Schumer, who as much as anyone in government is responsible for unleashing Wall Street is incapable of making that case. Schumer, a leading champion of banking deregulation, has collected more than $20 million in campaign contributions from the financial sector, more than any other senator who hasn’t run for president.

    And it’s not just Wall Street that Schumer leaves out of the story. It is also the corporate attack on labor unions and on labor standards.  He makes no mention of the slashing of taxes on unearned income, so that the rich pay lower taxes than the rest of us, or of the gutting of corporate tax collection. Where are the corporate villains – abetted by both political parties – who have enriched themselves at the expense of American families while driving down taxes and government investment in the public structures that are foundations of a powerful economy?

    Schumer emphasizes that Democrats need a policy program to go along with their message of being on the side of the middle class, but he punts on what ideas they should propose, saying, “In the coming weeks and months we will have this debate within the Democratic Party.” Still, he declares that the Democratic program must be “attainable and effective, which means they must work politically.” That’s a recipe for more small-bore ideas, which will neither meet the big challenges facing the country nor inspire people.

    In his conclusion, Schumer again asserts that what can unite Democrats “from Elizabeth Warren to Hillary Clinton to Joe Manchin” is working to “convince middle-class Americans that we are the party that will put government back on their side… and passing legislation that is effective and acutely focused on reversing the middle class decline.”

    Richard Nixon’s Attorney General John Mitchell famously said, “Watch what we do, not what we say.” But in today’s world of minute-to-minute coverage and social media, that isn’t so easy to pull off. CREDO Action, one of the big progressive netroots groups, immediately called out Schumer, along with President Obama and other Democrats who enabled the Wall Street budget deal.

    Schumer is a brilliant politician and legislative tactician, but the reality of the corporate attack on American workers will overwhelm any messaging gloss that Democrats can put on it. He’s right; Democrats will have to take sides between working families and the middle class or the super-rich and CEO campaign contributors. 

    Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

    Image via Shutterstock

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  • The Budget Fight Was the First Skirmish in the War for the Soul of the Democratic Party

    Dec 12, 2014Richard Kirsch

    Democrats had the leverage to nix a deal that opens the door to more Wall Street bailouts, but they caved in to Republican blackmail.

    Progressives lost the battle over the budget last night because President Obama and a minority of Democrats took the side of Wall Street. It is the first of many losses we will see in the next two years as Republicans relentlessly pursue their corporate agenda. The bigger question is whether progressives will lose the war in the Democratic Party.

    Democrats had the leverage to nix a deal that opens the door to more Wall Street bailouts, but they caved in to Republican blackmail.

    Progressives lost the battle over the budget last night because President Obama and a minority of Democrats took the side of Wall Street. It is the first of many losses we will see in the next two years as Republicans relentlessly pursue their corporate agenda. The bigger question is whether progressives will lose the war in the Democratic Party.

    Blowing up this budget deal should have been easy for Democrats. They were handed a perfect message: the Republicans are willing to shut down the government so they can bail out Wall Street the next time it wrecks the economy.

    Democratic votes were needed because a group of 67 right-wing Republicans opposed the bill on the grounds that it did not go far enough in opposing the president’s executive order on immigration. The Republican split gave Democrats the leverage to demand that the bank bail-out provision be stripped from the bill.

    But with President Obama twisting enough Democratic arms (57 in total) to give in to the Wall Street-engineered Republican blackmail, that powerful, winning message was diluted.

    Democratic negotiators also agreed to the deal to repeal a provision of the Dodd-Frank law that prevents government bailouts of banks who engage in a form of risky trading. Their argument was “Republicans made us do it; it’s the best we could do.” But of course, with all the Wall Street money going to Democrats, that’s a convenient excuse. They can turn around and wink at the lobbyists who deliver Wall Street campaign contributions, playing a game in which the dupes are the American people.

    The bailout of banks and Wall Street speculators remains deeply and broadly unpopular. It is an issue that generates anger among grassroots activists on the left and the right. For Americans who see Wall Street billionaires getting richer by gaming the system while families struggle to meet the basics, there could be no clearer contrast.

    Progressive Democrats fought back. In a rapid-fire display of the energy and nimbleness of progressive organizations and champions in Congress, the deal was quickly exposed.

    Senator Elizabeth Warren laid it out clearly on the Senate floor: “We put this rule in place because people of all political persuasions were disgusted at the idea of future bailouts… Republicans in the House of Representatives are threatening to shut down the government if they don’t get a chance to repeal it.”

    In the House, progressive Democrats joined the call. California Rep. Maxine Waters, the senior Democrat on the House Financial Services Committee, said, “We don't like lobbying that is being done by the president or anybody else that would allow us to support a bill that ... would give a big gift to Wall Street and the bankers who caused this country to almost go into a depression.”

    The vigorous pushback from progressive groups and their allies in Congress convinced Minority Leader Nancy Pelosi to break with the White House. Pelosi said that they were being “blackmailed” to vote for the bill, which she called “a moral hazard.” Still, Pelosi did not use her considerable powers of persuasion to get fellow Democrats to vote no.

    For the next two years we will see Republicans do everything they can to deliver for corporate America at the expense of the American people. The only question is whether Democrats will enable them. Will President Obama continue to make compromise after compromise? Will Democrats in the Senate use the filibuster to block the Republican attack on working families? Will enough Democrats in the House keep coming to the rescue of a divided Republican Party?

    We will see the same fight in the Democratic primary for president. Will Hillary Clinton break from the Wall Street wing of the party with which she aligned as a senator from New York? Will her challengers make the same sharp contrast that Senator Warren did, when she began her speech on the Senate floor by asking, “Who does Congress work for? Does it work for the millionaires, the billionaires, the giant companies with their armies of lobbyists or lawyers? Or does it work for all the people?”

    As I wrote after the election last month, Democrats who used a populist economic message – who named the corporate villains and declared that “we all do better when we all do better” – won. Democrats who ran to the mushy middle lost.

    But this is not just a fight for the soul of the Democratic Party, it’s a fight for our very democracy. As Justice Louis Brandeis said almost a century ago, “We may have a democracy or we may have great wealth concentrated in the hands of a few, but we cannot have both.”

    Americans are yearning for champions who stand up for them. If we have any hope of changing the direction of our economy from enriching the rich at the expense of the rest of us and of recapturing our democracy from the CEO campaign contributors and Wall Street bag men, it will be because progressive forces and elected champions stand up not just to Republicans but to President Obama and any Democrat who takes the side of Wall Street against America’s working families.

    It is clear that progressives and the American people will lose battle after battle in Congress over the next two years. The real question is whether we will lose the war. 

    Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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  • A Dem Who Can Explain that Fairness is Prosperity Will Sweep in 2016

    Nov 19, 2014Richard Kirsch

    The policies that will deliver economic growth also center fairness, and that's what Democrats need to emphasize to keep the presidency in 2016.

    The policies that will deliver economic growth also center fairness, and that's what Democrats need to emphasize to keep the presidency in 2016.

    The familiar debate within the Democratic Party – move left or right – is on. In a memo to a “limited number of Democratic leaders,” Third Way, the leading organization for corporate Democrats, lays down the gauntlet: “Democrats are offering economic fairness, but voters want economic growth and prosperity.” And for good measure, Third Way declares, “And it has to be meaningful; Democrats can’t simply stick a 'growth' label on the old bottle of 'fairness' policies.”

    The folks at Third Way are right about one thing; voters do want economic growth and prosperity. Where they are wrong is in their assumption that fairness can't be a part of that growth. The policies that do the most to bolster fairness are in fact the most powerful policies to move the economy forward and create broadly shared prosperity.

    Progressives and Democrats don’t always make that clear. Most of the time they talk about fairness as separate from broadly-shared prosperity. The Democrat who bases his or her campaign on that crucial link will sweep into the presidency in 2016.

    Policies that increase fairness are key to driving the economy forward.

    Raising the minimum wage is not just about basic fairness for low-wage workers. Raising wages is about creating economy boosting jobs, not economy busting jobs. When wages are raised, workers have more money to spend, essential when 70 percent of the economy is made up of consumer spending.

    An economy boosting job pays enough to cover the basics, which is why the fight for a $15 per hour minimum wage mobilizes people to action. It is about working at that wage for enough hours, with predictable schedules, so that the wages add up to a decent paycheck. It is about getting paid when you are out sick and having paid family leave, so you can care for and support your family. It is about women getting paid as much as men. It is about being able to afford your health care, so you have money to spend on other essentials and don’t end up bankrupt because of a high-cost illness. It is about increasing Social Security benefits and bolstering retirement savings, so you can keep supporting yourself and keep the economy moving well into your retirement.

    These measures reward people fairly for work and are essential to rebuilding the middle class engine of the economy, as shown by the evidence collected in the Center for American Progress’s middle-out economics project.

    The flip side of creating economy boosting jobs is reversing the soaring concentration of wealth. It’s not just unfair that the rich are grabbing more and more of the wealth we all create, it’s a big reason that the economy remains sluggish. When the top 1 percent capture virtually all of the economic progress, it's impossible for them to spend much of it. When corporations sit on trillions of dollars of cash because there aren’t markets for their goods, that money doesn’t go to higher wages or investment in creating jobs or other things that would boost productivity throughout the economy.

    Even Wall Street is beginning to get it. In a report that is stunning only for its source, Standard & Poor's found this summer that “Our review of the data, as well as a wealth of research on this matter, leads us to conclude that the current level of income inequality in the U.S. is dampening GDP growth, at a time when the world's biggest economy is struggling to recover from the Great Recession and the government is in need of funds to support an aging population.”

    A big goal of Third Way’s memo is to justify policies that they admit “may not be the most politically popular.” While some of the Third Way proposals are worthwhile, like millions of teachers for pre-K, much of their agenda is that of corporate America and in some cases would actually be bad for the economic growth they claim to seek.

    Using coded language in an attempt to dilute the political poison, Third Way pushes for cutting Social Security benefits, lowering corporate tax rates rather than stopping corporate tax evasion, and agreeing to new trade deals which would drive the race to the bottom and allow corporations to challenge environmental and health and safety laws, instead of bolstering American workers' already hard-pressed incomes.

    Instead, what the country needs and what Democrats should push are bold policies which drive the economy forward and create broadly shared prosperity: fairness.

    We can start by putting Americans to work with a massive investment in core productive infrastructure in three areas: transportation, from roads and bridges to high speed rail; clean, renewable energy, which will simultaneously tackle climate disruption; and high-speed Internet for every home and business in America. Everyone who does this work should be paid enough, with good benefits, to support and care for their families, and be given the flexibility needed to care for those families.  In doing so, we doubly boost the economy: through the investment in infrastructure and through the good jobs.

    It is both fair and essential for our economic future to ensure that every child has a quality education and the opportunity to succeed in school, career, and life. We need to modernize and replace dilapidated schools and assure that every child has a well-prepared and supported teacher in a small enough class to learn. We need to transform schools, particularly those that teach children in low-income neighborhoods, into community centers. We should make high-quality child care and pre-K universal, employing millions more providers and teachers.

    We need to provide career training for the high-skilled jobs that don’t require traditional college. We need to make college affordable, by dramatically lowering the cost of public colleges and universities, providing much more tuition assistance, and tying the payment of student loans to earnings.

    And as in infrastructure, all these jobs – from day-care providers to teachers to college professors (no more adjuncts) – should be good jobs, with good pay, benefits, and the flexibility to care and support families.

    The only reason that Democrats would consider an agenda that Third Way admits is politically unpopular is to please corporate campaign donors and elites. But with President Obama pushing for new trade deals, advocating revenue-neutral corporate tax reform and having supported cuts in Social Security benefits, that agenda is as alive as the billions in campaign contributions that pour into both political parties.

    Americans are right about two things. One, the system is rigged to favor the wealthy and powerful. Two, unless we change course, the future will not be better for our children. Those are the core reasons we saw historically low voter turn out this month and why minimum wage hikes passed at the same time voters decided to give Republicans their turn in the continuing roller-coaster of Congressional control over the past decade.

    The Democrat who champions bold policies to build an America that works for all of us, not just the wealthy, and policies that create broadly shared, sustainable prosperity, will triumph in 2016.

    The key, as Franklin Delano Roosevelt did (and as great organizers do), is to tap into anger and lift up hope. FDR railed against the “economic royalists” and experimented with bold policies that reigned in financial speculation and put Americans to work building the foundations for the 20th Century economy. 

    The next FDR will name the villains who are rigging the system: Wall Street speculators and corporations that cut wages and benefits and ship jobs overseas. The next FDR will reveal the truth that “we all do better when we all do better.” That when we all earn enough to care and support our families, when we can shop in our neighborhoods, give our kids a great education, afford our health care, retire with security, we drive the economy forward.

    Mamby-pamby won’t cut it. Americans are crying for bold leadership, a way out of a narrowing world towards a better world for our children.

    The Democrat who leads a political party that stands up against the rich and powerful and stands up for working families and the middle class, who declares that Americans have done this before and that together we can do it again, will triumph in 2016. A Democratic party that relentlessly presses that agenda into action will meet the great challenge of our time. 

    Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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  • News Flash: Progressives Have a Winning Economic Narrative -- and Democrats Who Used It Won

    Nov 11, 2014Richard Kirsch

    Democrats can connect with voters by telling a story about how they'll make the economy work for all of us.

    The big post-election consensus is that Democrats believe, as The New York Times put it, they were missing “a broad economic message to enthuse supporters and convert some independents.”

    Democrats can connect with voters by telling a story about how they'll make the economy work for all of us.

    The big post-election consensus is that Democrats believe, as The New York Times put it, they were missing “a broad economic message to enthuse supporters and convert some independents.”

    So what would that missing narrative be? The point of a narrative is to give people an explanation of what they are experiencing that includes what is wrong, who is responsible, and what we can do about it.

    Take a look at two explanations of what’s happening that are very similar but different in important ways.

    The first, from Republican message guru Frank Luntz, writing in The New York Times: “[F]rom the reddest rural towns to the bluest big cities, the sentiment is the same. People say Washington is broken and on the decline, that government no longer works for them — only for the rich and powerful.”

    The second, from Democratic message advisors James Carville and Stan Greenberg, along with Page Gardner: “People believe that the rich are using their influence to rig the system so the economy works for them but not the middle class.”

    The big difference here is how the common sentiment among Americans – that the rich call the shots – is framed to suggest a solution. By focusing on the government, Luntz sets up the Republican push for limited government. Or as successful Iowa Republican Senate candidate Joni Ernst said in a debate, “When Washington is picking… winners and losers, it’s almost always our Iowa middle-class families that lose.”

    For Carville, Greenberg, and Gardner, the focus is on the economy being rigged. Or as one ad for Oregon’s Democratic Senator Jeff Merkley said, “It is Jeff leading the fight to hold Wall Street and big banks accountable when they prey on working families and small businesses. ”

    Merkley won and so did Ernst. The explanation, according to progressive pundits, is that Democrats like Merkley who used a populist message – which means they connected people’s economic concerns to the rich and powerful who are responsible – were successful while Dems who ran away from that message lost. As someone who has been leading the Progressive Economic Narrative (PEN) project, I really wanted to believe that. But as it seemed too easy, I decided to look at some campaigns and see whether it was spin or the truth. It turns out to be the truth.

    The first case I looked at was Minnesota Democrat Al Franken’s campaign. After eking out a victory in the great Democratic year of 2008, Franken won handily this year, even as Republicans took over the Minnesota House of Representatives. Imagine my smile when I quickly found Franken ads based on the key value statement in our Progressive Economic Narrative, “We all do better when we all do better.” This was also a key theme of Minnesota’s great progressive senator, Paul Wellstone.

    Franken’s progressive populism makes a key distinction when he uses the key word in that values phrase, “all.” As he says in another ad,  “I work for all Minnesotans. Wall Street wasn’t happy about that. But I don’t work for Wall Street. I work for you.”

    The name of our Progressive Economic Narrative is “An America that works for all of us,” which is central to the aspirational power of our story. However, what is needed for that message to win is to make it clear who is not included in “all of us” (i.e., the wealthy). A poll of voters last spring found that voters preferred “growing the economy” over “an economy that works for all of us” by 10 percentage points. By contrast, voters chose “an economy that works for all of us, not just the wealthy” over “growing the economy” by 22 points!

    Merkley was also sure to name the villains of the economic story throughout his campaign, as in the Wall Street ad mentioned above.

    So what about those Democrats who lost in purple states? I would have thought Iowa Democratic Rep. Bruce Braley, who founded the populist caucus when he got to Congress in 2007, would have run a populist campaign. Instead, Braley ran on working across the aisle to get things done in Iowa and not “letting the extremists from either party get in the way.” Because voters are skeptical about anything getting done for them in Washington, his message fell flat.

    Braley listed progressive issues, but without a narrative to link them together. His only villains were the “Koch brothers and their extreme agenda,” but he didn’t say what made their agenda extreme. Contrast that with how Merkley described “the billionaire Koch brothers,” who want to give “more tax breaks to millionaires and reward companies that ship jobs overseas.”

    What about Mark Udall in Colorado, another Democrat who lost in a purple state that Obama carried? Udall built his campaign narrative around a war on women by his opponent Rep. Corey Gardner. He, like Braley, ticked off a list of progressive issues – from minimum wage to pay equity to protecting Social Security – without providing any framing story to link them together. He left out who the villains are in the story.

    Udall also committed the ultimate narrative sin: delivering your opponent’s story. Here’s the closing line of a Udall ad: “I’m Mark Udall. No one – not government, not Washington – should have the power to take those rights and freedoms away.” Voters who wanted the anti-government candidate chose the real thing!

    Udall would have had a much broader audience for his “war on women” message if he framed it as part of a broader war on American families by the rich and powerful. It is easy to make opposition to pay equity or a woman’s right to make her own decisions part of this broader story, which speaks to Americans’ deep concerns about their families.

    One part of the story I didn’t see in the candidate ads was how Democrats should address Luntz’s “blame government” narrative. The answer, as Hart Research pollster Guy Molyneaux explains in The New York Times, quoting almost verbatim from the Progressive Economic Narrative, is that “the important question facing America today is not how big government should be so much as who government should work for: corporations and the wealthy, or all Americans?”

    As Molyneaux points out, “That is a debate Democrats can and will win.”

    What even progressive Democrats need to do better is tell a story about how to create that economy that works for everyone, not just the wealthy. This is a matter of both clear narrative and bold policy.

    The core of our economic theory is, as we say in the Progressive Economic Narrative, “working people and the middle class are the engines of the economy.” Another version of this, popularized by the Center for American Progress, is “we build the economy from the middle-out, not trickle-down.”

    The story we are telling is that people are the job creators, not businesses. That raising the minimum wage is not just about fairness, but about creating economy-boosting jobs that put money in people’s pockets to spend in their communities. “We all do better when we all do better” is not just a statement of values; it’s the progressive belief about how the economy works.

    Our narrative connects to policy with the phrase “we build a strong middle class by decisions we make together.” Democrats need to step up with bold policies, many of which are already out there, waiting to be championed. Here are just three:

    1.     A massive public investment to dramatically increase the use of clean energy  – which would at the same time tackle the challenge of climate disruption – with a requirement that all the jobs created pay wages that can support a family.

    2.     A $15/hr minimum wage that grows with productivity, so that workers get their fare share of the wealth they create. 

    3.     A robust system of public financing that would allow candidates to win office without taking big campaign contributions from anyone, addressing the public’s belief that the rich call the shots.

    One thing Democrats had better not say is “Oh, what’s the narrative? What do we say about the economy?” Progressives have a powerful narrative and bold solutions to create an America and an economy that works for all of us, not just the wealthy. Candidates who run on this have won and will win. And an America that runs on these policies will do to what too many Americans no longer believe is possible: provide a better life for our children. 

    Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

    2014 election results map courtesy of Politico.

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