Bernie Slanders: How the Democratic Party Establishment Suffocates Progressive Change

By Thomas I. Palley, Independent Economist Washington, D.C.

Cross-posted at the author’s blog, thomaspalley.com.  An earlier version of this appeared at Social Europe.

The Democratic Party establishment has recently found itself discomforted by Senator Bernie Sanders’ campaign to return the party to its modern roots of New Deal social democracy. The establishment’s response has included a complex coupling of elite media and elite economics opinion aimed at promoting an image of Sanders as an unelectable extremist with unrealistic economic policies.

The response provides a case study showing how the Party suffocates progressive change. Every progressive knows about the opposition and tactics of the Republican Party. Less understood are the opposition and tactics of the Democratic Party establishment. Speaking metaphorically, that establishment is a far lesser evil, but it may also be a far greater obstacle to progressive change.

The elite media’s response was captured in a snapshot report by Fairness and Accuracy In Reporting (FAIR) showing that the Washington Post ran 16 major negative stories on Sanders in 16 hours, prior to the Michigan primary. The headlines were particularly hostile, and since only 40 percent of the public reads past the headline, that is as important as the substance of the story.

Economic policy has been the fulcrum of Sanders’ campaign, and the response of elite opinion has been exemplified by Paul Krugman of The New York Times.

For years, Krugman has mockingly used the term “very serious people” to attack Republicans opposed to President Obama’s policies. Now, he unironically revokes the credentials of all who do not support Clinton  by declaring: “every serious progressive policy expert on either health care or financial reform who has weighed in on the primary seems to lean Hillary.”

Regarding Sanders’ opposition to neoliberal trade agreements, Krugman writes “In this, as in many other things, Sanders currently benefits from the luxury of irresponsibility: he’s never been anywhere close to the levers of power, so he could take principled-sounding but arguably feckless stances in a way that Clinton couldn’t and can’t.”

The slamming of Sanders has also been joined by a gang of past Democratic appointee Chairs of the Council of Economic Advisers. In an open letter co-addressed to Senator Sanders, Messrs. Kruger, Goolsbee, Romer and Tyson mauled a favorable empirical assessment of Sander’s economic program conducted by Professor Gerald Friedman.  Without any detailed independent assessment, they simply declared the assessment unsupported by the “economic evidence”.

Messrs. Kruger et al. were then joined by Justin Wolfers, via one of his regular New York Times opinion pieces. His accusation was the beneficial effects of fiscal stimulus would disappear once full employment was reached and the stimulus withdrawn.

Wolfers is co-editor of the prestigious Brookings Papers on Economic Activity. Ironically, a recent issue contained an article by elite Democratic economists Larry Summers and Brad DeLong invoking a similar mechanism as Professor Friedman. Summers and DeLong argued a large negative temporary demand shock can permanently lower output: Friedman simply reversed that and argued a large positive temporary stimulus can permanently raise output and growth.

There is legitimate room for intellectual difference. What is so stunning is the tone of the critique and the fact it sought to diminish an important policy (fiscal stimulus) just because Sanders was using it to his political advantage.

Given their elite professional standing and easy access to elite media, these attacks quickly ramified throughout the mainstream media, illustrating how the elite media – elite opinion nexus works.

The slamming of Sanders reflects an enduring status quo defense mechanism which usually begins with insinuations of extremism, then mixes in charges of lack of qualification and realism, and ends with assertions of un-electability. It is applied in both political and public intellectual life.

The extremism gambit explains the persistent linking of Sanders and Trump. Whereas Trump is an egotistical demagogue and businessman with a disreputable business history, Sanders is a thoughtful social democrat with a long history of public service through high electoral office.

The un-electability charge pivots off the extremism insinuation as follows. Americans will not elect extremists; Sanders is an extremist; ergo, Sanders is unelectable.

As with the extremism insinuation, the un-electability charge lacks foundation. Polls show Sanders beating all the potential Republican nominees, and beating Trump handily.

The third charge is lack of qualification. The reality is Sanders has a fifty year history of political involvement, worked his way through the political ranks serving people, was Mayor of Vermont’s largest city, then Vermont’s representative in Congress where he co-founded the Congressional Progressive Caucus, and after that became a Senator for Vermont. That seems to be exactly the career and CV a President should have.

Lastly, Sanders has been dismissed as selling unrealistic pipe dreams. Social Security would be a pipe dream if we did not already have it; so would Medicare and public education too. There is a lesson in that. Pipe dreams are the stuff of change.

Rather than an excess of pipe dreams, our current dismal condition is the product of fear of dreaming. The Democratic Party establishment persistently strives to downsize economic and political expectations. Senator Sanders aims to upsize them, which is why he has been viewed as such a threat.

November will be a time for Democratic voters to come together to stop whoever the Republicans nominate. In the meantime, there is a big lesson to be learned.

Today, the status quo defense mechanism has been used to tarnish Bernie Sanders: tomorrow it will, once again, be used to rule out progressive policy personnel and options.

Progressives must surface the obstruction posed by the Democratic Party establishment. Primaries are prime time to do that, which means there is good reason for Sanders’ campaign to continue.

Our March/April Issue Is Out!

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We sent our March/April 2016 issue to e-subscribers last week, and the print copies are now arriving in print subscribers’ mailboxes!  (Not a subscriber? We hope you’ll consider subscribing today–just click here.)  We’ve already posted three articles from the issue to the D&S website: Why Higher Ed Can’t Wait, by Biola Jeje and Belinda Rodriguez; John Miller’s take on Clinton and Sanders’ financial reform proposals; and (just posted today) David Bacon’s No Country for Old People.  Here is the issue’s note from the editors:

Bill of Indictment

How has contemporary capitalism failed, in the United States and around the world?

It has failed on sustainability. For decades now, there has been no sensible way to deny the looming catastrophe of climate change. Yet, only now are we taking the first steps to abandon “business as usual” and avert the worst.

It has failed on stability. The boom-and-bust cycle of capitalist economies has been adrenalized by the deregulation of finance. As Nina Eichacker shows in her study of Iceland’s financial collapse (p. 21), no country has the institutional capacity to cope with the instability inherent in a deregulated and “supercharged” financial system.

It has failed on security. Even wealthy countries fail to guarantee the basics in life—like housing, medical care, or education. As Gerald Friedman explains (p. 32), millions in the United States are still without access to health care, and millions more lack adequate coverage—even though universal care could be achieved at lesser cost than under the current system.

It has failed on dignity. In many countries, the young today face a bleak and uncertain future. Describing the disaster of unemployment in Greece today (p. 17), Evita Nolka quotes a young adult obviously tormented by “being deprived of the opportunity to work during the most productive years of your life.”
Just as the particulars of the indictment are clear, so are many of the possible responses. Friedman explains how a single-payer health insurance system could reduce waste and achieve universal coverage. Biola Jeje and Belinda Rodriguez describe the burgeoning movement, of which they are a part, for free higher education in the United States today (p. 5). David Bacon advocates a human-rights approach to economic security in old age (p. 26). John Miller describes proposals to rein in the financial system (p. 9). James Boyce shows that serious action on climate change would benefit the majority of people today, both in terms of health and wealth (p. 12).

If anything, though, the readiness of solutions to our most pressing problems only casts the current system in a more negative light. Nolka’s example of a shuttered Greek textile factory—its unemployed workers meticulous in caring for the machines—serves as a case in point. It would take so little to restart production and get them back to work, but the factory remains closed and they remain unemployed. The solutions are all around us, yet those in positions of power can’t put them into practice.

Or won’t.