I hope my post seems connected to the subject line, I'm bouncing off Paul here. In a WSJ opinion piece a couple of days ago, The Mother of All Electoral IssuesBy STEVEN RATTNER July 19, 2006
Steven Rattner praised the Democrats for moving albeit slowly to focus on income distribution --defined as "... the failure of robust top-line growth in the U.S. economy to filter into the wallets of Americans below the top of the pyramid." as the mother of all electoral issues this year. Rattner rehearsed the income distribution data and called for change. From a centrist Democrat it was interesting -- until the policy prescriptions appeared, which were warmed over pleas for better education, etc., and more of the Reich/Clinton wisdom. That the economy doesn't work is clear but ... . Rubin and Summers will figure this out for us.
Thanks to Gene for posting this. I found the full text a bit chilling, yet very much what I have seen in various conferences, policy papers and informal conversations.
http://online.wsj.com/article_email/SB115326340061610384-lMyQjAxMDE2NTIzMDIyNjAzWj.html
People often soften after they leave power. They also tend to act far more embracing and open minded in order to get back into power. 'Lessons were learned', 'mistakes will not be repeated', we are told. This (dominant) wing of the Democrats is having no such second thoughts on economic policy.
This article purportedly announces the new awareness of this powerful group to treat the New Inequality as "the mother of all electoral issues" with an impact of "the next global warning".
Yet much space was used to attack the liberal wing of his own Party ("those who will trumpet unionization and protectionism"). Bush and his policies are given far gentler treatment.
Rattner's proposals for reducing inequality focus on reducing Federal spending, reducing entitlements and not embracing redistribution (?!). Urgent causes of inequality include immigration and gas prices. Education is the key solution -- but doing something requires changing "quaint progressive orthodoxy" in handling teachers. The only specific proposals are to raise the minimum wage and give a transition payment to displaced workers if they accept a permanently lower salary.
This is not the op ed of a lone person (albeit a key player in the Dem Party). As Rattner points out, he is drawing on the Hamilton Project (nestled in Brookings) which seeks (and is likely) to be the seed bed for anything akin to a return to DP power. Staffed by Rubin, Altman, etc they have gathered together a compact group of economists and financiers. Worth glancing at their papers and Advisory Council & Experts, many of whom will likely have key sub-cabinet posts should the Democrats win.
But one gets the feeling that they care far more about defending their contributions to the neo-liberal policy regime than defeating the Republicans.
http://www.brookings.edu/es/hamilton/hamilton_hp.htm
Paul
