While we on the Right have been enjoying some well deserved Schadenfreude at the expense of President Obama and the Democrats over the diasterous rollout of Obamacare, with some of our pundits going so far as to claim that the public’s awakening due to Obamacare will be the end of liberalism in America, the Left has been planning their counter attack. Rather than concede that Obama’s program to provide health insurance to everyone, including those with preexisting conditions, was too big of a move to the Left, the left Left-wing of the Democratic Party is looking at Barack Obama and his potential replacement, Hilary Clinton, and finding them wanting. The left Left-wing is thinking that Barry and Hilary are not far enough to the Left. They are not planning on conceding anything to the Right. To the contrary, they are planning a big push further to the Left.
“More liberal, populist movement emerging in Democratic Party ahead 0f 2016 elections” is the title of this Washington Post article. The author points out that left Left-wing rising stars, like Elizabeth Warren and Bernie Sanders, are not happy the Mr. Obama has indicated a willingness to consider some reforms to the rapidly failing Social Security system in exchange for more taxes and more spending. Sen. Warren is instead supporting a bill to expand Social Security benefits.
And, you may want to read this article about the movement to raise the minimum wage to 15 per hour.
From my years living in South America, I can tell you that populism is an easy sell. Blame everything on the rich and promise the poor everything under the sun. I use to think that Americans were different; in that they would never fall for that populist garbage. I’m not so sure that’s true anymore.
Think about the 2016 presidential election. It’s not that far away. For whom are the retired and about to retire Baby Boomers going to vote? The Republican that is promising to fix (reform) Social Security or the Democrat who is promising to expand Social Security benefits? Who are the growing numbers of minimum wage workers going to vote for? The Republican that says increasing minimum wage results in higher unemployment or the Democrat who is promising to double the minimum wage? And, what about the college students and recent graduates? Are they going to vote for the Republican who promises them nothing or the Democrat that promises to forgive part of their student loans?
Populism really is an easy sell. And, please don’t worry about how they could possibly pay for all of their largess. Remember that we have a very accommodating Federal Reserve that can and does create money out of thin air. It’s called Quantitative Easing or what I like to call QEasy, where the “Q” stands for quantity of money. Every time the Treasury runs low, the Fed makes an accounting entry and all is well again. (Think Japan)
In 2016, we will learn what America is made of once and for all.
Well, that’s what I’m thinking. What are your thoughts?