Elizabeth Warren, Third Way and the Battle Over American Liberalism

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Sen. Elizabeth Warren, D-Mass., pauses while questioning a witness at Senate Banking Committee hearing. (AP Photo/Cliff Owen)

Sen. Elizabeth Warren (D-MA), pauses while questioning a witness at Senate Banking Committee hearing. (AP Photo/Cliff Owen)

Since Barack Obama’s election, Democrats have been united by an increasingly reactionary oppposition. But beneath that veneer of tranquility, longstanding  political and philosophical differences over the role the government should play in our economy continue to divide Clintonian “New Democrats” from those who embrace a more traditional New Deal style of liberalism. Many observers expect that a day of reckoning between these groups is coming as we approach the 2016 elections.

The contours of that debate are already being drawn. Last week, Third Way — a “centrist” Democratic group with a board of trustees full of Wall Streeters — attacked proposals to expand Social Security and warned Democrats against adopting a “populist” economic agenda. That led to a high-profile dustup with Sen. Elizabeth Warren.

On Tuesday, Chuck Lane echoed Third Way’s argument in The Washington Post, writing, “[d]eeply invested in the individualistic “American dream,” and deeply divided by race, ethnicity and religion, Americans have proven less susceptible to class-based economic appeals than voters in other nations.”

At The New Republic, Alec MacGillis sees things differently

Here’s the real question to raise against Lane’s argument: even if income inequality is not as much of an instant political winner as some liberals would wish it to be, why should Obama and other Democrats therefore play down the issue? Parties need a purpose and identity, and soaring inequality strikes as close to the animating core of the party of the New Deal as any other issue. Obama is talking up inequality not just because he’s grasping for an issue to ride into a midterm election year but because he seems to have genuinely believed for some time now that, as new White House hire John Podesta declared this week and as the Holy Father himself declared two weeks earlier, it is a serious problem with a clear moral dimension. And it is! As Lane himself notes, “the top 10 percent of U.S. earners claimed about half of all before-tax income in 2012, including capital gains.” Another stunning stat that Obama cited in his big speech on inequality last week: “A child born in the top 20 percent has about a 2-in-3 chance of staying at or near the top.  A child born into the bottom 20 percent has a less than 1-in-20 shot at making it to the top.” Meanwhile, many economists now conclude that inequality hinders economic growth and may even raise the likelihood of financial crashes like the 2008 collapse.

Read the whole piece at TNR.  And also see Michael Hiltzik’s response to Third Way’s false claims about the strength of Social Security’s finances in The Los Angeles Times.

Joshua Holland is a senior digital producer for BillMoyers.com. He’s the author of The Fifteen Biggest Lies About the Economy (and Everything Else the Right Doesn’t Want You to Know about Taxes, Jobs and Corporate America) (Wiley: 2010), and host of Politics and Reality Radio. Follow him on Twitter or drop him an email at hollandj [at] moyersmedia [dot] com.
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  • Anonymous

    Read “The Age of Oprah” for a comprehensive discussion of neoliberalism.

  • Raymond Moser

    Wall Street worms have no moral dimension to speak of. Third Way is a cancer on the Democratic Party. Stand with Pope Francis, trade unions and the working poor. There is NO right or wrong on Wall Street, except maximizing profit.

  • Anonymous

    Elizabeth Warren for 2016!!!

  • Anonymous

    Yup –centrists don’t recycle right-wing falsehoods to attack Social Security.

  • Anonymous

    First, thank you “Joshua_Holland; both for the topic, and for being willing to participate in the discussion.
    Yup…….that ole silver-tounged razor-back CONservative Billy-Bob would never have dreamed that his NeoLiberal “centrist” ploy the DLC, while disguised as the progressive savior of Democratic “Leadership”, would later surface as being the forerunner of yet another right-wing masquerade posited as a means to seduce disenchanted progressive third party advocates into a marraige with their libertarian counterparts.
    A “Third Way” should be made of “sterner stuff”!
    As Usual,

  • Justin King

    The latest Congressional “compromise”, shows that the strange bedfellows of apathy & sabotage have given way to simply giving in.
    But a truce will get us nowhere slowly.

    Warren will fight, no matter the odds.
    She actually understands the financials & economics.
    Amazing, in this day and age, for a politician.

    Good luck to all, considering that the anachronistic, reactionary xenophobes have a 24/7 – 365 trumpet with the cynical misinformation machine of Murdoch’s Fox News.

  • Anonymous

    Third Way is obviously just another Republican fraud. Republicans have no merit in their positions on issues, so all they can do is use deception to fool the voting public.

  • Anonymous

    Here’s some important info about Third Way:

  • george the sceptical

    Sadly, as was learned with Jimmy Carter, idealism is no substitute for political experience.
    Hillary is well aware of the Right Wing Conspiracy, and will be in a better position to handle them.
    Plus, Warren has indicated that she has no interest in running.
    I’m sticking with Hillary.