It’s nearly always worthwhile to read Krugman, especially now that the Times has capitulated to the obvious and made him free. I guess they realized that if they hide the valuable part of their product behind a wall, they have to depend solely on their reporters to draw readers.

Krugman’s writing is pedestrian compared to Frank Rich, but in compensation he has a deep and detailed knowledge of his subject, and he’s not afraid to call ’em as he sees ’em.

Longer-term studies of public opinion suggest a substantial leftward shift. James Stimson, a political scientist who uses data from many polls to construct an index of the overall liberalism or conservatism of the electorate, finds that America is now more liberal than it has been since the early 1960s. And the tactics the right has historically used to distract voters from economic issues, above all the exploitation of racial tensions, have been losing their effectiveness.

But the Democracy Corps memo warns that “Democrats have not yet found their voice as agents of change.” Indeed. What the memo doesn’t say, but is all too obvious, is that one big reason the Democrats are having trouble finding their voice is the influence of big money.

Does anyone know where one can find some of Stimson’s indexes? Sounds fascinating, but a cursory Google search didn’t lead me anywhere.

Krugman’s case in point is the attempt in Congress to close a loophole that allows executives at private equity firms and hedge funds to pay a ridiculously low fifteen percent tax rate. These people take home — I don’t say earn — enormous amounts of money, and they do nothing useful. My opinion is that if they enjoy moving bits around and making deals, that’s fine, but they should have to pay us for the privilege. The tax rate, in other words, should surpass 100%.

Only a handful of very wealthy people benefit from this loophole, while closing the loophole would yield billions of dollars each year in revenue. Retrieving this revenue is a key ingredient in legislation approved by the House Ways and Means Committee to reform the alternative minimum tax, something that must be done to avoid a de facto tax increase for millions of middle-class Americans.

A handful of superwealthy hedge fund managers versus millions of middle-class Americans — it sounds like a no-brainer.

But as The Financial Times reports, “Key votes have been delayed and time bought after the investment industry hired some of Washington’s most prominent lobbyists to influence lawmakers and spread largesse through campaign donations.” It goes on to describe how Harry Reid, the Senate majority leader, was “toasted by industry lobbyists” (and serenaded by Barry Manilow) at a money-raising party for his special fund to help Democrats get elected next year.

In case anyone’s planning such a fundraiser for me, here’s a hint: you let Barry Manilow in the door, and your bill’s dead, regardless of whether he “sings”.

This incident is entirely typical of the Democratic party these days. No one embodies this trend of selling out to Republican interests, and selling at dirt-cheap prices, more emphatically that Senator Clinton. Everyone knows that she’s far more dependant on large donations from a small number of interested parties, and much more closely connected to Wall Street and the war machine, two increasingly indistinguishable entities, than any other Democrat.

Of course compromise is inherent in the democratic process.

…even history’s greatest progressives had to make compromises to win their victories. F.D.R.’s New Deal depended on the support of Southern segregationists. Compared with that, Senator Clinton’s acceptance of lots of corporate donations doesn’t look so bad — though I’d be reassured if she made her views on tax reform clearer, and matched John Edwards’s focus on corporate reform.

Still, I am worried.

I wish I could say I’m worried. In fact it appears to me that the Democratic party is over. Hillary will be a disaster as a candidate. If the party nominates her, it will indicate the final victory of the DLC, i.e. the Republican wing of the Democratic party. We’ll be more of a one-party state than Russia, heading in the same autocratic direction, with the difference that we have a huge, well-fed, and well-armed military. Because the next President will be another Republican.

Posted by Chuck Dupree at November 05, 2007 10:49 PM

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