It may come as a surprise to many readers, but a lot of Wall Street traders and movers and shakers are Democrats. As a piece in the Huffington Post suggests one Democratic tradition, which includes the 19th Century President Grover Cleveland and, oddly. President Bill Clinton views big business as the engine of economic progress. Clinton especially found himself agreeing to treat Wall Street with a light hand in return for economic good times. Wealthy Wall Street investors could be liberal on social issues and favor a generous welfare state so long as they were allowed to keep making money.
The Wall Street Democrats were in the ascendance up through in 2016 election when Hillary Clinton, representing this old order, and Bernie Sanders, representing the insurgent socialist wing of the Democratic Party, which partly stemmed for the FDR tradition of hammering big business as the enemy of the working people, fought it out.
In 2019, the socialist wing of the Democrats is on top, as personified by Bernie and Sen. Elizabeth Warren. D-Mass. Warren has especially cast Wall Street as the big bad of her campaign, promising a draconian wealth tax, which was one-upped by Sanders, who has vowed to end all billionaires by confiscating their assets. Even Joe Biden is now mulling a huge tax increase on stock transactions as a way to take more money from the wealthy.
CNBC notes that this class of Wall Street Democrats has noticed Warren, who is surging in the polls, and her proposals. They are not happy. Wall Street insiders have let it be known that if Elizabeth Warren is the Democratic nominee, they will sit 2020 out, denying the Democratic Party their campaign largess. They might even be moved to support Donald Trump.
In a way, the disquiet in Wall Street represents the triumph of practical politics over ideology. Warren has promised to go through the wealthy class of Americans like Tamburlaine through Central Asia, albeit without too much rape and murder. She has promised to take their assets and prosecute them for any misdeed they may or may not have perpetrated. She has even proposed that private equity firms will be held responsible for the debts and pension liabilities of the companies they invest in.
Trump, on the other hand, has been the most business-friendly president since Ronald Reagan of blessed memory. His tax and regulation cuts have eased the burden of making money, which not by coincidence has sparked economic growth and job creation. Politicians like Warren have decried “trickledown economics” since the Reagan presidency. However, the policy seems to work pretty well.
As Hot Air suggests, Warren’s tactic of portraying herself as Wall Street’s worst nightmare is working for her among the Democratic base, hence her surge in the polls past Joe Biden. However, political parties and presidential campaigns run on money and therein resides the problem.
“The DNC has been struggling to raise cash for months. While the RNC raised more than $20 million in June and again in July, the DNC raised just over $16 million in those two months combined. In August, the RNC set a fundraising record for this year bringing in $23.5 million while the DNC raised just under $8 million (and the DNC spent more than it raised last month).”
Meanwhile, President Trump is raising hundreds of millions of dollars while his potential rivals are spending money like water battling it out for the Democratic nomination. Biden, who is supported by Wall Street, looks like he is on his way out, hammered by numerous gaffes and the recent revelations of influence peddling. Why Trump is battling a push for impeachment thanks to a phone call with the Ukrainian president that touched on the Biden matter, the Washington Examiner noted that Biden’s efforts on behalf of his son Hunter are looking increasingly sleazy.
Democrats are increasingly in a bind. If Biden is on his way out, as a practical matter they have a choice between Warren and Sanders. The rest of the field is essentially also-rans in single digits. The two top tier candidates are essentially socialists who are not acceptable to the donor class of the Democratic Party. Democratic insiders are increasingly afraid that they will be unacceptable to the voters, for who the label “socialist” is frightening, according to most polling.
The result, Democrats fear, would be a 2020 blowout and four more years of Trump.