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The Socialist Hijacking of the Democratic Party |
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FORECASTS & TRENDS E-LETTER IN THIS ISSUE: 1. Far-Left Loons Now Dominate the Democratic Party 2. Democratic Party is Being Overtaken by Socialists 3. Will Far-Left Kidnapping of the Democratic Party Succeed? 4. Far-Left Outrage Over Independent Candidate Howard Schultz 5. Conclusions: How This All Plays Out – Depends on Biden Overview – Far-Left Loons Now Dominate Democratic Party Today, I will veer from our usual topics such as the economy, the financial markets, investing, etc. and offer some comments on the radical shift in the Democratic Party we have seen over the last year. I am shocked that the Dems have let their party be hijacked by far-left candidates that increasingly espouse socialism. Likewise, I am surprised that Dems have vigorously attacked liberal presidential candidate Howard Schultz (Starbucks founder, billionaire) who has announced he is running for president as an Independent candidate because the Democratic Party has moved so far to the left. As you know, I like to write about what interests me most each week. I must admit that the radical transformation of the Democratic Party in the last year, and the obvious move toward socialism among the early presidential candidates, has me concerned. If one of these far-left candidates were to win the White House, it would be devastating for the economy and stocks. Before we get to that discussion, you may want to look at the highlights of Friday’s super-strong unemployment report showing a much better than expected 304,000 new jobs last month. Democratic Party Now Being Overtaken by Socialists I don’t know about you, but I am stunned by the extent to which the Democratic Party is being overtaken by Socialists. No longer do socialist Democrats have to hide their views in secret; they now share them in public. Thank you Bernie Sanders (tongue in cheek). Most of the Democratic candidates who have announced they’re running for president in 2020 are espousing socialist policies, including Massachusetts Senator Elizabeth Warren, California Senator Kamala Harris, New Jersey Senator Cory Booker and New York Senator Kirsten Gillibrand. Whenever one of them proposes a new socialist position, the rest seem to rush to jump on board with their own endorsements. I’ve never seen anything like this! One wonders why the traditional leaders of the Democratic Party aren’t doing more to stop this hijacking. Do the traditional leaders of the Party not realize that the American people, most of whom are conservatives and moderates, will reject these openly socialist candidates come 2020, or do they secretly agree with such policies? It’s very hard to know. So, what are the leading socialist polices these “far-left” Democrat candidates are advocating?
The list above is far from complete. We can add others such as ending the Electoral College so that presidents are selected by the popular vote, which would have put Hillary in the White House in the 2016 election. Another radical change on the socialist wish list is changing the number of Senators states get based on each state's population, and ending the two senators per state as stipulated in the Constitution. And there are others as well. These Policies Would be a Disaster for the Economy Let’s take a look at some of these far-left proposals, starting with Medicare For All. Various government agencies and outside groups have estimated the cost of providing this, and the consensus is that it will cost at least $3.5 trillion a year. To put this in perspective, the entire federal budget for FY2019 is estimated at $4.4 trillion, with a budget deficit of almost $1 trillion. The socialist Democrats seem to believe we can add another $3.5 trillion to that with no problem, apparently. Of course, they suggest we pay for it by raising taxes on the wealthy to 70%. Never mind that doing so will not come close to paying for it, or that it could kill the economy. How about guaranteed jobs for all? How do we even do that? The socialist Democrats are hesitant to admit this, but it would certainly require a huge increase in the size of the federal government. The private sector can’t do it. Here again, it would be a huge increase in the deficit. How about free college for anyone who wants to go, and forgiving the $1.3 trillion in existing student loan debt? Again, who pays for it? And who says every high school graduate should go to college? Once again, the far-left just assumes the government would pay for it. What about a national minimum wage of $15 per hour? The current federal minimum wage is $7.25 per hour, and $15 per hour more than doubles that! The repercussions of mandating a double increase in the minimum wage are mind-boggling. Even the far-left have to know this. Repealing the Trump tax cuts? The far-left revile President Trump and his tax cuts, despite the booming economy. So, I have little doubt they would follow through on this pledge regardless of the negative effects it would have on the economy and jobs growth. I will refrain from commenting on the left’s proposal to eliminate the US Immigration and Customs Enforcement Agency (ICE). This will not happen. But it is no secret that the far-left favors open borders and illegal immigration. Will Far-Left Kidnapping of the Democratic Party Succeed? At this point, I am optimistic that the Democratic Party will not nominate one of these far-left, socialist-leaning candidates. I trust that enough Democrat voters recognize that doing so would be political suicide. But let us not forget that Bernie Sanders almost beat Hillary in 2016, and he will very likely be back in 2020. We should also keep in mind there will likely be a very strong turnout of young people in the Dem primaries and the 2020 election. These young people include many who don’t understand that socialism doesn’t work – period. Remember that most of them were educated by left-leaning professors for four years in college. This is a real risk for all of us! Most Democrats that I know believe Joe Biden will be convinced to come into the race and ultimately win the nomination. He leads the far-left candidates in the early polls, and I believe he would have the best chance to defeat President Trump in the election. So, be careful what you wish for! Far-Left Outrage Over Independent Candidate Howard Schultz Former Starbucks founder and billionaire Howard Schultz burst onto the scene last month and announced he is seriously considering entering the race. Schultz is a serious liberal in his own right, but he declared that the Democratic Party has moved so far to the left that he will run as an Independent.
Why such anger on the part of Demo-crats, you might ask? The Dems say it’s because Schultz would take away votes from the Democrat base and ensure that President Trump is re-elected. I say it’s more likely that the Dems despise him because he openly criticized the Party for moving so far to the left, and he doesn’t think the Dems’ ideas – such as Medicare For All, guaranteed (govt.) jobs for all, free college tuition, etc. – are realistic. As a very successful businessman, he knows the country can’t afford these massive entitlements and has said so publicly. Schultz has other problems beyond the Dems’ outrage. The Change Research poll found that 56% of respondents either had never heard of him or had no opinion. While Schultz is certainly a longshot, I think he could catch on with a lot of voters – that is, if he stays in. Some think he may say, To hell with this, and drop out. We’ll see. Conclusions: How This All Plays Out – Depends on Biden I don’t think the Democrats will elect one of the far-left, socialist-leaning candidates to lead their Party. I hope I’m wrong because it would be very good for Trump if they do. I think mainstream Democrats will convince Joe Biden to run, and if I’m correct, I believe Biden would be a tough opponent against President Trump. It remains to be seen what will happen going forward with Independent candidate Howard Schultz. I think he could catch on with many Democrats and the Never-Trump crowd among Republicans. We need to keep a close eye on him, in my opinion. It’s a long way to the 2020 presidential election, so a lot could change. In any event, this will be one of the most interesting elections in a long time. I’ll keep you posted as it plays out. If you are seriously concerned about socialists taking over the Democratic Party, as I am, be sure to read the article in the links just below from Victor Davis Hanson entitled "The Progressive Race to the Bottom." Hanson is one of my favorite writers, and he nails this one in a way only he can. Best regards,
Gary D. Halbert SPECIAL ARTICLES The Progressive Race to the Bottom Why Howard Schultz Can’t Run as a Democrat Wealth Tax Fails the Test Around the World Gary's Between the Lines Blog: No Change in Fed Interest Rate, But Plenty of Surprises |
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Since Schultz made his announcement a couple of weeks ago, the Democrats have bitterly savaged him in the media. A Change Research poll last week found that 50% of Democrats view him as “unfavorable.”
