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A Populist Republican Economic Agenda

Mitt RomneyThere is much in the Republican National Committee’s “autopsy” that has merit. It is about time that the Republicans prioritized winning a larger share of non-white voters. One good thing about the 2012 election is that it killed off the illusion that Republicans can keep winning by just reassembling the 1980s Reagan demographic coalition. Unfortunately, the RNC report introduces another illusion to Republican politics. The problem starts on page six where the report summarizes the public’s negative feelings toward the Republican party.


Asked to describe Republicans, they said that the party is “scary,” “narrow minded,” and “out of touch” and that we were a party of “stuffy old men.” This is consistent with the findings of other post-election surveys.


Scary? Narrow minded? Out of touch? Does anyone notice what is missing? Oh, yeah, too pro-rich. A post-election poll found that 60 percent of Americans found the Republicans to be too pro-rich. That tracks with the 53 percent in the 2012 exit poll who responded that Mitt Romney’s policies would generally favor the wealthy. The Republicans cannot succeed as the party of the middle and aspiring working-classes if only 34 percent of voters think Republican policies will favor the middle class. The authors of the RNC report are right to highlight the perception of the Republicans as the party of white identity politics, but they ignore the problem of the Republican economic agenda.


This produces some comical results. The report forswears making policy recommendations, but makes an exception for comprehensive immigration reform. The report states “we must embrace and champion comprehensive immigration reform. If we do not, our party’s appeal will continue to shrink to its core constituencies only.” This emphasis on amnesty as the key to winning votes outside of the “core” Republican constituency is an error. The error is perfectly distilled where the document favorably quotes a participant in the RNC’s discussion with Hispanic groups:


The key problem is that the Republican party’s message offends too many people unnecessarily. We win the economic message, which is the most important to voters, but we then lose them when we discuss other issues.

This is nonsense. According to the Kaiser Family Foundation, 26 percent of Hispanics opposed Obamacare while 48 percent supported it. Incidentally, Romney received 27 percent of the Hispanic vote in November. Basically, only that small minority of Hispanics who opposed Obamacare voted for Romney. If the Republicans are not winning the debate on Obamacare, then they are not winning the “economic message.” Comprehensive immigration reform can’t fix that.


What is most damning is that Republican problems among Hispanics are almost perfectly mirrored by their problems among Asian Americans. Republicans got 26 percent of the vote among Asian Americans.  That is bad enough, but it is only when you look at Asian-American polling numbers regarding Obamacare that the depth of the Republican problem becomes clear.


The Asian-American and Latino populations are substantially different. Asian Americans have a higher median income than either Hispanics or whites. Seventy percent of Asian Americans are covered by either employer-provided or individual health insurance, compared to 43 percent of Hispanics (and 75 percent of whites.)  Health insurance coverage for Asian Americans very closely resembles coverage for whites. The result? Asian Americans support Obamacare by wider margins than Hispanics. 


This is what losing the economic message looks like. You could make some sort of bank shot argument that Asian Americans are hostile to Republicans because Republicans don’t seem willing to support comprehensive immigration reform and so only listen to Democrats in protest. The problem is that (according to the same survey) immigration policy is a very low priority among Asian Americans. The Republicans aren’t losing among non-whites because of opposition to comprehensive immigration reform. They are losing because they are losing the policy argument. You would never know that from reading the RNC report.


The Republican National Committee is in a cul-de-sac. They see that support for the Republican party is becoming isolated to constituencies that are in relative demographic decline. What the RNC does not see (or chooses not to see) is that the party’s weakness is largely the result of the perception of the party as a vehicle for the self-interest of the wealthy. The result is that the only substantive policy recommendation to expand the party is coincidentally one that is also favored by employer interests. Ramesh Ponnuru was right when he described the RNC report as the Republican elites’ version of reform. To put it another way, the RNC thinks Romney’s problem was his rhetoric on amnesty in the primaries and not his tax plan that sharply cut taxes on high earners while offering few if any direct benefits to the middle-class.


Republicans need an alternative to the elite Republican vision that acts as if outreach means amnesty plus updating the party’s technical apparatus plus nothing in particular. Republicans need affirmative policies that can win broad popular support. There is a sense in which the authors of the RNC report are right. The Republican policy message is only resonating with people who have been socialized into the center-right narrative of the 1970s and 1980s. If you haven’t been raised to fear “socialized medicine,” the Republican message on Obamacare is falling flat. At least the Democrats are trying to do something about the uninsured, rising health care premiums, and those with pre-existing conditions.


I happen to think Obamacare’s policies are wrong, but for a growing fraction of the population, a something (even a government-run health care something) beats nothing. If you haven’t been socialized into the narrative that the Reagan tax cuts saved the economy, then Romney’s across-the-board income tax cut just looked like a cut primarily directed at high earners who were already making out okay from the economy and whose marginal tax rates were already low by the standards of recent history. The Republicans look indifferent to everyday concerns.


Republicans should respond to their defeat with a more populist economic agenda. The Republicans have already had the Tea Party movement. This was an authentic center-right populism, but its agenda was primarily oppositional. Membership in the Tea Party was centered around people who already consumed right-leaning media. There is nothing wrong with that. People who consume right-leaning media will be at the core of any successful right-leaning movement. They just can’t be the only component of that movement and that movement needs a positive policy agenda.


A broad Republican populism must include direct benefits for middle- and working-class families. If Republicans want to be the party of work and family, then they need a tax policy that increases the returns to work for parents who are trying to raise their children. A broad Republican populism must include reasonable answers to people’s anxieties about health insurance. Republicans need affirmative policies that can plausibly promise to slow the growth of health care premiums. Republicans need policies that will offer people a chance to maintain health insurance if the only work they can find doesn’t offer benefits. A Republican populism would offer policies to help those with pre-existing conditions that are less costly than Obama’s and do less to disrupt the health insurance of everyone else.


A populist Republican economic agenda would not just be designed to win over non-whites. As Henry Olsen pointed out, the Romney campaign struggled with some populations of blue-collar whites because those whites thought Republicans didn’t believe in the dignity of their labor and that the Republican deal was “give more power to management and maybe we’ll keep your factory open.” Facing such an economically elitist Republican party, many coal county working-class whites stayed home even though they felt that Obama was hostile to the industry that employed them. 


A populist Republican economic policy would be able to unite those working-class whites with a growing share of working- and middle-class non-whites and the existing Republican base. But a condition of forming this broad Republican coalition is recognizing that the existing Republican economic message is broken, and that it cannot be fixed by the amnesty favored by the Republican establishment (though I would favor a limited amnesty), much less by the kind of enormous high-earner tax cut favored by libertarians like Rand Paul with his flat tax proposal.


This is what winning the economic argument looks like. If you want to win over people who have no personal or family connection to the Republican party or organized center-right politics, you need policies that will directly benefit them economically. It isn’t enough to trot out amnesty and explain how everyone’s life will get so much better once we cut marginal tax rates on the job creators who “built that.” 


Pete Spiliakos writes for Postmodern Conservative.


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Comments:

3.20.2013 | 11:05am
Benjamin says:
I appreciate the thinking here, but one particular point struck me: "A broad Republican populism must include direct benefits for middle- and working-class families.", and then later, "If you want to win over people who have no personal or family connection to the Republican party or organized center-right politics, you need policies that will directly benefit them economically."

Set aside the Asians who have higher-than-average incomes, and let's focus on the middle-class that aren't voting Republican. What do you do when most tax benefits are *already* to those voters? The average tax liability of the middle class, particularly for those with children, is already quite low. A median-income family of four likely has a tax liability under 5%. Some will have a negative liability. I don't know how much more directly tax policy can benefit such people.

Besides - isn't that giving in to the identity politics cancer of our day? One reason our politics suck is because we no longer expect everyone to be an American. Now our government is just in the business of handing out goodies to various groups. What could be more un-American than that? The government isn't supposed to be handing out goodies to anyone, let alone picking favorites among groups. That kind of thing was one of the reasons for the revolution in the first place.

Instead of trying to out-Democrat the Democrats, why can't we try to end the perception that the GOP is only for the rich and big corporations by ending all kinds of corporate welfare and industrial subsidies? We could stand against regulations that make it impossible for the little guy to break into a business (have you ever wondered why there are never any automobile startups?).
3.20.2013 | 12:11pm
maineman says:
Benjamin is right. There is no policy battle to be won because the Democrats have effectively sold enough people on the poisons of envy and dependency. What they sell is a throwback to the errors that hollowed out Asia, Africa, South and Central America, and Europe. That list is a testimonial to the power of such fantasy-based solutions as well as their destructive essence.

Republicans should admit that they have been defeated by Satan and his minions and go back to the values-related arguments that were the real engine behind the Reagan revolution. It was his, JPII's, Margaret Thatcher's commitment to the truth and opposition to the lies of the left that carried the day back then and will again in the future, after the nihilism the Democrats are peddling reaches its inevitable conclusion.

In short, the Republicans need to be more Catholic. They should hitch their wagon to the coattails of Pope Francis, adopt him as their champion, and demonstrate the validity of their ideas and ideals by associating them with his.

In so doing, they will be affiliating with the rest of us who see that there can be no glory without the cross. It will be tough in the near term, but it is going to be very tough for everyone. At least that way we will be there for our brothers and sisters after the deluge that contemporary liberal delusions must inevitably produce.
3.20.2013 | 5:07pm
DukeFan says:
I see the other way around. By aligning themselves with the rich and their money, the Republicans become the enemy of Jesus, who once said “No one can server both God and Mammon”. In many languages, Mammon literarily means “money”
3.20.2013 | 6:42pm
Todd H says:
You are asking the Republicans to start proposing centrist, market oriented solutions to the problems of the middle class. The problem is that the Democrats beat them to it.

Today's Democrats are not the leftist hippies of caricatures. They are a center right party. Obamacare even with its flaws, is designed around enforcing personal responsibility in buying your own healthcare. It's a perfect Republican policy (thanks Mitt) that Democrats stole from them.

Republicans are in a bind, because they could move a bit left on economics, but Democrats are there already, and the electorate won't likely trust Republican intentions anyway. How do you draw a distinction with the Democratic party, and win elections, when it's the Democratic platform that voters prefer?
3.20.2013 | 8:44pm
Gil says:
Todd H makes an excellent point. Strange, isn't it? President Clinton co-opted much of the conservative economic agenda in order to implement a radical liberal social agenda, his first priority—not through the political process, but through Federal judge appointments and the hiring of radical left bureaucrats to institute radical leftist social policies. Obama learned this lesson well.
3.20.2013 | 9:08pm
Benjamin,

"A median-income family of four likely has a tax liability under 5%. Some will have a negative liability. I don't know how much more directly tax policy can benefit such people."

For 2013 according to Forbes, the median quintile will pay an effective tax rate of 15.6% while the next quintile down will pay an average rate of 9.5%.
http://www.forbes.com/sites/robertlenzner/2013/01/07/the-average-tax-top-20-wealthy-will-pay-in-2013-is-28-1/

Using the 2011 median income $50,040 for a family of four with two children and using favorable criteria (tithing, investing 10% of their income in 401Ks, having 40 of their pre-tax income go to mortgage interest), I came up with a tax liability of $5,600 using the Tax Policy Center calculator. That is inclusive of payroll taxes and the "employer's" share of the payroll taxes. There is room to reduce their tax liability through an expanded child tax credit.

"Besides - isn't that giving in to the identity politics cancer of our day?"

I don't think increasing the returns to labor for working families is "identity politics cancer." I also don't think that cutting the top marginal tax rates to below the Bush-era 35% (which is low by recent historical standards) is any kind of pressing need as either policy or politics or justice.

"why can't we try to end the perception that the GOP is only for the rich and big corporations by ending all kinds of corporate welfare and industrial subsidies?"

That too, by all means. Though not if it only means using it to cut marginal tax rates on high earners
3.20.2013 | 10:38pm
okech says:
I don't see any winning potential for Republican Party anytime soon, especially Presidential elections.
3.21.2013 | 12:53am
Rick says:
Quite a good analysis of the current Republican pickle. The almost comical aspect of it, though, is that it was the Republicans, beginning in the 1960s, who managed to "out-populist" the Democrats. From 1964, the "Solid South," rural rednecks included, went Republican. Reagan, with testosterone-infused bravado, managed to paint the Democrats as elitist-snob socialists, daintily nibbling brie and sipping chardonney in their ivory towers, while looking down their aquiline noses at the vulgar, superstitious masses. After that, the Marlboro Man was voting Republican. Bush II was still riding the Reagan populist wave, until, depleted, it washed up on strange, unrecognizable shores, populated by alien tribes.

Changing demographics and the blunder of nominating a remote, stilted corporate multi-millionaire for the presidency have dramatically eroded Republican populist appeal. It's up to a new generation of Republicans to regain it with new tactics, and Spiliakos's idea of revamping their economic program may be a good starting point.
3.21.2013 | 8:28am
Mr. Spiliakos, I wonder what you make of Ron Unz's proposal over at The American Conservative: http://www.theamericanconservative.com/a-minimum-wage-hike-as-amnesty-killer/
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