Harold Meyerson had the new direction of the Democratic Party pegged back in 2006: (via)
It's come to this: The chief project to restate Democratic economics for our time was unveiled a couple of weeks ago, and it's named after the father of American conservatism, Alexander Hamilton.
Necessarily, the authors of the Hamilton Project preface their declaration with an attempt, not altogether successful, to reclaim Hamilton from the right. The nation's first secretary of the Treasury, they note, "stood for sound fiscal policy, believed that broad-based opportunity for advancement would drive American economic growth, and recognized that 'prudent aids and encouragements on the part of government' are necessary to enhance and guide market forces."
Which is true, as far as it goes. Hamilton believed in balanced budgets and in the government's taking an active role to build the infrastructure and fiscal climate that business and the nation need to succeed -- ideas as alien to the current administration as support for collective farms. But Hamilton also feared the common people, dismissed their capacity for self-government and supported rule by elites instead.
It involved a familiar cast of characters. Authors of the Hamilton Project include Peter Orszag and Robert Rubin.
What are the priorities of the Hamilton Project?
Balance the budget (a principle they elevate to a fetish). Have the government invest more in "education, health care, energy independence, scientific research, and infrastructure," since market forces "will not generate adequate investments" in such social essentials. Provide compensatory wage insurance for the many workers forced to take lower-paying jobs as middle-income jobs grow scarcer.
Unfortunately, some of Hamilton's disdain for democracy seeps into their statement as well. The problem of "entitlement imbalances is so large," they fret, "that the regular political process seems unlikely to produce a solution," so they recommend a bipartisan "special process" insulated from popular pressures. They also place such traditional Republican boogeymen as teachers unions on the list of problems that need to be solved. On the other hand, their list of national problems includes nothing about a corporate and financial culture that richly and reflexively rewards executives who offshore work to cheaper climes and deny their American employees the right to join unions.
Barack Obama, then a senator, was one of the main speakers at the opening of the Hamilton Project in 2006.
From an FT article on the inception of the Hamilton Project (no direct link - google "Rubin’s economic group to chart course for Democrats" to read the article):
The Hamilton Project...will focus on fiscal imbalances, such as the growing budget deficit....
The initiative defended open competition and trade at a time when some Democrats have become more hostile to the foreign ownership of US assets, but it called for a stronger government role in helping those affected by globalisation. Mr Altman said more inclusive economic growth could “blunt the political demands for protectionism”....
Mr Rubin said that his corporate colleagues “running big business” were concerned about the imbalances but “very few will come out and support anything that is in opposition to the current regime...The great preponderance are greatly troubled by the same things that trouble us.”...
The white paper also called for entitlement reform but acknowledged the political constraints that helped stall Mr Bush’s drive to reform Social Security. “The principal problem is one of political choice and will and what is most needed is a bipartisan approach for deciding among the options,” it said....
Barack Obama, a Democrat senator from Illinois, welcomed the initiative as a way of transcending “tired ideologies”.
It kind of puts a clarifying light on President Obama's fetish for bipartisnship and what he means when he talks about following a long-term plan in his presidency. It also clarifies the meaning of things like this:
White House officials have privately told Hill Democrats that this is “the transformational moment” for Obama, and an agreement with Boehner and McConnell would send a clear signal that he is changing the way politics is done in Washington.
He's bringing the Republican leadership aboard the SS Hamilton.
And all you little people being crushed by the forces of globalization? Forget your "political demands for protectionism.” The elites will set aside a few crumbs for you, as long as you play along obediently and don't raise too much of a stink. Otherwise, you'll just be brushed out of the way by the forces of "historic" "transformation."