You hear quite a bit about “affordability” uniting the Democrats, don’t you? But, let’s not delude ourselves about the challenges ahead.
I’ve just penned a memoir, Notes for Next Time, with the subtitle: “Surviving Tyranny, Redeeming America.” I’m quite optimistic about surviving Trump. Yet, reviving the life chances of yesteryears seems a daunting task. Rolling back to 2020 simply won’t suffice.
The generation hailing from the 1940s, such as mine, enjoyed affordable education, secure careers for both blue-collar and professionals, and housing that appreciated more than inflation. It’s this unearned housing wealth that lets me live comfortably.
Unfortunately, that advantageous package has vanished. The flip side of our housing boom? Our offspring face staggering entry costs. Their economic lives start under a mountain of debt, while reliable careers become rare.
This decline in opportunities fanned the flames that helped Donald Trump into office. While our would-be monarch has stumbled, if broad economic potential isn’t restored, right-wing populism could thrive. Democrats might win in 2026 and 2028, yet the discontent will simmer.
Economic disparities did not arise from the baby boomers hoarding wealth. Indeed, the responsibility lies with the billionaires. On average, the economy is now quadruple the size it was during the postwar boom, thanks chiefly to inequitable distribution.
We boomers benefitted from a social compact crafted by the New Deal and fortified post-World War II. Finance faced tight regulation, public investment soared, and labor unions balanced corporate power. Progressive taxation funded public amenities, from the GI Bill to affordable homes.
Learn more about Robert Kuttner’s work here.
The prosperity most enjoyed didn’t happen by chance. Policies steered capitalism towards public good. In those three decades post-war, we avoided financial catastrophes like 1929 and 2008. You saw no private equity draining profits, nor corporate share buybacks hollowing out corporations.
The New Deal, however, had a glaring flaw. Primarily benefiting whites, it ignored the South’s segregated stranglehold on Congress. While the 1960s brought overdue rights to Black Americans, it also kindled racial resentment amid faltering economies.
A dismal decade—the 1970s—ushered in a drift towards pre-New Deal ideologies. Democrats, faced with Reagan’s soaring popularity, began romancing tax cuts and deregulation, enticed by wealthy donors. Money became political currency.
Alas, those policies were mere charades. While they didn’t boost economic growth, they heightened inequality, eroding the Democratic Party’s credibility with its base. A central theme in my memoir is how critics trumped economic arguments but faltered in politics.
Trump capitalized on this disenchantment, blending populist rhetoric with racial divides, disguising policies that pampered corporate elites. His second term has threatened democratic institutions, yet the system’s resilience has been surprising.
Republican unity has fragmented. Principal Senate Republicans aim to block Trump’s SAVE Act, which intends to muscle Democratic voters by demanding proof of citizenship. Even key Republicans recoiled when Trump attempted to overhaul ICE in Minnesota.
Trump also alienated Republican judges, with Chief Justice John Roberts leading the opposition. He suffered 6-3 defeats in key cases—tariff impositions, Federal Reserve purges, and claims on election powers. His appeal against birthright citizenship repeal remains fiercely contested.
The Founders’ separation of powers could still shield against tyranny. Yet rekindling trust in democracy necessitates restored economic promise, requiring ambitious policies akin to the New Deal: debt-free education, abundant housing, and innovative, well-paying jobs.
America can very well foot this bill. The wealthiest 1% hold approximately $50 trillion, untaxed since their wealth stems largely from capital rather than wages. Taxing capital like wages would generate ample funds for widespread opportunity.
AI may eclipse some jobs, yet financing millions in humane services—caring for the vulnerable—remains viable. Replace for-profit medicine with a universal system and save around six GDP points—over a trillion dollars annually for other needs. Once, public universities were free. This isn’t a relic; it can be revived, like starter homes.
These ideas sit on our political imagination’s periphery. Policies once radical—like Social Security—became foundational after enactment.
The original New Deal arose from crisis, social movements, and rare leadership. Today’s economic woes manifest in personal crises of dwindling opportunities. It demands leadership as assertive as Roosevelt to overturn this private desolation.
Indeed, we may outlast Trump. But, without renewing broad economic commitment, a democracy serving its people remains at risk.
Join me at a LIVE EVENT discussing these challenges with columnist E.J. Dionne on Monday, April 6, at the Prospect’s Washington offices. You can attend in person or via Zoom.
