Clinton and Trump on Fiscal Policy

August 16, 2016

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I am hoping that some potential voters are still interested in hearing about policy differences between the presidential candidates. As the election campaign stands now, it seems to be mostly a debate over the candidates’ character. Does Donald Trump have the right temperament to be president? Is Hillary Clinton trustworthy? Their actual policy proposals are often overshadowed by the latest mini-scandal, what Trump said about so-and-so, or what was found in an email on Clinton’s server. I watched the CBS evening news the day that Clinton presented her economic plan, and they made no mention of it. They did, of course, do a story on Trump’s description of the President as the “founder of ISIS,” which he later said he meant sarcastically, sort of.

Meanwhile, the country faces a number of difficult policy decisions, which will remain important regardless of who wins, but on which the candidates have taken very different positions.  Decisions about fiscal policy–how to tax, how to spend–are among the most important. They affect what the federal government is able to do, and what impact it has on the economy.

Spending

Both candidates promise to accomplish things that require new spending, although they often describe their goals without trying to put a price tag on them. One goal they have tried to price out is repairing and improving the nation’s infrastructure. Hillary Clinton has proposed to spend $275 billion over five years, and Donald Trump has promised to out-build her (that’s what he’s good at) with his own $500 billion plan.

Each candidate has other initiatives that will also need funding. Clinton wants to increase federal aid to education so that students from families with incomes below $85,000 can attend state colleges tuition free. (That threshold would rise to $125,000 over the next four years.) Trump wants to put more money into strengthening the military.

The candidates differ dramatically on how they would pay for their new spending. Clinton is the more fiscally conservative here, proposing to pay for new spending with higher taxes targeted specifically at the wealthy. Trump, on the other hand, wants to cut taxes, so at least in the short run the government would face a double whammy of more spending but less revenue. (He hopes that the government would recover at least some of that revenue when his tax cut stimulates the economy; more on that later.) Trump proposes to offset some spending with reductions in “waste, fraud and corruption,” a familiar goal to be sure, but I couldn’t find any proposals for specific budget cuts on his website. He has also said that he is willing to run a larger deficit and take on more debt. He has boasted about his ability to manage debt, but we know from his business history that his methods include declaring bankruptcy and repaying debt at less than full value. At one point Trump even suggested that the United States could also shortchange its bondholders, something that the country has never done. (That could very well end up costing the country more, since it would shatter confidence in our bonds and force the Treasury to pay higher interest rates.)

So on the face of it, Clinton seems to be the fiscal conservative, and Trump the fiscal risk-taker, which makes some Republicans very nervous. However, his “borrow and spend” approach isn’t that much of a departure from what Republican administrations actually do, as opposed to what conservative orthodoxy says they should do. While Republicans sound like the ultimate deficit hawks when they are opposing Democratic spending plans, their record on reducing deficits and balancing the budget is actually very poor. Both Ronald Reagan and George W. Bush ran up large deficits by doing a lot of what Trump wants to do, increase military spending while cutting taxes.

Ever since the 1980s, Republicans have supported their tax proposals with an argument from “supply-side” economics. Tax cuts aimed at corporations and the wealthy provide more capital that businesses can use to expand, create jobs, and boost incomes. That in turn increases tax revenues, so the tax cuts don’t really increase government debt in the long run. Not very many economists subscribe to this view today, at least with regard to cuts in personal income taxes. We have had relatively low taxes on the wealthy for 35 years, and we have experienced sluggish growth and a soaring national debt. In contrast, during the great period of economic growth in the mid-twentieth century, tax rates were higher, but growth rates were also higher and deficits were smaller.

Personal income taxes

As I said, Hillary Clinton proposes to increase taxes on the wealthy. She would put a 4% tax surcharge on incomes over $5 million, in effect raising the top tax bracket rate from 39.6% to 43.6%. She would also like to make anyone with an income over $1 million pay at least 30%. Although millionaires are in the 39.6% bracket now with regard to “ordinary income,” they can pay as little as 20% on income from capital gains. That’s why Warren Buffet can point out that he pays taxes at a lower rate than his secretary. (He is supporting Clinton’s plan, by the way, even though it will raise his own taxes.) The proposal for a 30% minimum rate for millionaires was previously proposed by President Obama, and has come to be known as the “Buffet rule.”

Clinton is not proposing any major tax changes for the non-millionaire majority. Donald Trump, on the other hand, is proposing “lower taxes for everyone, making raising a family more affordable for working families.” His first proposal cut taxes so much that most analysts dismissed it as fiscally irresponsible. More recently, he has apparently adopted the plan put forth by House Republicans, at least with regard to tax rates. The details are not entirely clear because they are not yet available on the Trump website.

We do know that the Trump plan proposes to simplify the rate structure by replacing the current seven tax brackets with only three: 12%, 25% and 33%. To keep the presentation brief, I will focus on households headed by married couples filing joint returns, but the general conclusions would be true for single filers as well. Here is how the plans would affect households with various taxable incomes (after deductions and exemptions):

  • $25,000: Currently this household is in the 15% bracket, but their effective tax rate is only 11.3%, since the first $18,550 is taxed at only 10%. Their tax is now $2,822. After Trump’s simplification, all their income is taxed at 12%, so their tax rises slightly to $3,000.
  • $30,917: I’ve picked this odd number because it is the break-even point where Trump’s plan makes no difference. The household is currently in the 15% bracket, but their effective rate is 12% already, and it remains 12% in Trump’s plan. Their tax is $3,710 either way.
  • $50,000: This household is also in the 15% bracket under the current system, with an effective rate of 13.1% and a tax of $6,572. After Trump’s simplification, they are taxed entirely at 12%, for a tax of $6,000 and a savings of $572.
  • $100,000: This household is currently in the 25% bracket, but with an effective rate of 16.5%. Under Trump’s plan, they are still in the 25% bracket, but their effective rate drops to 15.2% because the first $75,300 of their income is taxed at his 12% rate. Their tax goes down from $16,542 to $15,211, a savings of $1,331.
  • $1 million: Currently they are in the top 39.6% bracket, with an effective rate of 34.2%. Trump’s top bracket is only 33%, so their effective rate comes down to 30.2%. Their taxes fall from $341,666 to $301,695, a savings of $39,970.

And so it goes. The greater the taxable income, the larger the tax reduction, not only in dollars but in rate. Like all Republican tax proposals, this one gives the greatest tax relief to the wealthy who pay the most taxes, with the aim of making the rate structure flatter and less progressive.

In addition, the Trump plan does not address the “Buffet rule,” and so it continues allowing millionaires to pay a lower rate if their income is primarily from capital gains.

The Trump plan is marketed as “lower taxes for everyone, making raising a family more affordable for working families.” But the family with a $50,000 taxable income saves $572, while the family with the million-dollar income saves $39,970. Why should the government give up badly needed tax revenue to help families that are already doing fine?

A word of caution: a complete analysis of a tax plan would have to consider more than just the tax brackets and rates. For example, the House Republican plan (and maybe the Trump plan?) also proposes to increase the standard deduction from $12,600 to $24,000, while eliminating the personal exemption. Some households, especially those without children, would see their taxable income fall. Others, especially families with two or more children, could lose more from the loss of exemptions than they gain from the increased standard deduction. I don’t think that changes my basic conclusion, but it is not simple. The candidates need to post their plans with as much specificity as possible, so that outside experts can evaluate them.

One suspects that the real objectives of the Republican plan are probably something else besides providing tax relief to the working class. Many Republicans sincerely believe that more tax cuts for the wealthy will promote economic growth, although doing that from the top down is a dubious proposition. Democrats are more likely to believe that government spending on useful job-creating projects is a more direct path to growth. The difference is even starker, since some Republicans have advocated tax cuts specifically to deprive the federal government of revenue in order to keep government small and weak, “small enough to drown in a bathtub,” as anti-tax crusader Grover Norquist has put it. As far as I know, Donald Trump has not made that argument. He really can’t, since he is promoting increases in both military and domestic spending. But it may be an objective of House Republicans, who could be very influential in a Trump administration. They do want to reduce domestic spending, although they have to be careful about how they present that to the public. Better to speak of “entitlement reform” than “cutting social security benefits”; better to speak of “reducing dependency on government” than “taking away food stamps from hungry children.” Surveys have found that Americans like the idea of limited government in the abstract, but rarely rally around when specific programs are on the cutting board.

A presidential campaign should be an opportunity to have an honest, fact-based debate over fiscal policy, among other things. Right now, that’s just not the kind of thing that get’s voters’ attention.

In the next post, I’ll discuss differences between the candidates on estate taxes and corporate taxes.

Continued


The G.O.P.’s New Face

July 24, 2016

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Some would say that the nomination of Donald Trump for President puts a brand new face on the Republican Party. But is it really a new face, or just a façade masking some of the same old realities?

A common media narrative describes the Trump ascendancy as a takeover by a political outsider with some distinctly un-Republican ideas. Well, the political outsider part is true enough. Trump has less political experience than anyone else in the race, for better or for worse. As for un-Republican ideas, that applies primarily to his position on international trade. Republicans have generally regarded free global trade as a win-win for the participating countries, encouraging each country to create jobs doing what it can do most efficiently. Trump is deeply skeptical of that Republican orthodoxy, and apparently sympathetic to the American manufacturing workers who have been losing their jobs. Even here, however, it remains to be seen how much he would or could do for such workers. Unlike trade critics on the Democratic side, he has not to my knowledge called for making trade agreements conditional on stronger protections for wages and working conditions, or building a stronger safety net for displaced workers. Instead, he has promised to bring back old industrial jobs that most economists believe are irrevocably lost to global competition and new technologies.

Aside from a critical view of world trade, what is new about Donald Trump’s economic proposals? He seems to accept the fundamental Republican commitment to limited government when he advocates lower taxes and less regulation of business. He makes the familiar claim that lowering taxes and regulation on corporations and the wealthy will generate a new wave of job creation. This sounds like the same “trickle-down economics” that Republicans have been running on for years, without much to show for it in income growth for the majority of Americans. It has become a tough sell. Most people now oppose additional tax cuts for the wealthy, as well as any significant roll-back in the regulations protecting consumers, workers and the environment.

To win elections, Republicans have had to appeal to the electorate with something more popular and populist than a non-egalitarian economic message. For many years, Christian conservativism filled the bill pretty well. The appeal was to traditional religious values: pro-life, pro-family, pro-prayer in schools, etc. More recently, the support for the conservative side in the culture wars seems to be waning. Roe v. Wade remains the law of the land; laws against gay marriage have been struck down; and the younger generation is less interested in injecting religion into politics.

With old appeals losing their traction and the party at a crossroads, what Donald Trump offers is not so much a new economic policy as a new populist rationale for voting Republican. Part of that message is American nativism and strict immigration control. There he is only bringing to the forefront a position that was already a strong undercurrent in Republican thought. Congressional Republicans have been resisting immigration reform for years, despite the efforts of leaders who wanted to reach out to the growing Latino population.  The other message Trump delivered loud and clear at the convention was “law and order.” This isn’t new either, since Richard Nixon used it to great effect in the 1968 election. What he did, and what I think Donald Trump is doing too, is to shift attention away from the real grievances of protesting minorities, and toward the behavior of the protestors themselves, effectively blaming them for the conflicts in the land. “Law and order” then becomes a code word for resistance to the demands of the poor and minorities, a way of expressing one’s solidarity with the white majority. The disturbing attacks on police officers provided a perfect opportunity for Republicans to dissociate themselves from the “Black Lives Matter” movement. Unlike Christian conservatism, nativism and “law and order” appeal less to morality and more to fear. They introduce an uglier, more dangerous and divisive element into the campaign.

Can it work? Can a façade of “American First” trade policy, American nativism and “law and order” convince a large majority of older, white, blue-collar men that the Republican Party suddenly has their best interests at heart? (I say “older, white, blue-collar men” because Donald Trump’s prospects for winning a majority of women, Latinos, African-Americans, young people or the college-educated seem rather dim at this time.) Congressional leaders such as Mitch McConnell and Paul Ryan apparently think it can work. They have been willing to endorse Donald Trump, ugly side and all, for a chance to remain in power and pursue their standard Republican economic agenda, tax cuts for the wealthy and benefit cuts for the rest of us.

But win or lose, the Republican Party has lost something. Gone is the optimism of “morning again in America” (Reagan), “a kinder, gentler America” (Bush 41), or “compassionate conservatism” (Bush 43). What was on full display this week in Cleveland was the pessimism of “vote for Us (or to be more precise, Me), if you want to be saved from Them.” Gone is the pretense of representing all of America, replaced by an appeal to an angry and frustrated slice of America. That appeal seems to be based on an equally dubious premise, that the Republican Party has suddenly transformed itself into the party of the working man, while the Democratic Party has taken its place as the party of Wall Street. Maybe Donald Trump is the perfect candidate to convey this new image of the Party: a casino with a beautiful brand-new façade and a bankruptcy in progress.

 


When Should Parties Move toward the Center?

March 25, 2016

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Reading Brown Is the New White by Steve Phillips got me thinking about the general question of political party strategy. Should a party that wants more votes appeal to the center of the political spectrum, or should it focus on “firing up the base”? Phillips thinks that Democrats should do less of the former and more of the latter. Under what conditions is that good strategy?

To start with a simple conception of the electorate, imagine a bell-shaped curve with moderate, centrist voters outnumbering both distinct leftists and distinct rightists. Although opinions on single issues can be quite polarized, there are a lot of issues that can be used to classify voters on a liberal-to-conservative spectrum. People who are conservatives on abortion are not necessarily conservative on economics. If only voters who are consistently liberal or conservative score near the extremes, then the majority come out looking more moderate. If that’s the case, and assuming there are only two major parties, one could make a general case for appealing to the center, since that’s where the most votes are.

What that simple picture overlooks is that each party has its own political base, to which it must appeal in order to motivate its supporters to vote. Each party has its own distribution curve, one to the right of the other. Each curve will have its own peak, where the largest number of its supporters are found. In the simplest case, the two parties have the same number of voting members, both peaks are the same height, and the two peaks are equidistant from the national center. This sets up the classic dilemma. On the one hand, nominating someone a little more centrist than the typical party member might be good strategy, in the hope of getting all the votes of party members plus some support from more moderate swing voters. On the other hand, that strategy might lose some support from the party base. A “true conservative” or “true progressive” might really turn out the party faithful, which could be more crucial to victory than winning over a few swing voters. This, of course, is exactly Phillips’ point with regard to today’s Democratic Party.

Another variable affecting the outcome is party loyalty or discipline. If party loyalty is high, party members may turn out regularly in any case, so success may hinge on adding some swing voters as well. But if the base only votes when they are really excited about a candidate, a moderate candidate could be fatal. Democrats have long had a problem turning out minority and poor voters who lean Democratic but don’t make it to the polls.

Complicating matters further, there is no guarantee that the two parties are equally popular or equidistant from the national center to begin with. One party can be smaller and farther from the center, while the other is larger and closer to the center. This can easily happen because the center is a moving target as far as substantive issues are concerned. Today’s centrist may support policies that were once considered leftist, such as the Social Security system or the right of workers to bargain collectively. Sometimes the country changes, and a party is left behind. A party that finds itself in the minority may have no choice but to tack toward the center, while a majority party can be true to its base and still succeed. Phillips believes that the Democratic Party can now show its true progressive colors because, as his subtitle declares, “the demographic revolution has created a New American Majority.”

These considerations help us make sense out of the recent history of presidential elections. During the period of Democratic Party dominance from 1932 to 1964, Democrats could win the White House with frankly liberal candidates. Republicans were successful with the moderate war hero, Dwight Eisenhower, who accepted much of Roosevelt’s New Deal, but they lost badly with the arch-conservative Barry Goldwater.

Things changed after the Democratic Party became the party of civil rights and the War on Poverty. Democrats had to contend with White backlash, while at the same time dealing with an internal struggle over the Vietnam War. In 1968, the moderate conservative Richard Nixon narrowly defeated the liberal Hubert Humphrey, who lost votes both from young opponents of the war and blue-collar supporters of the southern segregationist George Wallace. When Democrats nominated the even more liberal George McGovern in 1972, Nixon won reelection in a landslide. In the aftermath of Watergate, Democrats elected a southern moderate, Jimmy Carter, whose presidency was marred by runaway inflation and the Iranian hostage crisis. Republicans then launched the “Reagan Revolution” with landslide wins in 1980 and 1984. They did so by appealing to the cultural and racial conservatism of White Southerners, blaming Big Government for the country’s economic problems, and interpreting the hostage crisis as a sign of military weakness.

The previously dominant Democratic Party had tried to keep moving to the left, but the country hadn’t gone with them. No wonder the conventional wisdom after 1980 was that the party had to strengthen its appeal to the center. The election of Bill Clinton, who conceded that the “era of Big Government is over,” marked the success of that strategy.

Now, however, the tables may be turning. Now it’s the Republican Party that keeps moving in one direction, but is having trouble getting the country to go along. This is partly because of the demographic revolution described by Phillips. But the Republican brand is also being damaged in other ways: loss of public confidence in free-market, “trickle-down” economics and waning public enthusiasm for conservative positions on social issues, notably gay rights. Republicans have now lost the popular vote in five of the last six presidential elections (including Al Gore’s narrow victory in votes, but loss of the electoral college due to the Florida debacle and Supreme Court intervention). Instead of moderating their positions, they have doubled down on conservatism, offering unusual resistance to the nation’s first Black president, perhaps to please their White Southern base. The result is a legislative gridlock that doesn’t please anyone, but the Republican controlled Congress is getting the brunt of the criticism. Current unfavorable ratings are Congress 61%, Republican Party 60%, Democratic Party 43%.

The Republican Party may now be so far to the right of the typical voter that its ability to win national elections is seriously damaged. If so, it makes sense that it is fracturing over the dilemma that confronts any minority party, whether to tack to the center by nominating a moderate with some hope of winning, or to appeal to true believers by selecting someone more extreme who cannot. Republican primary voters seem to be choosing the latter option, since the two biggest vote getters are among the most conservative (and nationally unpopular) in the race. Donald Trump seems to be a throwback to the nationalists of the 1920s and 30s, wanting to blame the country’s problems on foreigners, immigrants and minorities. And Ted Cruz is an evangelical Tea Party conservative who denies that human activity is contributing to climate change, encourages states to ignore the Supreme Court ruling upholding same-sex marriage, and wants to eliminate many federal government departments (Energy, Education, Commerce, Housing & Urban Development, Internal Revenue Service).

If it is now safer for the Democratic Party to move to the left, while it is hazardous for the Republican Party to remain on the right, that’s a pretty good sign that the balance of power in the country is starting to shift. Of course, I may have to eat those words if the country actually elects a President Trump or President Cruz!


Brown Is the New White (part 2)

March 23, 2016

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Having shown how demographic changes are enabling Democrats to put together a coalition of progressive Whites, Blacks, Latinos, and Asian Americans, Steve Phillips discusses what this means for political strategy and policy. He believes that Democrats must acknowledge how much they have been “blinded by the White”: “Even at this time, when a racial demographic revolution has transformed the composition of the electorate and elected and reelected a Black president, much of the progressive movement and many progressive campaigns are still dominated by White leadership, fixated on White voters, and focused on policies preferred by White people.” Until that changes, the progressive movement cannot reach its full potential either in popular appeal or social impact.

Part of the argument for refocusing Democratic strategy and policy is practical. The Party has been concentrating too much of its attention on the small and shrinking proportion of White swing voters in the electorate, while failing to mobilize the growing segments of the population. When Democrats win the Presidency but then lose the next midterm election, the pundits assume that too many White voters shifted Republican, instead of noticing that too few people of color turned out to vote. The Democratic base is now large enough to win more elections just by motivating existing supporters to vote, even if support from White working-class voters remains under 50%. Money that is spent on campaign ads trying to sway undecided voters might be better spent on door-to-door voting drives targeting minority neighborhoods. But when 97% of the Party’s political consultants are White, outreach to minority communities may not get the attention it deserves.

As long as Democratic leaders believe that their success depends on appealing to White swing voters, they may fail to develop policies that excite progressives and bring them to the polls. President Obama developed a very moderate position on immigration reform, trying to bargain with conservatives by getting tough on border security and deportations in the hope of gaining their support for a path to citizenship. He wound up with neither Republican cooperation nor enthusiastic Latino support. Phillips feels that Democrats would have done better by taking a bolder position and turning out their base to vote for it.

Beyond the practical argument that Democrats ought to pay more attention to growing minorities, there is a deeper argument about social justice. “The New American Majority is inherently progressive because it is a direct outgrowth of centuries of exclusion and exploitation.” Americans who care about social justice should make common cause with historically marginalized and oppressed peoples. Phillips quotes sociologist Joe Feagin on the subject of racial inequality: “Social science research is clear that white-black inequalities today are substantially the result of a majority of whites socially inheriting unjust enrichments (money, land, home equities, social capital, etc.) from numerous previous white generations— the majority of whom benefited from the racialized slavery system and/or the de jure (Jim Crow) and de facto overt racial oppression that followed slavery for nearly a century, indeed until the late 1960s.” Social science research also documents the persistence of subtle forms of discrimination. For example, a recent study sent out job resumes with identical credentials but different names. “Those with more ‘Black-sounding’ names such as Lakisha and Jamal received 50 percent fewer callbacks for interviews than those with more ‘White-sounding’ names such as Emily and Greg.”

The country’s changing demographics create an opportunity to rectify such injustices, by reconsidering policies that impact most heavily on minority communities. For example, a majority of those who live within two miles of a toxic waste dump are people of color. Bill Clinton now acknowledges that the tougher federal sentencing guidelines he approved contributed to the over-incarceration of African Americans. And Phillips wants to change the narrative that we like to tell about poverty “from one in which poverty is seen as an individual failing to one that connects modern-day poverty to more than four hundred years of systemic, intentional injustice against people of color as a group.”

If one takes this quote and a few others too literally, they make it sound as if only people of color are poor, and only communities of color are victims of injustice. A close reading of the book reveals that this is not Phillips’ intention, since he also mentions social reforms that could benefit all groups, such as larger investments in public education and universal voter registration. Nevertheless, he seems most interested in “making major changes in priorities so that time, attention, and massive amounts of resources are directed toward the country’s communities of color.” He does not discuss the historical struggle of working-class White ethnic groups for decent wages and working conditions. He seems content to assemble his progressive majority without increasing White working-class support. Although that is mathematically possible, wouldn’t it be even better if the Democratic Party could appeal to more working-class people across the racial divide? Too many working-class Whites vote Republican because Democrats have not shown them how they would benefit from Democratic economic policies. Surely Democrats can do a better job in that department without sacrificing their progressivism.

Although Phillips sees a great potential for Democrats to benefit from the “New American Majority,” he warns that conservatives can also count. Republicans have been using two main strategies to counter the growing numbers of minorities: “suppression and seduction.” First, they pass restrictive voting measures that impact more heavily on the poor and minorities, many of whom lack government-issued IDs. Second, they seek out unusually conservative members of minority groups (that is, those who oppose progressive policies to combat inequality) and back them for public office. Some moderate Republicans are willing to entertain more authentic minority appeals. After President Obama’s reelection in 2012, the Republican Party’s “Growth and Opportunity Project,” popularly known as the “autopsy,” recommended more outreach to people of color and specifically endorsed comprehensive immigration reform. Phillips warns Democrats that they could miss an historical opportunity here, if Republicans nominate a moderate like Jeb Bush or Marco Rubio and get serious about appealing to Latinos. So far, the Republican base doesn’t seem to be getting the message, since their favorite presidential candidates are those with the most restrictive immigration policies. At this time, the prospects for a “New American Majority” to elect another Democratic president seem pretty bright.


Brown Is the New White

March 21, 2016

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Steve Phillips. Brown Is the New White: How the Demographic Revolution Has Created a New American Majority. New York: The New Press, 2015.

Steve Phillips makes the case that the United States already has a progressive majority, if the demographic growth and voting patterns of the nonwhite population are taken seriously. In 2012, President Obama won reelection with only 39% of the White vote, but with 93% of the Black vote, 71% of the Latino vote, and 73% of the Asian American vote. Other things being equal, this Democratic coalition should grow because of the rapid growth of the nonwhite population. “Each day, the size of the U.S. population increases by more than 8,000 people, and nearly 90 percent of that growth consists of people of color.”

This is not to say that progressive Whites are an insignificant part of the coalition. If only people of color voted reliably Democratic, then any significant political shift could not occur until around 2044, when the U.S. is expected to become a “majority minority” country. But looking at it that way assumes more white-nonwhite polarization than actually exists, and it “overlooks the equation that’s been hiding in plain sight.” Add progressive Whites to progressive people of color, and “this calculation reveals that America has a progressive, multiracial majority right now that has the power to elect presidents and reshape American politics, policies, and priorities for decades to come.”

Historically, the growing political significance of people of color goes back to two major legislative acts of 1965. The Voting Rights Act enabled African Americans to vote in many states where they had been prevented from doing so. The Immigration and Nationality Act got rid of the old quota system that had favored European immigrants, thus opening the door to more Asians, Latin Americans and Africans. Illegal immigration has changed the electorate too, since the children born here are citizens with voting rights even if their parents are not.

Consider the demographics of the various groups:

Non-Latino Whites are 63% of the population and 71% of the Citizen Voting Age Population. They are a much larger portion of the older population than the younger, however, and their overall proportion will continue to decline. On the average they have voted 40% Democratic since 1972.

African Americans are 13% of both the total population and the Citizen Voting Age Population. They have an exceptionally strong allegiance to the Democratic Party.

Latinos are now 17% of the population but only 10% of the Citizen Voting Age Population, since so many are undocumented or not old enough to vote. However, young Latinos are turning eighteen at a rate of about 800,000 a year. Latinos surpassed African Americans in population in 2001, but they have not surpassed them in voting population. They vote much more Democratic than Republican, but not as Democratic as Blacks.

Asian Americans are 6% of the population and 4% of the Citizen Voting Age Population. Their rate of growth in the population surpasses all the others. They also tend to vote Democratic.

Phillips sees a “New American Majority” that is now at 51% of the electorate and growing. He bases this on a simple calculation that multiplies each group’s percentage of the country’s eligible voters by the group’s support for Barack Obama in 2012. (One has to accept the latter as a decent indicator of progressive sentiment.) For example, Latinos are 10% of the country’s voters and voted 71% for Obama, so it follows that 7% of the electorate may be considered progressive Latinos. Similar calculations reveal an electorate that includes 28% progressive Whites, 12% progressive Blacks, 3% progressive Asians, and 1% other progressives. Total: 51 percent!

Phillips identifies 33 states where this new majority “has an outright or soon-to-be-outright mathematical majority of eligible voters.” That’s a total of 398 electoral votes, far more than the 270 required to win the presidency. The new majority is especially influential in big cities, while what might be called the old majority is more prominent in rural areas. This urban-rural split, along with some very effective Republican gerrymandering, accounts for the pattern of governance in states like Texas and North Carolina, where Republicans control the state government and the Congressional delegation while Democrats control many large cities.

The next post will discuss the implications of these changes for political strategy and policy. How can the Democratic Party best consolidate a progressive coalition?

Continued