Shopping for Support Down the Wrong Aisle

Once upon a time, smart Democrats defended globalization, open trade and the companies that thrive within this system. They were wary of tethering themselves to an anti-trade labor movement that represents a dwindling fraction of the electorate. They understood the danger in bashing corporations: Voters don’t hate corporations, because many of them work for one.

. . .To see the difference between then and now, just look at the Clintons. In the late 1980s and early 1990s, Hillary Clinton sat on Wal-Mart’s board; and when Sam Walton died in 1992, Bill Clinton lauded him as “a wonderful family man and one of the greatest citizens in the history of the state of Arkansas.” Campaigning in the New Hampshire primary that year, Bill Clinton came proudly to the rescue of a local company called American Brush Co. by helping it become a Wal-Mart supplier.

Times change. Last year Hillary Clinton returned a campaign contribution from Wal-Mart, even though she had no compunction in banking a check from Jerry Springer. The nation’s most successful retailer, which has seized the opportunities created by globalization to boost the buying power of ordinary Americans, is now seen as too toxic to touch. But a trash-talking TV host is acceptable. . .

I suggest reading the entire article, but I wanted to highlight two paragraphs I found particularly important:

The truth is that none of these Democrats can resist dumb economic populism. Even though we are not in a recession, and even though the presidential primaries are more than a year away, the DLC crowd is pandering shamelessly to the left of the party — perhaps in the knowledge that the grocery workers union, which launched the anti-Wal-Mart campaign, is strong in the key state of Iowa.

For a party that needs the votes of Wal-Mart’s customers, this is a questionable strategy. But there is more than politics at stake. According to a paper for the National Bureau of Economic Research by Jerry Hausman and Ephraim Leibtag, neither of whom received funding from Wal-Mart, big-box stores led by Wal-Mart reduce families’ food bills by one-fourth. Because Wal-Mart’s price-cutting also has a big impact on the non-food stuff it peddles, it saves U.S. consumers upward of $200 billion a year, making it a larger booster of family welfare than the federal government’s $33 billion food-stamp program.

Liberal economic policies hurt, rather than help, average Americans. Unfortunately, it’s also true that they survive by emotional, rather than logical, appeal.

Hat tip: Club for Growth