By Mike Koetting November 11, 2025
In my last post, I suggested that at least one way forward is some kind of populist-progressive alliance. Although more thinking about such an alliance raises some concerns, as last week’s election results illustrate, this is probably the way forward.
Obvious Convergence on Economic Issues
The primary basis for such an alliance is the concern over economic issues. We are currently in an anomalous situation where the stock market continues to boom. And while numerous other macroeconomic indicators are not plunging, the underlying realities are increasingly wobbly and the stress for many individuals and families acute.
For those with high incomes, life remains good. The below shows consumer spending by the top 20% of income earners continues to grow, but in the last two years, spending by the bottom 80% has flattened out or even started to decrease. Given the underlying inflation, this means that 80% of the population are cutting back on discretionary spending. (The actual situation is probably worse since credit card debt and defaults are both rising.)
Moreover, layoffs are rising, new jobs are being added at a slower pace, and inflation is creeping back up. The healthcare situation will become truly grim for those with coverage under the ACA or Medicaid, which together account for 22% of the population. This will also worsen the situation for the 8% of the population with no insurance. All of these will force up rates for private insurance, which will eventually be reflected in smaller salary increases, increased co-pays or both.
In short, a very substantial portion of the population has reason to be concerned about their economic situation. Consumer confidence is hovering around all-time lows. Converging around this problem should be axiomatic.
It’s Not so Simple
The problem is that people put similar facts in different contexts.
For instance, traditional populists have a more expansive idea of “elites”. It seems to them an “elite” is any group of people perceived as acting against their interests or beliefs. This is how they come to dismiss client scientists or public health officials as part of the elite. Populists often focus on elites exercising power through “corrupt” politicians, which leads to a distrust of government that runs counter to the reality that addressing their economic concerns requires an activist government. They also distrust big corporations, but they are equally, or more so, suspicious of “socialism” which seems to them like another elite that will push them around.
Progressives, on the other hand, are typically more focused on a critique of the economic structure that explicitly distrusts capitalism. Doesn’t necessarily reject it, but is deeply suspicious of its motives, means and some of its outcomes, such as the extreme inequality found in America. This leads to a much stronger embrace of government as the logical anti-force to capitalism.
A more encompassing problem is that populists tend to have a narrower concept of who is a “real American” and therefore worthy of government considerations. Conversely, a much wider definition of who belongs is a critical element of progressive thought. Critics have dismissed current incarnations of attempts to widen the circle as “identity” politics. This is a very careless shorthand. No doubt there have been excesses committed in the name of “identity” and not all prescriptions have worked. But there is also a real difference, even if the lines are ambiguous, between people who feel comfortable with expanding the idea of who is a “real American” and people who don’t.


There is also the problem that many people who are populist in their economic agenda, find the Democrats “arrogant” or “preachy”. Easy to see where this comes from. Mistakes have been made. But it is also true that part of what people describe to pollsters as “arrogance” or “preachy” is a consequence of citing experts or established facts. Or facts that people find inconvenient or unpleasant. A measurable portion of the discomfort with DEI initiatives stems from being asked to recognize that the unsavory underside to our history continues to have an impact. Calling that “preachy” sure sounds a lot better than saying “I don’t want to hear about how Blacks have been mistreated in the past because someone might think that should have some bearing on the present….and my life is difficult enough already.”
All of this funnels into a more general problem of a lingering toxicity to the “Democrat” brand. One recent study suggest attaching the label “Democrat” to someone, even someone with an explicitly economic populist agenda, could lower their support by 11 to 16 percentage points. What else could account for Sherrod Brown’s loss to Bernie Moreno, a Trump-backed businessman with several wage theft legal actions against him. This is nothing short of insane, but it’s the world we’re in.
The Path Forward Is Tricky
Erza Klein, among others, have suggested that the way forward is for candidates to distance themselves from the brand of the national party.
I get that people have specific, and sometimes legitimate, arguments with the Democratic Party. But I think it is harder for candidates to distant themselves from the national party brand than the commenters seem to think. And perhaps of dubious moral value.
Take what I believe is the core question: who should be considered worthy of government protection. This is a big deal for people who are really concerned about making the circle as large as possible. The Democratic Party as we know it—for better and worse—has come to embody that instinct. Most members of the party are not likely to say “Oh, I can put that on hold to make a better alliance on economic issues.” Roosevelt got away with that, but the world has moved too far to pull it off now. (Matt Yglesias has a very relevant discussion on the complexity of this issue.) People can be strategic and not emphasize certain issues as they work in the political world. They can even speak out against excesses in ”wokeness”. But, at the end of the day, Democrats are committed to a broader circle. And people who are worried by “the other”, know where progressives stand. We’re kidding ourselves if we think we can simply go quiet on the last 60 years of our history and people will think we are somebody else.
I think it is also hard to decide certain issues can simply be put on hold indefinitely. I would put environmental concerns at the top of this list. We are talking about things that are likely to reshape the world in the most profound ways imaginable. Deciding this issue is optional is irresponsible, even if most people don’t want to think about it, and certainly don’t want to have to vote on it.
Of course, and this is the central dilemma of participating in the world through politics: if you can’t get elected, the righteousness of your policy positions goes for naught.
Last Week’s Elections
Republicans lost just about everything there was to lose. When Democrats flip Republican seats in the Mississippi Legislature, it’s clear something is up.
Democrats ran on the issue of affordability, or, more accurately, the lack thereof. It’s a unifying issue. It sidesteps the issue of who is a real American. It’s particularly good since the current President ran on exactly that issue but hasn’t delivered. In his CBS 60 minutes interview last week, he made one stunning lie about the economy after another. Turns out, you can’t fool people who actually tote up the bills at the end of each month to see if they are still solvent.
So affordability is a good issue. Nevertheless, despite a few encouraging wins in Georgia and Mississippi, it remains to be seen if this will persist and be enough to overcome the reluctance to actually vote for Democrats in many parts of the country.
I am also concerned that “affordability” is unconnected to any broader view of the economy. I understand the political attraction, but to actually make life more affordable for most Americans is going to require a major restructuring. Sure, there are low-hanging fruit—let’s roll back the huge tax breaks given to the wealthy in the Big Beautiful Bill. But actual, sustainable, affordability will require top to bottom changes. These will take time, nuance and real governance.
Still, whatever gets us started is a good thing. Holding out for winning elections with a comprehensive economic strategy makes looking for the tooth fairy seem sophisticated. If running on “affordability” creates enough populist-progressive alliance to win elections, I’m for it. It also draws in people who don’t fit neatly into the traditional populist grouping—think Black and Latino working class voters.
I am in general agreement with Eric Zorn, a Chicago blogger, who suggested that Zohran Mamdani ran on a platform that was probably unachievable. But, he continued, “The real test will be if, by next summer, New Yorkers feel that he’s working collaboratively, productively and transparently with his department heads and other elected officials to improve life in the city.”
I think that will be the most we can hope for—and indeed, the standard to which we should hold officials accountable: Are they making people feel the government is actually working competently for them. That could sustain a populist-progressive alliance that will make a real difference.



