New Democrat Update - July 2001
WEBB'S UPWARD MOBILITY AGENDA

Denver Mayor Wellington Webb delivered a resounding New Democrat-like "State of the City" a couple of weeks ago.  We are especially excited about the Mayor's fair and simple commitment - no matter how little you make, you should not live in poverty if you are working full-time and you have kids in the house.

Webb's agenda includes a first-ever city earned income tax credit (EITC), a wage supplementing for the working poor.  Funded by reallocating existing federal dollars now tangled up in bureaucracy, the city will provide a "local match" of 20% of the federal EITC to more than 14,000 working families.  This means that a single mom in Denver earning $8.50 an hour will receive a very much-needed $600 a year, efficiently and without any new bureaucracy.

Giving the working poor real, on-the-job incentives goes a long way toward reducing economic stress on families struggling to make ends meet.  Better-fed poor children tend to be healthier kids and better students - to the taxpayers' eventual benefit.  Maybe best of all, the longer a wage-earner stays employed, the more likely he or she will move up to higher-paying positions that eventually will not require the supplement.  

Webb is also initiating a unique private-public partnership with the Mile High United Way and others to create Individual Development Accounts (IDA), enabling these same working families to get a 3-to-1 private match of that money to buy a home, expand or start a business, or obtain educational or job training.

"We have in our city more than 30,000 families, men and women who work hard, who often hold two or more jobs to make ends meet, but who still do not earn enough to allow for a decent standard of living," Mayor Webb said.  "They are our co-workers and neighbors, and they are an essential element of our community.  They are also the foundation of our strong economy, working in entry-level service, clerical, manufacturing and construction jobs, and as paraprofessionals in our schools.  These individuals represent the best hope for Denver's 21st century economy to meet its workforce needs."

New Democrats have long believed that families who work hard and play by the rules should not have to live in poverty.  Two of the very first proposals made by the DLC's think tank, the Progressive Policy Institute, advocated a major increase in the federal EITC and IDA's, back in 1989 and 1990.

These aggressive pro-work and pro-family initiatives - as much as $3100 in work-based financial support - are the next logical steps in Denver's successful welfare reform initiative.  The city's caseload has plummeted from 12,000 cases before welfare reform to today's 1,350 families and 1,200 child-only cases.

Giving working poor families greater incentives to work, save and invest in their futures not only makes sense but is the right thing to do.  Other Colorado municipalities should follow Denver's lead.


THE CHANGING ELECTORATE

On that same day, the Colorado DLC hosted a luncheon discussion with Al From, founder and chief executive officer of the national DLC.  From updated Colorado elected officials and DLC supporters on the changing demographics of the electorate.

A copy of his complete presentation (in computer slide or Adobe PDF format) is available.  These are the main points of his presentation:

Building a  new progressive majority for the Information Age requires expanding beyond the Democratic base, including men as well as women, whites as well as African-Americans and Hispanics, suburbanites as well as city dwellers, moderates and even some conservatives as well as liberals.  It must unite the interests of voters in the working class with those in "the rising learning class" (middle- and upper-middle class suburbanites and New Economy workers).

The sharp class differences of the Industrial Age are becoming less distinct as more and more Americans move into the middle and upper-middle classes.  Twenty-seven percent of voters today describe themselves as belonging to the upper-middle class, 46 percent to the middle class, and a mere 18 percent to the working class.

To forge the new majority, a Democratic candidate must win the support of not just factory workers, but of workers in suburban office complexes as well. During the past eight years, 22 million new jobs were created in America - almost all of them in the New Economy (the number of manufacturing jobs remained unchanged at 18 million).  These workers increasingly live in the suburbs.

Half of all last year's voters identified themselves as moderates, 20 percent as liberals, and 29 percent as conservatives. In 1980, the electorate was much more polarized - 40 percent of voters said they were conservatives, 24 percent liberals, and just 36 percent moderates.  Because there are still many more conservatives than liberals, a new progressive majority requires winning moderates by a substantial margin.

The Democrats' gender problem is men - we do not win enough of them. While Democrats must continue to win a significant majority of women, we must also be competitive among men.

While Democrats should continue to win an overwhelming majority of African-American and Hispanic voters, we must also win more white voters.  We cannot get clobbered among white voters because there are eight times as many white voters as there are black voters, and four times as many white voters as all minorities combined.

The foundation of a new progressive majority can only be developed by advocating the core principles of the New Democrat movement - opportunity for all, responsibility from all, a community of all.  Democrats must offer a modern agenda that embraces the New Economy, promotes activist but limited government that empowers its citizens, and furthers both mainstream values and cultural tolerance.  In the Information Age, the ideas we support and the messages we deliver will be linked to our political success more closely than ever.

The Colorado DLC sincerely thanks Al From for his very informative and insightful presentation.

THERE'S STILL TIME!

It is not too late to register for the DLC's 2001 National Conversation to be held July 15-17 in Indianapolis, Indiana.  On a first-come, first-serve basis, the DLC helps elected officials with travel expenses.

The event assembles and showcases the expanding ranks of New Democrat elected officials from around the country who are changing politics at all levels.  It is an opportunity for leaders from federal, state and local governments to strategize and exchange innovative ideas for governing our country.

A variety of daytime and evening events are scheduled throughout the Conversation, including speeches, issue forums, political panels, press conferences, and receptions. Senate Majority Leader Tom Daschle has just confirmed his attendance, along with DLC Chairman Senator Evan Bayh, former DLC Chairman Senator Joe Lieberman, and Democratic National Committee Chairman Terry McAuliffe.

If you are interested in participating in the National Conversation, please contact the Colorado DLC or 303-936-4681. More details are available.

Join the Conversation!