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Executive Summary: The Economy Fires When People Can SpendFreedland contends that the UK’s chronic under‑performance stems not from a lack of business ambition but from widening poverty and inequality that choke consumer demand. He argues Blair’s and Gordon Brown’s supply‑side focus failed to address these structural flaws, leaving the economy “misfiring.”Supply‑Side Myths vs. Demand‑Side Realities in Blair’s LegacyBlair and Brown championed incentives for businessmen, yet the article highlights two fundamental contradictions:Rent burden: many households spend up to 40% of weekly wages on rent, eroding disposable income.PFI contracts: private‑finance‑initiative deals built schools and hospitals but locked public services into inflexible, costly agreements.Housing debt cycles: the 2007‑08 crash mirrored the 1990 crisis, both driven by unchecked housing debt.Rising Inequality and Stagnant Incomes: The Numbers Behind the ArgumentData cited in the piece underscores the demand‑side deficit:Substantial reductions in pensioner and child poverty under New Labour were achieved through benefits and tax credits, not structural change.Incomes for poorer working‑age adults without dependents changed very little, widening relative poverty.Top‑income earners saw “substantial” gains, nudging overall inequality upward during Blair’s tenure.Policy Consequences: From PFI to Persistent PovertyThe article argues that PFI deals have become liabilities as contracts expire, leaving dilapidated buildings and disrupted services. It also points out that without addressing wealth inequality—more pronounced than income inequality—the economy cannot generate the “animal spirits” needed for robust demand.Outlook: What the Next Labour Government Must PrioritiseFreedland, echoing voices like Wes Streeting and Andy Burnham, calls for a shift toward demand‑side policies: higher taxes on the wealthy, robust public investment, and measures to curb wealth concentration. Only by restoring purchasing power to the majority can the UK “fire” its economy again.

Town‑Hall Tour Aims to Re‑anchor Democratic Trade Policy in the MidwestPublic Citizen organized a multi‑state tour of union halls in Michigan, Ohio, Pennsylvania, Wisconsin and Iowa, bringing together UAW leaders and Democratic representatives to discuss the impact of long‑standing trade agreements on local factories.Numbers That Reveal the Scale of the Manufacturing DeclineU.S. manufacturing employment peaked in 1979 at roughly 19.6 million jobs.Current manufacturing jobs stand at about 12.6 million, a loss of over 7 million positions.The Department of Labor attributes more than 950,000 job losses directly to NAFTA.At the International Motors plant in Springfield, Ohio, the workforce fell from over 5,000 in the 1990s to roughly 1,300 today.Why Offshoring Has Become a Political FlashpointWorkers such as Brenda Davis (retired Ford employee) and Morgan Hughes (current GM assembler) describe daily reminders of offshoring—foreign‑made vehicles parked at their facilities and dwindling production orders after tariff volatility. Representative Rashida Tlaib echoed their concerns, calling NAFTA‑style deals a “global race to the bottom” that widened income inequality.Implications for the 2026 Midterm ElectionsThe Midwest historically supplies about one‑third of U.S. manufacturing jobs and has been a decisive swing region in recent presidential cycles. Democrats risk losing these voters again unless they can convincingly propose policies that protect domestic production and address the “jobs‑gone‑away” narrative championed by former President Donald Trump.What the Next Steps Might Look Like for DemocratsAnalysts suggest three strategic moves: (1) push for stricter enforcement of existing trade rules and new safeguards against offshoring; (2) promote incentives for reshoring critical components, especially in the electric‑vehicle supply chain; and (3) partner with labor unions to craft legislation that secures job retraining and wage growth. Successful execution could reshape the party’s blue‑collar appeal ahead of the 2026 contests.

The Billionaire Class Trauer: How Wealthy Democrats Are Embracing PopulismTom Steyer has built his campaign for governor of California around affordability – and taxing the uber-wealthy. It is perhaps an unusual message for a candidate with an estimated net worth of $2.4bn. But the hedge fund founder-turned climate activist and liberal mega-donor is pitching himself as a different kind of billionaire: one who wants people like him to pay far more in taxes.The Billionaire Populist StrategyAs early voting ballots trickle in for the 2 June primary, Steyer, a leading candidate in the unsettled contest, is racing to convince Californians that his elect-the-rich-guy-to-eat-the-rich candidacy isn't a contradiction. "People are very skeptical of billionaires," Steyer, wearing a beige baseball cap with the words "class traitor" embroidered on it, told a small group of reporters at a campaign event in East LA on Wednesday. "I'm skeptical of billionaires because we've seen so many billionaires being selfish and arrogant."The Rise of Anti-Billionaire SentimentSteyer's campaign arrives at a particularly combustible political moment in the US, shaped by a surge in anti-elite populism, widening income inequality and growing suspicion of billionaire power across both parties. A survey conducted last year by the Harris Poll found that the share of Americans who said billionaires threaten American democracy rose to 53%, up 7 points from 2024. At the same time, nearly eight in 10 respondents said they were more likely to support a billionaire who "challenges unjust systems."California's Affordability Crisis and Political ResponseAnti-rich sentiment is especially pronounced in the Golden State, which boasts the world's fourth largest economy and more billionaires than any other US state. Yet California faces a deep affordability crisis, leaving many voters searching for a governor who will do more than take on the billionaire in the White House. They want someone who will "upend the system," said Lorena Gonzalez, president of the powerful California Federation of Labor Unions.The Democrat's Billionaire DilemmaA decade after Trump, a billionaire real estate mogul, proved he could harness working-class discontent, Democrats see a chance to rebuild their frayed coalition and win back the voters squeezed by the rising cost of rent, utilities and groceries. Ahead of the November midterm elections, Democrats are hammering Trump over his coziness with Silicon Valley billionaires and his preoccupation with building a ballroom at the White House, evidence, they say, that the president's party has abandoned working class voters in favor of a new gilded-age oligarchy.Wealthy Progressives Across AmericaSteyer is not the only Democrat testing the party's appetite for a populist from the 1%. In Illinois, Governor JB Pritzker, a scion of the Pritzker family that founded the Hyatt hotel chain, is running for a third term – and widely believed to be considering a presidential bid in 2028. Other wealthy progressives include Saikat Chakrabarti, a centimillionaire tech entrepreneur and former chief of staff to Ocasio-Cortez who is self-funding his anti-establishment bid to succeed retiring former House speaker Nancy Pelosi in San Francisco.A Historical Perspective on Wealthy DemocratsWealthy Democrats are hardly a new phenomenon. From Franklin Roosevelt's patrician roots to John F Kennedy's vast family fortune, the party has a history of elevating affluent political leaders who framed their privilege as a responsibility to serve the public. As Cas Mudde, a leading scholar of populism, noted by email, "socialists have long been led by 'class traitors' (eg Friedrich Engels) or have supported rich politicians and intellectuals (for example Bernie Sanders and Noam Chomsky)."The Future of Populist PoliticsAmid a volatile job market and escalating inflation, voters want leaders who understand their economic struggles. In California, with the nation's highest cost of living and gas prices topping $6 per gallon amid the Iran war, that demand is particularly urgent. Perhaps then it is a sign of the times that if Steyer advances to the November general election, Californians would likely have the chance to elect a billionaire for governor and impose a first-of-its-kind wealth tax on the state's richest residents.

The US political landscape is increasingly dominated by money, with billionaires and corporations spending vast amounts to influence elections and policy. In California, signature collectors are being paid $15 apiece to gather signatures in support of countermeasures against a proposed billionaire tax.The crisis has escalated since the 2010 Citizens United decision, which shredded limits on independent corporate election spending, fueling the growth of cash-flush Super Pacs and anonymous dark money non-profits. In 2024, $1.5bn in Super Pac donations came from organizations that aren’t required to name their donors.The ruling has, on balance, boosted conservatives, with Republicans receiving a four-point electoral bump in states where Citizens United struck down existing bans on corporate donations. Meanwhile, rampant income inequality has fueled a parallel democratic deficit, with the richest 10% of Americans now owning 93% of the stock market.To rebalance the scales, alternatives such as public election financing are being explored, which helped Zohran Mamdani secure his mayoral victory in New York City last year. Currently implemented in 15 states and Washington DC, these programs issue grants, vouchers and matching funds that augment the power of small donations.Citizens United might also be circumvented by novel legal maneuvering, with states holding considerable authority to define the powers they grant to incorporated entities. In Montana, organizers are collecting signatures for a Transparent Election Initiative that would strip corporations of the power to engage in election spending.

Senator Bernie Sanders used a Manhattan rally on Sunday to issue a stark warning: “the worst is yet to come” for the U.S. economy unless workers confront a ruling class of billionaires. Sharing the stage with New York City mayor Zohran Mamdani, the two leaders announced the launch of Union Now, a nationwide drive to boost union density and provide resources for organizing and strikes. Sanders singled out high‑profile billionaires – Elon Musk (Tesla, SpaceX), Jeff Bezos (Amazon), and President Donald Trump – as the architects of a looming crisis. He warned that Musk’s push for robotics and AI, coupled with Bezos’s recent pledge to raise $100 billion for buying and automating manufacturing firms, threatens to replace human labor on a massive scale. “Unless we fundamentally transform our economic and political systems, the worst is yet to come,” Sanders declared, emphasizing that increasing union membership is the most effective tool to tackle income inequality. Mamdani echoed the sentiment, noting that artificial intelligence is “coming for human jobs” and that worker protections are eroding. He pledged his administration’s support for Union Now, describing the effort as essential for safeguarding workers’ rights. Data presented at the rally underscored the scale of wealth concentration: in 2025, 938 U.S. billionaires saw their net worth rise by $1.5 trillion, while Musk alone possesses more wealth than the bottom 53 % of Americans. Sanders painted the billionaire class as “extremely greedy” and likened their self‑perception to 19th‑century monarchs who believe they have a divine right to rule. He warned that their unchecked influence could leave future generations without a safety net. Highlighting a recent political victory, Sanders cited Mamdani’s mayoral win as proof that ordinary people can defeat billionaire‑backed opposition. He warned that if the current trajectory continues, “fewer people will have more wealth and power, democracy will be undermined, and workers will be left with no recourse.” Closing his speech, Sanders urged unity: “If we stand together and fight for a government that works for all of us, there is nothing we cannot accomplish.”