In my opinion, this story from today’s Wall Street Journal is significant for three reasons:
- Because it’s from the Wall Street Journal—not, say, from The New Republic;
- Because of what it says: essentially, that recent election outcomes, especially in New York, show that the old plutocratic political playbook is not working anymore; and
- Because of what it does not say, namely, that the plutocrats who think this is only a “messaging problem” are whistling past the graveyard.
No, ladies and germs, you can’t message your way out of the fact that the top 1% hold 32% of all household wealth, while low and middle income families fall further and further behind.
No, messaging your way out of this will not cut the mustard.
Instead, you need to begin by remembering that pigs get fed while hogs get slaughtered.
In any event, the WSJ writes,
Wall Street Realizes It Needs More Than Money to Counter Mamdani: After big primary wins by the mayor’s progressive allies, New York’s business elites are rewriting their political strategy
New York City became Mamdani’s town on Tuesday night, after his preferred slate of far-left candidates for congressional House seats beat incumbents backed by the business community and political institutions. The Democratic Socialists of America picked up even more victories for local races, signaling that an anticapitalist and anti-Israel message was winning over voters in much of the city.
“It’s actually a very, very scary outcome, and I think it serves as an awakening for people,” said Steven Fulop, chief executive of the Partnership for New York City, a business group that advocates for companies such as Pfizer and JPMorgan Chase.
In an election where money was a central issue—namely, who has it and who is spending it—the wealthy business elites are now confronted with a city whose voters doubled down on the Democrats’ hard-left flank.
In calls among donors and political strategists, the postmortem analysis was stark: Money alone can’t save candidates with a weak ground game and a muddled message. Where to go next, though, is unclear.
One longtime strategist has floated a kind of political-giving organization that functions like the Robin Hood Foundation—the poverty-focused nonprofit whose board is stacked with finance luminaries—and gathers money to support moderate causes and candidates. Others described a desire to fund the otherwise unglamorous work of get-out-the-vote campaigns and candidate development. The name of at least one CEO was raised as a future challenger, as if just mentioning him could will a mayoral campaign into existence.
Whether any of it will make a difference remains to be seen.
The shift in power was palpable Thursday afternoon. The mayor gave a speech at a fundraiser in Midtown Manhattan for the Police Athletic League, which is chaired by John Catsimatidis, the billionaire businessman whose New York City radio station 77 WABC has become an outpost for antisocialist sentiment.
After Mamdani’s talk, Catsimatidis took to the lectern to address the rankled crowd.
“The mayor is an important component of New York City right now,” Catsimatidis said, “and he’s become a very popular person.”
For over a decade until 2013, there was practically a mind meld between New York City government and the finance industry under the reign of billionaire Michael Bloomberg, who even rearranged government offices to more closely resemble trading floors.
Now, those on Wall Street and in the business community worry they are seeing the twilight of their influence.
It doesn’t help them that the mayor has been everywhere during a buoyant June. Mamdani attended a World Cup match in New Jersey and followed the New YorkKnicks as the team won its first National Basketball Association championship in 53 years, boosting his popularity among younger, more educated voters.
But those voters have struggled to make ends meet. Support for Israel, which remains strong in the finance industry, has proved either toxic or irrelevant to voters outside rarefied circles.
Rep. Dan Goldman, who holds a House seat in a district that includes lower Manhattan and parts of Brooklyn, was defeated by Mamdani ally Brad Lander, who criticized Goldman’s acceptance of donations through a website run by the American Israel Public Affairs Committee.
“The DSA’s message was pretty simple: Aipac is bad, Israel is committing genocide and we need to throw the bums out,” said Chris Coffey, CEO of Tusk Strategies, who has advised more-moderate Democrats. “The establishment’s message was harder to galvanize around.”
Establishment Democrats and their financial backers have, in effect, become the target. Darializa Avila Chevalier, one of Mamdani’s picks, drew criticism for speaking harshly of former Vice President Kamala Harris—whose presidential campaign maintained close ties to Wall Street and Big Law.
Donors and strategists say the party’s moderate wing is struggling to articulate a message that isn’t just “we’re not Trump.” They add that Democrats’ lack of a ground game allowed the DSA, with its promises to freeze the rent and expand city-run child care, to outflank traditional candidates.
Optimists say it wasn’t a total loss. Micah Lasher, an establishment Democrat who most recently worked for Gov. Kathy Hochul, beat more liberal candidates, including a Kennedy scion, to represent the Upper East and Upper West Sides of Manhattan.
Sen. Chuck Schumer and Rep. Hakeem Jeffries both occupy party leadership positions and still enjoy broad support from wealthy moderate Democrats. Operatives see several potential challengers to the mayor, including Jessica Tisch, the police commissioner; Julie Menin, the City Council speaker; and U.S. Rep. Ritchie Torres, who represents New York’s 15th Congressional District in the Bronx.
Fulop said establishment Democrats should pivot to an optimistic message that emphasizes more jobs and better opportunities.
Some institutions have already tried. Earlier this year, Citigroup pledged $60 billion in financing for more affordable housing over five years.
“While a socialist agenda expanding its reach in the capital of capital may be a bit ironic, it’s another example of how front and center the issue of affordability is,” said Edward Skyler, a former deputy mayor under Bloomberg, who is now an executive at Citigroup. “But there are opportunities for the public and private sectors to work together as banks do when they finance affordable housing in New York and throughout the country.”
Appropriately, this post ends with future Senator Murphy doing one of classic song and dance routines.
Facing MAGA 