Three mountains blocking the revival of the Democratic Party

Mr. Trump's victory in the 2025 election has reverberated, and it appears that realignment is occurring. Democrats are dissecting their misfortunes quite publicly. While almost all claims that the party will be in the wilderness for years to come are exaggerations, there are at least three major mountains standing in the way of realignment in favor of Democrats.

First, it must be said that Trump's victory and the Democratic Party's defeat have a lot to do with the economy. Yes, there were other factors as well, such as immigration, crime, and cultural issues. Still, the focus of this election was the economy.

Beyond the polls showing it to be a primary issue, the following surprising economic facts played a role in no small part.

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As GOBankingRates reported in January 2024, after the 2021-2023 inflation, “nearly half of Americans will have less than $500 in savings, and nearly 60% of Americans will have less than $1,000. I have savings.”

Combine this with the fact that many of these people have record credit card debt, and the only conclusion you can come to is that the majority of Americans are living on the edge. They voted for their dwindling pocketbooks rather than pleas for social justice.

Before the government's response to the coronavirus, wages rose 7.1% under the Trump administration. Adjusting for inflation, they fell below Mr. Biden.

No wonder more than 70% said on Election Day that the country was heading in the wrong direction.

Here are the mountains facing Democrats.

Mountain # 1. The Democratic Party is a “government-first” party.

The modern Democratic Party has become the party of government, taxation, and regulation. The Green New Deal is a comprehensive example.

The Green New Deal is what economists call government-led “industrial policy.” They are trying to direct massive government spending to areas of the economy they want to design.

To accomplish that, Democrats imposed regulations unprecedented in scope and scope. That includes publicly stating that entire industries such as coal should be shut down.

Of course, Democrats also want massive tax increases to pay for that program. Over the past two presidential cycles, Democrats have openly campaigned for tax increases. It used to be taboo – at least from Reagan to Clinton to Bush 41st and 43rd to Obama's first term.

The Green New Deal, of course, follows on from the last major Democratic Congressional victory and the massive expansion of government known as Obamacare. It passed without a single Republican vote.

Democratic presidential candidate Vice President Kamala Harris (from right), restaurant owner Diana de la Rosa and House of Representatives Alexandria Ocasio-Cortez in Reading, Pennsylvania, during a campaign campaign in Reading, Pennsylvania, on Monday, November. Visits Old San Juan Café and Restaurant with members of Congress. April 2024. (AP Photo/Jacqueline Martin) (AP Photo/Jacqueline Martin)

How government-centric is the Democratic Party?

Now, consider one of the prospects for 2028: California Governor Gavin Newsom. He is a big supporter of the Green New Deal. He advocates for regulations to ban internal combustion engines in cars and trucks, especially over the next 10 years.

Recently, Newsom boasted about how California is creating good-paying jobs.

But in reality, California created only 5,400 private sector jobs from January 2022 to June 2024. For a state with a population of more than 35 million people, that would mean 180 jobs per month over 30 months. By contrast, government jobs accounted for more than 95% of new jobs in California during this period.

In other words, this party has also become the party of government officials.

Mountain number 2. The American economy is weakened by the large size of the government.

Why were so few jobs created in California under Newsom? The simple answer is that California has the highest tax and regulatory burden of any state in the Union. Similar stories are taking hold across the country.

Over the past decade, state, local, and federal spending has increased to 35%, according to Trading Economics. It peaked at more than 40% during the government's response to the coronavirus.

Moreover, the combined cost of government-imposed regulations is well over $2 trillion. If regulation were its own industry, it would be second in size to government and healthcare.

The social costs of that spending, the taxes levied to pay for it, and their regulations have limited average annual economic growth to less than 2%. In the 1950s, it averaged 4%. Since then, that percentage has steadily declined as the government has grown.

Plain and simple, 2% growth does not and cannot create enough private sector jobs for a country the size of the United States.

It's no surprise, then, that national government employment growth is currently outpacing private sector employment growth. If employment does not grow sufficiently, people who are cornered will turn to government programs.

WASHINGTON DC – NOVEMBER 7: US President Joe Biden speaks about the results of the 2024 election in the Rose Garden on November 7, 2024 in Washington, DC. Former President Donald Trump defeated Democratic candidate Vice President Kamala Harris. Biden has promised to work with Trump's team to ensure a smooth transition of power and invited the former president to a meeting in the Oval Office. (Andrew Harnik/Getty Images)

Of course, these government jobs come at the expense of multi-trillion dollar budget deficits and an exploding national debt that is more than $35 trillion as of this writing. All of this combined could lead to inflation again in the event of a crisis.

Eventually, the size of government and its regulations reach a point where they inhibit private sector job growth. Promoting more government, which is currently the cornerstone of the Democratic Party, is not an option that will create jobs for voters.

Mountain number 3. Democratic elites probably won't stop.

A recent poll conducted by Scott Rasmussen in conjunction with the Committee to Unleash Prosperity found that elites (those with at least one graduate degree, earning at least $150,000 a year, and living in densely populated areas) The following was found among people (defined as people):

“70% of elites trust their government to do the right thing most of the time, more than double the national average. Among politically active elites, this number is surprising. It should rise to 89%.”

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This is important to know because this subgroup makes up Democratic Party elites both inside and outside of government.

Historically, once this desire for big government, if not socialism, has taken hold of the party hierarchy, it is not let go. It is consistent with the history of the British Labor Party. It's also consistent with the fact that Obama and Hillary Clinton were to the left of Bill Clinton, Biden boasted that he was the most progressive of all time, and Harris was to the left of them all. Truman and JFK, on ​​the other hand, recognized none of them.

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These are the three mountains that stand in the way of the Democratic Party's revival. There are others, but far more American Latinos want work than benefits. A growing number of black male voters agree with them.

Of course, if Republicans simply threw money at their favorite special interests instead of cutting the government, as they have done in the past, they could give Democrats a free pass back to power. But for now, Democrats have a high mountain to climb.