I am 
very late to the Third Way-trashing party, but that’s a story in itself.
 I didn’t need to weigh in; progressives erupted in immediate backlash 
at the group’s latest attack on “economic populism.”
By now everyone knows that 
the pro-Wall Street wing of the Democratic Party attacked Sen. Elizabeth Warren
 and New York’s Mayor-elect Bill De Blasio in the Wall Street Journal 
Tuesday, arguing that their “economic populism” was a “dead end” outside
 of the midnight-blue communards of Massachusetts and New York City.
Not only was Third Way’s argument immediately and widely debunked – Salon’s Elias Isquith did it very well 
here
 – but its domination by Wall Street became an issue in itself, thanks 
to folks at Daily Kos and the Progressive Change Campaign Committee.  
Warren herself responded
 by asking Wall Street CEOs to voluntarily disclose their think tank 
funding – without mentioning Third Way by name – suggesting it amounted 
to “little more than another form of corporate lobbying.”
And by Wednesday evening centrist Pennsylvania Rep. Alison Schwartz, a Third Way co-chair who’s running for governor next year, 
had disavowed the group’s attempted takedown of her party’s populist wing, calling it “outrageous.” (Update: Thursday afternoon another co-chair, Rep. Joe Crowley, 
joined Schwartz.)
Oh, and meanwhile, 
President Obama gave his best economic speech yet, calling income inequality “the defining challenge of our time.”
Is
 something going on here? I’d say yes. Wall Street’s domination of the 
Democratic Party is facing a genuine and sustained fight, and that’s a 
good thing for Democrats and the country.
Remember, it was only last year that 
Third Way made big news
 warning that ol’ devil economic populism would be a dead-end for Obama.
 No, it was worse than that: Third Way said its polling showed that 
Obama’s message of “fairness” was a loser; voters preferred to hear 
about “opportunity.” Fairness, people. They came out against a 
“fairness” message as too radical. Liberals debunked the poll, but Third
 Way got a big endorsement from the New York Times columnist Bill 
Keller, who used the group’s faulty data to warn Obama that he was 
turning off independents by being “a plutocrat-bashing firebrand” and 
pushing “Robin Hood” politics like the Buffett Rule.
In fact, 
as I argued back then,
 during Obama’s first term his political fortunes improved when he 
strengthened his message of economic populism, and plummeted the more he
 preached about bipartisan deficit-cutting and “shared sacrifice” as 
defined by plutocrats. If Third Way and Bill Keller were right, we’d be 
debating President Mitt Romney’s new tax cuts for the wealthy right now.
Of
 course Third Way wasn’t right. But there didn’t used to be a penalty 
for being wrong in the service of Wall Street’s agenda. Now its 
plutocracy-defending drivel is both debunked quickly and denounced by 
politicians – even the one it’s trying to demonize.
That Elizabeth
 Warren is a great tonic for the Democratic Party is not news (although 
her decision to attack Third Way’s donor base rather than quail at its 
attacks merits attention and more admiration). What seems new to me is a
 sustained feistiness among progressives. The push to expand rather than
 cut Social Security is already widening the debate and making it harder
 for any Democrat to fearlessly back even hidden cuts like the chained 
CPI. And the wave of fast-food strikes and Wal-Mart protests is 
channeling the anger and moral outrage that inspired Occupy Wall Street,
 and then seemed to dissipate, into a policy agenda.
Which brings 
me to the president’s speech. He gave a similar one in the wake of the 
Occupy uprising, in Osawatomie, Kan., two years ago this Friday, and yet
 it’s been hard to translate his rhetoric into change. I find it hard 
these days to get excited about speeches, and yet, given the Republican 
extremism that’s led to gridlock, that bully pulpit is one of Obama’s 
most effective tools, and he doesn’t always use it to advantage. He did 
on Wednesday.
Obama called the “growing deficit of opportunity”
 a greater threat than the “rapidly shrinking” fiscal deficit. That’s 
important as Democrats face down Republicans in budget talks. And more 
vividly than before, he showed how the country’s post-World War II 
investments in building a middle class created a wider prosperity, while
 our current 40-year experiment with austerity and tax cuts has cut the 
heart out of the American dream.
Republicans and Fox News are 
already attacking the president’s speech as “class warfare,” and that’s 
fine. We’ve been living through class war for the last few decades, but 
only one side bothered to fight. For a time they enlisted a lot of 
Democrats, including Obama. Most people — not only progressives, even 
some Tea Partyers who aren’t driven by racism — know that Obama’s 
administration bailed out banks, but not their victims. Yet pampered CEO
 crybabies responded to the president’s mild chiding over their obscene 
bonuses and renewed profiteering by 
comparing him to Hitler and funneling their cash to Mitt Romney.
Now,
 with income inequality continuing to worsen on Obama’s watch, he has to
 pick a different side in the class war if he cares about his legacy. I 
hope that’s what the speech Wednesday was about. I trust that an 
energized progressive movement, and its congressional allies, can hold 
him to it. We’ll see. But the energetic backlash against Third Way shows
 that economic populism isn’t a dead end but the way forward.
 
                        
                                     
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