This Might Not Work As Well As Elizabeth Warren Hopes

Democratic presidential candidate Sen. Elizabeth Warren, D-Mass., speaks at the Iowa State Fair, Saturday, Aug. 10, 2019, in Des Moines, Iowa. (AP Photo/John Locher)

This is just the kind of propaganda news story that Senator Elizabeth Warren (D-MA) wants to see for her campaign. From CNBC:

Wall Street Democratic donors warn the party: We’ll sit out, or back Trump, if you nominate Elizabeth Warren

  • In recent interviews of several big-money Democratic donors and fundraisers in the business community, CNBC has found that this opinion is becoming widely shared as Warren surges against Joe Biden.

  • Warren is a critic of big banks and corporations, and has called for a wealth tax.

by Brian Schwartz | Thursday, September 26, 2019

Democratic donors on Wall Street and in big business are preparing to sit out the presidential campaign fundraising cycle — or even back President Donald Trump — if Sen. Elizabeth Warren wins the party’s nomination.

In recent weeks, CNBC spoke to several high-dollar Democratic donors and fundraisers in the business community and found that this opinion was becoming widely shared as Warren, an outspoken critic of big banks and corporations, gains momentum against Joe Biden in the 2020 race.

“You’re in a box because you’re a Democrat and you’re thinking, ‘I want to help the party, but she’s going to hurt me, so I’m going to help President Trump,’” said a senior private equity executive, who spoke on condition of anonymity in fear of retribution by party leaders. The executive said this Wednesday, a day after Speaker Nancy Pelosi announced that the House would begin a formal impeachment inquiry into Trump.

During the campaign, Warren has put out multiple plans intended to curb the influence of Wall Street, including a wealth tax. In July, she released a proposal that would make private equity firms responsible for debts and pension obligations of companies they buy. Trump, meanwhile, has given wealthy business leaders a helping hand with a major corporate tax cut and by eliminating regulations.

Warren has sworn off taking part in big money fundraisers for the 2020 presidential primary. She has also promised to not take donations from special interest groups. She finished raising at least $19 million in the second quarter mainly through small-dollar donors. The third quarter ends Monday.

There’s more at the original.

But this simply plays into Mrs Warren’s quasi-populist campaign, as did a similar story a couple of weeks ago:

Nevertheless, for all of its populist appeal, it doesn’t make much sense for the common man. While the left want you to think that increasing stock values only matter for the top 10%, but the fact is that a majority of Americans own stock:

A once-every-three-years study by the Federal Reserve Board found that in 2016, 51.9 percent of families owned stocks, either directly or as part of a fund.

And in 2017, Gallup found that 54 percent of respondents owned stocks either directly or as part of a fund.

Those numbers are likely to have improved a bit, as the economy has gotten even better, because a large percentage of ordinary American stock ownership is in mutual funds via their 401(k) or other private retirement savings plans.

I’ll put it simply: if Mrs Warren’s plans hurt stock values, this will decrease the value of most Americans’ retirement savings! If you have a private retirement plan at work, or an Individual Retirement Account with investments in equities, voting for Mrs Warren is voting to make yourself poorer.

Mrs Warren isn’t stupid; she knows this quite well. But she is counting on large numbers of Americans not realizing this, counting on envy and hatred for the wealthier Americans to trump — pun very much intended — their personal benefit in having growing, rather than shrinking, retirement funds.

But President Trump isn’t stupid, either, and you can count on his campaign to point that out. Given that the white working class, which isn’t terribly wealthy, are already strongly supportive of President Trump, Senator Warren’s problems with Wall Street are going to make more of an impact with voters on whom she counts: middle and upper-middle class suburban and urban voters, people who do have decent 401(k) plans, and who understand them.

This may not turn out well for Mrs Warren’s campaign.
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