The Democratic Party vs. Wal-Mart

In the New York Times, Adam Nagourney and Michael Barbaro have a story on how the Democratic Party has arrived at a new bogeyman -- Wal-Mart: Senator Joseph R. Biden Jr. of Delaware, a likely Democratic presidential candidate in 2008, delivered a 15-minute, blistering attack to warm applause from Democrats and union organizers here on Wednesday. But Mr. Biden?s main target was not Republicans in Washington, or even his prospective presidential rivals. It was Wal-Mart, the nation?s largest private employer. Among Democrats, Mr. Biden is not alone. Across Iowa this week and across much of the country this month, Democratic leaders have found a new rallying cry that many of them say could prove powerful in the midterm elections and into 2008: denouncing Wal-Mart for what they say are substandard wages and health care benefits. Six Democratic presidential contenders have appeared at rallies like the one Mr. Biden headlined, along with some Democratic candidates for Congress in some of the toughest-fought races in the country. ?My problem with Wal-Mart is that I don?t see any indication that they care about the fate of middle-class people,? Mr. Biden said, standing on the sweltering rooftop of the State Historical Society building here. ?They talk about paying them $10 an hour. That?s true. How can you live a middle-class life on that?? The focus on Wal-Mart is part of a broader strategy of addressing what Democrats say is general economic anxiety and a growing sense that economic gains of recent years have not benefited the middle class or the working poor. Their alliance with the anti-Wal-Mart campaign dovetails with their emphasis in Washington on raising the minimum wage and doing more to make health insurance affordable. It also suggests they will go into the midterm Congressional elections this fall and the 2008 presidential race striking a populist tone. Biden's comment here is revealing in how the Dems want to frame the debate -- they think Wal-Mart's greatest impact is as an employer. Most (thought not all) economists, I suspect, see Wal-Mart's greatest impact as lowering the costs of consumption for Americans who frequent their stores -- including the middle class. In the Financial Times, Jonathan Birchall and Holly Yeager report on Wal-Mart's response: Under Lee Scott, chief executive, the company has in the past year expanded beyond the usual realm of corporate lobbying to wage a fully-fledged campaign in the mainstream of American politics. ?When a company is as large as ours, we?re certainly going to have a lot of interaction with both politics and government,? says Bob McAdam, vice-president of corporate affairs. On Tuesday it sent 18,000 ?voter education? letters to its employees in Iowa, pointing out what it said were factual errors made by politicians who had attacked the company. The group is to despatch similar letters to its staff in other states.... Wal-Mart?s evolving political strategy, shaped with advice and support from Edelman, the public relations consultancy, has been twofold. First, it has attacked its critics ? arguing that it is the victim of an unholy alliance between Democrat lawmakers and the unions they rely on to deliver votes and campaign financing. Second, it is seeking to make the argument that the company is good for America. It is doing this by mobilising its own political constituency, seeking alliances with local community leaders and businesses ? in particular, black and Hispanic groups ? that accept Wal-Mart?s argument that the company helps low-income Americans by offering low prices and jobs with the prospect of advancement. Working Families for Wal-Mart, funded mainly by the retailer, is part of both strategies.... John Zogby, the pollster, argues that focusing too much on Wal-Mart ?means no net gain?, because union voters already favour the Democrats and the party must seek other support if it is to recapture the White House in 2008. ?When are the Democrats going to talk to Wal-Mart shoppers?? he asks (see below left). Mr Zogby, who has done some polling work for Wake Up Wal-Mart, says Democrats still lack ?a strategy that deals with Joe and Mary Middle America ? and Joe and Mary Middle America are at Wal-Mart?. Two questions to readers: A) Who's going to win this battle over the next few years? B) Who should win this battle? UPDATE: Well, I think it's safe to describe Andy Young as a loser in this battle.