November 7, 2019



The Suburban Backlash Against the GOP Is Growing


RONALD BROWNSTEIN, ATLANTIC



The shift of metro areas away from the Republican Party under President Donald Trump rumbled on in yesterday’s elections, threatening the fundamental calculation of his 2020 reelection plan.
Amid all the various local factors that shaped GOP losses—from Kentucky to Virginia, from suburban Philadelphia to Wichita, Kansas—the clearest pattern was a continuing erosion of the party’s position in the largest metropolitan areas. Across the highest-profile races, Democrats benefited from two trends favoring them in metro areas: high turnout in urban cores that have long been the party’s strongholds, and improved performance in white-collar suburban areas that previously leaned Republican.
“When Trump was elected, there was an initial rejection of him in the suburbs,” says Jesse Ferguson, a Virginia-based Democratic strategist. “We are now seeing a full-on realignment.”
In that way, the GOP’s losses again raised the stakes for Republicans heading into 2020. In both message and agenda, Trump has reoriented the Republican Party toward the priorities and grievances of non-college-educated, evangelical, and nonurban white voters. His campaign has already signaled that it will focus its 2020 efforts primarily on turning out more working-class and rural white voters who did not participate in 2016.


But yesterday’s results again suggested that the costs of that intensely polarizing strategy may exceed the benefits. Republicans again suffered resounding repudiations in urban centers and inner suburbs, which contain many of the nonwhite, young-adult, and white-collar white voters who polls show are most resistant to Trump. If the metropolitan movement away from the Trump-era GOP “is permanent, there’s not much of a path for Republican victories nationally,” former Representative Tom Davis of Virginia, who chaired the National Republican Congressional Committee about two decades ago, told me.
Some in both parties see the results as more confirmation of the pattern from the 2018 midterm elections, when Democrats won a majority in the House of Representatives: Trump’s effort to mobilize his nonurban base around white identity politics is having the offsetting effect of turbocharging Democratic turnout in metropolitan areas, which are growing faster than Trump’s rural strongholds.
“The Trump campaign has focused on a singular strategy of looking for more voters who look like the type of voters who already like him, rather than trying to persuade anyone else,” says Josh Schwerin, senior adviser at Priorities USA, a Democratic super PAC that spent heavily in the Virginia races. “But the issues they are using to motivate those potential voters create a backlash for voters in metro areas who don’t like Trump.”
Unique local conditions contributed to each of yesterday’s most disappointing results for Republicans. In Virginia, Democrats benefited from a court-mandated redistricting of some state legislative districts after the initial lines drawn by the Republican-controlled legislature in 2011 were deemed discriminatory against minorities. The new maps substantially increased the African American share of the electorate in four of the six state House seats that Democrats appear to have captured, according to data collected by the Virginia Public Access Project. Huge spending by outside groups focused on gun control, gay rights, and legal abortion also boosted Democrats there.
In Kentucky, the Democrat Andy Beshear appeared to oust incumbent Republican Governor Matt Bevin, though the Associated Press still has yet to declare him the winner and Bevin has indicated he may contest the result. Bevin, a belligerent figure, was among the country’s most unpopular governors, and he provoked a fierce organizing effort against him by teachers and organized labor. “By all accounts, this was the best get-out-the-vote effort ever mounted in Kentucky by the Democrats … driven by the teachers and the labor unions,” says Al Cross, the director of the Institute for Rural Journalism at the University of Kentucky. Bevin also appeared to suffer in rural areas from his drive to pull back the state’s Medicaid expansion under the Affordable Care Act. And even as Bevin apparently was defeated, Kentucky Republicans posted solid wins in the other statewide elections.


But looming over all these local factors was the consistency of the metropolitan movement away from the GOP. Not only in urban centers, but also in suburban and even some exurban communities, Democrats reaped a double benefit: They increased their share of the vote even as turnout surged.
The combination produced some astounding results in Kentucky. Beshear won the state’s two largest counties—Jefferson (which includes Louisville) and Fayette (which includes Lexington)—by a combined 135,000 votes, according to preliminary results. That was nearly triple the total vote advantage that Jack Conway, the Democrats’ 2015 nominee against Bevin, generated in those two counties. Beshear in fact won almost exactly as many votes as Hillary Clinton did in Jefferson County and slightly more than she did in Fayette—an incredible achievement given how much lower turnout usually is for a governor’s race in an off year. “That’s insane. It is incredible. It cannot be stressed enough,” says Rachel Bitecofer, a political scientist at Christopher Newport University, in Virginia.
The legislative elections in Virginia show the same pattern of the suburban erosion for the GOP in the Trump era. Democrats overthrew narrow Republican majorities in both chambers of the General Assembly by capturing at least five state House seats (while leading narrowly in a sixth) and two in the state Senate. They included seats in the Washington, D.C., suburbs of Northern Virginia and near the state capital of Richmond. For the first time in 50 years, Democrats now control all of the state House seats in Fairfax County, which is near Washington, D.C.
But those new gains were probably less telling than what didn’t change: Democrats didn’t lose any of the previously Republican seats that they captured in suburban areas—particularly Northern Virginia and Richmond—in their landslide win in the state in 2017, which foreshadowed Democrats’ gains in the 2018 midterms. “The key is, the Republicans didn’t win back any of the suburban seats they lost,” Davis said. “Basically the mold in those areas hardened. We were like, ‘Oh it was temporary—a one-time turnout [surge].’ But they didn’t win them back.”
The Democrats’ suburban gains extended down the ballot too. For example, Loudon and Prince William Counties, in the outer Washington suburbs, were once symbols of Republican strength in fast-growing exurbs. Yesterday, Democrats flipped control of the county commissions in both of them.
A similar pattern unfolded in the suburbs of Philadelphia, where Democrats captured a majority in three different counties’ boards and defended their majority in a fourth; the area is likely crucial to the party’s 2020 prospects in Pennsylvania.
Republicans pointed to some good news: The party held the governor’s mansion in Mississippi, ousted a Democrat in a New Jersey state House seat that Trump won in 2016, and elected an African American Republican attorney general in Kentucky. They avoided the worst case scenario in Virginia by holding close four state Senate seats where Democrats reached about 48 percent of the vote or more. But the bottom line across all the results is clear. As Davis starkly put it, “This was not a good night for the Republican Party.”


John Weaver, a veteran Republican political strategist who has been critical of Trump, says that while Republicans can “cherry-pick” local factors behind each of their losses, the cumulative pattern of suburban erosion for the party is unmistakable. “We are not talking about a gradual change,” he says. “We are talking about dramatic overnight flips from what used to be reliably Republican to now reliably Democrat. And the turnout is massive.”
Though Bevin suffered some erosion in rural eastern counties in the state, the GOP generally held its ground in such areas, both in Kentucky and Virginia. That widening separation between the GOP’s strength outside of metro areas and an intensifying tilt toward Democrats inside of them continues the underlying pattern of geographic polarization that has defined politics in the Trump era.
In 2016, Trump lost 87 of the 100 largest U.S. counties by a combined 15 million votes, but then won over 2,600 of the remaining 3,000 counties, the most for any presidential nominee in either party since Ronald Reagan in 1984. In 2018, Republicans suffered sweeping congressional losses across urban and suburban America, but avoided hardly any congressional losses in heavily rural districts. While big showings in diverse metro areas helped Democrats win Republican-held Senate seats in Arizona and Nevada, Republicans snatched three Senate seats from Democrats in states with large rural white populations: North Dakota, Missouri, and Indiana.
Rather than looking to court urban areas, Trump has more frequently denounced places such as Chicago, San Francisco, and Los Angeles in an attempt to energize his mostly nonurban base. He continues to aim his message preponderantly at culturally conservative whites, and his campaign has signaled that it considers increasing turnout among such voters central to his reelection hopes.
Few in either party dispute that such a strategy could allow Trump to squeeze out another Electoral College victory, even if he loses the popular vote; he could do so by holding a narrow advantage in a few closely contested states, from Florida, North Carolina, and Arizona in the Sun Belt to Wisconsin, Pennsylvania, and Michigan in the Rust Belt.
But yesterday’s results underscore how narrow a wire the president is walking with that strategy. Even taking into account Bevin’s personal unpopularity, Bitecofer says the Kentucky result should caution Republicans about a plan that accepts metropolitan losses to maximize rural and small-town gains. “If it can’t work in Kentucky … you cannot do it in Wisconsin or Michigan,” she says. Beyond Trump, the urban/nonurban divisions evident in this week’s elections “should scare the ever-loving bejesus” out of 2020 Republican Senate candidates in states with large metropolitan populations, including Arizona, Colorado, and North Carolina. “Their danger level … has increased exponentially,” she argues.


Another GOP strategist, who spoke on the condition of anonymity to discuss internal party strategy, took a similar, if less severe, lesson from the results. In 2016, the strategist noted, Trump benefited not only because rural and non-college-educated white voters turned out in big numbers, but because turnout was weak among minorities and mediocre among young people. But in 2018—and again last night—large turnout in metropolitan areas swamped strong showings for the GOP in rural communities, the strategist noted. That raises the question of whether even big turnout in nonmetro areas will suffice for Trump if the metropolitan areas moving away from him continue to vote at the elevated levels evident in 2018 and 2019.
Trump can’t bank on a 2016 redux: “Clearly that isn’t going to happen this time,” the strategist told me.
Davis, the former NRCC chair, likewise believes that the GOP’s transformation from a party of “the country club to the country” does not add up to long-term success. “What’s happening is that the fast-growing areas [are] where the Democrats are doing better,” he told me. “There aren’t enough white rural voters to make up the difference.” In 2020, he said, “the silver lining” could be if Democrats nominate an extremely liberal presidential candidate, such as Senators Elizabeth Warren or Bernie Sanders, who could leave anti-Trump suburban voters “conflicted.” But, given the intensity of the suburban backlash to Trump, he said, even that is no guarantee that those voters will rebound to him.
Such words of warning have been extremely rare among Republicans: Despite the GOP’s recent metropolitan losses, Trump’s approach has generated astonishingly little dissent inside the party. Yesterday’s results are unlikely to break that silence. But Weaver, like other GOP strategists dubious of Trump, says the party cannot indefinitely ignore the implications of prioritizing rural strength at the price of losing ground in the urban centers, which more and more are driving the nation’s economic innovation and its growth in population and jobs.
“Politics is a free-market enterprise. You have to sell a product,” Weaver says. “And Republicans are going to find themselves, by their own decision making, eliminated as an option for many, many voters, many, many demographic groups for generations to come.”

November 6, 2019


Sondland adds to testimony linking aid to Ukraine probes sought by Trump

In a “supplemental declaration” to his Oct. 17 testimony, the former ambassador to the European Union said that aid to Ukraine was linked to the opening of an investigation that could damage presidential candidate Joe Biden.

Sondland Updates Impeachment Testimony, Describing Ukraine Quid Pro Quo

Gordon D. Sondland recounted how he told Ukrainian officials that military aid was tied to their commitment to investigations President Trump wanted.
Credit...Erin Schaff/The New York Times
WASHINGTON — A crucial witness in the impeachment inquiry reversed himself this week and acknowledged to investigators that he had told a top Ukrainian official that the country would most likely have to give President Trump what he wanted — a public pledge for investigations — in order to unlock military aid.
The disclosure from Gordon D. Sondland, an ally of Mr. Trump who is the United States ambassador to the European Union, confirmed his role in laying out a quid pro quo to Ukraine that conditioned the release of security assistance from the United States on the country’s willingness to say it was investigating former Vice President Joseph R. Biden Jr. and other Democrats.
That admission, included in a four-page sworn statement released on Tuesday, directly contradicted his testimony to investigators last month, when he said he “never” thought there was any precondition on the aid.
“I said that resumption of the U.S. aid would likely not occur until Ukraine provided the public anticorruption statement that we had been discussing for many weeks,” Mr. Sondland said in the new statement, which was made public by the House committees leading the inquiry, along with the transcript of his original testimony.
Mr. Sondland’s disclosure appeared intended to insulate him from accusations that he intentionally misled Congress during his earlier testimony, in which he frequently said he could not recall key details and events under scrutiny by impeachment investigators.
It also provided Democrats with a valuable piece of evidence from a critical witness to fill out the picture of their abuse-of-power case against the president. Unlike other officials who have offered damaging testimony about Mr. Trump, Mr. Sondland is a political supporter of the president who has interacted directly with him.
The question of a quid pro quo is at the heart of the impeachment investigation into Mr. Trump, which turns on whether the president abused his power when he asked a foreign power to target his political rivals.
Mr. Trump initially strongly denied there was any quid pro quo involving Ukraine, and numerous Republicans took up that refrain. But as the inquiry has unfolded, he and Republican lawmakers have gradually begun to move away from that position. Instead they have adopted the argument that a president insisting on a quid pro quo from a foreign government to benefit himself politically may be of concern, but it is not — in the words of Mr. Trump himself — “an impeachable event.”
A wealthy Oregon hotelier who donated to the president’s campaign and was rewarded with his plum diplomatic post, Mr. Sondland can hardly be dismissed as a “Never Trumper,” a charge the president has leveled against many other officials who have offered damning accounts of his conduct with regard to Ukraine. As such, Mr. Sondland’s new, fuller account complicates Republicans’ task in defending the president against the impeachment push.
On Tuesday, the White House rejected Mr. Sondland’s new account, saying he failed to cite a “solid source” for his “assumption” that there was a link between the aid and the investigations.
“No amount of salacious media-biased headlines, which are clearly designed to influence the narrative, change the fact that the president has done nothing wrong,” Stephanie Grisham, the White House press secretary, said in a statement.
The new information surfaced as the House committees also released a transcript of their interview last month with Kurt D. Volker, the former special envoy to Ukraine.




NY TIMES

November 5, 2019



One Year From Election, Trump Trails Biden but Leads Warren in Battleground States

Signs that the president’s advantage in the Electoral College has persisted or even increased since 2016.




NY TIMES

November 4, 2019




The Happy, Healthy Capitalists of Switzerland

Forget Scandinavia. Switzerland is richer and yet has a surprisingly equal wealth distribution.
NY TIMES
Mr. Sharma is an author, global investor and contributing opinion writer.


Credit...Matt Chase


Like many progressive intellectuals, Bernie Sanders traces his vision of economic paradise not to socialist dictatorships like Venezuela but to their distant cousins in Scandinavia, which are just as wealthy and democratic as the United States but have more equitable distributions of wealth, as well as affordable health care and free college for all.
There is, however, a country far richer and just as fair as any in the Scandinavian trio of Sweden, Denmark and Norway. But no one talks about it.
This $700 billion European economy is among the world’s 20 largest, significantly bigger than any in Scandinavia. It delivers welfare benefits as comprehensive as Scandinavia’s but with lighter taxes, smaller government, and a more open and stable economy. Steady growth recently made it the second richest nation in the world, after Luxembourg, with an average income of $84,000, or $20,000 more than the Scandinavian average. Money is not the final measure of success, but surveys also rank this nation as one of the world’s 10 happiest.
This less socialist but more successful utopia is Switzerland.
While widening its income lead over Scandinavia in recent decades, Switzerland has been catching up on measures of equality. Wealth and income are distributed across the populace almost as equally as in Scandinavia, with the middle class holding about 70 percent of the nation’s assets. The big difference: The typical Swiss family has a net worth around $540,000, twice its Scandinavian peer.


Switzerland did draw 15 minutes of media attention around 2010, when Obamacare was still new — but only for its health care system, which requires all residents to buy insurance from private providers and subsidizes those who can least afford it. Admirers said Swiss health care had something for everyone: universal coverage for liberals, private providers and consumer choice for conservatives.
But for the most part, intellectuals ignore Switzerland as a model, perhaps put off by its exaggerated reputation as a shady little tax haven, where Nazi gold and other illicit fortunes hide behind strict bank secrecy laws. In 2015, Switzerland agreed under pressure to share bank records with foreign tax authorities, but that has not slowed the economy at all. Switzerland always was more than secretive banks.
Capitalist to its core, Switzerland imposes lighter taxes on individuals, consumers and corporations than the Scandinavian countries do. In 2018 its top income tax rate was the lowest in Western Europe at 36 percent, well below the Scandinavian average of 52 percent. Government spending amounts to a third of gross domestic product, compared with half in Scandinavia. And Switzerland is more open to trade, with a share of global exports around double that of any Scandinavian economy.
Streamlined government and open borders have helped make this landlocked, mountainous country an unlikely incubator of globally competitive companies. To build wealth, a country needs to make rich things, and an M.I.T. ranking of nations by the complexity of the products they export places Switzerland second behind Japan, well ahead of the Scandinavian countries, whose average rank is 15.
The Swiss excel in just about every major industry other than oil, often by targeting specialized niches, such as biotech and engineering. The country is home to 13 of the top 100 European companies, more than twice as many as in the three Scandinavian nations combined. And most top Swiss firms dwarf Scandinavian peers. Nestlé, with a stock market value of $320 billion, is 15 times larger than its closest Scandinavian rival.


Though major multinationals are concentrated in big cities, the Swiss economy is as decentralized as its political system. Traveling southwest from Zurich to Geneva recently, I was struck by how many iconic Swiss exports also originate in its provinces — Swiss Army knives from Schwyz, watches from Bern, St. Bernard puppies from a mountain pass in Valais, cheese and chocolates from Fribourg. Small companies anchor the economy, accounting for two of every three jobs. Only one in seven Swiss work for the government, about half the Scandinavian average.
No other nation’s currency has been rising faster against its trading partners, and normally a rising franc should erode Swiss exports by making them more expensive. Instead, while most rich countries (including Scandinavia’s) saw their share of global exports fall over the past decade, Switzerland’s continued to rise. Such is the reputation of its engineers and chocolatiers that customers readily pay more for Swiss goods.
The premium the world is willing to pay for Swiss goods and services helps deter capital flight and stabilize the economy. Switzerland has not been hit by a domestic financial crisis since the 1970s; the Scandinavian countries were wracked by crises in the 1990s and suffered sharper downturns than Switzerland did following the global crisis of 2008.
If there is any fault line, it is that in trying to slow the rise of the franc, Switzerland cut interest rates to record lows ahead of its European peers, triggering a lending boom that has driven private corporate and household debt up to 250 percent of G.D.P., a risky height. No paradise is perfect.
For all its local charms, Switzerland is worldly in the extreme. The Swiss are a polyglot mix of German, French and Italian speakers, many intimidatingly fluent in multiple languages. The foreign-born population has been increasing for more than a century and accounts for a quarter of the whole, 40 percent non-European Union.
True, the rise of anti-immigrant parties across Europe has an offshoot in Switzerland. The country has always been choosy, accepting new arrivals based on their professional résumé more than family ties or humanitarian need. But Australia and Canada also filter immigrants to fill jobs and are widely studied models of how rich economies can survive the aging of their domestic work forces.
Switzerland has been welcoming more immigrants than any Scandinavian country since the 1950s. It is on track to accept more than 250,000 immigrants between 2015 and 2020, expanding its population by 3 percent. That immigration rate is nearly double the Scandinavian average, and one of the highest among large, developed countries. Immigrants are also significantly more likely to hold jobs in Switzerland, in part because most are required to land one before they arrive.


The Swiss labor force gets an added boost from a meritocratic public school system that starts steering students as young as 12 toward their academic strengths. The world-class universities charge average annual tuition of only $1,000 and leave graduates thousands of dollars less in debt than many Scandinavian schools.
Die-hard admirers of Scandinavian socialism overlook the change of heart in countries such as Sweden, where heavy government spending led to the financial crises of the 1990s. Sweden responded by cutting the top income tax rate from nearly 90 percent to as low as 50 percent. Public spending fell from near 70 percent of G.D.P. to 50 percent. Growth revived, as the largest Scandinavian economy started to look more like Switzerland, streamlining government and leaving business more room to grow.
The real lesson of Swiss success is that the stark choice offered by many politicians — between private enterprise and social welfare — is a false one. A pragmatic country can have a business-friendly environment alongside social equality, if it gets the balance right. The Swiss have become the world’s richest nation by getting it right, and their model is hiding in plain sight.