On one side is a majority of Democratic voters, who are angrier, more disaffected, and altogether more populist than they’ve been in years. They are more attuned to income inequality than before the Obama presidency and more supportive of Social Security and Medicare.1 They’ve grown fonder of regulation and more skeptical of big business.2 A recent Pew poll showed that voters under 30—who skew overwhelmingly Democratic—view socialism more favorably than capitalism. Above all, Democrats are increasingly hostile to Wall Street and believe the government should rein it in.
On the other side is a group of Democratic elites associated with the Clinton era who, though they may have moved somewhat leftward in response to the recession—happily supporting economic stimulus and generous unemployment benefits—still fundamentally believe the economy functions best with a large, powerful, highly complex financial sector. Many members of this group have either made or raised enormous amounts of cash on Wall Street. They were deeply influential in limiting the reach of Dodd-Frank, the financial reform measure Obama signed in July of 2010.