Democrats are facing a crisis of credibility on the economy.
A visit to the grocery store, even the price of eggs, tells a political story. Many families are feeling the sting of even higher prices, but they don’t think Democrats have the answers either. These everyday struggles compound in canceled vacations, drained savings, and stacked-up bills, leaving voters hungry for real leadership. And they too often don’t see it coming from Democrats.
President Trump is polling worse on the economy in his second term than in his first, according to CNBC’s All-America Economic Survey. This administration started with chaos and instability that has forced families to make hard choices on everything from vacations and Christmas toys to back-to-school supplies.
From tariff talk to tax policy that has ballooned the national debt to over $37 trillion, saddling future generations with a huge bill they themselves haven’t run up, American families are struggling, with no life jacket from either party in sight.
Even with all of these bleak indicators, Democrats have yet to prove to the American people that they can fix it. A recent Wall Street Journal poll found that approval ratings for Democrats are at a 35-year low, with over two-thirds of respondents holding an unfavorable view. The same survey also found Republicans outscoring Democrats by 10 points on inflation and by 7 points on tariffs.
These numbers aren’t just about the next election. It’s about a deeper disconnect with the American public that our party must address to have a fighting chance going forward.
We were given two ears and one mouth for a reason. Democrats need to listen to what voters are telling us through these polls. We too often fail to listen to young people who are concerned about their ability to support themselves. We failed to listen to voters’ economic pain last year, which led to losses in 2024. We can’t afford to forget these lessons.
Beyond listening, Democrats need fresh, proactive, and visionary ideas to not only win elections but also secure our economy for future generations. That means pushing for an increase to the minimum wage and advocating for unions. It means ensuring all of us pay our fair share in taxes and doing everything we can to reduce our national debt. It also includes working with big businesses to solve our biggest problems. They employ 56% of our American workforce.
Hear me out.
At a time when so many families are stretched to the limit, Democrats cannot afford to leave potential allies on the sidelines. To the American public, Democrats have failed to articulate a real, tangible, and most importantly, achievable vision to win voters’ trust.
Democrats are already putting this into action on the local level, demonstrating our ability not just to push policy, but to build sustainable and unlikely coalitions.
Pennsylvania’s (PA) Governor Josh Shapiro has cut many business licenses and permits from eight weeks at the start of his administration to one day, as well as an executive order that was the linchpin to securing $20 billion in investment from Amazon Web Services – the largest private investment ever in PA – for state-of-the-art data centers across the state. He was also instrumental in landing the U.S Steel – Nippon Steel deal in Pittsburgh, a multi-billion-dollar investment that will undoubtedly lower the costs of raw materials and secure manufacturing jobs in our state.
We also have to do more to encourage entrepreneurship and wealth-building. That means removing red tape where it makes the most sense. Looking across the aisle, Indiana’s Republican governor also issued an executive order to lower hurdles for occupational licenses for industries with low risk to consumer safety earlier this year. For an Indiana license in cosmetology, as an example, it requires at least 1,500 hours of classes, and it costs potential entrepreneurs and workers tens of thousands of dollars. This not only creates barriers to getting a job, but it also stops new businesses from launching and hurts the state’s economy. As I tell my Wharton business school students, acting with a sense of urgency is critical in business.
Our elected leaders must take a different approach to address the economic uncertainty facing American families today. Part of that is doing everything possible to treat large American businesses as partners, not enemies, and to ensure they thrive as reliable, resilient pillars of the American economy.
I don’t believe by any stretch that large corporations are the solution to all our problems, but when America’s largest companies are performing at their best, they help build a society where more people, in more places, can lead better lives. Elected officials – especially my fellow Democrats – would be wise to embrace our economic realities and avoid thinking that we can overregulate to solve every problem.
