From Sanders to Bloomberg... The US Democratic Primary Shifts Leftward

Bloomberg Reveals Anti-Wall Street Presidential Pledges
Plans to Introduce Capital Transaction Tax and Strengthen Financial Regulations
Sudden Shift to Pro-Finance Stance

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] Billionaire presidential candidate Michael Bloomberg, former mayor of New York City, announced a financial policy that imposes a 0.1% tax on capital transactions such as stocks and bonds and strengthens financial consumer protection functions. Given that Bloomberg made his enormous fortune by founding a telecommunications company, his pledge to tighten financial market regulations is unexpected. It is seen as reflecting the main trend of the left-leaning Democratic presidential primary.

According to the Wall Street Journal (WSJ) on the 18th (local time), Bloomberg’s financial policy announced that day centers on ▲strengthening regulations such as the Volcker Rule and the Consumer Financial Protection Bureau ▲introducing a financial transaction tax. The Volcker Rule is a regulation that limits high-risk investments by banks, introduced by the Barack Obama administration shortly after the 2008 financial crisis. It was relaxed after the Donald Trump administration took office. The policy also includes increasing the budget of the Treasury Department’s Office of Financial Research, which is responsible for risk management in the banking sector, and consolidating the government-sponsored mortgage enterprises Fannie Mae and Freddie Mac.

Bloomberg’s policy draws attention because it targets the financial industry where he accumulated his wealth. Bloomberg has a deeper understanding of the financial market than any other candidate, having supplied terminals to investors. It was natural for him to be considered a pro-finance candidate. This is why his policy is regarded as a 'twist.' On the same day, Bloomberg’s camp even made a 'bombshell statement' that he would sell his company if elected.

Local media evaluated Bloomberg’s policy as "almost indistinguishable from the pledges of Senator Bernie Sanders and Senator Elizabeth Warren, who have openly criticized and called for regulations on Wall Street." In a statement that day, Bloomberg criticized, "The financial system is not working in a way that serves most Americans," effectively admitting that his financial policy leans progressive.

Bloomberg’s policy is also notable because it suggests that the Democratic presidential race will proceed with a focus on progressives rather than centrists. With Senator Sanders leading early primaries such as the Iowa caucus and New Hampshire primary, the progressive wave is strong, and Bloomberg’s policy shows he cannot ignore this trend. WSJ assessed, "Bloomberg is distancing himself from Wall Street, his roots, and aims to represent the grassroots base of the Democratic Party, including students and minorities."

National polls released that day on Democratic presidential candidates also indicated that the progressive camp’s strength is spreading like a storm. According to a nationwide poll jointly conducted by NPR Radio, PBS NewsHour, and Marist Poll, Senator Sanders ranked first with 31% support, up 9 percentage points from December last year. Bloomberg ranked second with 19%, a sharp rise of 15 percentage points compared to December. Meanwhile, former Vice President Joe Biden, who was the leading centrist candidate before the primaries began, saw his support drop to 15%, highlighting the shift toward the progressive camp.

As Bloomberg begins to show a progressive stance instead of his former Wall Street base, his confrontation with President Trump, who advocated financial deregulation, is becoming more apparent.

Bloomberg will attend the Nevada Democratic presidential primary debate for the first time on the 19th. Until now, he was unable to participate due to not meeting polling requirements, but his recent rise in national polls has qualified him for the debate ahead of the Nevada caucus. At this event, candidates are expected to focus their scrutiny on Bloomberg’s first appearance. Bloomberg is also expected to emphasize his differences from other centrist candidates while blocking attacks from the progressive camp.