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The DLC was established in the wake of President Ronald Reagan's 1984 landslide victory, in which he won 49 states, over Democrat Walter Mondale. During the Democratic convention in San Francisco, Mondale had successfully beat back a challenge from Gary Hart, who predicted that unless the Democratic Party adopted a new image it would be decisively defeated. Mondale proved unable to respond effectively to charges from the Republican right and neoconservative Democrats that the Democratic Party was the party of progressives-which Jeane Kirkpatrick variously labeled as the "San Francisco Democrats" and the "blame America first" Democrats-who were out of touch with mainstream America. As Dan Balz and Ronald Brownstein concluded in their book Storming the Gates, "Mondale's landslide defeat exposed as a dead end the vision of regaining the White House by mobilizing an army of the disaffected with a message of unreconstructed liberalism."
Pondering the Mondale defeat, a gathering coalition of Southern Democrats and northern neoliberals expressed concerns that the Democratic Party faced extinction, particularly in the South and West, if the party continued to rely on its New Deal message of government intervention and kept catering to traditional constituencies of labor, minorities, and anti-war progressives. In 1985, Al From, an aide to Rep. Gillis Long (D-LA), took the lead in formulating a new messaging strategy for the party's centrists, neoliberals, and conservatives. Will Marshall, at that time Long's policy analyst and speechwriter, worked closely with From to establish the DLC and then became its first policy director.
In his "Saving the Democratic Party" memo of January 1985, From advocated the formation of a "governing council" that would draft a "blueprint" for reforming the party. According to From, the new leadership should aim to create distance from "the new bosses"-organized labor, feminists, and other progressive constituency groups-that were keeping the party from modernizing. From's memo sparked the formation of the Democratic Leadership Council in early 1985. According to Balz and Brownstein, "Within a few weeks, it counted 75 members, primarily governors and members of Congress, most of them from the Sunbelt, and almost all of them white; liberal critics instantly dubbed the group 'the white male caucus.'"
Although DLC members shared, for the most part, the neoliberal perspective of centrist Democrats such as Gary Hart, Paul Tsongas, and Michael Dukakis, they took a much harsher, conservative stance on social justice and foreign policy issues. Regarding foreign policy, the DLC attempted to resurrect the hardline anticommunism of Sen. Henry "Scoop" Jackson but rejected the New Deal politics that Jackson and other traditional "New Deal liberals" embraced. In the late 1980s, DLC Democrats supported aid to the Contras, applauded Reagan's "Evil Empire" rhetoric, and offered their support to those militarists calling for missile defense and rejecting arms control negotiations. While the neoliberals foresaw an end to the Cold War, the DLC still viewed the Soviet Union as an unmitigated threat.
In a 1986 conference on the legacy of "Great Society" of the Johnson administration, DLC chairman Gov. Charles Robb of Virginia took up the neoconservative critique of liberalism first articulated in the early 1970s by Daniel Patrick Moynihan, Norman Podhoretz, and other neoconservatives. According to Robb, "While racial discrimination has by no means vanished from our society, it's time to shift the primary focus from racism-the traditional enemy without-to self-defeating patterns of behavior-the enemy within." This speech signaled the end of the "New Politics" of the 1960s and 1970s in the Democratic Party and the rise of a new social conservatism in the party. Robb's speech opened room for Democratic Party stalwarts to back away from political agendas that proposed government initiatives to address poverty, discrimination, and crime, and to join the traditional conservatives and neoconservatives in opposing affirmative action, social safety-net programs, and job-creation initiatives. Thus, the New Democrats of the DLC added their voices to the chorus of those calling for stiffer sentences, an end to affirmative action, reduced welfare benefits, and less progressive tax policies.
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