It is probably best for me to just leave this be because I think the shades of our political disagreement are so slight that they are not really worth rehashing, but I also don't really have anything better to do at the moment.
I actually listened to Obama's entire one hour speech last night that he gave at the University of Illinois. Obviously, there is something inherently endearing about both this thoughtfulness and his enduring liberal optimism. More importantly, I actually share a lot of his worries about the erosion of political norms and institutions that have been occurring for the last several years. People are far too flippant about this type of shit, really.
A leftist criticism of bourgeois liberalism is that it has failed, even in its Golden Ages (la belle epoque in Europe that preceded WWI and, more recently, the postwar decades in the United States being two examples), to adequately meet the most basic material needs of its working population. The social democratic consensus that arose throughout almost every major developed country in the twentieth century is a recognition of this basic problem and a temporary, but effective, solution.
There is a really really great article in Dissent that explores the historical relationship between American socialist activists and New Deal liberalism that is worth reading.
But look from another angle, and the picture appears different—and perhaps more useful in thinking through our own political moment. The New Deal was not “socialist.” But to end the story there is to miss the role of socialists in crafting the intellectual world within which the New Deal unfolded. Look not at what socialism was, but at what socialists did, and one sees that the New Deal’s progressive achievements do bear a significant historical relationship to reform socialism...
To look at the Socialist Party’s platforms in the years leading up to American entry in the First World War is to see a blueprint for the New Deal: reduced working hours and higher wages; abolition of child labor; national programs of old-age and unemployment insurance; more city parks and playgrounds; public housing; free maternity clinics and hospitals; public theater, cultural offerings, and reading-rooms. If Progressive social reform sometimes carried an element of bourgeois paternalism, the upshot was decommodification, so that working people might enjoy not only more security and better working conditions, but also the pleasures of everyday life and leisure...
Yet the New Deal’s frank recognition of the interdependence of society, its acknowledgement that a good society rests on a sense of mutuality, reciprocity, and community spoke, if not fully to the socialists’ vision, at least to their understanding of what was wrong with a market society. Its more imaginative programs did owe a debt to the social-political borrowings American socialists had curated and advocated for. The resurgence of the left in the mid-1930s in the form of direct-action campaigns and labor organizing shaped the context in which it was necessary (and electorally worthwhile) for Roosevelt and the Democrats to enact programs like the Works Progress Administration and the Wagner Act.
Something similar may be happening today. As in the Progressive era, today’s socialists have no monopoly on policy ideas like Medicare for All. But they are on the ascent because their systematic critique of today’s market society allows them to frame visible, easy-to-understand policies that speak in a direct and powerful way to the lived experiences of contemporary American life, particularly for young people: stagnant wages, insecurity, exploitation, precarity, runaway inequality, indebtedness, the soaring cost of essentials like housing and health care.
Today’s liberals may find irksome the appropriation of their own historical legacy in the service of this project. They may worry, reasonably, about the consequences of branding liberal reform as “socialist.” A few might find themselves in Al Smith’s shoes—displaced from the heart of the party as new forces filter in. But the example of the New Deal might serve as a reminder of the value that liberalism can draw from schools of social and political thought that cast a more critical eye on American capitalism and the political practices bound up with it. The result may be a more tempestuous liberal-left coalition, but one with a broader capacity to imagine social problems and solutions. And if that is not enough, they can at least take comfort in another fact: FDR’s reforms won the Democrats a lot of votes.