Historically, the Democratic Party has cast itself as the "party of the people." But how far this party has shifted to the right was on display this week, as its presidential candidate John Kerry surrounded himself with the modern-day princes of great wealth.

The Kerry campaign on Wednesday released the names of 200 billionaire and multi-millionaire financiers and corporate executives who have endorsed his run for the presidency. The release of the list of super-rich Kerry endorsers was accompanied by an "economic summit" in Davenport, Iowa. Among those coming forward to back Kerry are some of the most ruthless elements at the pinnacle of US financial and industrial capital-some of them life-long Republicans who publicly campaigned for Bush in the 2000 election. A prominent participant at the Iowa summit was Lee Iacocca "responsible for one of the greatest rounds of layoffs and wage cuts in US corporate history -who summed up the thinking in these circles by declaring: "The bottom line is simple: we need a new CEO."

Also on the list was David Bonderman, a founding partner of the buyout firm Texas Pacific Group. The Fort Worth-based financier made his fortune off the bankruptcies of Continental and American West airlines, and is presently involved in a leveraged buyout bid against Enron. He was a prominent backer of the incumbent both in Bush's campaign to become Texas governor and in his first run for the presidency.

Another former Bush supporter at Kerry's summit was Owsley Brown, the head of Brown-Forman, the maker of Jack Daniels whisky. Also on the list was Texas-based Wyndam Hotels CEO Fred Kleisner, who gave strong financial backing to Bush in 2000. Why would such elements turn to Kerry instead of Bush?

Kerry, who sits on one of the largest family fortunes in the country, is no stranger to these circles. The endorsements from Wall Street executives included not a few that can be traced back to services rendered by the Massachusetts senator. According to the book Buying of the President, 2004, by Charles Lewis: "Since 1995, he (Kerry) raised more than $30 million for his various campaigns, most of it from industries such as finance and telecommunications companies which are overseen by the Senate committees he serves on."

The Democrats have tailored their campaign platform to appeal to the American financial oligarchy. Dedicated largely to war and "homeland security", it contains not a hint of significant social reform.

The platform's section on the economy vows that a Kerry administration will confront the challenge of capitalist globalization with a drive to renew "American competitiveness" in world markets. It says a Kerry administration will be committed to "strengthening our workers" ability to compete", and states the Democrats' belief that "our companies can keep and create jobs in America without sacrificing competitiveness."

The thrust of this argument is that American workers must subordinate themselves to the drive to make American capitalism more globally competitive. Under conditions in which the economy is dominated by transnational corporations capable of moving production from continent to continent almost at will, this can only mean submitting to cuts in wages, benefits and working conditions in order to narrow the gap between the conditions of American workers and those who face the most brutal forms of exploitation from Mexico to Eastern Europe to India.

There is doubtless sentiment among some within the financial elite that Bush and his administration have become too discredited among working people to impose further sacrifice and austerity without provoking social unrest.

That a further onslaught on working class living standards is on the agenda is unquestionable. The US economy has grown increasingly unstable and vulnerable to crises. The latest federal budget deficit of $445 billion is the largest in the country's history. The massive US trade deficit is expected to grow by another $600 billion this year alone. The dollar has lost nearly 20 per cent of its value against other foreign currencies since 2002.

Kerry has repeatedly stated that the Pentagon's swollen budget- $416 billion this year-will be untouchable. Every programme already on the books including the "Star Wars" missile defence scheme" will go through. Meanwhile, the Democratic candidate has said he is prepared to keep US troops in Iraq for at least another four years, guaranteeing hundreds of billions of dollars more in military expenditures.

Given this commitment to militarism and the inevitable stonewalling of any attempt at a significant reversal of tax cuts, a Kerry administration would rapidly confront a severe fiscal crisis. It would inevitably jettison its health care proposals and respond with budget-cutting measures that would effectively demolish what remains of the social programmes and benefits implemented from the 1930s to the 1960s.

Just as a Kerry administration is committed to continuing the war in Iraq and the underlying policies of global militarism, in the name of a war on terror, so domestically it would carry forward essentially the same draconian social policies that the Bush administration has prepared in advance.

The embrace of Kerry by significant sections of big business must serve as a warning: no matter which party controls the White House, 2005 will see an escalating attack on jobs, living standards and basic democratic and social rights.-Courtesy World Socialist Website