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G.O.P. Hopefuls Now Aiming to Woo the Middle Class

WASHINGTON — The last three men to win the Republican nomination have been the prosperous son of a president (George W. Bush), a senator who could not recall how many homes his family owned (John McCain of Arizona; it was seven) and a private equity executive worth an estimated $200 million (Mitt Romney).

The candidates hoping to be the party’s nominee in 2016 are trying to create a very different set of associations. On Sunday, Ben Carson, a retired neurosurgeon, joined the presidential field.

Senator Marco Rubio of Florida praises his parents, a bartender and a Kmart stock clerk, as he urges audiences not to forget “the workers in our hotel kitchens, the landscaping crews in our neighborhoods, the late-night janitorial staff that clean our offices.”

Gov. Scott Walker of Wisconsin, a preacher’s son, posts on Twitter about his ham-and-cheese sandwiches and boasts of his coupon-clipping frugality. His $1 Kohl’s sweater has become a campaign celebrity in its own right.

Senator Rand Paul of Kentucky laments the existence of “two Americas,” borrowing the Rev. Dr. Martin Luther King Jr.’s phrase to describe economically and racially troubled communities like Ferguson, Mo., and Detroit.

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Senator Marco Rubio of Florida praises his parents, a bartender and a Kmart stock clerk. Credit Joe Raedle/Getty Images

“Some say, ‘But Democrats care more about the poor,’ ” Mr. Paul likes to say. “If that’s true, why is black unemployment still twice white unemployment? Why has household income declined by $3,500 over the past six years?”

We are in the midst of the Empathy Primary — the rhetorical battleground shaping the Republican presidential field of 2016.

Harmed by the perception that they favor the wealthy at the expense of middle-of-the-road Americans, the party’s contenders are each trying their hardest to get across what the elder George Bush once inelegantly told recession-battered voters in 1992: “Message: I care.”

Their ability to do so — less bluntly, more sincerely — could prove decisive in an election year when power, privilege and family connections will loom large for both parties.

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Questions of understanding and compassion cost Republicans in the last election. Mr. Romney, who memorably dismissed the “47 percent” of Americans as freeloaders, lost to President Obama by 63 percentage points among voters who cast their ballots for the candidate who “cares about people like me,” according to exit polls.

And a Pew poll from February showed that people still believe Republicans are indifferent to working Americans: 54 percent said the Republican Party does not care about the middle class.

That taint of callousness explains why Senator Ted Cruz of Texas declared last week that Republicans “are and should be the party of the 47 percent” — and why another son of a president, Jeb Bush, has made economic opportunity the centerpiece of his message.

With his pedigree and considerable wealth — since he left the Florida governor’s office almost a decade ago he has earned millions of dollars sitting on corporate boards and advising banks — Mr. Bush probably has the most complicated task making the argument to voters that he understands their concerns.

On a visit last week to Puerto Rico, Mr. Bush sounded every bit the populist, railing against “elites” who have stifled economic growth and innovation. In the kind of economy he envisions leading, he said: “We wouldn’t have the middle being squeezed. People in poverty would have a chance to rise up. And the social strains that exist — because the haves and have-nots is the big debate in our country today — would subside.”

Continue reading the main story
 

Who Is Running for President (and Who’s Not)?

Republicans’ emphasis on poorer and working-class Americans now represents a shift from the party’s longstanding focus on business owners and “job creators” as the drivers of economic opportunity.

This is intentional, Republican operatives said.

In the last presidential election, Republicans rushed to defend business owners against what they saw as hostility by Democrats to successful, wealthy entrepreneurs.

“Part of what you had was a reaction to the Democrats’ dehumanization of business owners: ‘Oh, you think you started your plumbing company? No you didn’t,’ ” said Grover Norquist, the conservative activist and president of Americans for Tax Reform.

But now, Mr. Norquist said, Republicans should move past that. “Focus on the people in the room who know someone who couldn’t get a job, or a promotion, or a raise because taxes are too high or regulations eat up companies’ time,” he said. “The rich guy can take care of himself.”

Democrats argue that the public will ultimately see through such an approach because Republican positions like opposing a minimum-wage increase and giving private banks a larger role in student loans would hurt working Americans.

“If Republican candidates are just repeating the same tired policies, I’m not sure that smiling while saying it is going to be enough,” said Guy Cecil, a Democratic strategist who is joining a “super PAC” working on behalf of Hillary Rodham Clinton.

Republicans have already attacked Mrs. Clinton over the wealth and power she and her husband have accumulated, caricaturing her as an out-of-touch multimillionaire who earns hundreds of thousands of dollars per speech and has not driven a car since 1996.

Mr. Walker hit this theme recently on Fox News, pointing to Mrs. Clinton’s lucrative book deals and her multiple residences. “This is not someone who is connected with everyday Americans,” he said. His own net worth, according to The Milwaukee Journal Sentinel, is less than a half-million dollars; Mr. Walker also owes tens of thousands of dollars on his credit cards.

Continue reading the main story

But showing off a cheap sweater or boasting of a bootstraps family background not only helps draw a contrast with Mrs. Clinton’s latter-day affluence, it is also an implicit argument against Mr. Bush.

Mr. Walker, who featured a 1998 Saturn with more than 100,000 miles on the odometer in a 2010 campaign ad during his first run for governor, likes to talk about flipping burgers at McDonald’s as a young person. His mother, he has said, grew up on a farm with no indoor plumbing until she was in high school.

Mr. Rubio, among the least wealthy members of the Senate, with an estimated net worth of around a half-million dollars, uses his working-class upbringing as evidence of the “exceptionalism” of America, “where even the son of a bartender and a maid can have the same dreams and the same future as those who come from power and privilege.”

Mr. Cruz alludes to his family’s dysfunction — his parents, he says, were heavy drinkers — and recounts his father’s tale of fleeing Cuba with $100 sewn into his underwear.

Gov. Chris Christie of New Jersey notes that his father paid his way through college working nights at an ice cream plant.

But sometimes the attempts at projecting authenticity can seem forced. Mr. Christie recently found himself on the defensive after telling a New Hampshire audience, “I don’t consider myself a wealthy man.” Tax returns showed that he and his wife, a longtime Wall Street executive, earned nearly $700,000 in 2013.

The story of success against the odds is a political classic, even if it is one the Republican Party has not been able to tell for a long time. Ronald Reagan liked to say that while he had not been born on the wrong side of the tracks, he could always hear the whistle. Richard Nixon was fond of reminding voters how he was born in a house his father had built.

“Probably the idea that is most attractive to an average voter, and an idea that both Republicans and Democrats try to craft into their messages, is this idea that you can rise from nothing,” said Charles C. W. Cooke, a writer for National Review.

There is a certain delight Republicans take in turning that message to their advantage now.

“That’s what Obama did with Hillary,” Mr. Cooke said. “He acknowledged it openly: ‘This is ridiculous. Look at me, this one-term senator with dark skin and all of America’s unsolved racial problems, running against the wife of the last Democratic president.”

As Vice Moves More to TV, It Tries to Keep Brash Voice

The live music at the Vice Media party on Friday shook the room. Shane Smith, Vice’s chief executive, was standing near the stage — with a drink in his hand, pants sagging, tattoos showing — watching the rapper-cum-chef Action Bronson make pizzas.

The event was an after-party, a happy-hour bacchanal for the hundreds of guests who had come for Vice’s annual presentation to advertisers and agencies that afternoon, part of the annual frenzy for ad dollars called the Digital Content NewFronts. Mr. Smith had spoken there for all of five minutes before running a slam-bang highlight reel of the company’s shows that had titles like “Weediquette” and “Gaycation.”

In the last year, Vice has secured $500 million in financing and signed deals worth hundreds of millions of dollars with established media companies like HBO that are eager to engage the young viewers Vice attracts. Vice said it was now worth at least $4 billion, with nearly $1 billion in projected revenue for 2015. It is a long way from Vice’s humble start as a free magazine in 1994.

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At the Vice after-party, the rapper Action Bronson, a host of a Vice show, made a pizza. Credit Jesse Dittmar for The New York Times

But even as cash flows freely in Vice’s direction, the company is trying to keep its brash, insurgent image. At the party on Friday, it plied guests with beers and cocktails. Its apparently unrehearsed presentation to advertisers was peppered with expletives. At one point, the director Spike Jonze, a longtime Vice collaborator, asked on stage if Mr. Smith had been drinking.

“My assistant tried to cut me off,” Mr. Smith replied. “I’m on buzz control.”

Now, Vice is on the verge of getting its own cable channel, which would give the company a traditional outlet for its slate of non-news programming. If all goes as planned, A&E Networks, the television group owned by Hearst and Disney, will turn over its History Channel spinoff, H2, to Vice.

The deal’s announcement was expected last week, but not all of A&E’s distribution partners — the cable and satellite TV companies that carry the network’s channels — have signed off on the change, according to a person familiar with the negotiations who spoke on the condition of anonymity because the talks were private.

A cable channel would be a further step in a transformation for Vice, from bad-boy digital upstart to mainstream media company.

Keen for the core audience of young men who come to Vice, media giants like 21st Century Fox, Time Warner and Disney all showed interest in the company last year. Vice ultimately secured $500 million in financing from A&E Networks and Technology Crossover Ventures, a Silicon Valley venture capital firm that has invested in Facebook and Netflix.

Those investments valued Vice at more than $2.5 billion. (In 2013, Fox bought a 5 percent stake for $70 million.)

Then in March, HBO announced that it had signed a multiyear deal to broadcast a daily half-hour Vice newscast. Vice already produces a weekly newsmagazine show, called “Vice,” for the network. That show will extend its run through 2018, with an increase to 35 episodes a year, from 14.

Michael Lombardo, HBO’s president for programming, said when the deal was announced that it was “certainly one of our biggest investments with hours on the air.”

Vice, based in Brooklyn, also recently signed a multiyear $100 million deal with Rogers Communications, a Canadian media conglomerate, to produce original content for TV, smartphone and desktop viewers.

Vice’s finances are private, but according to an internal document reviewed by The New York Times and verified by a person familiar with the company’s financials, the company is on track to make about $915 million in revenue this year.

Photo
 
Vice showed a highlight reel of its TV series at the NewFronts last week in New York. Credit Jesse Dittmar for The New York Times

It brought in $545 million in a strong first quarter, which included portions of the new HBO deal and the Rogers deal, according to the document. More of its revenue now comes from these types of content partnerships, compared with the branded content deals that made up much of its revenue a year ago, the company said.

Mr. Smith said the company was worth at least $4 billion. If the valuation gets much higher, he said he would consider taking the company public.

“I don’t care about money; we have plenty of money,” Mr. Smith, who is Vice’s biggest shareholder, said in an interview after the presentation on Friday. “I care about strategic deals.”

In the United States, Vice Media had 35.2 million unique visitors across its sites in March, according to comScore.

The third season of Vice’s weekly HBO show has averaged 1.8 million viewers per episode, including reruns, through April 12, according to Brad Adgate, the director of research at Horizon Media. (Vice said the show attracted three million weekly viewers when repeat broadcasts, online and on-demand viewings were included.)

For years, Mr. Smith has criticized traditional TV, calling it slow and unable to draw younger viewers. But if all the deals Vice has struck are to work out, Mr. Smith may have to play more by the rules of traditional media. James Murdoch, Rupert Murdoch’s son and a member of Vice’s board, was at the company’s presentation on Friday, as were other top media executives.

“They know they need people like me to help them, but they can’t get out of their own way,” Mr. Smith said in the interview Friday. “My only real frustration is we’re used to being incredibly dynamic, and they’re not incredibly dynamic.”

With its own television channel in the United States, Vice would have something it has long coveted even as traditional media companies are looking beyond TV. Last year, Vice’s deal with Time Warner failed in part because the two companies could not agree on how much control Vice would have over a 24-hour television network.

Vice said it intended to fill its new channel with non-news programming. The company plans to have sports shows, fashion shows, food shows and the “Gaycation” travel show with the actress Ellen Page. It is also in talks with Kanye West about a show.

It remains to be seen whether Vice’s audience will watch a traditional cable channel. Still, Vice has effectively presold all of the ad spots to two of the biggest advertising agencies for the first three years, Mr. Smith said.

In the meantime, Mr. Smith is enjoying Vice’s newfound role as a potential savior of traditional media companies.

“I’m a C.E.O. of a content company,” Mr. Smith said before he caught a flight to Las Vegas for the boxing match on Saturday between Floyd Mayweather Jr. and Manny Pacquiao. “If it stops being fun, then why are you doing it?”

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