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The "classic" Democrats named -- Kennedy, LBJ, and Truman -- all had strong defense policies. LBJ made a mess of Vietnam, but his more peace-oriented successors, Humphrey and McGovern, were two of the biggest losers in presidential electoral history, even though running against the slimiest president ever. Does this mean that Democrats need to be war-like to win? I hope not! At the same time, I think Americans tend to viscerally reject the "fringe" element of the peace movement, the element that finds America wrong in every aspect of its foreign policy, that sees only oil and money as the only reasons for war, and that sometimes seems to sympathize with demagogues such as Arafat and Saddam.
So, that's just one dimension. I think it's dangerous to try to read history as what works or not, in terms of a unidimensional scale. There are policy questions on taxation, social net, international trade, health care, science research, civil liberties, etc. Each of these divide into their own areas. There is also a social dimension to this that works independently of politics, eg, Hollywood is Democrat, while direct marketers are Republican. If Clinton's third-way didn't work, that doesn't mean that what people view as "traditionally liberal" is the right answer, even ignoring the fact that each of us will have a different view of "traditionally liberal."
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