While I agree with you on the psychoanalytical stuff (he really needs to lay off that sometimes), I do think there is something important here to remember in these two paragraphs (and while I think you could apply that the GOP, I don't think it is anything to the same extent):
More broadly, the political problem of the Democrats is that they’re a party of capital that has to pretend for electoral reasons sometimes that it’s not. All the complaints that liberals have about them—their weakness, tendency to compromise, the constantly lamented lack of a spine—emerge from this central contradiction...
Nothing new of course. But well stated.
The problem with this narrative is it's too liberal-centered. 47% of the country is GOP. When I talk to these people, they're convinced that the Democrats are 'socialists' who want to 'redistribute the wealth' and that's 'un-American'. So it appears that America is not so different from most of the world after all: the party of the left simply cannot win. With those that they would want to think A, think B; whereas with those who would want to think B, think A.
Myself, am a good example. I'm a liberal, and think a big part of the Democrats' problem is that they're too captured by the interests of capital, but alas, I can't say most voters agree with me.
