In today's New York Times, Ross Douthat begins the debate, and, in my judgment, very much points in the right direction.
Here's the nub of the argument:
What the party really needs, much more than a better identity-politics pitch, is an economic message that would appeal across demographic lines — reaching both downscale white voters turned off by Romney’s Bain Capital background and upwardly mobile Latino voters who don’t relate to the current G.O.P. fixation on upper-bracket tax cuts.
As the American Enterprise Institute’s Henry Olsen writes, it should be possible for Republicans to oppose an overweening and intrusive state while still recognizing that “government can give average people a hand up to achieve the American Dream.” It should be possible for the party to reform and streamline government while also addressing middle-class anxieties about wages, health care, education and more.
The good news is that such an agenda already exists, at least in embryonic form. Thanks to four years of intellectual ferment, Republicans seeking policy renewal have a host of thinkers and ideas to draw from: Luigi Zingales and Jim Pethokoukis on crony capitalism, Ramesh Ponnuru and Robert Stein on tax policy, Frederick Hess on education reform,James Capretta on alternatives to Obamacare, and many more.
The bad news is that unlike a pander on immigration, a new economic agenda probably wouldn’t be favorably received by the party’s big donors, who tend to be quite happy with the Republican Party’s current positioning.
But after spending billions of those donors’ dollars with nothing to show for it, perhaps Republicans should seek a different path: one in which they raise a little less money but win a few more votes.
As they say, read the whole thing.