Wisconsin business leaders breathe sigh of relief after socialist candidate defeated in Democratic primary

Wisconsin business owners say they “dodged a bullet” after state Rep. Francesca Hong, a self-described democratic socialist, lost the Democratic gubernatorial nomination, with many warning her tax-and-spend agenda would have hurt the state’s economy.

Francesca Hong’s defeat in the August 2026 Democratic primary capped a race that had unsettled many in Wisconsin’s business community. Hong, who is a member of the Democratic Socialists of America, lost by a razor-thin margin to Milwaukee County Executive David Crowley. Hong’s campaign had drawn national attention for its embrace of progressive priorities and controversial past statements that resurfaced during the primary. Fox News Digital reported that concerns about Hong’s policies and electability became central campaign issues as election day approached.

The business response was swift and pointed. Kurt Bauer, president and CEO of Wisconsin Manufacturers & Commerce (WMC), did not hold back: “My flip answer would be to open up a history book and learn how socialism has failed everywhere it's been tried, and it would fail here in Wisconsin as well. So, from that perspective, we've dodged a bullet in the state of Wisconsin.” Other business owners echoed Bauer’s relief, with Madison International Speedway owner Gregg McKarns warning that talk of higher property taxes was “concerning because we’re on 50 acres. We have a lot of land here, and we need a lot of land to run our business.”

Defeated by less than half a percentage point, Hong conceded the race, eliminating the possibility of a divisive recount and clearing the way for Crowley to take on Republican Rep. Tom Tiffany in November. “I do believe that Wisconsin really dodged a bullet when it came to David Crowley winning over Francesca Hong,” said Dane Leceski, a local business owner and former political consultant. As Just The News noted, Hong’s concession signaled the end of the socialist wing’s hopes of taking the governor’s mansion this cycle.

The result was a setback for the far-left in Wisconsin, even as Hong’s strong showing revealed growing progressive frustration with the party establishment. As AP News observed, Hong’s campaign championed proposals such as free childcare and healthcare, a moratorium on artificial-intelligence data centers, and past support for defunding the police. These positions, paired with controversial remarks, including criticism of Thanksgiving and calls for police abolition, became liabilities as the race tightened. National progressive figures like Bernie Sanders and Alexandria Ocasio-Cortez, who have endorsed similar candidates elsewhere, stayed out of the contest.

Business leaders wary of leftward lurch, skeptical of tax hikes

Wisconsin’s business leaders warned that Hong’s agenda would have meant higher taxes and more red tape for employers already struggling with rising costs. WMC’s winter 2026 survey of 200 business leaders found that 71% reported property-tax increases over the prior year, while just 1% saw any relief. “Overall, Wisconsin employers seem to be lukewarm. Although we see hints of optimism like increased hiring and a relatively good outlook for the U.S. economy, businesses are still frustrated with high healthcare costs and finding capable employees,” Bauer said.

The fear, business advocates argued, was that Hong’s policies would push Wisconsin further down the national rankings for job creation and business climate. Tom Tiffany, the Republican nominee and a former small-business owner, pointed to Wisconsin’s 40th-place ranking in job growth from 2018, 2025 and its position among the bottom 10 states to start a business by some estimates. Tiffany pledged to “lower taxes, cut unnecessary red tape and make Wisconsin a place where employers have every reason to invest and create jobs.”

Some business groups, like SEMA’s Driving Force Action SuperPAC, made their preference clear. “We wanted to make sure that Tom Tiffany was that clear endorsement ahead of the primary because we felt like he was the clear choice to support Wisconsin’s business economy and had real concern if Francesca Hong was elected,” said spokesperson Lauren Wilbor. The group described the automotive aftermarket industry’s $337 billion national impact, a reminder of what’s at stake for manufacturers and small businesses across the state.

Hong’s campaign had tried to backtrack on earlier controversial statements, but the damage was done. As the Washington Examiner reported, Hong admitted some of her resurfaced comments were “bad takes,” but her alignment with the Democratic Socialists of America and her call to “cancel Thanksgiving” left many voters, and nearly all business groups, unconvinced.

Democratic establishment closes ranks, but divisions remain

Moderate Democrat David Crowley stepped in as the party’s nominee after other contenders withdrew or dropped out amid controversy. Crowley’s campaign has emphasized his record as Milwaukee County executive, touting bipartisan budget deals, property tax cuts, and job creation. “Under David Crowley’s leadership, major corporations have brought their business and thousands of jobs to Milwaukee County. As governor, he’ll work with members of both parties to balance the budget and create good-paying, family-supporting jobs, just as he’s done as county executive,” a campaign spokesperson said. Crowley was endorsed by outgoing Democratic governor Tony Evers and major labor unions.

The Crowley campaign has also gone on the offensive against Tiffany, accusing him of supporting tariffs “crushing Wisconsin’s manufacturers and farmers” and failing to pay his own taxes for years. Tiffany fired back, highlighting his two decades as a small-business owner and his commitment to a more competitive tax climate for Wisconsin, arguing, “David Crowley has never run a small business. His record in Milwaukee County is higher property and sales taxes on families and small businesses. Taking that approach statewide would only make Wisconsin less competitive.”

This internal battle between the Democratic Party’s moderate and progressive wings mirrors similar fights across the country, as seen in stories like Democratic leadership struggles in New York and Democrats distancing themselves from radical allies and controversial records. In Wisconsin, business leaders are watching closely to see whether Crowley will govern as a pragmatist or drift left under pressure from activists who nearly delivered the nomination to Hong.

The risk for Democrats is that these internal fractures spill into the general election, weakening party unity and handing Republicans an opening, just as divisions have threatened Democratic power in other battlegrounds. Crowley’s narrow win, as National Review noted, was only possible after other establishment candidates cleared the field, and the party’s base remains restless. Even with some progressive candidates gaining momentum elsewhere, and facing scrutiny as seen with socialist challengers in New York, the Wisconsin primary underlined just how far left-wing ideas have to go before finding mainstream acceptance in the Midwest.

Why the business community isn’t celebrating yet

While business leaders expressed relief at Hong’s defeat, few were celebrating. Bauer made clear that Crowley still posed concerns: “The person who won the primary said himself that he basically has the same policy that she has. So, he might be a little bit better on some of the issues, but he still represents, I think, a concern for the business community on taxes, on healthcare and some of the other major issues that they care about.”

Nearly half of WMC’s surveyed businesses said Trump-era tariffs had a negative impact, while only 12% reported a positive effect. Yet, the overriding theme in business circles remains anxiety over tax hikes, regulatory creep, and the policy uncertainty that comes with a Democratic Party pulled between its moderate and socialist factions. As seen recently with Democrats scrambling to distance themselves from controversial allies, the party’s internal fractures have real-world consequences for employers and workers.

Meanwhile, personal conduct controversies have continued to haunt Democrats in Wisconsin, as highlighted by the Washington Free Beacon’s reporting on another Democratic candidate’s public image clashing with private behavior, fueling further skepticism from voters and business owners alike.

For now, Wisconsin’s business community is bracing for a bruising general election, with employers on edge and political divisions sharpening in this bellwether state. As similar rifts open up in national party politics, whether it’s Fetterman threatening to walk away from Democrats over policy disputes, or Democratic leaders facing challenges from the left, Wisconsin’s primary result is a warning shot: Businesses, taxpayers, and workers want stability and common sense, not radical experiments.

In a state where the margin for error is razor-thin, Wisconsin voters and job creators have sent a clear message: high-tax, ideological politics may play well on the coasts, but in the heartland, common sense, and a healthy skepticism of socialism, still matter.