Hot take: if the Democratic Party wants to remain competitive in the future, it should rebrand itself as a moderate, bipartisan party, as opposed to a generally liberal/left party.

A lot of us can agree that the Democratic Party has moved too far to the left (at least as it pertains to economic issues) and this is a reason why the party has lost ground with many voters. But I'll also add that Biden, specifically, failed in this respect. Him running as a "unity president" and "president for all Americans" was promising. But he governed like a liberal and did very few genuinely bipartisan things. So a lot of people saw right through this rhetoric and the GOP was able to successfully argue that the Democrats have moved too far left.

How can democrats be more bipartisan? Simple. Suppose that in 2028, Democrats take control of the presidency, and even the house and senate. But there would be no executive orders, and no bills passed via budget reconciliation, no exceptions. The president would make a pledge to ensure bipartisanship by requiring that all bills are passed via regular order, with 60+ votes. Additionally, all cabinet picks would be nonpartisan where possible, and an even mixture of Democrats and Republicans otherwise.

This would be a winning strategy regardless of the outcome. If at least 10 Republicans cooperate, Democrats get to actually govern, and you wouldn't have things passed that are too far to the left/anti-capitalist/protectionist. If the Republicans defect, then pretty much nothing gets done, and Democrats can blame Republicans for being obstructionist and putting party over country, and it will stick. But in order for Democrats to be able to do this, they need to finally stop pandering to the progressive left (who not only touts policies that do not work, but are a small amount of actual people and largely don't vote), and instead reach out meaningfully to republicans, independents, swing voters, and those who don't participate in politics generally. Keep in mind that a large reason for people being apolitical is that they perceive both parties as being overly partisan who care more about their own agendas than actually reaching solutions.

What will this Democratic party do policy-wise, given these changes? The agenda would be similar to the triangulation that occurred in Bill Clinton's first term. First, stop engaging with culture war and wedge issues altogether, though support support social and reproductive freedoms (although a bit more subtly). Encourage the construction of new housing, by collaborating with the public and private sector, as a means to both build the economy and reduce costs for all Americans. Don't raise taxes on any income group. Pass a balanced budget amendment if possible, and if not, do this via legislation. Stop unnecessary protectionism and "buy American" initiatives and support free trade. Also stop ridiculous inflationary/price-setting measures. Wholeheartedly support Israel and Ukraine. Finally, focus on governance- getting things done, and the way to do that is reaching across the aisle. Show the GOP that acting as flagrantly partisan as possible will be a losing strategy for them.