They should have left-wing social values and profess center-right economics.
That is more liberatarian than Democrat.
Yes, and since the Republicans seem to be comfortable with a turn towards populism, the Democrats should react accordingly.
The Democrats will not blow of Big Labor. The Republicans are only slightly brushing the left side of economic policy with Bush's spending binge. I don't know if that will continue. If it does, well, I don't think I'll vote Republican. I don't like populists.
The Democratic party isn't really that left on economic issues. Anyways, what Republicans are on the ballot in Canada?