MORNING MESSAGE
Government
spending is not out of control. It hasn’t been for years. It’s the negative
effects of not spending what we should that are threatening to spiral out of
control. The budget that is likely to be sent to President Obama by the end of
the week will do virtually nothing to change that. That is the evil genius of
how congressional Republicans have manipulated the budget process to serve their
ends, even with President Obama in the White House. ... At a time when a weak,
uneven economic recovery from the worst economic downtown since the Great
Depression would have called for sustained heavy investment in the rebuilding of
the economy, congressional Republicans have instead straitjacketed spending and
sabotaged government functions.
Spending Deal
Budget
deal bill boosts oil exports, renewable energy. Associated Press:
“Republicans are hailing the likely demise of a 40-year-old ban on crude oil
exports, as well as spending limits imposed on the Environmental Protection
Agency, a longtime GOP target. Democrats are cheering five-year extensions of
tax credits for wind and solar energy producers and renewal of a land and water
conservation fund that protects parks, public lands, historic sites and
battlefields. Energy and environment provisions in the massive year-end spending
and tax bills give both parties reasons to celebrate.”
Conservatives
give Ryan a pass on budget deal they despise. Politico: “The House Freedom
Caucus hates the massive government-funding bill: Spending levels are billions
of dollars higher than what conservatives wanted, and at least two top policy
priorities — language addressing Syrian refugees and so-called sanctity of life
— were cut. But unlike past fiscal battles, when lawmakers took shots at GOP
leaders and tried to tank bills, this time conservatives are largely holding
their fire. Even as they vow to oppose the package, many are still praising
Speaker Paul Ryan’s handling of the $1.1 trillion spending bill and $680 billion
in tax breaks.”
Slate’s
Jim Newell examines the tentative nature of “the Ryan compromise” in the budget
deal: “The agreement [House Speaker Paul] Ryan reached with fellow
congressional negotiators also looks much like one Boehner would have reached:
Each side scores some points, but Republican congressional majorities again will
fail to deliver a high-profile, base-pumping, ideological victory over some
nefarious aspect of the “Obama agenda” on which conservatives had drawn a red
line. Will this land Ryan in the same hot water that eventually cooked Boehner?
He’ll get a pass, for now.”
Fed’s Raising Interest Rates
Fed
raises interest rates, citing ongoing U.S. recovery. Reuters: “The Federal
Reserve hiked interest rates for the first time in nearly a decade on Wednesday,
signaling faith that the U.S. economy had largely overcome the wounds of the
2007–2009 financial crisis. The U.S. central bank’s policy-setting committee
raised the range of its benchmark interest rate by a quarter of a percentage
point to between 0.25 percent and 0.50 percent, ending a lengthy debate about
whether the economy was strong enough to withstand higher borrowing costs.”
Vox’s
Timothy B. Lee says that the Fed’s own data contradicts its case for raising
interest rates: “The basic dilemma facing the Federal Reserve is this: Low
interest rates promote economic growth but create the risk that the economy will
”overheat“ with too many dollars chasing too few actual goods and services —
causing inflation. Today, the Fed announced it was raising rates for the first
time since 2006, signaling that it is starting to worry more about inflation and
less about jobs and growth. The weird thing about this is that the Fed’s own
forecasts show inflation getting lower, not higher.”
Breakfast Sides
Sheldon
Adelson Said to Be Buyer of Las Vegas Review-Journal. NY Times: “The
billionaire casino magnate and Republican donor Sheldon Adelson is behind the
mysterious purchase of The Las Vegas Review-Journal for $140 million, according
to two people familiar with the matter who spoke on condition of anonymity. The
revelation, first reported by Fortune and later reported by the newspaper
itself, solves a riddle that had fascinated those in political and news media
circles since the sale, for a lavish price, was announced last week and attached
only to a newly incorporated company called the News and Media Capital
Group.”
Bernie
Sanders to Nab One of His Biggest Endorsements Yet. NBC NEWS: “Democratic
presidential candidate Bernie Sanders is set to pick up one of his biggest
endorsements yet Thursday from the powerful Communications Workers of America
union, sources told NBC News’ Andrea Mitchell. The group represents about
700,000 workers nationally, making it by far the largest union to back Sanders
yet.”
Progressive
Breakfast is a daily morning email highlighting news stories of interest to
activists. Progressive Breakfast is a project of the Campaign for America's
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