By Tim Price, originally published on Next New Deal Click here to receive the Daily Digest via e-mail.
Government is hurting the economy'by spending too little (WaPo)
In light of the report that the economy contracted in the last quarter of 2012 due partly to cutbacks, Ezra Klein notes that one man's big government socialism is another man's premature and destructive fiscal retrenchment. But the first man is utterly delusional.
The Economy Just Shrank, But This Is the Best Negative GDP Report You Will Ever Read (The Atlantic)
Derek Thompson argues that the silver lining for this cloud is that important indicators like personal consumption and investment are still growing at a healthy clip despite the drag from fiscal policy. Imagine what we could do if the policymakers were on our side.
2013 Sequestration Likely to Happen Despite Ominous GDP Report (HuffPo)
Sam Stein, Arthur Delaney, and Sabrina Siddiqui ask whether the negative growth report has shocked Congress out of complacency, but there's still no sign they can cooperate long enough to stop the sequester they created to punish themselves for not cooperating.
Fed Holds Steady on Strategy; Cites 'Pause' in Growth (NYT)
Binyamin Appelbaum writes that the FOMC has announced that the Fed plans to continue the open-ended stimulus program it first introduced in December, particularly since the economic recovery seems to have settled in for a long winter's nap over the holidays.
Paul Krugman vs. Joseph Stiglitz (TNR)
Surveying the recent dispute between the progressive Nobel laureates about whether inequality has hurt the recovery, John Judis agrees with Stiglitz that it's holding back consumer spending. On to the next round of judging for the talent show portion of the competition.
The Hidden Prosperity of the Poor (NYT)
Thomas Edsall reviews the conservative case that America's poor are secretly doing just fine because the basics and even the luxuries are getting cheaper. So don't worry about those 42.6 million people living in poverty; they'll upgrade to Blu-ray one day.
Immigration, yes. Indentured serfdom, no. (Salon)
Michael Lind argues that while most components of the bipartisan immigration reform proposal are reasonable, the last thing we need is a guest worker program that comes as close as it legally can to slavery. America needs to learn how to treat its guests first.
5 Key Tasks for the New Secretary of Labor (In These Times)
Labor expert Kate Bronfenbrenner tells Roger Bybee that an effective replacement for Hilda Solis will have to be outspoken, creative, and ready for a fight. And that's just what it will take for the new Labor Secretary to get some attention within the Obama administration.
Obama's Jobs Council Fail (MoJo)
Erika Eichelberger notes that President Obama's jobs council, led by GE CEO Jeffrey Immelt, is set to dissolve this week, though it sort of dissolved itself by meeting all of four times in total and not at all in the last year. Way to stay on top of that, everyone.
Post-Lehman, the push for global financial protection stalls (WaPo)
Howard Schneider and Danielle Douglas write that five years after the last great meltdown, efforts to reform the financial sector have reached an impasse because a) regulating is hard and b) policymakers are distracted by other problems they're not solving.
Tim Price is Deputy Editor of Next New Deal. Follow him on Twitter @txprice.

The plot thickens ... This is one of those things that seems a little too artsy, on the part of the universe, to really be believed: A Chicago apartment building that Ronald Reagan once lived in, as a very young tot, is slated for demolition. It's going to become a parking lot for the University of Chicago Medical Center, which is ironic because Reagan was pretty into paving things over, himself, and probably would be just fine with it.
Gov. Rick Scott, skinflint It's good to be
A bill co-sponsored by 69 House Republicans would abolish federal taxes other than Social Security and Medicare. Which pretty much means abolishing the federal government, since if the Tax Code Termination Act became law, there would be no funding for basically anything. Introduced by House Judiciary Chair Bob Goodlatte, of Virginia, and predictably co-sponsored by Michele Bachmann and Steve King, among other luminaries:
John Cornyn sees his chance to attack both Barack Obama and the government's ability to function, and he's taking it. Three Republican senators are seizing on the recent appeals court ruling invalidating President Barack Obama's recess appointments to the National Labor Relations Board, pushing a bill that would stop work at the NLRB and the Consumer Financial Protection Bureau until the Senate confirms NLRB members and a director for the CFPB. Which the Senate is unlikely to do as long as it's Obama doing the nominating, so really this is about preventing two agencies that Republicans don't much like from doing their work.
Rep. Kevin Brady, nihilist Here's just what we needed, another wingnut elevated to a position of power in the House of Representatives. The new chair of the influential Health Subcommittee for the Ways and Means Committee, Rep. Kevin Brady (R-TX, of course), is guaranteeing that the fights for Medicare vouchers and killing Obamacare will continue.
Lynch says Markey is an "insulated person" after 38 years in Congress.
The federal government estimates that as much as 40 percent of gun sales nationwide are between private parties. These require no federal background check. Just released from prison after finishing a sentence for second-degree murder? Or for a rape at gun point? Or for assault and battery? No problem. Just show up at a gun show with the cash and walk away with a wheelbarrow full of ammo and firearms.
Enthusiastic crowd, but hard not to notice the rows of empty seats at the back of this Romney rally in Virginia Beach. #2012
Daily Kos's 2012 fundraising totals Whenever Daily Kos considers a candidate endorsement for our fundraising efforts, we ask the campaign to fill out our short questionnaire. It's not intended to be a comprehensive dossier'if we insisted on asking 50 questions, we wouldn't get many responses. Rather, our aim is to focus on a handful of issues of key importance to the Daily Kos community, to help give us a feel for the people we're thinking about endorsing.
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