The Morning Dispatch: Rising Inflation Puts Build Back Better at Risk

Plus: The Summit for Democracy highlights the frightening decline of global democracies.

Happy Monday. Our hearts go out to the dozens who were killed by the tornadoes that touched down this weekend, and the thousands whose communities have been affected. WLKY in Louisville has compiled a list of ways to help those affected by the storms.

Quick Hits: Today’s Top Stories

  • A series of tornadoes touched down in Kentucky, Tennessee, Arkansas, Mississippi, Missouri, and Illinois over the weekend, leaving at least 80 dead, according to officials—and likely more. Declaring it “one of the largest tornado outbreaks in our history,” President Joe Biden approved Kentucky’s emergency declaration on Saturday and said FEMA is on the ground in the affected states. More than 50,000 households in Kentucky remained without power as of Sunday evening.
  • The Supreme Court on Friday allowed Texas’ recently enacted abortion law—S.B. 8, which allows private individuals to bring lawsuits against anyone who helps perform an abortion after six weeks of gestation—to remain in place, arguing abortion providers cannot sue Texas state officials to stop that portion of the law from going into effect because Texas state officials have no role in enforcing it. The Court, however, allowed the lawsuit against state medical licensing board officials—which is limited to whether those officials have any role under the law in pulling abortion provider licenses—to continue.
  • At least 55 people died and more than 100 others were hospitalized when a truck carrying more than 160 Central American migrants to the U.S.-Mexico border tipped over and crashed into a bridge in southern Mexico on Thursday. The United Nations’ International Organization for Migration said Friday that about 650 people have died attempting to cross the U.S.-Mexico border this year, the largest number since 2014.
  • Nicaraguan Foreign Minister Denis Moncada announced Thursday the country is severing diplomatic ties with Taiwan in favor of Beijing, bringing the number of countries that maintain full diplomatic relations with Taiwan down to 14, including the Vatican.
  • President Moon Jae-in said Monday South Korea does not plan to join the United States-led diplomatic boycott of next year’s Winter Olympics in Beijing.
  • The Treasury Department announced Friday it had sanctioned two people—Shohrat Zakir and Erken Tuniyaz—and Chinese firm SenseTime Group for their involvement in the human rights abuses being perpetrated against Uyghur Muslims in China’s Xinjiang province. SenseTime has “developed facial recognition programs that can determine a target’s ethnicity, with a particular focus on identifying ethnic Uyghurs,” the Treasury said.
  • The January 6 Select Committee on Friday issued six additional subpoenas targeting individuals connected to the rallies held in the lead up to the Capitol riot, including Brian Jack, former President Trump’s director of political affairs, and Max Miller, a former special assistant to Trump who is currently running for Congress in Ohio.
  • Chris Wallace, longtime host of “Fox News Sunday,” announced yesterday he is leaving Fox News effective immediately and joining CNN’s upcoming digital streaming service to host a weekday show.

Inflation—and the Congressional Budget Office—Further Imperil Build Back Better

(Photograph by Alex Wong / Staff via Getty Images.)

Treasury Secretary Janet Yellen knew that Friday was going to throw a wrench in the Biden administration’s economic agenda. “The Build Back Better Act is fully paid for this decade,” she wrote in a memorandum sent to U.S. senators—and reported by Politico—on Thursday night. “The Act’s outlays are spread over the decade and will be made on the cusp of a
historically negative fiscal impulse—suggesting it will not be inflationary in the near-term.”

Aimed primarily at Democratic Sens. Joe Manchin and Kyrsten Sinema, the memo was written as a prebuttal to two government reports—the Bureau of Labor Statistics’ (BLS) Consumer Price Index (CPI) and the Congressional Budget Office’s (CBO) second analysis of Build Back Better (BBB)—set to be released Friday and likely to deliver bad news.

They did. According to the BLS, consumer prices in November (as measured by the CPI) were up a whopping 6.8 percent from the year before, and the CBO found that BBB—if its programs were made permanent, rather than allowed to sunset after a few years—would add $3 trillion to the federal deficit between 2022 and 2031.

Global Democracies Regroup

Freedom House, the D.C.-based think tank, published a disconcerting report in March, finding civil liberties and political rights had declined globally for the 15th consecutive year in 2020 as various countries around the world descended into authoritarianism. As 2021 comes to a close, a 16th consecutive year seems likely. The Taliban’s takeover of Afghanistan; recent coups in Sudan, Tunisia, and Burma; and Russian and Chinese aggression targeting internal dissenters and neighboring democracies all portend a backslide in freedom across the globe.

It was against this backdrop that President Biden held the first-ever Summit for Democracy last week, virtually convening more than 100 global leaders to promote transparent governance and human rights.

“This gathering has been on my mind for a long time for a simple reason: In the face of sustained and alarming challenges to democracy, universal human rights, and—all around the world, democracy needs champions,” the president said in his opening remarks. “Democracy doesn’t happen by accident. We have to renew it with each generation. And this is an urgent matter on all our parts, in my view. Because the data we’re seeing is largely pointing in the wrong direction.”

Ahead of the summit, the U.S. Treasury rolled out sanctions targeting human rights abusers in Syria, Uganda, and Iran and additional measures targeting organized crime groups and international criminals in Kosovo and El Salvador. And during the virtual gathering, the U.S. and other participants laid out a series of commitments and initiatives aimed at preserving democracy at home and abroad.

“The president has long recognized that democracy is in trouble. He said it during the campaign, and it’s a key point he’s been making as president, beginning with his inauguration,” Mike Abramowitz, president of Freedom House, told The Dispatch. “The goal of the summit was really to try to rally like-minded countries and the world’s democracies to work harder to counter authoritarian influences.”

China—which, unlike Taiwan, was notably absent from the roster of invitees—accused the U.S. of wielding the language of democracy as a geopolitical weapon. Chinese Foreign Ministry spokesman Wang Wenbin told reporters on Thursday that the conference had “nothing to do with international justice or democracy,” but rather furthered the U.S.’ “own selfish gains and maintaining its hegemony.” Numerous Chinese government officials, journalists, and think tanks parroted similar claims in a media blitz leading up to the summit, defending the Chinese Communist Party’s rule as a “people’s democratic dictatorship.”

Worth Your Time

  • In light of President Biden’s summit last week, The Washington Free Beacon’s Matthew Continetti shared his thoughts on how democracies perish. “What happened in Afghanistan, and what might happen to Ukraine and Taiwan, is a reminder that democracies do not vanish because of a failure to pass a partisan agenda or win an election,” he writes. “They die when the rule of law collapses. And that can happen in two ways. A polity can descend into anarchy. Or an adversarial force can replace a democratic state’s monopoly on violence with its own.”

Presented Without Comment

Toeing the Company Line

  • Georgia Secretary of State Brad Raffensperger joined Sarah and Steve on Friday’s Dispatch Podcast for a conversation about former President Trump’s efforts to overturn the 2020 election, Georgia’s new voting law, and the Republican gubernatorial primary between Gov. Brian Kemp and David Perdue.
  • In last week’s Vital Interests (🔒), Thomas Joscelyn argues the United States government does an “exceptionally poor job” of explaining al-Qaeda to the public.
  • David’s Sunday French Press focuses on what happens when Evangelicalism and the GOP come into conflict. “I now see that when theology and culture collide—or when theology and partisanship collide—a disturbing number of white Evangelicals will choose culture,” he writes. “But they’ll still believe they’re choosing faith, and that profound misunderstanding is contributing to a dynamic that is tearing this nation apart.”

Reporting by Declan Garvey (@declanpgarvey), Andrew Egger (@EggerDC), Charlotte Lawson (@lawsonreports), Audrey Fahlberg (@AudreyFahlberg), Ryan Brown (@RyanP_Brown), Harvest Prude (@HarvestPrude), and Steve Hayes (@stephenfhayes).

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