Economic Policy News
The Daily Signal provides economic policy news with reporting, analysis, and commentary on markets, growth, and fiscal responsibility.
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- Opinion
What Does ‘The Irishman’ Have to Do With Congress’ Latest Spending Bill?
Director Martin Scorsese’s award-winning new film “The Irishman” contains some important history for lawmakers as they prepare to vote on a spending package that would provide a $6 billion taxpayer bailout to one select union. That union is the United Mine Workers of America. For the first time in history, Congress is poised to use…Rachel Greszler -
- Opinion
How 2 Years of Tax Cuts Have Supported Our Strong Economy
This month marks the two-year anniversary of the Tax Cuts and Jobs Act, the most sweeping update to the U.S. tax code in more than 30 years. The reforms simplified the process of paying taxes, lowered rates on individuals and businesses, and updated the business tax code so that American corporations and the people they…Adam Michel -
- Opinion
The Pros and Cons of 3 Possible Budget Outcomes
Just over a week away from the next deadline for fiscal year 2020 appropriations, Congress still has not passed a single spending bill. If Americans are feeling a strange sense of déjà vu, it is because the current spending uncertainty has played out time and time again. The federal government is already on its second…Justin Bogie -
- Opinion
Despite All the Spending, Productivity Growth Is Skipping Schools
Washington is abuzz that private-sector productivity growth has been low for the past decade or so, but do federal policymakers really know how to improve productivity in the American economy? If one very large sector of the economy is any indication, the answer is, regrettably, a resounding “no.” Since World War II, educators, lawmakers, and…Benjamin Scafidi -
- Opinion
Fed Chairman Emphasizes Strong Economy and Labor Market, Cautions Unsustainable Debt and Trade Developments Pose Risks
The labor market is incredibly strong and the economic outlook favorable, yet risks remain. That was Federal Reserve Chairman Jerome Powell’s message to Congress on Nov. 13. Powell highlighted many positive features of the economic outlook, including: The economy is in its 11th year of expansion and the “baseline outlook remains favorable.” Unemployment of 3.6%…Rachel Greszler -
- Opinion
Mexico’s New Tax Law Could Chill Its Economy, Hurt US Trade Relationship
A new tax law approved last month by the political party of Mexican President Andres Manuel Lopez Obrador—which holds absolute control of the Mexican Congress—gives the government the right to seize land and assets without legal due process in certain tax evasion cases. These new fiscal enforcement measures could damage Mexico’s economic freedom as well…James M. Roberts -
- Opinion
3 Reforms Congress Can Build on to Get the Budget Under Control
On Wednesday, the Senate Budget Committee approved its first bipartisan package of budget process reform proposals in nearly 30 years. The proposal is co-sponsored by Chairman Mike Enzi, R.-Wyo., and Sen. Sheldon Whitehouse, D.-R.I. The federal budget is more than $23 trillion in debt, with additional budget deficits projected to exceed $1 trillion annually for…Justin Bogie -
- Opinion
‘Medicare for All’ Proposes Economy-Crushing Taxes on Middle Class
No other country in the world has been able to provide government-managed health care without soaking middle-class and lower-income taxpayers with high income and payroll taxes. The “Medicare for All” plan revealed by Sen. Elizabeth Warren, D-Mass., shows how hard it is to raise tens of trillions of dollars without leaving typical Americans economically worse…Adam Michel -
- Opinion
Let’s Not Pay Congress If It Can’t Pass a Budget on Time
The first month of the new federal fiscal year has come and gone with a whimper and not a bang. Congress is hoping to make progress on a package of spending bills, but there’s talk of continuing resolutions and of a government shutdown come Nov. 21. For thousands of federal employees, contractors, and contracts, we’re…Charles Lee Barron -
- Opinion
The Increasing Weight of Health Care Spending on American Taxpayers
Few factors are more critical to economic growth than health care. And few threaten future economic growth more than health care spending. That conundrum lies behind continued political agitation over health care, both in the U.S. and throughout the highly developed world. Advances in medicine have eradicated diseases, extended life expectancy, reduced infant mortality, and…Doug Badger -
- Opinion
Sen. Joni Ernst Wants to Cut Absurd Washington Spending
As the national debt grows larger and larger, our lawmakers continue to spend obliviously—and even on frivolous things. Sen. Joni Ernst, R-Iowa, is not happy about how much government agencies are spending on swag, and she recently introduced legislation to end things like the government spending over $600,000 on coloring books. Read a lightly edited transcript…Rachel del Guidice -
- Opinion
Short-Term Spending Bill Will Create a Headache for the Military
President Donald Trump and Congress did what they had to do to get out of town for Congress’ two-week recess last Friday, agreeing on a continuing resolution that is a symbol of Congress’ inability to finish work on its primary responsibility: to “pay the debts and provide for the common defense and general welfare of…Frederico Bartels -
- News
Sen. Joni Ernst Calls Out Use-It-or-Lose-It Government Spending
The fourth-ranking Republican in the Senate called on colleagues Tuesday to pass her legislation to reduce wasteful government spending and rein in agencies’ spending practices. “Government agencies are going on their annual ‘Christmas in September’ use-it-or-lose-it shopping spree,” Sen. Joni Ernst, R-Iowa, said in remarks prepared for delivery on the Senate floor. “If not spent…Rachel del Guidice -
- Opinion
Empowering Women by Advancing Economic Freedom Around the World
The Trump White House has been pushing Ivanka Trump’s brainchild, the Women’s Global Development and Prosperity Initiative, to a greater global audience. The program, which involves the National Security Council, the State Department, and other relevant agencies, focuses on empowering women and seeks to support them in the workplace in developing and Third World countries. How? By helping these women…Anthony B. Kim -
- Opinion
4 Budget Pitfalls Congress Should Avoid in 2020 Appropriations
With less than two weeks remaining before the start of fiscal 2020 on Oct. 1, Congress has yet to pass a single appropriations bill. That’s despite the fact that, back in July, Congress passed a massive deal to increase spending by $324 billion over the next two years. In its first effort to avoid a…Justin Bogie -
- News
Sen. Joni Ernst Aims to Reduce Use-It-or-Lose-It Government Spending
Iowa’s junior senator says she is working to spread the word on legislation to reduce wasteful government spending and rein in agencies’ last-minute spending practices. “We saw this in our own county departments where at the end of the year, that last couple months of the year, they will spend everything they’ve got remaining in…Rachel del Guidice -
- News
EPA Repeals ‘Power Grab’ Water Rule It Says Stifled Innovation, Economic Development
Help is on the way for homeowners and landowners, businesses, developers, and farmers who have been victimized by “regulatory uncertainty” and federal “overreach,” Trump administration officials told business leaders Thursday. EPA Administrator Andrew Wheeler and R.D. James, assistant secretary of the Army for civil works, joined members of Congress and leaders of trade associations to…Kevin Mooney -
- Opinion
The Budget Is at a Crossroads. Which Path Will Congress Take?
Thanks to the latest massive budget deal passed by Congress, our nation’s fiscal situation is deteriorating even more quickly than before. That’s the main takeaway from the Congressional Budget Office’s updated economic projections for fiscal years 2019-2029, released on Wednesday. The latest estimates reiterate that the federal government continues to live beyond its means. The…Justin Bogie -
- Opinion
Each American Is $240,000 in Debt Because of Excessive Government Spending
As Americans, we are greatly indebted not only to the men and women who have fought and died for our country, but also to the thinkers, statesmen, innovators, and ordinary people who gave us our founding principles. This debt is paid back not with money, but with a commitment to the active and vigilant self-government…Benjamin Paris -