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
Congress Should Think Twice Before Creating Another Mandatory Spending Program
The latest development in Congress’s ambition to achieve “regular order” is the push to reauthorize the water resources development programs last authorized in 2014. But one provision in the House’s bill would actually work against Congress’s ambition for order by moving a large portion of spending out of the regular appropriations process. Both the House…Michael Sargent -
- News
Is It Time to Increase Defense Spending? McCain Proposal Sparks Debate
At a time when the U.S. is in combat in Afghanistan, Iraq, and Syria, while facing the constraints of sequestration, Sen. John McCain is setting up a dramatic debate on defense spending as he and his colleagues consider the annual defense policy bill. On Wednesday, citing what he calls a “dangerous mismatch” between worldwide threats,…Josh Siegel -
- Opinion
A Skeptical Look at Regulatory Budgeting
The burden of federal regulation on the U.S. economy has often been compared to a tax. Unlike ordinary taxation, however, these regulatory burdens are not accounted for in the federal budget. Unfortunately, the vision is as unattainable as it is tempting. Some members of Congress would like to create a “regulatory budget” specifically to limit…James Gattuso -
- Opinion
Thanks to GOP, Washington’s Summer Spending Spree Has Started
Washington’s summer spending spree is off to a very bad start for taxpayers. Congress couldn’t agree on a budget deal earlier this spring, but that isn’t stopping them from passing spending bills at historic levels. And President Barack Obama is fully engaged in budget gimmickry as well. The good news is that the majority of…Genevieve Wood -
- Opinion
The Case for a Regulatory Budget
The federal regulatory state is out of control. It is out of control economically, costing Americans between $1 trillion and $2 trillion per year in artificially inflated prices. And it is out of control politically, as federal bureaucrats now write upwards of 95 percent of all new federal “laws” without winning a single vote in Congress or…Sen. Mike Lee -
- News
House Conservatives Mull Budget ‘Trigger’ That Could Reduce Federal Spending
Conservatives are considering a budget compromise that would reduce spending by $30 billion unless the House is able to pass at least 10 appropriations bills. The “trigger” proposal, first reported by Roll Call, is the latest spending suggestion designed to break a stalemate in the ongoing budget battle. A long shot and a bit of…Philip Wegmann -
- News
House Republicans to Move Forward on Spending Without a Budget Number
House Majority Leader Kevin McCarthy, R-Calif., just ended a civil war that has raged inside the chamber’s Republican conference for months. GOP leadership will not bring a budget plan to the floor next week for a vote, McCarthy’s office told Politico Thursday afternoon. And without a budget resolution, the House Appropriations Committee can begin moving…Philip Wegmann -
- News
The Left’s Push to Get Rid of Government Spending Transparency
How transparent is your state government’s budget? According to North Dakota Treasurer Kelly Schmidt, it can vary widely from state to state. In an interview with The Daily Signal, Schmidt explains why no matter where you live, citizens should be aware of a growing movement among liberal lawmakers to make it harder for you to…Genevieve Wood -
- News
How Republicans Lost Control of the Spending Fight in Congress
Republicans arrived in Washington this year promising a return to “regular order” in Congress. It was a hallmark of Paul Ryan’s quest to be House speaker and Mitch McConnell’s way of showing that the Senate could get things done. Gone were the days of omnibus spending bills and continuing resolutions—or the dreaded combination of the…Rob Bluey -
- News
House Freedom Caucus Chairman Vows to Push Conservative Amendments to Spending Bills
The chairman of the House Freedom Caucus said Wednesday that Republicans should be able to put forth “conservative policy riders” to appropriation bills. “If we really are about quote ‘regular order’ then that means the ability to offer amendments and push for those policy changes that we think make sense,” Rep. Jim Jordan, R-Ohio, told…Josh Siegel -
- Opinion
Brazil’s Presidential Woes Reflect Lack of Economic Freedom
The Financial Times reports that on Sunday, April 17, “the lower house of Brazil’s congress is set to vote on the motion to impeach President Dilma Rousseff in a move that her critics hope will spell the end for the former Marxist guerrilla and the markets’ longtime nemesis.” According to the Wall Street Journal, the…James M. Roberts -
- Opinion
Grim Budget Projections Highlight Serious Need for Conservative Budget
The Congressional Budget Office (CBO) recently released its updated budget estimates for 2016 to 2026. As expected, the report reiterates the grim projections reported by Congressional Budget Office in January. The message is clear: Spending, deficits, and debt are rising at an unsustainable rate that is leading the nation down a path to fiscal disaster….Justin Bogie -
- News
House Republicans Float Proposal to Fix Puerto Rico’s Budget Mess
House Republicans released draft legislation Tuesday designed to help Puerto Rico weather a fiscal storm through comprehensive audits of the protectorate’s finances and restructuring of its debts. Released as a “discussion draft” by Natural Resources Chairman Rob Bishop, R-Utah, the bill addresses Puerto Rico’s ballooning $70 billion debt. The bill “will change,” Bishop said in a…Philip Wegmann -
- Opinion
Is This a Dead End for the Republican Budget?
Budgets identify priorities. Whether they are for an individual, a family, a business, or a government, a budget is a choice to spend money on certain things and not on others. Once a budget is done, its usefulness is that it ensures we have enough money for the things we really need and that we…Tommy Binion -
- Opinion
Preventing America’s Looming Fiscal Crisis With a Balanced Budget Amendment
Nearly everyone in America understands what it means—and what is required—to live within a budget. Regardless of zip code or economic status, most people can spend only as much as they earn. One person’s paycheck may be twice the size as his neighbor’s, but neither may continually spend beyond their means. The one glaring exception…Sen. Mike Lee -
- Opinion
Gimmicks Are Preventing Congress From Honestly Balancing the Budget
This week the House Budget Committee presented its budget proposal for fiscal year 2017 to the American people. The proposal spends too much, cuts too little, and is riddled with gimmicks that thwart the goal of honestly balancing the budget. This is not what a conservative budget looks like. This budget’s primary relevance is how much…Romina Boccia -
- News
With Release of Budget Plan, House Conservatives Push For Steeper Cuts
As the House Budget Committee approved a $1.07 trillion budget plan on Wednesday night, a leading conservative group was set to propose its own fiscal blueprint that spends less money, in the hope it would inspire the Republican conference to move in the same direction. The Republican Study Committee’s budget, which will officially be unveiled…Josh Siegel -
- Opinion
Why Ireland’s Economy Grew by 8% in 2015
March 17 is St. Patrick’s Day, when all things Irish get celebrated. Before we make another toast with a pint of smooth Guinness or whatever drinks you prefer, it’s worth taking a look at the state of the Irish economy to see how impressively the Celtic Tiger has made its roaring comeback. According to the…Anthony B. Kim -
- Opinion
House Budget Goes in the Wrong Direction on Defense
The newly released House budget proposal would increase defense spending in future years, but for the 2017 fiscal year it goes in the wrong direction. First, the good: In the 2018 fiscal year and beyond, the budget proposal would increase defense above current levels (although still below the Heritage Blueprint for Balance). Congress must increase…Justin Johnson -
- News
Leadership Releases New Budget as Conservatives Gear Up Opposition to Spending Levels
Conservatives in the House of Representatives remain unsatisfied with the budget blueprint produced by Republican leadership. Now their vocal dissatisfaction places both the future of that document and the entire budget process in question for 2016. Monday night, the House Freedom Caucus, a group of conservative lawmakers, announced its official opposition to any proposal that…Philip Wegmann