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
Venezuela’s Economic Crisis
The effects of 21st-century socialism in Venezuela are horrifying. According to the International Monetary Fund, Venezuela’s economy will shrink by at least 10 percent in the upcoming year. Venezuela is suffering from the fastest inflation rate in the world, with the rate reaching triple digits. Their currency, the bolivar, is practically worthless despite the exchange…Arlecchino Gomez -
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Feeling a Part of the Process, Freedom Caucus Eyes ‘Gut Check’ for Paul Ryan on Spending Bills
After experiencing the first week of Speaker Paul Ryan’s House, conservatives say they feel right at home. A week into Ryan’s tenure, members of the House Freedom Caucus are crediting the speaker for delivering on his promise to open up the legislative process, and delegate authority to rank-and-file members. And though the outcomes of the…Josh Siegel -
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Conservatives Vow to ‘Not Back Down’ in Spending Fight
Looking to protest a budget agreement that increases spending by $80 billion over two years, conservatives may be inclined to advance appropriations bills that include controversial riders, such as a provision to defund Planned Parenthood. “Absolutely conservatives should push hard and not back down,” said Sen. James Lankford, R-Okla., in an interview with The Daily…Josh Siegel -
- Opinion
The Budget Process ‘Stinks,’ So Let’s Fix It
It can’t be overstated: Our current fiscal track is unsustainable and our ways of repairing it are inadequate. Or in the words of new House Speaker Paul Ryan, R-Wis., “the process stinks.” The Senate Budget Committee held a hearing this week on reforming the budget process and exploring ways to avoid the looming financial crisis….Ben Mordini -
- Opinion
More Spending Adds Up to Underwhelming Math and Reading Scores
New results are in from the test known as the “report card” for the nation’s schools, and they’re not good. The U.S. Department of Education just released data from the 2015 National Assessment of Educational Progress, a nationally representative test measuring student achievement in mathematics and reading. The NAEP, administered every other year in math…Lindsey Burke -
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The US Continues to Slash Its Military Budget. Here’s Why That Matters.
The United States is scaling back its military while nations hostile to American interests continue to grow in strength and aggression, according to The Heritage Foundation’s annual Index of U.S. Military Strength, released Wednesday. The index, rolled out nearly a week after President Barack Obama vetoed the nation’s annual defense bill, found that the military…Natalie Johnson -
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This Is the Worst Budget Deal GOP Has Negotiated Since George H.W. Bush Violated No New Taxes Pledge
Halloween is looking especially scary this year. On Monday, Republican leaders in Congress declared an unconditional fiscal surrender to President Barack Obama and the left, negotiating a dangerous budget deal that eliminates all of the checks on Washington’s spend-and-borrow binge by breaking the budget caps, ending the sequester and raising the debt ceiling by over…Stephen Moore -
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Poll: 61% of Americans Oppose Debt Limit Hike or Want It Tied to Spending Cuts
Speaker John Boehner stepped to the podium this morning to proclaim that he listened to the American people when crafting his budget deal with President Barack Obama. 56% of Americans would shut down the government to achieve spending cuts. “Having listened to our members and listened to the American people, we have a budget agreement,” Boehner…Rob Bluey -
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How Conservatives Are Reacting to John Boehner’s Barn-Cleaning Budget Deal
Just days before he leaves Congress, Speaker John Boehner has once again managed to enrage conservatives. This time, it’s a mega-budget deal he struck with President Barack Obama—Boehner’s attempt to “clean the barn” upon his exit. “Based on what I know now, it appears the president got whatever he wanted,” Sen. Jeff Sessions, R-Ala., told…Rob Bluey -
- Opinion
How Marriage, Strong Families Contribute to Economic Growth
Is there a connection between strong families and a thriving economy? A new study, “Strong Families, Prosperous States,” takes a step toward answering the question. “Despite the clear economic gains associated with strong families at the individual level, economists across the ideological spectrum have failed to investigate whether strong families increase economic growth,” co-authors Brad Wilcox,…Rachel Sheffield -
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Jeff Flake Explains Why Republicans Want Entitlement Reform in Debt, Spending Deal
Congress has until November 3 to raise the debt limit so the government can borrow to pay its bills and avoid the risk of defaulting on its obligations. Meanwhile, government funding expires on Dec. 11. Today, multiple media outlets reported that House and Senate leaders are negotiating a two-year budget agreement that would raise the…Josh Siegel -
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Old Budget System Makes Modernizing Nuclear Defense Difficult
The need to modernize the U.S. nuclear arsenal is inevitable, but modernization of Major Force Programs for budget projections needs to come first, said panelists at The Heritage Foundation this month. The panel explained how informed discussion about the future costs of modernizing the nuclear triad is hampered by the disparity between the different…Joshua Gill -
- Opinion
Why Congress Must Work to Balance the Budget
Important budget questions were discussed this week at a widely attended event by the Institute to Reduce Spending that featured Chairman of the House Budget Committee Dr. Tom Price, R-Ga., as well as a panel of experts (I was delighted to be among the panelists). Price explained that the goal of fiscal policy and of…Romina Boccia -
- Opinion
How Congress Can Mess Up the Highway Spending Bill
With the threat of a government shutdown largely averted (at least until December), Congress is turning to address other must-pass measures it has skirted this fiscal year. Chief among them is the authorization for highway and transit spending, which is set to expire at the end of October following its latest $8-billion bailout in July….Michael Sargent -
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Because of Defense Spending Cuts, Navy Won’t Have Aircraft Carrier in Middle East Anymore
Is the world becoming safer or more dangerous? Few people would select the first option. It doesn’t take Russia launching air strikes in Syria (to cite only one recent example) for most to admit that tensions are rising. So why in the world are we cutting defense spending? And not by small amounts. The U.S. military—which is…Ed Feulner -
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What Is the Link Between Culture and Economic Opportunity?
At a panel discussion on Tuesday at The Heritage Foundation, contributors to the 2015 Index of Culture and Opportunity discussed what they characterized as the essential link between culture and economic opportunity. Jennifer Marshall, the vice president of the Institute for Family, Community, and Opportunity, said that opportunity isn’t just limited to economics, but is…Kate Scanlon -
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The Budget Battle: What You Need to Know
Federal funding for most government agencies and departments expires on Sept. 30. Lawmakers have just a few working days left to avert a government shutdown. At the same time, Congress is also facing budget deadlines this winter on the national debt, highway programs, regulations, and taxes. So can lawmakers do? The Heritage Foundation has published…Genevieve Wood -
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The Redistributive State: How Government Shifts Economic Resources from High- to Low-Income Households
This week, the U.S. Census Bureau will release its annual report on income and income inequality. Historically, the official Census figures on inequality are misleading because they fail to account for most government fiscal redistribution. The high taxes paid by affluent households are ignored, and most of the government benefits and services received by lower-income…Robert Rector -
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Conservative Group Won’t Support a Spending Bill That Funds Planned Parenthood
The House Freedom Caucus, a group of conservative lawmakers, has announced that it will oppose any spending bill that grants taxpayer funds to Planned Parenthood. In a statement, members of the group said: Given the appalling revelations surrounding Planned Parenthood, we cannot in good moral conscience vote to send taxpayer money to this organization while…Kate Scanlon -
- Opinion
The Link Between Political and Economic Freedom
More than 50 years ago, Milton Friedman’s seminal work “Capitalism and Freedom” reminded Americans of the founding principles that made us greatest nation on Earth (economic and political freedom, individualism, and the rule of law). America’s greatness lies in its people’s faith in these ideals and the constitution that embodies them. Central to Friedman’s vision—and…Julius Kairey