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
The Cures Act and the Limitations of the Budget Control Act
What do you do when one-third of your budget is limited by a spending cap? Shift funding to the part of the budget that is not capped, of course! That is, if you are a Member of Congress. The House Energy and Commerce Committee recently passed the 21st Century Cures Act (H.R. 6) with unanimous…Romina Boccia -
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Entering 2016 Race, Jeb Bush Pledges 19 Million New Jobs, 4% Economic Growth
Jeb Bush didn’t keep his audience in suspense, announcing within four minutes of taking the stage in his adopted home of Miami that he is indeed a candidate for the Republican nomination for president. Bush made a direct appeal to conservatives in his speech at Miami Dade Community College, echoing Ronald Reagan’s emphasis on getting…Ken McIntyre -
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Here’s the Most Critical Amendments to the Military Spending Bill
This week, the Senate is debating the National Defense Authorization Act, which outlines the U.S. Department of Defense budget for fiscal year 2016. The legislation covers a broad scope of U.S. military policies and has been passed for 53 consecutive years. This year’s bill currently has over 500 amendments, ranging from military child care, funding…Diana Stancy -
- Opinion
Bachelet’s Labor Reforms Could Reduce Economic Freedom in Chile
Chile has the highest level of economic freedom in Latin America and was the 7th most economically free country in the world according to the 2015 edition of the annual Wall Street Journal/Heritage Foundation Index of Economic Freedom. But, if the Chilean Congress passes President Michelle Bachelet’s proposed changes to Chile’s labor code, that high…James M. Roberts -
- Opinion
Making This Change to Tax System Would Help Businesses, Economy Thrive
Rep. Pat Tiberi, R-Ohio, is poised to reintroduce legislation that would make permanent so-called “bonus depreciation.” This legislation would enable businesses to deduct half their capital expenses when incurred rather than being forced to wait years before they can deduct their costs. This bill, which represents an important step towards tax reform, would reduce the cost…David Burton -
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The Valley of Missed Opportunity: One Town’s Fight for Economic Revival
WINDSOR, N.Y.—Marian’s Pizza Shack sits 10 miles north of the Pennsylvania line, an invisible boundary that separates this small business from economic opportunity. After 23 years in business, owner Marian Szarejko has decided to sell her pizza shack. “There are no jobs here,” Szarejko said. “Business has gone down so much that I am dipping into my…Alex Anderson -
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Can This Controversial Pipeline Boost the Economy and Protect the Environment?
It may seem like one of the smaller, less consequential clashes as environmental fights go, but the battle taking shape over a pipeline that would take natural gas from eastern Pennsylvania to the Trenton, N.J., area is fast becoming a proxy war for larger forces that could threaten the shale revolution on the East Coast…Kevin Mooney -
- Opinion
The 7 Steps the Next President Should Take to Boost Our Economy
Foreign policy should work to advance a constructive agenda—something that’s been largely lacking in the Obama era. Hopefully, the next president will come up with appropriate actions to fill that void. As a cornerstone of that effort, I would suggest a commitment to promoting free trade and more liberal markets worldwide. I’ve written before that…James Carafano -
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Mike Huckabee Hopes to Broaden Appeal With Focus on Foreign Policy, Economics
Mike Huckabee, who announced his candidacy for president this morning in Hope, Ark., tells The Daily Signal this election will be dominated equally by foreign policy and the “economics of the working-class people” in America. Huckabee, the former Arkansas governor, spoke with The Daily Signal during a recent trip to Iowa. He is the sixth…David Brody -
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As Presidential Contender, Ben Carson Vows to Fix Economy Before Entitlement Programs
Now that retired neurosurgeon Ben Carson has officially thrown his hat into the ring as a Republican candidate for president in 2016, he is rolling out his policy proposals. In an interview at his West Palm Beach, Fla., home last November, Carson said entitlement programs don’t need to be touched until the economy is back on the…David Brody -
- Opinion
Lack of Economic Freedom Will Hinder Nepal’s Recovery
Nepal’s economy is almost entirely dependent on the service industry (including tourism) and remittances—49 percent and 28 percent of gross domestic product (GDP), respectively—and will take decades to recover from last month’s earthquake, in part due to the country’s lack of economic freedom. The 7.8-magnitude quake that hit the country’s capital, Kathmandu, early on April…Huma Sattar -
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The Truth About GOP Budgets: They Never Balance
In Washington, the conservative thing to do these days is to champion a balanced budget. Quite recently, in fact, Republicans have congratulated themselves for passing two budgets (one in each house of Congress) that, on their face, will achieve balance within 10 years. However, there is more to this story. When you remove the Enron-style…John Gray -
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The Very Weak Growth in First Quarter Shows How Weak the Economic Recovery Is
In the first quarter of 2015 (January, February and March), the economy exhibited weakness that has become all too common during the Obama era. The Bureau of Economic Analysis reports that the economy grew at just 0.2 percent during that time. At 0.2 percent growth, the economy was dangerously close to not growing at all,…Curtis Dubay -
- Opinion
What the Budget Conference Should Accomplish
This week, House and Senate negotiators are expected to pass their budget plan. After the House and Senate passed their respective budget blueprints in March, Congress is now debating the final details for its fiscal year 2016 concurrent budget resolution. The House and Senate budgets made progress in several areas, and fell short in others….Paul Runko -
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APEE Conference Highlights How Individual Decisions Shape the Economy
Professors, policy experts, and students of economics, politics, and philosophy gathered at the 40th annual conference of the Association of Private Enterprise Education (APEE) to exchange ideas about how individual decisions are made, both in the economy and in the government that regulates it. In small sessions, researchers received feedback to incorporate into their work….Salim Furth -
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Why the Death Tax Is All Economic Pain, No Gain
The House voted to repeal the death tax on Thursday. There are lots of persuasive reasons to kill this odious tax. The money in a person’s estate has already been taxed over the lifetime that it was earned. The tax breaks up family-owned businesses. It reduces capital investment and lifetime savings. It encourages people with…Stephen Moore -
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What You Need to Know About the Budget in 30 Seconds
The deadline for Congress to finish work on the federal budget is April 15, but will lawmakers manage to hammer out a deal in time? Heritage Foundation expert Romina Boccia, the Grover M. Hermann research fellow in federal budgetary affairs, explains what you need to know about the budget.Jamie Jackson -
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How Our High Corporate Tax Rate Hurts Our Economy
COMBINED CORPORATE TAX RATES (2014) Source: Organization for Economic Co-operation and Development (OECD). The U.S. corporate tax rate is the highest in the developed world—by a long shot. At 39.1 percent (35 percent federal rate plus the average of state rates), it remains substantially higher than the Organization for Economic Co-operation and Development average…Alex Rendon -
- Opinion
Budget Conference: A Chance for Congress to Stop Monkeying Around with Spending Gimmicks
When we hear the word “chimp,” most of us think of that fury primate at the zoo or the subjects of a Jane Goodall documentary. In Washington, CHIMPs are not animals, but a notorious budget gimmick. This budget gimmick, short for Changes in Mandatory Programs, has been used to avoid budget restraints by increasing discretionary…John Gray -
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What Paul Krugman Got Wrong About Ireland’s Economy
New York Times columnist Paul Krugman once commented derisively on Ireland’s ongoing economic recovery: “It seems obvious to me that Ireland keeps being proclaimed a success because it’s supposed to be a success: they did the austerity thing forcefully, with a minimum of complaints, so there must be a pot of gold at the end…Anthony B. Kim