Economic Policy News
The Daily Signal provides economic policy news with reporting, analysis, and commentary on markets, growth, and fiscal responsibility.
-
- Opinion
Economic Liberty and the Constitution
Recently, there has been a renewed interest in the question whether the Constitution protects individual economic activity without undue—some might say any—government regulation or interference. Various scholars have bemoaned the Supreme Court’s disdainful treatment of economic freedoms and its single-minded focus on one or another variation of the concept of ‘privacy’ as a predicate of…Paul J. Larkin -
- Opinion
Want an Economic Boost? Let’s Kill the Death Tax
Death and taxes are two of life’s certainties, but the tax on death itself should certainly be eliminated. A recent analysis by The Heritage Foundation’s Center for Data Analysis found that doing away with the federal death tax would provide a much-needed, long-lasting boost to the nation’s economy. Indeed, it would increase economic growth by…Rachel Greszler -
- Opinion
All About the Money: Why Government Spending and Debt Matter for Millennials
If you’re a millennial who recently returned to your college campus or started your first job, you probably haven’t paid much attention to the trillion-dollar spending measure Congress passed without much fanfare. And why should you have? How does it affect your life? Spending decisions made in Washington can seem abstract and irrelevant for what…Michael Sargent -
- Opinion
Ridiculous: How the Latest Spending Bill Is Just Congress Shirking Its Job (Again)
This week, a rare bipartisan majority in the House approved a $1.1 trillion stopgap spending measure that will keep the government funded through Dec. 11. The temporary measure, called a continuing resolution, likely will pass in the Senate today. Although the CR likely will be heralded as a successful bipartisan effort that avoided a government…Michael Sargent -
- Opinion
Rhetorical Spin vs. Economic Reality
In his campaign-style speech on Labor Day, President Obama proclaimed that “by almost every measure, the American economy and American workers are better off than when I took office.” In stark contrast, many Americans, particularly likely voters in competitive U.S. House and Senate races, remain frustrated and gloomy about the state of the economy. According…Anthony B. Kim -
- Opinion
Japan’s Lousy Economy Is a Warning for U.S.
Japan is flush with national pride this week, thanks to Kei Nishikori, the tennis phenom who knocked off seemingly indestructible Novak Djokovic to reach the U.S. Open finals and become the first Japanese to reach a grand slam final ever. If only Japan's economy could perform half as well. For also this week, Tokyo announced…Stephen Moore -
- Opinion
The Five Most Troubling Things in Congress’ New Spending Bill
Yesterday evening, the House of Representatives released its stopgap spending measure which blindly continues the bloated spending in the January omnibus bill that included special-interest handouts, wasteful and unnecessary energy spending, and transportation boondoggles. Instead of debating and voting on the 12 appropriations bills separately as lawmakers are supposed to do, Congress again will rely…Romina Boccia -
- Opinion
CBO Updated Budget Outlook Shows Economy Headed in Wrong Direction
New figures from the Congressional Budget Office (CBO) confirm the ongoing negative economic impact of Obama-era policies such as the Affordable Care Act, the Dodd–Frank Act, controls on energy production and transport, and Keynesian stimulus spending. In an update to its annual Budget and Economic Outlook yesterday, the CBO projects lower gross domestic product (GDP),…Rachel Greszler -
- News
What Embattled Agency Busted Its Travel Budget for Three Years Running?
A beleaguered federal agency has overspent its travel budget by at least $3 million, House investigators determined. The Export-Import Bank allocated $1.3 million for travel this year, but is projected to spend $2.3 million, according to records obtained by The Hill. Last year, the agency budgeted $1.2 million for travel but spent $2.2 million, and in 2012 it budgeted $1.7…Melissa Quinn -
- Opinion
No, This Report Doesn’t Prove Income Inequality Slows Economic Growth
Monica Potts accuses conservatives of perpetrating a “big, long, 30-year conservative lie.” “It took the worst economic crisis since the Great Depression for many economists, liberal or not, to finally say publicly what many had long argued: Inequality is bad for the economy,” Potts wrote in an article published last week in the Daily Beast….Salim Furth -
- Opinion
Chile: Bachelet Fails First Test of New Term by Raising Taxes
Michelle Bachelet, president of Chile, is reforming the country’s education system and paying for it by raising corporate taxes. Bachelet aims to increase the corporate income tax from 20 percent to 25 percent, which would collect approximately $8.2 billion, or roughly 3 percent of gross domestic product. Bachelet also plans to eliminate the “taxable profits…Ashley Wright -
- News
Split on Border Spending Bill Prompts Republicans to Delay Recess
On their last scheduled day in session before leaving for August recess, House Republican leaders pulled legislation to address the border crisis after conservatives criticized the proposal for failing to address the problem. Wary of leaving town without addressing the border crisis, lawmakers planned to stay in Washington, D.C., Friday to resolve the split among…Josh Siegel -
- Opinion
Budget Process Does Little to Cut Waste and Flawed Spending—Here’s Something That Can
Taxpayer-funded rides for bourbon-swilling journalists and international trips for indie music executives—federal funding for obscure programs like these is one reason why Heritage budget expert Romina Boccia has proposed a new budget commission modeled on the Defense Department’s Base Realignment and Closure Commission (BRAC). Such a commission would be separate from Congress and composed of…Michael Sargent -
- Opinion
Government Spending on Health Care Projected to Rapidly Increase
One of the biggest contributors to the nation’s spending crisis is federal spending on government health care programs, according to the Congressional Budget Office’s Long Term Budget and Economic Outlook projections released this week. And Obamacare only exacerbates that problem. Here are the main takeaways: Health spending is projected to surpass all other government programs….Alyene Senger -
- Opinion
IMF to U.S.: Increase Taxes and Badly Hurt Your Economy
The International Monetary Fund (IMF) recently released preliminary suggestions for ways the U.S. could strengthen the economic recovery and improve the economy’s long-term outlook. U.S. policymakers should ignore the IMF’s recommendations. One of the themes the IMF focuses on is “keeping public debt on a sustained downward path.” There is certainly broad agreement that the…Curtis Dubay -
- Opinion
New CBO Report Projects the 10-Year Deficit at $9.6 Trillion as Spending Grows
Today the Congressional Budget Office (CBO) released its 2014 Long-Term Budget Outlook, projecting U.S. spending, taxes, deficits, and the debt for the next 25 years. The CBO report stressed the nation’s unsustainable public debt path, calling it “a trend that could not be sustained indefinitely.” This report should serve as a wake-up call to President…Romina Boccia -
- Opinion
Why Is Congress Again Using a Budget Process that Will Protect Ineffective Programs?
Last week, Senate Appropriations Chair Barbara A. Mikulski, D-Md., signaled her chamber already has begun to lay the groundwork for an omnibus budget bill in September, CQ Roll Call reports. Instead of debating on their own merits each of the 12 spending bills that fund government agencies and programs, Congress would bundle all of them…Romina Boccia -
- Opinion
Spending $3.3 Million to Uncover the Truth About Benghazi Is Worth It
Reportedly, House Minority Leader Nancy Pelosi’s office leaked the proposed budget of the House Select Committee to Investigate Benghazi to illustrate how extravagant the committee’s request was. Instead, it did the opposite. The Benghazi committee’s budget is quite modest compared to most standing House committees. Moreover, if the Obama administration had cooperated with any of…Helle Dale -
- Opinion
EPA Is Desperately in Need of Budget Cuts. Here’s a Few Places to Start.
Of late, it seems the Environmental Protection Agency has been acting like a misbehaved child—recklessly doing what it wants at the expense of others without any supervision. And just as parents punish children by taking away their allowance, Congress should do the same to the EPA and cut its budget. Cutting the EPA’s budget does…Nicolas Loris -
- Opinion
Memo to Krugman: Unchecked Liberalism Creates Economic Mayhem
Paul Krugman of the New York Times took a shot at economist Arthur Laffer and others who advise governors around the country to cut taxes to boost economic growth and jobs, calling us “charlatans and cranks” (“ Kansas shows enduring power of bad ideas,” July 1 Opinion). Krugman said it went awry in Kansas, where…Stephen Moore