Economic Policy News
The Daily Signal provides economic policy news with reporting, analysis, and commentary on markets, growth, and fiscal responsibility.
-
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),… -
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… -
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…. -
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… -
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… -
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… -
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…. -
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… -
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… -
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… -
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… -
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… -
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… -
news
Michele Bachmann’s 4-Point Plan for Restoring Economic Freedom
Rep. Michele Bachmann, R-Minn., used Wednesday’s congressional hearing on the Export-Import Bank to discuss corruption at the agency and how it contributes to the United States’ becoming a less free economy. She offered a four-point plan to get America back on track. It begins 42 seconds in. -
opinion
Here’s a Crazy Idea: What About Reforming Transportation Spending Instead of Hiking Taxes?
Americans know the drill. When Congress faces a gap between its spending wants and available money, it is quick to ask for more money, instead of fixing the spending side of the budget ledger. This time it’s Senate Finance Committee chairman Ron Wyden, D-Ore., who has proposed a rag tag group of revenue provisions, including… -
opinion
You’re Paying for America’s Political Economy
Legendary computer scientist Alan Kay once said “The best way to create the future is to invent it.” It’s an ethos that has animated every great American entrepreneur and driven our nation’s economy since its founding. Will that attitude survive the times we live in? Today, two competing impulses vie for the soul of our… -
opinion
Economic Crisis Survival: Germany Shows That Preparation Is Key
What do countries that weathered the Great Recession better than others have in common? They got in better shape before the crisis struck. Germany is one example. Reunification meant great opportunity for Germany, but it also meant a prolonged period of economic weakness. The fiscal and structural reforms lawmakers made in response continue to pay… -
news
Cutting Federal Spending, One Portrait at a Time
Conservatives are putting the finishing touches on legislation to end government spending on portraits of cabinet secretaries and members of Congress—artwork that regularly costs taxpayers tens of thousands of dollars per sitting. Today, portraits are commissioned when committee chairmen retire or are displaced by their party losing control of their house of Congress. The portraits… -
opinion
The Lousy Weather Isn’t the Reason for Our Disappointing Economy
Despite massive fiscal and monetary stimulus since the financial crisis, the economy continues to disappoint. The big news this past week was that the BEA revised its first quarter GDP estimate downward to reflect a 1% decline – far worse than its previous estimate of 0.1% quarter-to-quarter growth. Why so bad? A popular explanation seems… -
news
ACLU Rejects Amendment to Corral Campaign Spending
Democrats pushing for a constitutional amendment that would give government the authority to regulate political spending by outside groups will do so without one traditional ally at their side. In a letter submitted Tuesday to the Senate Judiciary Committee, the American Civil Liberties Union expressed opposition to the amendment, saying it would “lead directly to…