Economy News
The Daily Signal reports on economy news with analysis and commentary on growth, recession risks, employment, and financial trends.
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opinion
10 Free Market Principles That Could Transform Agriculture
Agriculture policy affects all Americans. From policies that drive up food prices to government control of your dietary decisions, it warrants significant attention. Unfortunately, central planning has been entrenched in agriculture policy for more than 80 years. The 2014 farm bill didn’t change that reality. When it comes to agriculture, many legislators ignore any free-market… -
news
Export-Import Bank Faces Tough Road to Reauthorization After Kevin McCarthy’s Opposition
Today was supposed to be the day supporters of the Export-Import Bank struck back. After weeks of disappointing news and dimming prospects for the bank’s reauthorization, the U.S. Chamber of Commerce and National Association of Manufacturers picked Monday to roll out an “all-hands-on-deck” public-relations campaign in favor of the government agency. The leaders of both… -
news
Sunlight Report: Don’t Underestimate Export-Import Bank’s Corporate Friends
Despite losing a friend in House leadership and now his successor’s avowed lack of interest, the Export-Import Bank — which has been criticized for promoting corporate welfare — remains well-positioned to secure reauthorization this fall. That’s the conclusion of the Sunlight Foundation, which analyzed the lobbying efforts of the bank’s corporate beneficiaries. In fact, it’s… -
news
Incoming House Majority Leader Kevin McCarthy Says Export-Import Bank Should Close
The Export-Import Bank’s path to reauthorization just got more complicated. Kevin McCarthy, the California Republican who will soon become House majority leader, said on “Fox News Sunday” that he opposes renewing the bank’s charter. Watch the part at 22 seconds where McCarthy explains one of the biggest problems with government. -
opinion
The Sport of Cronyism
Jurgen Klinsmann, the coach of the U.S. soccer team, caught flak for saying that it’s “not realistic” to believe that his men can win the World Cup. While a U.S. victory would indeed be a shock, the most unrealistic thing about the World Cup is the wider hopes that are pinned on it. In 1994,… -
news
Starbucks CEO: Minimum Wage Hike ‘Right Thing to Do’ Despite ‘Traumatic Effects’ on Small Business
Starbucks CEO Howard Schultz said he supports an increase to federal minimum wage even though it could have “traumatic effects” on small business owners and employees. In an interview with CNN Money’s Poppy Harlow, Schultz declined to say what he thinks the minimum wage should be, but he said the $15 minimum wage enacted in his… -
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
Laughing All the Way to the Export-Import Bank
This fall, the charter for the Export-Import Bank is set to expire. The Kronies don’t want you to know who or what is truly behind the bank. But here is the truth: Since its creation in 1934, the Ex-Im Bank has become “little more than a fund for corporate welfare.” At least that’s what Barack… -
opinion
IMF Channels Obamanomics on U.S. Minimum Wage
This week the International Monetary Fund’s (IMF) annual U.S. economy review urged an increase in the U.S. minimum wage rate, describing it as “low by both historical and international standards and saying an increase would raise incomes for millions of working poor Americans.” Actually, it’s just the opposite. As Heritage’s James Sherk testified last year,… -
opinion
Make Export–Import Bank Accounting ‘Fair’ to Taxpayers
The Wall Street Journal in recent days has published a variety of opinions on congressional reauthorization of the Export-Import Bank—which doles out subsidies to foreign firms to purchase U.S. products. Most of the arguments—pro and con—merit polite consideration. But others require a response. Such is the case with the June 17 letter to the editor… -
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… -
opinion
For Poorer Workers, the Recession Is Nowhere Near Over
The more you play a sport or instrument, the better you get. It’s the same story with work: with more experience, workers become more productive and earn higher pay. Sadly, during the recession the length of the average workweek shortened. While work hours have since bounced back for many employees, poorer workers haven’t seen their… -
news
Eric Cantor’s Loss Reverberates at Boeing, Biggest Beneficiary of Export-Import Bank Subsidies
Boeing, the biggest beneficiary of the U.S. Export-Import Bank, watched its stock drop by the biggest margin in months following House Majority Leader Eric Cantor’s primary election defeat Tuesday. A federal agency that subsidizes American exports, the Export-Import Bank regularly subsidizes Boeing’s foreign sales. Just last month, Boeing announced the bank would underwrite $10 billion… -
news
Vermont Governor Signs Minimum Wage Hike at Bakery Unaffected by Law
MIDDLESEX, Vt.—Gov. Peter Shumlin yesterday signed a law requiring businesses in Vermont to pay workers a minimum wage of $10.50. The kicker? Shumlin, a Democrat, staged the signing at the Red Hen Baking Co., a local organic business that won’t be affected by the legislation because it has no minimum-wage workers. “[This is a time] in… -
news
Conservatives: Obama’s Approach to Student Loans Hurts Millennials
The job market and student loan debt had lawmakers waxing philosophical at today’s Conversations with Conservatives event on Capitol Hill. “When I graduated from undergrad, I had a degree in Spanish literature and a minor in philosophy. I knew I wasn’t going to get a job,” Rep. Raúl Labrador, R-Idaho, said. In fact, he joked,… -
news
Obama Calls Out ‘Millionaires’ to Pay for Student Loans
Using his pen again in “this year of action,” President Obama today took executive actions to ease the burden of student debt at the expense of “millionaires.” The program, “Pay as You Earn,” expands an existing federal loan option available to undergrad and graduate students. It issues caps on monthly loan payments at 10 percent… -
news
Seattle Mayor Says $15 Minimum Wage Is ‘Model for the Nation’
A week ago, Seattle made history when it bumped its minimum wage to $15 an hour, and yesterday Mayor Ed Murray defended the city’s move, trumpeting it as a “model for the nation.” Murray argued that the minimum wage hike is key to Washington state’s recovery. “If we want to regain our economic strength and… -
news
Consumers Hit With Surcharge to Cover City’s $15 Minimum Wage
In the city of SeaTac, Wash., where the minimum wage is now $15 an hour, one business is charging customers a “living wage” surcharge. An airport parking service, Masterpark, “is charging customers an additional 99 cents per parking day,” reported Northwest Watchdog. Near SeaTac, Seattle also is hiking its minimum wage. On Monday, the city…