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
Costa Rica Leads Traditional 5 Spanish-Speaking Nations of Central America in Economic Freedom
With a score of 65.8 in The Heritage Foundation’s annual Index of Economic Freedom, Costa Rica is the most economically free country in the traditional five-nation Central American bloc. It is ranked 12th among the 32 countries in the Americas region, and is the 68th freest in the world. It came as no surprise, then,…James M. Roberts -
- Opinion
How Greater Economic Freedom Elevated Colombia
Colombia in late April became the 37th nation to join the Organization for Economic Cooperation and Development, successfully completing an accession process that began in 2013. Although that multilateral organization is far from perfect, as several Heritage Foundation papers have noted, it remains the most significant international organization promoting the values of economic freedom. Colombia’s…James M. Roberts -
- Opinion
Now Would Be a Terrible Time to Raise the Minimum Wage
Imagine that your monthly mortgage payment suddenly increased by 50%. And that it happened now, in the wake of COVID-19-related job and income losses. That’s what some policymakers are now suggesting lawmakers should do by raising minimum wages at the worst possible time. As unemployment is high, many jobs have disappeared, and the lowest-wage industries,…Rachel Greszler -
- Opinion
Why Digital Trade Is a Key Component of Economic Freedom
The ongoing coronavirus pandemic has confirmed the critical value of e-commerce—and more broadly, digital trade. The outbreak has significantly constrained people’s physical contact and movement to an unprecedented degree. Even so, through digital connections within the United States and around the world, the pandemic has exponentially amplified the exchange of information, products, and other services….Gabriella Beaumont-Smith -
- Opinion
Why Economic Freedom Is Ethical, Effective Alternative to Coercive Collectivism
“Under communism, individuals are merely a means to be used toward the achievement of the ends of the collective nation-state. Thus, individuals can be easily sacrificed for the nation-state’s goals.” So said national security adviser Robert O’Brien in a major policy speech June 24 to a group of business executives at the Arizona Commerce Authority,…Anthony B. Kim -
- Opinion
Woke, Broke, or Worthy: How to Pick a College
For a good many years, parents who are trying to steer their sons and daughters to the right college have asked my advice. Lately, the number of such requests has increased, and so has the intensity of the parents’ concern. These parents understandably believe that because I lead a national organization that fights against the…Peter Wood -
- Opinion
How Latvia Has Become a Beacon of Economic Freedom in Northern Europe
Latvian Prime Minister Krisjanis Karins has made a timely case that the U.S. and its allies should foster increased economic freedom as the world reels from the economic impact of COVID-19. At a Heritage Foundation event Tuesday on a transatlantic agenda for economic cooperation, Karins underscored the importance of continuing reforms, enhancing competitiveness, and revitalizing…Anthony B. Kim -
- Opinion
New Jobs Report Suggests Americans Eager to Return to Work After Lockdown
Expert predictions were shattered again, as the Bureau of Labor Statistics reported that the economy added 4.8 million jobs and the unemployment rate fell by 2.2 percentage points to 11.1%. The new jobs report suggests that Americans are eager to return to work, after many were temporarily unemployed due to an effort to contain the…Timothy Doescher -
- Opinion
Trump’s Trade Czar Details Monitoring of Chinese Compliance With Phase One Deal
When U.S. Trade Representative Robert Lighthizer testified before the House Ways and Means and Senate Finance committees last month on the Trump administration’s trade policies, much of the discussion was focused on the progress of the Phase One Economic and Trade Agreement with China. Lighthizer was able to shed some light on how his agency…Riley Walters -
- Opinion
The Inter-American Development Bank’s Next President Should Advance Rule of Law, Free Markets
The Trump administration recently announced its intention to nominate Mauricio J. Claver-Carone for the presidency of the Inter-American Development Bank Group, a Washington-based regional development bank that has a $97 billion loans portfolio across Latin America. Claver-Carone currently serves as the deputy assistant to the president and senior director for Western Hemisphere affairs at the…Anthony B. Kim -
- News
Labor Department Seeks to Protect Retirement Savings From Politics
The Labor Department has proposed a new rule governing the responsibilities of those who manage retirement plans, to prioritize investors over social goals. The department says in a press release that it receives questions periodically on how a 1974 law applies to nonfinancial objectives—such as environment, social, and public policy goals—for investment managers. The law…Fred Lucas -
- Opinion
Time to Revitalize America’s Economic Freedom
U.S. Federal Reserve Chairman Jerome Powell highlighted during a recent Senate Banking Committee hearing that the “best way the Federal Reserve can help reduce racial inequality is to return the U.S. labor market to its pre-coronavirus strength.” Indeed, ensuring a thriving job market by advancing economic freedom is the key fundamental element of reducing poverty,…Anthony B. Kim -
- Opinion
Iceland Reopening With Its Economic Freedom Largely Intact
Iceland, a small Nordic country, has successfully flattened the COVID-19 curve and is ready to move ahead. Life in the country seems to be almost back to normal. Curfews and social-distancing mandates have been lifted, and gyms, swimming pools, and restaurants are reopened. The country opened its airports to tourism on June 15. There had…Anthony B. Kim -
- Opinion
American Leadership on Economic Freedom Needed Now More Than Ever
In its release of recommendations on how to spur the fastest and most complete rebound from the coronavirus pandemic, The Heritage Foundation’s National Coronavirus Recovery Commission emphasized the importance of economic freedom and the free-market system: In all of history, there has been no better model than that of free markets in lifting people out…Anthony B. Kim -
- Opinion
Advancing Economic Freedom Is Key to Ensuring America’s Economic Rebound
Having recently unveiled its final report, The Heritage Foundation’s National Coronavirus Recovery Commission offered a clear pathway to America’s economic rebound with specific, actionable recommendations for policymakers. Highlighting the interwoven critical linkage between good public health policy and sound economic policy, the commission’s final report underscored the importance of economic freedom to our recovery efforts:…Anthony B. Kim -
- Opinion
What Policymakers Need to Know About ‘Misclassifications’ in Recent Unemployment Reports
The unemployment figures for May have surprised economists, who were expecting a significant increase in the unemployment rate and 7.5 million job losses. Instead, the unemployment rate declined from 14.7% to 13.3%, and 2.5 million new jobs were added. This is particularly important, as policymakers are now considering making changes to or extending unemployment benefits….Rachel Greszler -
- Opinion
What Social Distancing? House Transportation Bill Would Pack Americans on Mass Transit
For months, the news media and health experts have repeatedly told Americans that the main way to stop the spread of COVID-19 is to avoid crowded and enclosed spaces. That guidance led to a nationwide shutdown of churches, schools, businesses, and other places of public gathering, causing the greatest disruption to our way of life…David Ditch -
- Opinion
May Jobs Report Shows Why More Government Isn’t the Answer for Economic Recovery
In a welcome surprise, the U.S. economy added 2.5 million jobs in May, and the unemployment rate fell by more than a full percentage point to 13.3%. Most economists had predicted the opposite, continued job losses, and soaring unemployment amid the ongoing coronavirus pandemic. The economy has halted its free fall. This good news is…Adam Michel -
- Opinion
Implementing US-Mexico-Canada Agreement Vital for Reviving America’s Economic Pulse
Reflecting the current global economic slowdown, the latest statistics show that America’s trade with Canada and Mexico, the two largest trading partners of the U.S., has plummeted by more than 40% since last year. According to the latest U.S. Census Bureau data, when compared with the previous April, U.S. trade with Canada and Mexico dropped by 43% and 46%, respectively. Undoubtedly, the three North American trade…Anthony B. Kim -
- Opinion
Greater Economic Freedom Could Unleash India’s ‘Tiger’ Economy
India’s reported number of coronavirus cases has been surprisingly low, given the country’s huge and highly dense population. Experts think there are a number of factors that could be contributing to the low infection rates, but as a Heritage Foundation colleague summed up concisely: “Unfortunately, we don’t have a solid answer.” When it comes to…Anthony B. Kim