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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- News
Free Market Group Calls on California, 4 Other States to Suspend Government Union Dues
If elected officials were to suspend the deduction of union dues from the paychecks of public-sector employees for three months, they could pump tens of millions of dollars back into the wallets of workers who are compelled to stay home, according to a free market think tank’s analysis of government records. The savings would be…Kevin Mooney -
- Opinion
Lawmakers Need to Reform Postal Service, Not Provide Massive Bailout
Democrats and U.S. Postal Service officials are seeking a $75 billion bailout from taxpayers. While they seek to blame the COVID-19 pandemic, the facts are plain. Unsustainable wage and benefit costs, along with unaffordable and inefficient service requirements in light of reduced demand—not the new coronavirus—are the real reasons for the Postal Service’s financial troubles….Romina Boccia -
- Opinion
Sending More Money to States Could Make Their Budget Problems Worse
The National Governors Association recently asked Congress for a bailout of $500 billion in addition to the more than $200 billion included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The money sought by the governors would be “unrestricted,” meaning its use need not be tied directly to COVID-19, the disease caused by…Adam Michel -
- Opinion
With Jobless Claims Soaring, Don’t Hold Aid for Small Businesses Hostage
For a third week in a row, Americans have experienced never-before-seen levels of initial unemployment insurance claims as businesses continue to lay off workers amid COVID-19 closures and slowdowns. Last week, an additional 6.6 million individuals filed for unemployment compensation, following a revised 6.9 million for the week that ended March 28, and 3.3 million…Rachel Greszler -
- Opinion
Why Economic Freedom Matters More Than Ever: In 3 Charts
In her recent column, Heritage Foundation President Kay C. James offered a timely message on why economic freedom matters more than ever. As she emphasized: The debate in the United States over whether to move away from free markets and toward socialism may change dramatically as the latest coronavirus spreads throughout the world. That’s because…Anthony B. Kim -
- Opinion
Prospects for More Economic Freedom Rise With New Slovak Government
Ranked 60th in the world (out of 180 countries), Slovakia’s economic freedom score increased slightly in The Heritage Foundation’s 2020 edition of the Index of Economic Freedom. But the country’s economy remains stalled in the index’s “Moderately Free” category, where it has been for a decade. After it gained independence from the former Czechoslovakia in…James M. Roberts -
- Opinion
Tariffs on Imported Oil Aren’t the Cure for the Industry’s Woes
Saudi Arabia and Russia are engaged in a price war—both increasing oil supplies at a time when world demand is precipitously dropping. To help U.S. producers, President Donald Trump has threatened to impose tariffs on imported crude oil in response. Talks between Russia and Saudi Arabia are now scheduled for Thursday, and reports indicate the…Nicolas Loris -
- Opinion
Advancing Economic Freedom: Key to Africa’s Future
During his first trip to Africa as secretary of state earlier this year, Mike Pompeo highlighted the importance of economic freedom. In his speech entitled “Liberating Africa’s Entrepreneurs,” Pompeo said: We want basic security for our families. We want opportunity and reward for the hard work that we invest in. And we want the freedom…Anthony B. Kim -
- News
March Jobs Report: 701,000 Jobs Lost, Unemployment Jumps to 4.4%
The U.S. economy lost 701,000 jobs in March, while the unemployment rate rose to 4.4%, according to Department of Labor data released Friday. Total nonfarm payroll employment fell by 701,000 in March, according to the Bureau of Labor Statistics report, reflecting the “effects of the coronavirus (COVID-19) and efforts to contain it.” March’s unemployment rate…Mary Margaret Olohan -
- Opinion
As Unemployment Nears 10%, Here’s How Congress Can Soften the Blow
Unemployment claims spiked by 6.6 million last week, meaning more Americans became unemployed during one week than the total already unemployed before COVID-19 hit the U.S. This marks a 3,000% increase compared to the levels of February’s weekly initial claims of unemployment, and it means the unemployment rate likely is around 9.7%—approaching three times the…Rachel Greszler -
- Opinion
Unemployment Claims Just Spiked 1,000%. How the Left’s Approach Will Make It Worse.
Unemployment claims spiked more than 1,000% last week, with initial claims rising from 282,000 to 3.3 million as businesses laid off workers during the coronavirus pandemic. This marks the highest level of seasonally adjusted initial unemployment claims since the series of reports began over 50 years ago. Labor Secretary Eugene Scalia noted: “This large increase…Rachel Greszler -
- News
Trump Picks Acting Budget Chief Russ Vought as OMB Director
President Donald Trump will nominate his acting budget director, Russ Vought, to serve as permanent director of the Office of Management and Budget. Trump announced Wednesday that he intends to nominate Vought, who was a fiscal conservative long before joining the administration. The move comes in the midst of the coronavirus pandemic and skyrocketing levels…Fred Lucas -
- Opinion
New Index Finds Rising Tide of Economic Freedom
Governments around the world are responding to the coronavirus epidemic with a variety of measures that have the potential to curtail economic activity. It’s vital that such actions be temporary and of as short a duration as possible. Government restrictions and regulations have a tendency to outlast—sometimes for decades—the crises they were implemented to address….Terry Miller -
- Opinion
Government Collaboration ‘Unparalleled,’ New Senator Says of Coronavirus Fight
Sen. Kelly Loeffler is the first woman from Georgia ever to vote in the U.S. Senate. Loeffler, who took the oath of office Jan. 6, was appointed to fill the vacancy caused by the resignation of fellow Republican Johnny Isakson. She joins The Daily Signal Podcast to talk about transitioning from the private sector, what…Rachel del Guidice -
- News
Budget Chief Prescribes Less Government Spending as Key to Draining Swamp
Fiscal responsibility is key to draining the swamp, the White House budget chief said Saturday in remarks to an annual gathering of conservative activists outside Washington. “We cannot permanently drain the swamp if we don’t reduce spending in agencies that are regulating the American people, that are filling the offices across the country, the accounts,…Fred Lucas -
- Opinion
Strengthening America’s Economic Engagement With Africa
America’s first trade deal with a sub-Saharan African country is in the works, and the results could be significant. Earlier this month, President Donald Trump and Kenyan President Uhuru Kenyatta announced they would pursue a free trade agreement between the two countries. With about $1 billion in trade with the U.S. annually, Kenya is East…Anthony B. Kim -
- News
Trump’s Budget Weighs In at $4.8 Trillion, Projects Deficits Until 2035
The Trump administration on Monday presented a $4.8 trillion spending proposal for fiscal 2021 to Congress that would balance the federal budget in 15 years, cut foreign aid, and boost the nuclear arsenal. President Donald Trump’s spending plan also asks Congress to increase spending for border security, infrastructure, and NASA. “The plan offered today proposes…Fred Lucas -
- Opinion
Economy Adds 225,000 Jobs as Nation Continues to Flourish
The U.S. economy added an impressive 225,000 jobs in January as low unemployment rates continued for all Americans. The new jobs report shatters the experts’ predictions and continues to make the case that, because of good economic policy, America is flourishing. This report shows that since President Donald Trump was elected in November 2016, employment…Timothy Doescher -
- Opinion
An Economics Reality Check
I have been teaching economics since 1967—40 years of it at George Mason University in Fairfax, Virginia. During that interval, economic reality has not changed. Just as Galileo’s law about the independent influence of gravity on falling objects has not changed, neither have the fundamental principles of economics. Economics is fun and simple. It’s made…Walter E. Williams -
- News
Amid Impeachment Trial, Trump Signs Major Trade Deal With Canada, Mexico
President Donald Trump has signed the U.S.-Mexico-Canada Agreement, the trade deal replacing the Clinton-era North American Free Trade Agreement, keeping a key campaign promise on trade that strayed somewhat from Republican tradition. “This is something we really put our heart into,” Trump said at the bill-signing ceremony Wednesday on the South Lawn outside the White…Fred Lucas