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
5 Takeaways From the Latest Budget Projections
The Congressional Budget Office has released its budget and economic projections for fiscal years 2020-2030. The latest report confirms what the Congressional Budget Office has been telling lawmakers for years: The nation is hurtling toward a spending-driven debt crisis. Without major reforms to mandatory spending programs, it is not a question of if, but when,…Justin Bogie -
- Opinion
We Hear You: Sex Ed, Student Loans, and Government Spending
Editor's note: Here's some of what's on the minds of The Daily Signal's audience, straight out of the ol' inbox. Please don't neglect to write us at [email protected].—Ken McIntyre Dear Daily Signal: As one of the principal organizers of the defeat of Washington state’s “comprehensive sexual health education bill” in 2018, I am writing to…Ken McIntyre -
- Opinion
US-China Trade Deal Is a Welcome First Step
President Donald Trump and Chinese Vice Premier Liu He on Wednesday signed Phase 1 of the U.S.-China Economic and Trade Agreement. The long-awaited deal is the result of two years of tough trade negotiations between Washington and Beijing. Over this period, new taxes have been placed on hundreds of billions of traded goods across the…James Carafano -
- Opinion
What You Need to Know About New US-China Trade Deal
Will the new deal boost the American economy? Is it normal for a trade deal to demand one party spend a certain amount? Will it curb China’s theft of intellectual property from U.S. companies? Riley Walters, a policy analyst at The Heritage Foundation who focuses on Asia’s economy and technology, has answers. Read a lightly…Katrina Trinko -
- Opinion
Andrew Cuomo Is Wrong. The Gig Economy Isn’t Like a Sweatshop at All.
In his State of the State address on Jan. 8, New York Gov. Andrew Cuomo likened 21st-century gig-economy corporations to late 18th- and early 19th-century sweatshops, the latter characterized as such for their poor working conditions, exploitation of workers, and violations of labor laws. By asserting that entirely optional gig and contract-based work “is exploitive,…Rachel Greszler -
- News
145,000 Jobs Added in December, Unemployment at 3.5%
The U.S. economy added 145,000 jobs in December, while the unemployment rate remained at 3.5%, according to Department of Labor data released Friday. In December, 145,000 jobs were added, according to the Bureau of Labor Statistics report—about 121,000 fewer jobs than were added in November. Decembers’ unemployment rate remained steady at 3.5%, matching September’s unemployment rate, the…Mary Margaret Olohan -
- Opinion
Federal Spending Explodes at Nearly $300,000 Per Household Since 2010
Amid the drama surrounding impeachment, both parties came together on one area of shared support: spending enormous amounts of taxpayer dollars and adding to the $23.1 trillion national debt. Congress had little time to properly review fiscal 2020 spending bills, which weighed in at more than 2,000 pages of clunky text. The legislation contained a…David Ditch -
- News
House Votes Overwhelmingly to Pass US-Mexico-Canada Trade Deal
The House of Representatives overwhelmingly passed President Donald Trump's trade deal with Mexico and Canada on Thursday, just one day after it voted to impeach him. The United States-Mexico-Canada Agreement, which sets rules for moving products among the three countries, passed with a vote of 385-41. The Senate will be able to vote to ratify the…Shelby Talcott -
- Opinion
Washington Post Concedes That Government Spending on Education Has Increased, Not Decreased
“The biggest problem plaguing U.S. public schools [is] a lack of resources.” So claims Robert Pianta, dean of the University of Virginia’s Curry School of Education, in an op-ed published last week in The Washington Post. In fact, Pianta asserts, government spending on K-12 education actually has declined since the 1980s. These claims are inaccurate,…Lindsey Burke -
- Opinion
‘An Incredible Economic Boom’: The Effects of the 2017 Tax Cuts
Monica Crowley, Treasury Department assistant secretary of public affairs, joins the podcast to talk about the “incredible economic boom” that followed the tax reform passed in 2017. Read the lightly edited transcript, posted below, or listen on the podcast: Rachel del Guidice: The Daily Signal Podcast is coming to you from the U.S. Treasury Department…Rob Bluey -
- Opinion
What Does ‘The Irishman’ Have to Do With Congress’ Latest Spending Bill?
Director Martin Scorsese’s award-winning new film “The Irishman” contains some important history for lawmakers as they prepare to vote on a spending package that would provide a $6 billion taxpayer bailout to one select union. That union is the United Mine Workers of America. For the first time in history, Congress is poised to use…Rachel Greszler -
- Opinion
How 2 Years of Tax Cuts Have Supported Our Strong Economy
This month marks the two-year anniversary of the Tax Cuts and Jobs Act, the most sweeping update to the U.S. tax code in more than 30 years. The reforms simplified the process of paying taxes, lowered rates on individuals and businesses, and updated the business tax code so that American corporations and the people they…Adam Michel -
- Opinion
The Pros and Cons of 3 Possible Budget Outcomes
Just over a week away from the next deadline for fiscal year 2020 appropriations, Congress still has not passed a single spending bill. If Americans are feeling a strange sense of déjà vu, it is because the current spending uncertainty has played out time and time again. The federal government is already on its second…Justin Bogie -
- News
Unemployment Dips to 3.5% as 266,000 Jobs Added
The U.S. economy added 266,000 jobs in November, while the unemployment rate dropped to 3.5%, according to Department of Labor data released Friday. The 266,000 jobs added in November, according to the Bureau of Labor Statistics report, amounted to about 138,000 more jobs than were added in October. The surge comes after a 40-day General Motors strike,…Mary Margaret Olohan -
- Opinion
Despite All the Spending, Productivity Growth Is Skipping Schools
Washington is abuzz that private-sector productivity growth has been low for the past decade or so, but do federal policymakers really know how to improve productivity in the American economy? If one very large sector of the economy is any indication, the answer is, regrettably, a resounding “no.” Since World War II, educators, lawmakers, and…Benjamin Scafidi -
- News
3 Big Trump-Nadler Scuffles Before the Real Estate Mogul Became President
A rivalry that goes back to the mid-1980s culminates this week as Jerry Nadler presides over the next round of House Democrats’ impeachment hearings targeting Donald Trump. What started as a spat in which a New York state legislator tried to block a New York real estate mogul’s construction of luxury apartments has morphed into a…Fred Lucas -
- Opinion
An Example of How Government Creates Problems
Governments create problems. Then they complain about them. “A public health crisis exists,” says Kentucky’s government, citing a report that found “a shortage of ambulance providers.” Local TV stations report on “people waiting hours for medical transportation.” “Six-year-old Kyler Truesdell fell off his motorcycle,” reported Channel 12 news. “The local hospital told [his mother] he…John Stossel -
- Opinion
Fed Chairman Emphasizes Strong Economy and Labor Market, Cautions Unsustainable Debt and Trade Developments Pose Risks
The labor market is incredibly strong and the economic outlook favorable, yet risks remain. That was Federal Reserve Chairman Jerome Powell’s message to Congress on Nov. 13. Powell highlighted many positive features of the economic outlook, including: The economy is in its 11th year of expansion and the “baseline outlook remains favorable.” Unemployment of 3.6%…Rachel Greszler -
- Opinion
Mexico’s New Tax Law Could Chill Its Economy, Hurt US Trade Relationship
A new tax law approved last month by the political party of Mexican President Andres Manuel Lopez Obrador—which holds absolute control of the Mexican Congress—gives the government the right to seize land and assets without legal due process in certain tax evasion cases. These new fiscal enforcement measures could damage Mexico’s economic freedom as well…James M. Roberts -
- Opinion
3 Reforms Congress Can Build on to Get the Budget Under Control
On Wednesday, the Senate Budget Committee approved its first bipartisan package of budget process reform proposals in nearly 30 years. The proposal is co-sponsored by Chairman Mike Enzi, R.-Wyo., and Sen. Sheldon Whitehouse, D.-R.I. The federal budget is more than $23 trillion in debt, with additional budget deficits projected to exceed $1 trillion annually for…Justin Bogie