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
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… -
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… -
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… -
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%… -
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… -
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… -
opinion
Why New Auto Tariffs Won’t Increase Research and Development
In just a few days, the Trump administration could impose new tariffs on automobile and auto parts imports. The administration has erroneously claimed that tariffs are a necessary national security measure, supposedly needed to safeguard the American automobile market from foreign competitors and to create space for U.S. companies to undertake additional research and development…. -
opinion
‘Medicare for All’ Proposes Economy-Crushing Taxes on Middle Class
No other country in the world has been able to provide government-managed health care without soaking middle-class and lower-income taxpayers with high income and payroll taxes. The “Medicare for All” plan revealed by Sen. Elizabeth Warren, D-Mass., shows how hard it is to raise tens of trillions of dollars without leaving typical Americans economically worse… -
news
October Jobs Report: 128,000 Jobs Added, Unemployment at 3.6%
The U.S. economy added 128,000 jobs in October, while the unemployment rate rose to 3.6%, according to Department of Labor data released Friday. Despite a General Motors strike, 128,000 jobs were added in October, according to the Bureau of Labor Statistics report—about 8,000 fewer jobs than were added in September. Economists predicted the General Motors strike would heavily impact… -
opinion
Let’s Not Pay Congress If It Can’t Pass a Budget on Time
The first month of the new federal fiscal year has come and gone with a whimper and not a bang. Congress is hoping to make progress on a package of spending bills, but there’s talk of continuing resolutions and of a government shutdown come Nov. 21. For thousands of federal employees, contractors, and contracts, we’re… -
opinion
The Increasing Weight of Health Care Spending on American Taxpayers
Few factors are more critical to economic growth than health care. And few threaten future economic growth more than health care spending. That conundrum lies behind continued political agitation over health care, both in the U.S. and throughout the highly developed world. Advances in medicine have eradicated diseases, extended life expectancy, reduced infant mortality, and… -
opinion
Sen. Joni Ernst Wants to Cut Absurd Washington Spending
As the national debt grows larger and larger, our lawmakers continue to spend obliviously—and even on frivolous things. Sen. Joni Ernst, R-Iowa, is not happy about how much government agencies are spending on swag, and she recently introduced legislation to end things like the government spending over $600,000 on coloring books. Read a lightly edited transcript… -
opinion
Student Loans Can Be Perilous. Here’s a Better Way to Pay for College.
Student loan debt keeps growing. There is a better solution than the ones politicians offer, which stick the taxpayer or the loan lenders with the whole bill. It’s called an “income share agreement.” Investors give money to a college, and the college then gives a free or partially free education to some students. When those… -
opinion
White House Enters Into Hopeful ‘Phase 1’ of China Trade Deal
President Donald Trump announced on Friday he has reached a tentative trade deal with Chinese negotiators. This deal, labeled “phase one” of possibly two or three phases, is supposed to be finalized and signed next month when Trump and Chinese President Xi Jinping meet in Santiago, Chile. As an immediate part of the deal, the… -
opinion
How to Beat the Student Debt Crisis
The cost of college has gone sky-high, and now Americans are $1.6 trillion in student loan debt. How did we get here? And how do we get out? Sen. Rick Scott, R-Fla., and The Heritage Foundation’s Mary Clare Amselem explain on this week’s episode of Washington Waste Wednesday. -
news
Trump Moves to Increase Transparency in Government Regulations
Kevin Lunny and his family ran Drakes Bay Oyster Company for about 50 years on the Northern California coastline before the federal government shut down the business over regulations he wasn’t aware of. “We produced nearly half of all the sustainable oysters in Northern California,” Lunny said Wednesday at the White House, before President Donald… -
opinion
Short-Term Spending Bill Will Create a Headache for the Military
President Donald Trump and Congress did what they had to do to get out of town for Congress’ two-week recess last Friday, agreeing on a continuing resolution that is a symbol of Congress’ inability to finish work on its primary responsibility: to “pay the debts and provide for the common defense and general welfare of… -
news
The Next Generation: Eugene Scalia Confirmed as Labor Secretary
The Senate confirmed a son of late Supreme Court Justice Antonin Scalia as labor secretary Thursday afternoon. Corporate litigator Eugene Scalia will succeed former Secretary Alex Acosta, who resigned on July 12 amid renewed criticism of a nonprosecution agreement he negotiated with convicted sex offender Jeffrey Epstein. The 53-44 vote followed party lines. Scalia’s service as labor secretary will… -
opinion
Toward a Freer Trade Deal With Canada and Mexico
The United States should be doing all it can to maintain a strong economy while protecting Americans’ wallets and jobs. One significant way to help inoculate the economy from a slowdown—and to make it hum along even faster—is more free trade. Trade issues aren’t just the concern of policy wonks—they’re critical to the American way… -
news
Sen. Joni Ernst Calls Out Use-It-or-Lose-It Government Spending
The fourth-ranking Republican in the Senate called on colleagues Tuesday to pass her legislation to reduce wasteful government spending and rein in agencies’ spending practices. “Government agencies are going on their annual ‘Christmas in September’ use-it-or-lose-it shopping spree,” Sen. Joni Ernst, R-Iowa, said in remarks prepared for delivery on the Senate floor. “If not spent…