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
A Higher Minimum Wage Fails in California
Issues such as job losses and automation have become concerns for the American people as technology transforms our economy. Some have proposed universal basic income and other policies to salve these problems, but they risk sapping the dignity of work and creating a kind of bifurcated warehouse society with huge numbers of people barely skating…Jarrett Stepman -
- Opinion
Parsing the President’s Tweets on Tariffs Amid China Trade Talks
It’s crunch time in U.S.-China negotiations, and President Donald Trump may have just thrown negotiators under the bus. Over the weekend, Trump tweeted that perhaps trade talks with China aren’t going as well as we’ve been led to believe. This prompted domestic and international markets to respond with pessimism. For almost a year now, tariffs…Riley Walters -
- Opinion
Poorest Americans Are Benefiting Most From Strong Economy
It’s hard to escape the good economic news these days. New reports show that in the first quarter of 2019, the U.S. economy grew by 3.2%, outpacing expectations by almost a full percentage point. In the month of April, unemployment fell to a 50-year low of 3.6%. Businesses continue to add hundreds of thousands of…Adam Michel -
- Opinion
New Jobs Report Shows Record Unemployment Lows for Hispanics, Women
It’s time to celebrate: We have the lowest unemployment rate in 49 years, and wages continue to rise—especially for lower-wage workers. On Friday, the Bureau of Labor statistics reported that in April, the economy created a whopping 263,000 jobs, and the U-3 unemployment rate—the one commonly cited—fell from 3.8% to 3.6%. The alternate measure for…Timothy Doescher -
- Opinion
This Labor Department Decision Could Save Uber, Lyft, and Other App-Based Platforms
Internet platforms and their workers are facing a tough question that is unique to our time: Are gig workers, such as Uber drivers and TaskRabbit providers, independent contractors or employees? The answer to that question has far-reaching implications, including potentially the end of gig work altogether. If gig workers are deemed “employees” under law—as some…Romina Boccia -
- Opinion
Advancing Economic Freedom Is Key to Realizing Women’s Global Development and Prosperity Initiative
Highlighting her recent trip to Africa, Ivanka Trump penned a commentary that makes a strong case for the Trump administration’s Women’s Global Development and Prosperity Initiative. “Despite the incredible difficulties they face, women in Africa are already transcending poverty, creating jobs, and pioneering a brighter future,” the first daughter wrote in an op-ed for CNN….Anthony B. Kim -
- Opinion
Across the Globe, ‘Outperformer’ Nations Show Economic Freedom Fuels Wealth and Prosperity
A recent report by the McKinsey Global Institute affirms that the recipe for wealth and prosperity encompasses economic freedom as its main ingredient. As a vital component of human dignity and autonomy, economic freedom is valuable as an end in itself. Just as important, however, is the fact that economic freedom provides a proven pathway…Anthony B. Kim -
- Opinion
Lawmakers Eye a Huge Backdoor Spending Increase
Members of Congress are promoting the concept of changing three programs from the discretionary category (requiring annual appropriations) into mandatory (auto-pilot) spending. Such changes would become a huge backdoor spending increase. Spending limits have come under relentless attack from both parties. In 2013, 2015, and 2018, Congress passed massive spending increases with little to no…David Ditch -
- Opinion
Podcast: 2 House Conservatives Explain Why It’s Time to Focus on Spending, Budget
Today we feature Genevieve Wood’s interview with Rep. Mike Johnson, chairman of the Republican Study Committee, and Rep. Jim Banks. The two Republicans, who represent districts in Louisiana and Indiana, respectively, talk about spending, the debt, and why it’s time to take these issues seriously. We also cover these stories: President Donald Trump says he’s…Katrina Trinko -
- Opinion
National School Lunch Program Has Morphed Into Massive, Wasteful Entitlement Program
The National School Lunch Program has changed dramatically since it began in 1946. What started as a grant program to help poor students and those with special needs has morphed into a massive entitlement offering meals to 30 million students every year—equivalent to nearly 55% of all children enrolled in public and private schools. And…Jonathan Butcher -
- Opinion
House Democrats Pursue a Reckless Spending Deal, Not a Budget
Democrats are trying to put the last nail in the coffin of the Budget Control Act of 2011, one of the few remaining semblances of fiscal restraint left in Washington. This week, the House likely will vote on a plan to raise the law’s discretionary spending caps by at least $357 billion for 2020-2021. As…Justin Bogie -
- Opinion
The US Economy Beat the Experts by Nearly 20,000 Jobs in March
The U.S. economy is strong and growing, according to the latest jobs report. The Bureau of Labor Statistics on Friday released a positive jobs report on March, showing gains of 196,000 jobs, after only 20,000 jobs were created in February. All the while, the U.S. continues to boast an almost record low unemployment rate and…Timothy Doescher -
- Opinion
Economic Freedom Is the Way Out of Extreme Poverty
A recent report by McKinsey Global Institute contains a startling fact. From 1990 through 2013, an estimated 1.1 billion people escaped extreme poverty—defined as subsisting on less than $1.90 per day—in the 71 developing countries covered by the report. Of those individuals, an estimated 1,057,000,000—about 95 percent—lived in just 18 countries. Interestingly, these are the…Patrick Tyrrell -
- News
Government Regulations Are Putting Some Homeowners’ Dreams on Hold
BRYAN, Texas—Born and raised in Houston, Melody Woodard moved an hour and a half away from her hometown to start anew here in Bryan, outside College Station, Texas. But after her husband died, things changed. An animated, outspoken woman, Woodard was determined to make it on her own. But without help from her husband, things…Kelsey Bolar -
- Opinion
Here Are 5 Things the Senate’s 2020 Budget Would Do
The Senate Budget Committee will move one step closer to producing a new budget this week when it meets for a mark-up hearing on its fiscal year 2020 budget resolution. The proposal as it exists now would take steps to avoid another irresponsible budget deal and would eliminate one particularly egregious budget gimmick. Yet the…Justin Bogie -
- Opinion
Budget Cuts Would Stifle US Broadcasting to Post-Soviet Regions
The Trump administration’s budget proposal for the U.S. Agency for Global Media for fiscal 2020 reflects indifference—if not disdain—for the agency whose self-proclaimed mission is to “inform, engage, and connect people around the world in support of freedom and democracy.” The spending blueprint released on March 18 would reduce the budget for the agency, formerly…Helle Dale -
- News
Trump Taps Stephen Moore for Federal Reserve Board
President Donald Trump will name economist Stephen Moore, a visiting fellow at The Heritage Foundation and former Wall Street Journal economics writer, to the Federal Reserve Board to oversee the nation’s monetary policy. “I will be nominating Mr. Moore for the Fed,” Trump told reporters Friday at the Palm Beach International Airport. “You know who…Fred Lucas -
- Opinion
How Trump’s Tariffs Hiked Taxes on Americans by $14.4 Billion in 2018
Each year, the Council of Economic Advisers releases the “Economic Report of the President,” which assesses the state of the U.S. economy and the impact of the current administration’s policies. The 2019 report was published this week, and it contains valuable information on the economic effects of the Trump administration’s approach to trade. According to…Tori K. Smith -
- Opinion
Closing So-Called ‘Carried Interest Loophole’ Would Hurt the Economy
Increasing taxes on investment is always a bad idea, and that’s exactly what a new bill in Congress aims to do. Sen. Tammy Baldwin, D-Wis., and Rep. Bill Pascrell Jr., R-N.J., want to increase taxes on investments that support businesses and jobs all across in America. The Carried Interest Fairness Act of 2019 is simply…Adam Michel -
- Opinion
The Long History of the Economic Costs of Higher Tariffs
What are the economic effects of tariffs? That question has been studied in detail dating back to Adam Smith’s “The Wealth of Nations” in 1776, and a general consensus was long ago agreed to among economists. Tariffs decrease the health, happiness, and fortunes of those engaging in trade by: Steering trade toward inefficient producers. Encouraging…Patrick Tyrrell