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
Apple Got Special Relief From Trump’s Tariffs. Not Every Business Is So Lucky.
One of the problems with tariffs—and there are many—is that well-connected firms regularly win concessions that give them special advantages over others. Apple, the tech giant, is a perfect example of that phenomenon. President Donald Trump made an 11th-hour decision to spare the Apple Watch, along with certain other “data-transmission devices,” from the list of…Gabriella Beaumont-Smith -
- Opinion
Higher Defense Spending Gives Us Better Diplomacy, Not Just a Better Military
[R]obust U.S. military power produces positive spillovers in other areas of statecraft. … Put simply, if the United States did not command such impressive military power, it would be far less effective in achieving its economic and diplomatic goals. With these words, in testimony before the House Armed Services Committee on Sept. 26, Hal Brands…Cooper Millhouse -
- Opinion
America Cannot Afford for Congress to Abandon the Budget Caps
When recently asked about the soaring national debt, Senate Majority Leader Mitch McConnell, R-Ky., blamed entitlement spending and Congress’ lack of interest in taking up entitlement reform. He was right, of course. Entitlements are a major driver of our debt, which is projected to reach $1 trillion next year and skyrocket from there. But aside from…Romina Boccia -
- News
Trump’s Plan to Cut Budget by 5% Meets With Skepticism
With the federal budget deficit reaching $779 billion, President Donald Trump is asking Cabinet members to cut spending in their departments by 5 percent next fiscal year. Because such trimming is hardly slashing the total budget, however, some experts question whether that even will make a difference in fiscal 2020, which will begin Oct. 1,…Fred Lucas -
- Opinion
Steel Tariffs Mean No Party for This Maker of Beer Kegs
Pennsylvania-based American Keg, the only U.S. company that makes beer kegs, has been sobered by the results of President Donald Trump’s recent tariffs on imported steel. CEO Paul Czachor, who came to Washington earlier this year to seek tariffs on Chinese keg makers, says on his company website that the steel on which his company…Amanda Snell -
- Opinion
With Free Markets at Work in Mississippi, Magnolia State’s Economy Blooms
History is full of reasons to love free markets. They reward hard work and catalyze innovation, providing technology and comforts previously unimaginable to the ordinary person. A new report by Anthony Kim and one of us (Patrick Tyrrell) of The Heritage Foundation shows just how Mississippi workers benefit from increased economic freedom when trade barriers…Amanda Snell -
- Opinion
This Book Will Bring Economics to Life for You
A widely anticipated textbook, “Universal Economics,” has just been published by Liberty Fund. Its authors are two noted UCLA economists, the late Armen A. Alchian and William R. Allen. Editor Jerry L. Jordan was their student and later became a member of President Ronald Reagan’s Council of Economic Advisers, as well as the president and…Walter E. Williams -
- Opinion
Growing National Debt Threatens the Current Economic Boom
The federal government’s fiscal year 2018 is over. In some ways, it was a banner year: economic growth quickened, average paychecks fattened, and there were more jobs available than there were people looking for work. But there are clouds on the horizon. Washington’s soaring deficit and debt could wipe out the progress being made, hitting…Justin Bogie -
- News
US Unemployment Hits 49-Year Low
The U.S. economy added 134,000 jobs in September, falling under experts’ expectations by 46,000, according to Friday’s jobs numbers from the Bureau of Labor Statistics. The unemployment rate fell 0.2 points to 3.7 percent, matching the lowest rate since 1969. Economists expected the rate to drop slightly to 3.8 percent, according to The Wall Street Journal. August’s jobs numbers were revised upward from…Tim Pearce -
- Opinion
3 Reasons to Celebrate Amazon’s $15 Minimum Wage, and 3 Reasons to Fear a $15 Federal Minimum Wage
Workers at an Amazon fulfillment center in South Carolina erupted in cheers and high fives when the news broke that Amazon is raising its minimum wage to $15 per hour. Those cheers would have ceased, however, had the company then divided workers into two groups—those receiving pay increases and those receiving pink slips. That would…Rachel Greszler -
- News
What You Need to Know About the New Trade Deal
This is a transcript of an interview on the Oct. 2 Daily Signal podcast. Katrina Trinko: So, before we break out the champagne and start a chorus of USMCA, we’re bringing in The Heritage Foundation’s Tori Whiting, who is the Jay Van Andel trade economist, to talk to us about this deal and why it…Katrina Trinko -
- News
The Daily Signal Podcast: A First Look at the USMCA Trade Deal
Is the new United States Mexico Canada Agreement better than the North American Free Trade Agreement? The Heritage Foundation’s Tori Whiting joins us to discuss the new North American trade deal President Donald Trump hawked Monday, and what the next steps are. Plus: Kanye West tells the truth about the left on “Saturday Night Live.”…Katrina Trinko -
- Opinion
Congress Sees Hundreds of Millions in New Spending as an Afterthought
For most Americans, $351 million is serious money. The median worker earns $45,708 per year, which means it would take 7,679 average earners to reach $351 million. But for Congress, $351 million is an afterthought. This is the amount that Congress has voted to spend on Pell Grants in addition to the budget-busting deal agreed…David Ditch -
- News
Highest Minimum Wage in the US Will Hit $19 an Hour
The commissioners of the Port Authority of New York and New Jersey voted unanimously Thursday to raise the minimum wage of workers at three airports to $19 an hour by 2023, the highest government mandated minimum wage in the U.S. The decision will affect roughly 40,000 workers and airline companies operating at La Guardia Airport…Tim Pearce -
- News
Spending Deal Breaks Promises to Voters, Conservative Lawmakers Say
Conservative lawmakers say they are disappointed with a lack of conservative priorities in a new spending package, some saying it goes against stipulations President Donald Trump outlined when signing the last spending bill. “Americans elected Republican majorities to the House and Senate to rein in federal spending and return to regular order,” Rep. Jim Banks,…Rachel del Guidice -
- Opinion
How the Economic Boom Is Lifting Latino Communities
It’s no secret that for many Latinos, the most important voting issue is the economy. For years, our families have been disadvantaged by a lack of available jobs, sluggish wage growth, and the real challenge of trying to pay down debt and save more to get ahead. Latinos put a high priority on greater economic…Daniel Garza -
- Opinion
Congress Is Using These Deceptive Tricks to Drive Spending Higher
Congress is up to its old tricks again, trying to pass another massive spending bill that uses gimmicks and tricks to push deficit spending even higher. And it thinks it can hoodwink President Donald Trump into signing it. Next week, the House is expected to vote on a combined fiscal year 2018 continuing resolution and…Justin Bogie -
- Opinion
New York City Just Sent Its Transportation Industry Back to the 1930s
At 5 o’clock on Aug. 14, New York City turned its clocks back to the 1930s. The Taxi and Limousine Commission officially stopped issuing licenses to most for-hire vehicles, effectively declaring war on Uber and Lyft in an effort to protect taxis from competition. This is the first of many steps that aim to constrain…Jason Snead -
- Opinion
How Emergency Spending Has Exploded in Recent Years
Over the next several weeks, Heritage Foundation experts will publish short articles on the budget and federal spending. The next 12 months are a critical time for adjusting the spending outlook. In the last spending agreement enacted in the spring of 2018, Congress intentionally designed the spending limits so that they will be broken or…Paul Winfree -
- Opinion
Geoffrey Owens and Historic Unemployment Rate Reinforce the Value of Work
As summer winds down to a close, the economy continues to fire on all cylinders. According to the Labor Department, the national unemployment rate remained at 3.9 percent for the month of August. As recently as President Barack Obama’s second term, it was more than twice as high. Black and Hispanic unemployment rates have now…Terry Muns