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
Trump’s Tariffs Threaten to Weaken Key US Alliances
The Group of Seven was created during the Cold War by the United States so that the leading market-based Western democracies (Canada, France, Germany, Italy, Japan, and the United Kingdom) could join it to preserve economic freedom, increase global prosperity, and defeat communism. After the Soviet Union’s collapse, a hopeful G-7 at first welcomed its…James M. Roberts -
- Opinion
Pointless Lumber Tariffs Are Hurting Americans
Late last year, the United States imposed steep new tariffs on Canadian softwood lumber imports to the United States. The new import taxes, a combination of what are called countervailing and anti-dumping duties, have contributed to a 66 percent increase in lumber prices in the past year, placing a heavy burden on U.S. home buyers,…Patrick Tyrrell -
- Opinion
Congress Can Cut Billions in Wasteful Spending by Following This Blueprint
The Senate Budget Committee met May 23 to consider the Government Accountability Office’s annual report on government efficiency and effectiveness, which identifies areas of unnecessary overlap, fragmentation, and duplication among federal programs. The Government Accountability Office supplements that identification of waste with recommendations of what to do about it, presenting specific proposals upon which Congress…Romina Boccia -
- Opinion
Unnecessary Federal Spending on Infrastructure to Continue
A provision in the House version of the National Defense Authorization Act for fiscal 2019 would delay by at least two years a much-needed new round of Base Realignment and Closure. That delay would represent billions of taxpayer dollars that could have been saved, but instead would have to be allocated to infrastructure that isn’t fully…Hayden Morse -
- Opinion
Egypt Enjoys a Surge in Economic Freedom
Egypt’s economy is rebounding after years of economic stress and political turmoil. As Christine Lagarde, managing director of the International Monetary Fund, noted earlier this year, Egypt is at a turning point in its economic structure and is signaling to investors it is serious about comprehensively reforming its economic system. According to The Heritage Foundation’s…Anthony B. Kim -
- Opinion
A Truce in the Trade War Is Good News. Trump Can Make It Better by Scrapping the Tariffs.
Treasury Secretary Steven Mnuchin announced this week that the U.S. and China had agreed to cool down the brewing trade war, following a joint statement from U.S. and Chinese officials. That’s a positive first step. Mnuchin confirmed that the planned tariffs under Section 301 of the Trade Act of 1974 on $150 billion of Chinese…Tori K. Smith -
- Opinion
US-China Truce on Trade War Is Good Progress
Over the weekend, Treasury Secretary Steven Mnuchin, who led U.S.-China trade negotiations, announced a trade war between the two countries was “on hold.” This progress will surely bring a sigh of relief for American farmers—and short-term stability to international markets as tensions rightly de-escalate. Working Backward The two sides have been negotiating over bilateral trade…Riley Walters -
- Opinion
To Make Congress Face Down the Debt, Revive the Budget Process
It doesn’t take a genius to realize the U.S. budget process is broken. The biggest reason for that is that too much spending is growing on autopilot. Now, Congress wants to double down by budgeting even less frequently. Speaking to the Washington Examiner this month, Rep. Steve Womack, R-Ark., who co-chairs the Joint Select Committee…Romina Boccia -
- Opinion
Low Unemployment Rate Proves Pro-Growth Policies Work
The very positive April jobs report supports the idea that pro-growth policies are the best way to create more jobs, and attract more people into the workforce to fill them. In April, the U.S. economy added 164,000 jobs (slightly lower than experts’ predictions) and the unemployment rate reached its lowest level in over 17 years, at…Timothy Doescher -
- Opinion
Welfare With No End in Sight Is a Terrible Fate. Let’s Help Americans Avoid It.
The Supplemental Nutrition Assistance Program is high on the Republican list of programs targeted for reform—and justifiably so. The program has gone from 17 million enrollees in 2000 to about 43 million today, with outlays up from about $25 billion to more than $70 billion. The Trump administration’s budget submitted last February includes major reforms…Star Parker -
- Opinion
The Unintended Consequences of the Welfare State on the Human Spirit
Before the massive growth of our welfare state, private charity was the sole option for an individual or family facing insurmountable financial difficulties or other challenges. How do we know that? There is no history of Americans dying on the streets because they could not find food or basic medical assistance. Respecting the biblical commandment…Walter E. Williams -
- Opinion
Why a Free Press Is Actually Good for the Economy
In a recent commentary in The Wall Street Journal, “Freer Markets, Freer Media,” Kevin Brookes and Patrick Dery of the Montreal Economic Institute offered a surprising insight: One proven way to keep reporters safe around the world and to advance freedom of the press is, in fact, to promote economic liberty. That’s because economic freedom…Anthony B. Kim -
- Opinion
Rejecting Much-Needed Reforms, Agriculture Committee’s Farm Bill Favors Status Quo on Costly Subsidies
The House Agriculture Committee’s farm bill is a complete rejection of the U.S. Department of Agriculture’s 2018 farm bill principles when it comes to farm subsidies. Here are a few examples: USDA principle: “Provide a fiscally responsible farm bill that reflects the administration’s budget goals.” The committee’s farm bill doesn’t include any of the Trump…Daren Bakst -
- Opinion
We’re Not Losing to China in a Trade War: 5 Misconceptions About US Trade With China
As U.S. officials prepare to negotiate trade deals with China, it’s crucial to recognize some of the most damaging misconceptions about trade between our two nations that have spread as tensions have risen. And make no mistake: these negotiations are a big deal, as shown by those attending. The delegation from the U.S. includes free…Tori K. Smith -
- News
‘Amazing’: Unemployment Hits Lowest Rate in 18 Years
Unemployment dropped to 3.9 percent in April, the lowest unemployment rate since 2000, after remaining unchanged at 4.1 percent for several months, the Department of Labor reported Friday. The latest Bureau of Labor Statistics report revealed roughly 164,000 jobs were added last month, about 30,000 fewer than some experts predicted but continuing the longest streak of consecutive monthly job growth at…Tim Pearce -
- Opinion
Trump Postponed the Tariffs for Key Trading Partners. Now, He Should Ditch Them for Good.
The Trump administration announced late Monday evening that, until June 1, it would continue to exempt Canada, Mexico, and the European Union from tariffs on imports of steel and aluminum. On June 1, the tariffs are set to go into full effect for any country without a special agreement with the U.S. Extending the exclusion…Tori K. Smith -
- Opinion
High Public School Spending in DC Hasn’t Produced Desired Outcomes
Spending by Washington, D.C., public schools can be difficult to pin down. Estimates suggest spending is somewhere between $27,000 and $29,000 per child per year, which is roughly double the national average. Assuming $27,000 per student per year, D.C. taxpayers spend about $350,000 on a student from kindergarten through graduation. One could be forgiven for…Jude Schwalbach -
- Opinion
We Hear You: Going ‘Bold’ on Welfare Reform, Learning About Guns, and Other Good Ideas
Editor's note: Time to catch up on some mail we've been meaning to publish for awhile. Enjoy the potpourri. And don't forget to write us at [email protected].—Ken McIntyre Dear Daily Signal: Bravo! The voice of sound reason in the midst of babble (“Why We Must Be Bold on Welfare Reform”). The wisdom of Heritage Foundation…Ken McIntyre -
- Opinion
Steel Tariffs Already Hurting Steel-Using Industries
Economists and industry leaders predicted price increases and potential jobs losses after the Trump administration imposed tariffs on steel and aluminum. What may have seemed like rhetoric is now reality. The sneaky brilliance of the tariffs is that benefits are concentrated to a small, politically connected, and very vocal few, while costs for American consumers…Tori K. Smith -
- Opinion
Wisconsin Forges Ahead on Welfare Reform
Wisconsin is taking the lead on welfare reform. In February, the state Legislature passed nine bills, which Gov. Scott Walker is expected to sign. The state government is taking advantage of record-low unemployment and strong job creation numbers to help all of its able citizens enter the workforce. Among other measures, Wisconsin’s bold plan implements…Mimi Teixeira