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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- News
House OKs Spending Bill to Fund Government, but 90 Republicans Vote No
The House approved a $1.3 trillion omnibus spending bill Thursday to fund the government through September, allowing federal offices to stay open at the weekend but hampering some of President Donald Trump’s agenda items. The House approved the so-called omnibus bill by a vote of 256-167, but most of the dissenting votes came from Republicans, who hold…Thomas Phippen -
- Opinion
Omnibus Spending Bill Amounts to a Bundle of Broken Promises
There have been three periods of unified Republican control of the federal government since World War II. We are living in the third. Our country is built on separation of powers, and our people generally favor divided government. When Americans gave us control of the House, the Senate, and the presidency, their message was clear:…Rep. Ted Budd -
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3 Major Problems Conservatives Have With the Government Spending Bill
Major conservative priorities have gone missing in the spending bill to fund the government through September, House lawmakers say. Rep. Mark Meadows, R-N.C., chairman of the House Freedom Caucus, spelled out the worry Wednesday during Conversations with Conservatives, a monthly meeting with reporters hosted by conservative lawmakers and The Heritage Foundation. “I think the real…Rachel del Guidice -
- Opinion
New Study Shows Minimum Wage Puts a Damper on Long-Run Earnings
Economic studies consistently show that higher minimum wages lead to higher unemployment, particularly among teenagers. But that’s a consequence minimum wage advocates have been willing to accept in exchange for higher incomes for minimum wage workers who keep their jobs. It turns out, however, that higher minimum wages actually reduced the long-run earnings of teenagers…Rachel Greszler -
- Opinion
Big Government Tariffs Do Not Make America Great
The federal government does not make America great, and never has. Americans make America great, and they can best do the job when meddlers, busybodies, and crony privilege seekers in Washington get out of the way. Getting out of the way means cutting high and uncompetitive tax rates, eliminating those regulations that are ineffective and…David Kreutzer -
- News
Q&A: Sen. Ben Sasse Weighs in on Russian Internet Manipulation, Tariffs
The Daily Signal’s Jarrett Stepman interviewed Sen. Ben Sasse, R-Neb., about the issue of tariffs and his recent letter to NATO demanding a response to the poisoning of a former Russian spy and his daughter in the United Kingdom. Here is a lightly edited transcript of their exchange, which you may also watch above. Jarrett…Jarrett Stepman -
- Opinion
Tariffs Were Killing New Zealand’s Economy. Free Trade Turned It Around.
The new tariffs announced by President Donald Trump have generated intense controversy. With the debate ongoing, it might be useful to examine how other countries have dealt with similar policy debates in the past. New Zealand now ranks third in The Heritage Foundation’s Index of Economic Freedom and is one of the champions of economic…Patrick Tyrrell -
- Opinion
Podcast: What Larry Kudlow Will Do for the Nation’s Economy
The Heritage Foundation’s Steve Moore joins us today to talk about the announcement that his friend Larry Kudlow, who worked in the Reagan administration and on CNBC, will become director of the National Economic Council. Moore and Kudlow served together on the Trump campaign, and Moore shares what he thinks President Donald Trump and Kudlow…Katrina Trinko -
- Opinion
The Unseen Victims of Trump’s Tariffs
There are a couple of important economic lessons that the American people should learn. I’m going to title one “the seen and unseen” and the other “narrow, well-defined large benefits versus widely dispersed small costs.” These lessons are applicable to a wide range of government behavior, but let’s look at just two examples. Last week,…Walter E. Williams -
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Opponents Aim to Keep Internet Sales Tax Out of Omnibus Spending Bill
An internet sales tax would cost consumers billions of dollars, kill American jobs by forcing online retailers out of the country, and be a boon to China’s internet retail giant, opponents say. “The internet is the great equalizer,” Sen. Ted Cruz, R-Texas, said Tuesday. “The internet has democratized small business. Unfortunately, wherever freedom flourishes, Washington…Kyle Perisic -
- Opinion
Right Side of History: Americans Have Always Been Fighting About Tariffs
“The Right Side of History” is a podcast dedicated to exploring current events through a historical lens and busting left-wing myths about figures and events of America’s past. On this week’s episode, hosts Jarrett Stepman, a contributor to The Daily Signal, and Fred Lucas, The Daily Signal’s White House correspondent, discuss the long and contentious…Jarrett Stepman -
- Opinion
My Bill Would Help Restore Congressional Authority on Tariffs
If you work in manufacturing, your job was just put at risk. Last week, President Donald Trump signed an order imposing a 10 percent tariff on aluminum imports and a 25 percent tariff on steel imports. The official rationale behind the tariffs is that a reduction of skilled smelters in the United States threatens national…Sen. Mike Lee -
- Opinion
Why We Must Be Bold on Welfare Reform
Washington is in a unique position to solve America’s welfare crisis for a very simple reason: Washington created it. The policy and programs it established a half-century ago have depleted people, obstructed their purpose, and extinguished their extraordinary possibilities. The evidence of this failure is all around us. Being black and the daughter of a…Kay C. James -
- Opinion
Jobs Are Booming, but Tariffs Could Be Bad News
The Bureau of Labor Statistics delivered some good economic news this morning, announcing that the economy added 313,000 jobs in February. This came in the bureau’s Employment Situation Summary, and provides strong evidence to support the White House’s pro-growth policies and encourage more of the same. In addition to the job boost, the unemployment rate…Timothy Doescher -
- News
Trump Tariffs Cost 5 Jobs for Single Job Gained, Analysis Finds
The Trump administration’s new tariffs on steel and aluminum from abroad could result in more than five jobs lost for every single job gained, according to an analysis from a group that advocates free trade. The job losses will be direct and indirect, as price hikes will hit American companies that buy international steel to…Fred Lucas -
- Opinion
Minimum Wage Hike Is Killing Jobs in This Arizona City
Although the Great Recession ended nearly eight years ago, wages have not taken off as in previous recoveries. The sluggish growth in wage rates has sparked calls at the federal, state, and local levels to raise minimum wages. But such top-down, one-size-fits-all government mandates have a sad history of producing unintended consequences—lost jobs, fewer work…Elliott Raia -
- Opinion
Trump’s Tariffs Will Hurt the Economy. Congress Should Reassert Its Constitutional Authority on Trade.
The Constitution gives Congress the power to regulate commerce, but significant pieces of that power have been outsourced to the executive branch over the last four decades. One example of this outsourcing is Section 232 of the Trade Expansion Act of 1962. That provision gives the president the authority to impose import tariffs without the…Tori K. Smith -
- Opinion
Trump’s Tariffs Would Be a Massive, Self-Inflicted Wound
Oftentimes in global politics, a country will seek to punish its foreign adversaries by imposing economic sanctions against them, preventing them from purchasing goods or natural resources on the international market. But this week, President Donald Trump is considering imposing economic sanctions on the United States, in the form of tariffs. This is being done…Patrick Tyrrell -
- Opinion
Podcast: New Tariffs Will Destroy Jobs, Produce Higher Costs
As President Donald Trump suggests it’s time to put new tariffs on steel and aluminum, The Heritage Foundation’s Tori Whiting joins us to explain why that would drive up costs for basic products (soup cans, cars) and lead to the loss of thousands of jobs. Plus: We talk about the new robot, “Flippy,” working at…Katrina Trinko -
- Opinion
To Improve the Environment, Look to the Free Market
Over the past three years, China had become the new poster child for economists and environmentalists alike. The country seemed to attain the impossible by maintaining high growth in gross domestic product, while at the same time reducing reported carbon emissions. However, the admiration went up in smoke after news that China returned to its…Nicolas Loris