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
Work Requirements Have Revolutionized Welfare at the State Level. Now It’s Uncle Sam’s Turn.
Policymakers are ready to get serious about work requirements for food stamps, with both Congress and the Trump administration working on ways to improve the program. A little over a week ago, the U.S. Department of Agriculture announced it is seeking comments on how best to reintroduce work requirements in the Supplemental Nutrition Assistance Program,…Mimi Teixeira -
- Opinion
3 Reasons Why Trump’s Tariffs Would Hurt American Workers
President Donald Trump said Thursday that he would announce tariffs on steel and aluminum imports in the coming week. This move follows reports from the Commerce Department that investigated the impact of these imports. The president is expected to impose tariffs of 25 percent on steel and 10 percent on aluminum. This will lead to increased…Tori K. Smith -
- Opinion
Escape Through Bankruptcy Is Not a Solution to the Student Loan Crisis
As Congress turns its attention to the problems facing higher education, the Department of Education announced last week that it will seek public comment on possible relief for students with outstanding student loan debt. One proposed option is discharging student loans in bankruptcy court, as is done with other types of loans when borrowers are…Mary Clare Amselem -
- Opinion
Tariffs on Steel Will Hurt Steel-Using Industries in the US
In January, the Department of Commerce delivered a report to the president on the effects of steel imports on U.S. national security. That report went public earlier this month. In the report, the Commerce Department made a series of recommendations to restrict imports. Those recommendations ranged from imposing tariffs of up to 53 percent to…Tori K. Smith -
- Opinion
I’m a Small Business Owner. Raising the Minimum Wage Would Hurt My Employees.
A liberal group in my home state of Virginia recently called on the Virginia General Assembly to increase the minimum wage to $15 per hour. This call is not unique to Virginia. The “Fight for $15” campaign is spreading throughout the country at a rapid rate and needs to be stopped. The misguided campaign says it…John Sims -
- Opinion
Don’t Punish People With Delinquent Student Loans by Revoking Their Work Licenses
Nearly one-third of Americans today must be licensed by the government in order to do their jobs. Many of those people are among the 44 million Americans who have outstanding student loans. For that group of people, falling behind on student loan payments can mean that the state will strip them of their occupational license…Caleb Trotter -
- News
Trump OMB Nominee, Attacked for Faith, Finally Heads for Confirmation Vote
President Donald Trump’s nominee for a key budget position, stalled by senators on both sides of the aisle, finally will get a vote next week. The Senate likely will confirm the president’s nomination of Russ Vought to be deputy director of the Office of Management and Budget after a cloture vote Monday. Sen. Bernie Sanders,…Fred Lucas -
- Opinion
Brazilian Ex-President’s Loss in Court Is a Big Win for Rule of Law, Economic Freedom
Brazil’s performance in the 2018 edition of The Heritage Foundation’s Index of Economic Freedom confirms yet again that South America’s biggest country remains burdened by too much government spending, corruption, and regulatory inefficiency. Historically, a significant reason for Brazil’s lackluster track record on economic freedom has been its weak rule of law. Last month, however, a…James M. Roberts -
- Opinion
Spending Cuts, Not Tax Hikes, Boost Economic Growth
Some point to the deficit as a reason to raise taxes. But new research shows that spending cuts are superior to tax hikes when it comes to reducing the deficit. This should embolden lawmakers to pursue spending reductions in this year’s budget resolution, giving particular focus to reducing entitlement spending—a key driver of debt. Following…Romina Boccia -
- Opinion
5 Takeaways From the 2018 Index of Economic Freedom
The Heritage Foundation’s 2018 Index of Economic Freedom—an annual global study that compares countries’ entrepreneurial environments—was released earlier this month. Since 1995, the index has measured a nation’s commitment to limited government and free enterprise on a scale of 0 to 100 by evaluating four critical policy pillars, including rule of law and regulatory efficiency….Patrick Tyrrell -
- Opinion
How Congress Can Start Rebuilding the Military Within New Budget Framework
The Bipartisan Budget Act of 2018 raised the defense budget caps for both 2018 and 2019. For the coming year, the defense budget will be $647 billion, excluding war funds. The National Defense Authorization Act for fiscal year 2019 will determine how these resources are to be spent and provides a chance to continue reversing…Frederico Bartels -
- Opinion
US Trading Partners Calling Foul on Trump’s Tariffs
Since President Trump imposed tariffs last month of up to 50 percent on washers and solar products, five of America’s trading partners have filed requests for consultation with the World Trade Organization. South Korea, the first country to cry foul, filed consultation requests for the washer and solar tariffs on Jan. 24. Taiwan then submitted…Tori K. Smith -
- Opinion
Congress Blew Through the Budget Caps, Again. Here’s What Needs to Change.
The Bipartisan Budget Act of 2018 signed into law last week really should be renamed the Bipartisan Budget Crash Act. This spending spree takes a Mack Truck and rams through the hard-fought budget caps under the 2011 Budget Control Act to the tune of at least $300 billion. When all is said and done, the…Stephen Moore -
- Opinion
Tariffs on Canadian Lumber Are Hurting American Homebuyers
The import of softwood lumber from Canada, such as pine, spruce, and fir, into the United States is an issue of contention dating back to the 1980s. Recently, the United States imposed steep tariffs, or taxes on imports, on Canadian softwood lumber imported into the U.S. The ongoing dispute between the two countries is providing…Patrick Tyrrell -
- News
Raising the Minimum Wage Hurts Teen, Young Adult Employment Rates, Study Finds
A new study shows that raising the minimum wage has played a role in the decline of teen employment and the labor force participation rate, which has fallen by about half since 1994. The study, conducted by the Mercatus Center at George Mason University, examined three possible factors to explain why teen employment has declined…Kyle Perisic -
- Opinion
Tax Cuts Are Sustainable. It’s Spending That’s Holding Us Back.
The U.S. fiscal outlook is dire, but don’t blame it on tax reform. President Donald Trump’s budget demonstrates that the GOP-passed tax cuts are entirely sustainable—it’s the spending that’s the problem. It is worth remembering where we were before tax reform. Without the Tax Cuts and Jobs Act, government scorekeepers projected that the government would…Adam Michel -
- Opinion
Budget Deal Is a Betrayal of Limited Government Conservatism
Last week, Congress passed a continuing resolution that will keep the federal government funded through March 23. This is the fifth continuing resolution of the fiscal year—a sixth may be needed before March 23, since both parties have agreed to begin debate on an immigration bill this week. But as bad as the decision to…Sen. Mike Lee -
- Opinion
Economic Freedom Enables Great Escape From Poverty
Hundreds of millions of people around the world are experiencing a “Great Escape” from poverty, and increasing economic freedom around the globe is the reason, according to the recently published 2018 Index of Economic Freedom. The Index of Economic Freedom, a publication of The Heritage Foundation, which, for two decades, has analyzed economic policies in…Anthony B. Kim -
- Opinion
What Trump’s Education Budget Gets Right, and Where It Can Improve
The Trump administration released its budget proposal for fiscal year 2019 on Monday, and it contains some welcome requests in the sphere of education. The proposal suggests making needed cuts to the Department of Education’s labyrinth of ineffective and duplicative K-12 programs. Originally, it included $59.9 billion for the Department of Education, which would have…Lindsey Burke -
- News
Cornyn Releases Hold on Trump’s Pick for Deputy Director of OMB
A senator from Texas is no longer holding up the nomination of President Donald Trump’s pick to be deputy director of the Office of Management and Budget. “He’s lifted his hold on the nomination of Russ Vought,” an aide to Senate Majority Whip John Cornyn, R-Texas, confirmed to The Daily Signal in an email Friday….Rachel del Guidice