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
America Leapfrogged Other Countries in Tax Reform, and Economic Growth Is the Result
In February 2017, U.S. House Ways and Means Committee Chairman Kevin Brady remarked at a conference on international tax competition, “Our blueprint delivers a tax code built specifically to leapfrog America from dead last among our global competitors back into the lead pack of the most pro-growth tax systems on earth.” Fast forward to August… -
opinion
How the Left Misunderstands Free Markets
How did our nation go from having a high-growth economy in the 19th and early 20th centuries, to struggling in recent years to achieve 3 percent annual growth? The American economy today is mixed: It is partly free, vibrant, prosperous, and entrepreneurial and partly unfree, obstructed, and lethargic. The free part is governed by the… -
opinion
Economic Turnaround: Pittsburgh Rebuilds and Rebrands
The collapse of the U.S. steel industry in the 1980s sent once-thriving Pittsburgh into a severe economic depression. Pittsburgh has struggled to rebuild and rebrand itself for decades. Yet the city today is not the crumbling, desolate place one might expect. The city has been transforming itself from an industrial economy based on steel to… -
news
New Jersey Budgets $5M to Prop Up ‘Community’ Newspapers
The New Jersey state Legislature set aside $5 million in the annual budget to help fund what it calls “community journalism,” which critics say raises serious ethical questions regarding the influence it gives government over news coverage. As local newspapers have seen circulation and advertising steadily decline in the digital age, the traditional business model… -
opinion
3 Budget ‘Reforms’ That Would Make Matters Worse, Not Better
A congressional select committee on reforming the budget process recently held another public hearing, supposedly with the ultimate aim of designing a more transparent, accountable, and responsible budgetary process. Any such changes should also re-establish and enhance Congress’ power of the purse. But if those are the goals of the Joint Select Committee on Budget and… -
opinion
Free-Market Policies Make the Most of the Sharing Economy
Economic freedom enables the sharing economy, and in a groundbreaking new multinational study, the Swedish think tank Timbro finds a strong relationship between free markets and the sharing economy. The Timbro Sharing Economy Index is the first global index of the sharing economy, estimating the size and usage of the sharing economy in each country…. -
opinion
Zero Tariffs and Zero Barriers Are the Way to Prosperity
It’s not rocket science: Economists understand that tariffs harm both the exporting country and the importing country. Retaliatory tariffs do the same thing. Yet too many foreign policymakers, after rightly warning of the harmful economic consequences of new U.S. tariffs on steel and aluminum, imposed retaliatory tariffs of their own. That’s bad—but much worse would… -
news
Trump, EU Leader Agree to Work Toward ‘Zero Tariffs’
In what President Donald Trump called “a very big day for free and fair trade,” he and the leader of the European Union agreed Wednesday to work to end tariffs on nonautomotive products. European Commission President Jean-Claude Juncker and Trump met at the White House, then went to the Rose Garden to announce not only… -
opinion
Trump Could Give Aid Money to Farmers Hurt by Tariffs. Here Are 5 Reasons That’s a Bad Idea.
The Trump administration is planning to spend as much as $12 billion in aid to help farmers hurt by the administration’s tariffs. By acknowledging the need for aid to farmers, the Trump administration is admitting that its tariff strategy is hurting Americans. There are multiple reasons why providing aid to farmers to offset the effects… -
opinion
Why Using Social Security for Paid Family Leave Is a Bad Idea
This year marks the first time in more than a quarter-century that Social Security has had to dip into its trust fund balance. Since its theoretical trust fund is really just a bunch of IOUs, that means the government will have to issue $85 billion in publicly held debt this year—and $1.5 trillion over the… -
opinion
88 Senators Agree Congress Must Have Role in New Tariffs
Article I of the Constitution states that Congress has the power “to regulate Commerce with foreign Nations,” but for decades members of this body have irresponsibly shirked that authority. That may be changing now. On Wednesday, 88 Senators expressed their support for the vital role of Congress in determining trade policy following months of new… -
opinion
US Tariffs Hurt Americans More Than Anyone Else
The Canadian government, lining the pockets of its dairy producers, imposes high tariffs on American dairy imports. That forces Canadians to pay higher prices for dairy products. For example, Canadians pay $5.24 for a 10.5-ounce block of cheddar. In Washington, D.C., that same amount of cheddar sells for $3.64. Canadians pay $3.99 for a 1-pound… -
opinion
Congress Wants to Do Even Less Budgeting. Here’s Why That Would Be Disastrous.
It shouldn’t surprise anyone that Congress is once again looking for more ways to avoid responsibility. On Wednesday, June 27, the Joint Select Committee on Budget and Appropriations Process Reform held a member day meeting that included testimony from Speaker of the House Paul Ryan, Minority Leader Nancy Pelosi, and other lawmakers. Center-stage at the… -
opinion
Trump’s Fuel-Efficiency Reality Check Revs Up the American Economy
Despite rampant speculation that President Donald Trump’s trade policy might increase some car prices, how his regulatory relief agenda may lower sticker prices and increase safety goes largely ignored. How did this happen? The Trump administration is revising the Corporate Average Fuel Economy standards imposed on automakers during the Obama era. In particular, they are… -
opinion
June Jobs Report Shows More Jobs Added, Wages Rising
The Bureau of Labor Statistics released the June jobs report Friday, showing that the economy added 213,000 jobs in June, beating expert predictions, and signaling the booming economy is attracting more people back into the workforce. The unemployment rate inched up 0.2 percent, matching the increase in labor-force participation, which is the percent of the… -
opinion
Senate Is Killing State Welfare Reform
Few policy reforms have been as popular as welfare-to-work. Why, then, is the U.S. Senate trying to kill state efforts at encouraging able-bodied adults to get a job? Welfare-to-work was one of the signature policy wins of the 1990s, resulting in the 1996 Personal Responsibility and Work Opportunity Reconciliation Act. The legislation was signed by… -
news
Hispanic Unemployment Hits Record Low Under Trump
The unemployment numbers for Hispanic workers hit a record low under President Donald Trump in June, beating the previous lowest unemployment record from October 2006. Hispanic or Latino workers’ unemployment rate dropped to 4.6 percent, falling below the prior record of 4.8 percent from 2006, the Bureau of Labor Statistics reported Friday. The new report also showed that 213,000 jobs were added in… -
opinion
White House Makes a Good Decision on China Policy but Tariff Threats Still Looming
Last week, the White House announced that instead of implementing unilateral restrictions on Chinese investment it would defer to Congress and its efforts to reform the Committee on Foreign Investment in the U.S. (CFIUS). This is a good sign that the White House is planning to work with Congress to implement long-term solutions to credible… -
opinion
Congressional Republicans Unite Behind Conservative Budget
The Republican Study Committee, a conservative caucus of 158 Republicans in the U.S. House of Representatives, releases an annual budget called “A Framework for United Conservatism.” Its aim is to unite conservatives in Congress behind a long-term fiscal plan. This year’s Framework builds on the RSC’s fiscal year 2018 budget both of which embody conservative… -
opinion
Trump’s Tariffs Are Pushing American Companies to Leave
Harley-Davidson’s motto is “All for freedom. Freedom for all.” Today, however, the freedom to trade in America is deteriorating—and because of that, the iconic motorcycle manufacturer will be moving some of its production overseas. The United States imposed tariffs of 25 percent on steel and 10 percent on aluminum in March. On June 1, America’s…