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 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… -
opinion
Washington Spending Restraint Is Key to Tax Reform’s Success
More than $21 trillion in debt, it looks like Washington has forgotten some basic economics. Peacetime and a strong economy are universally agreed upon criteria for when governments should start to reduce spending and pay down the debt, and we’re not doing it. Instead, Washington is in the process of passing appropriations that are a… -
opinion
Trump Administration’s Trade Policies Undermining Business Benefits of Tax Cuts, Slashing Regulations
Last week, the U.S. government hosted its annual SelectUSA Investment Summit just outside of Washington, D.C. The event often draws a good crowd of potential foreign investors looking for opportunities to invest in America. With the president’s cuts to the corporate tax rate and regulations, the United States will continue to be a prime destination… -
opinion
Desperate Deficit Times Require Desperate Budget Reform Measures for a ‘Brighter American Future’
The House Budget Committee last Thursday approved a budget resolution for fiscal 2019. The House budget, dubbed “A Brighter American Future,” would achieve balance in 2027. Importantly, the House budget proposes about $300 billion in spending reductions by using a powerful fiscal tool called reconciliation. The Senate needs to follow suit to unlock those savings… -
opinion
These New Tariffs Could Upend the Newspaper Industry
A Washington state newsprint producer is single-handedly upending the U.S. newspaper industry, and not in a good way. The North Pacific Paper Co. pressured the Trump administration into levying a tariff on Canadian newsprint imports, claiming the Canadian producers possessed an unfair advantage that allows them to charge less than market price. President Donald Trump… -
opinion
New Minimum Wage Law Puts DC Restaurants in a Bind
If a 10 percent tax on restaurant meals wasn’t enough to jack up the cost of dining in Washington, D.C., city residents just voted for a 275 percent increase in the minimum wage for tipped workers. Currently, the minimum wage for workers who also receive tips is $3.33 an hour in the district. Initiative 77,… -
opinion
6 Highs and Lows of the House Budget Proposal for 2019
The House Budget Committee this week unveiled its fiscal 2019 budget proposal, and the most important aspect is that it provides reconciliation instructions to authorizing committees to find more than $300 billion in mandatory spending cuts. More than two-thirds of the federal budget consists of mandatory spending, which is not subject to the annual appropriations… -
opinion
Tariffs on Chinese Goods Will Only Punish Americans
The Office of the U.S. Trade Representative will soon be imposing an additional 25 percent tax on $50 billion worth of goods Americans buy from China. The reason given by the White House is multifaceted, including factors from addressing China’s intellectual property theft and technology transfer requirements to unfair competition and an uneven balance of… -
opinion
India’s Economy Is Booming. Deregulation Is the Next Important Step.
With reported growth of 7.7 percent in the fourth quarter of fiscal year 2017 and 6.7 percent annual growth projected for 2018, India now boasts the world’s fastest-growing economy. The question now becomes how to preserve the momentum. First and foremost, India must recognize that the growth enjoyed for the past two decades came largely… -
opinion
How Restrictive Labor Laws Keep Puerto Rico’s Economy Down
An economic crisis has engulfed Puerto Rico. The Financial Oversight Management Board, a federally-mandated advisory group, has worked to help Puerto Rico deal with its financial crisis and establish policies that will lead to long-run growth. The board says Puerto Rico must reform its labor market to have a bright future. While the oversight board… -
news
Heritage Policy Experts Unveil Plan to Balance Federal Budget
Policy experts at The Heritage Foundation unveiled the think tank’s extensive “Blueprint for Balance” report on Monday, with the goal of providing Congress with a plan to balance the federal budget and rein in government spending. “This blueprint is about freeing the American people to prosper,” said Romina Boccia, deputy director of the Institute for… -
opinion
These 5 Changes Would Fix the Nation’s Budget Woes
In April, the Congressional Budget Office released its updated budget projections, and the outlook is grim. The annual federal deficit is projected to rise to over $1 trillion by 2020 and to top $1.5 trillion by 2028. In the next decade, debt is projected to skyrocket to over 96 percent of the economy. This is… -
opinion
How to Empower the Labor Department Office That Fights Union Corruption
For too long, many union members have been kept in the dark about their union’s finances. Some unions are run in a transparent, democratic manner, but many others are run autocratically with minimal transparency and accountability. This lack of transparency too often allows unscrupulous union officials to embezzle or misuse union funds; and each year,… -
news
4 Key Points in the Tariffs Debate as Trump Prepares for G-7 Summit
Both Mexico and the European Union on Wednesday announced retaliatory tariffs on U.S. products as President Donald Trump prepares for potentially confrontational talks with allies at the Group of Seven summit. The G-7 gathering will take place Friday and Saturday in Charlevoix, Quebec, Canada. Trump has pushed 25 percent tariffs on imported steel and 10… -
news
Conservatives Urge Congress to OK Trump’s $15 Billion Rescission of Spending
A major conservative-libertarian advocacy group has thrown its support behind President Donald Trump’s call for canceling more than $15 billion in spending as a good first step in reining in the federal budget. Americans for Prosperity praises the president’s rescission request, which would claw back up to $15.3 billion in appropriated but unspent funds, and… -
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… -
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,… -
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… -
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… -
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…