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
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
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… -
opinion
RSC Budget Plan Would Fundamentally Shift the Budget Course
The Republican Study Committee has released its fiscal year 2019 budget proposal, “A Framework for Unified Conservatism.” In light of the recent budget-busting deal and projections of trillion-dollar deficits returning, the plan sends a strong message: A truly conservative budget is the answer to the unsustainable budget course the nation is on. The RSC framework… -
opinion
‘Penny Plan’ Puts the Spotlight on Out-of-Control Federal Spending
Sen. Rand Paul, R-Ky., and Rep. Mark Sanford, R-S.C., recently revived the “penny plan,” which calls on Congress to reduce spending by at least one penny on the dollar from one year to the next. The proposal was introduced in 2011 by then-Rep. Connie Mack, R-Fla., and Sen. Mike Enzi, R-Wyo., and has been introduced… -
opinion
Bernie Sanders’ ‘Jobs’ Program Would Undo Our Real Economic Progress
Sen. Bernie Sanders’ big-idea solution to everything is big government. The independent senator from Vermont wants government-run, single-payer health care. Seeing efficiencies that nobody else can see, he wants to turn post offices into banks. Now, he wants to leverage the notoriously inept federal job-training system (see here, here, here, etc.) and a new set… -
opinion
How Solar Tariffs Are Already Hurting the Solar Industry
A week ago today marked the end of the window for solar companies to seek exemptions from the Trump administration’s tariffs on certain imported solar panels and modules, which the president announced in January. Since the January decision, companies submitted over 260 applications and comments arguing that they should be exempt from the new tariffs…. -
news
Budget Director Mick Mulvaney Says He Will Ask Congress to Cut Spending in ‘Coming Weeks’
Office of Management and Budget Director Mick Mulvaney says his staff will soon be sending a package to Congress to rescind some of the planned spending in the $1.3 trillion omnibus bill signed last month by President Donald Trump. “[We] hope to have something here in the next couple weeks,” Mulvaney said Wednesday during a…