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
Encouraging News in July Jobs Report
The Bureau of Labor Statistics’ July jobs report contained little bad news. The bureau found that employers created a net 255,000 new jobs since June. Strong growth in the professional and business services (+70,000), health care (+49,000), leisure and hospitality (+45,000), and government (+30,000) sectors lead the way. (One exception was the mining sector, which…James Sherk -
- Opinion
Trade Deals That Benefit Both US and Other Nations Are Possible
In an update to its Information Technology Agreement, the World Trade Organization began the process of eliminating tariffs on hundreds of technology products, resulting in the organization’s first tariff elimination agreement in almost 20 years. In this year of strong anti-trade sentiments, U.S. politicians and citizens should take note that good trade deals are possible….Max Rysztak -
- Opinion
Here’s How Americans Can Curtail ‘Autopilot’ Spending and Take Back the Federal Budget
The federal budget is out of control. Autopilot spending currently consumes 68 percent of all tax dollars and will devour an ever-larger share of the budget in the future. If the lack of a congressional budget resolution this year is any indicator, Congress isn’t jumping at the chance to make meaningful reforms. However, time is…Mollie McNeill -
- Opinion
What It Means to Have a Trade Deal That Puts America First
The new Republican Party platform suggests: “We need better-negotiated trade agreements that put America first.” Here are nine ways future trade agreements could really put America—or more specifically, Americans—first. Trade agreements should: Guarantee U.S. manufacturers have the freedom to buy low-priced inputs like steel and raw materials free of export duties imposed by foreign governments…Bryan Riley -
- Opinion
Grim Budget Projections Show Need for More Congressional Action, Less Rhetoric
A recently released congressional report shows the depth of American fiscal problems and the need for lawmakers to tackle the nation’s dire financial situation. On Tuesday, the Congressional Budget Office released its 2016 Long-Term Budget Outlook. The annual publication projects the levels of U.S. spending, taxes, deficits, and the debt for the next 30 years….Justin Bogie -
- Opinion
How the Federal Government Can Get Its Spending Under Control
The federal government has a spending problem that threatens to swallow up the resources of the American taxpayer and crush the American economy. Congress can begin to solve this dilemma if it expands self-imposed restrictions to the part of the budget that is driving the country toward crisis. With Congress reneging on its promise to…Justin Bogie -
- Opinion
The Postal Service Needs Transformational Reform to Survive, but Hope for Reform Is Fading
Like the Cheshire Cat in Alice in Wonderland, postal reform in Congress seems to be fading fast with each new iteration. The latest version—put together by a bipartisan group of House lawmakers led by Rep. Jason Chaffetz, R-Utah—is the faintest yet. The bill, set to be marked up by the House Oversight Committee today, falls…James Gattuso -
- Opinion
The Noise Behind the New Jobs Report
The new jobs report shows employers cranked up hiring in June, creating 287,000 net new jobs. But the last jobs report, for May, showed the economy slowing to a crawl, with employers adding only 11,000 net new jobs in the month. What explains these large gyrations? Probably statistical noise. Americans shouldn’t read too much into…James Sherk -
- Opinion
These 3 Conservative Policies Have Allowed Indiana’s Economy to Flourish
Last month, America’s economy added just 38,000 jobs, the weakest growth in five years. We should expect more than the lackluster 2 percent growth we’ve grown accustomed to under President Barack Obama. Luckily, there is already a successful working model in my home state of Indiana to accomplish this. The recession hit Indiana harder than most states….Sen. Dan Coats -
- Opinion
America’s Next President Must Fix Autopilot Entitlement Spending
A recent report by the Committee for a Responsible Federal Budget raises concerns that proposals by this year’s presidential candidates would further increase the national debt. America’s major entitlement programs—Medicare, Medicaid, Obamacare, and Social Security—are driving the nation’s greatest fiscal challenge, and yet Americans have heard very little about how the candidates will address these…Christian Chelak -
- Opinion
Why the Stock Market Shouldn’t Be Used to Judge Brexit
Last week, the United Kingdom decided to leave the European Union. The U.K.’s earlier decision to stay out of the euro currency (which most, but not all, EU member states use) contains an unexpected lesson about economics and humility. In 2003, British Chancellor of the Exchequer Gordon Brown announced that Britain’s economy had not met…Salim Furth -
- News
Deli Owner Says $15 Minimum Wage in DC a ‘Mistake’ That Will Squeeze Business
The minimum wage increase in the nation’s capital to $15 an hour is going to clobber small businesses that don’t take in nearly $2 million a year, a Washington, D.C., business owner told The Daily Signal. Earlier this month, the D.C. Council unanimously passed a measure that will hike the minimum wage in the city…Leah Jessen -
- News
After Brexit, Paul Ryan Calls for ‘Special’ Trade Deal With Britain
House Speaker Paul Ryan is calling for the United States to engage in a free trade agreement with the United Kingdom once it completes the process of separating from the European Union. Seeking to preserve the “special relationship” between the two nations, Ryan, R-Wis., said the U.S. should pursue a unique trade partnership with the…Josh Siegel -
- Opinion
What Does Brexit Mean for America’s Economy?
Last Thursday, British voters chose to leave the European Union, 52 percent to 48 percent. The vote will have significant political implications in the U.K. and may tilt the balance of influence in Brussels, but it is likely to have little lasting economic impact on Americans. The U.S. exported $56.4 billion worth of goods to the U.K. in…Salim Furth -
- News
This Single Labor Rule Hurts Business Owners, Colleges, and Habitat for Humanity
Rodney Kloha feels like he has been backed into a corner by the federal government. Kloha, of Midland, Michigan, prides himself on running a clean and honest business, Circle K Service Corp., that has grown for nearly 30 years. But after the Obama administration issued a regulation last month raising the salary threshold for employees…Melissa Quinn -
- News
Koch Group Pushes 2-Year ‘Stop, Cut, and Fix’ Spending Plan on Congress
To put Washington’s fiscal house in order, an organization inside the conservative Koch network is pushing Congress to skip a budget and move straight to a two-year spending bill instead. Dubbed “Stop, Cut, and Fix,” the plan calls for a continuing resolution that would fund government in fiscal years 2017 and 2018 at current spending…Philip Wegmann -
- Opinion
New Peruvian President Pledges to Fight Populism and Expand Economic Freedom
It was the latest encouraging sign that Latin Americans are abandoning populist leftism in favor of market-based democracy. Last week Pedro Pablo Kuczynski, a conservative 77-year old former World Bank economist and investment banker better known by his initials, “PPK,” narrowly defeated right-wing populist Keiko Fujimori, daughter of autocratic former Peruvian president Alberto Fujimori. Peru’s…James M. Roberts -
- Opinion
US Postal Service’s Problems Go All the Way to the Top
It’s no secret that the postal business is shrinking. First-class mail volume is melting away like a popsicle in the sun—down 40 percent since 2000. Less well-known is the shrinkage of the U.S. Postal Service’s board of governors. It is supposed to have nine members (not counting the postmaster general and deputy postmaster general). At…James Gattuso -
- News
Business Owners ‘Nervous and Unhappy’ After San Diego Raises Minimum Wage to $11.50
San Diego residents on Tuesday voted to raise the city’s minimum wage to $11.50 an hour beginning Jan. 1, producing an outcome that left few surprised but small business owners feeling resigned and disappointed as they now work to address increased labor costs. More than 60 percent of San Diego voters supported Proposition I, a…Melissa Quinn -
- Opinion
Congress Should Not Use Defense Budget as Piggy Bank for Personal Priorities
The defense budget should be used to pay for things that make our country more secure and help the men and women in uniform accomplish their mission. Unfortunately, some in Congress use this funding as a piggy bank for their own unrelated priorities. In fact, for the current fiscal year, Congress took almost $500 million…Justin Johnson