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
Jobs Report Numbers at Odds With Obama’s Economic Spin
On Wednesday, President Barack Obama took an economic victory lap in Elkhart, Indiana. The Bureau of Labor Statistics’ employment report, which came out Friday, shows he was far too optimistic. Both the household and payroll surveys showed employment growth slowing to a crawl in May, while hundreds of thousands of Americans stopped looking for work. Seven…James Sherk -
- Opinion
Venezuela’s Crisis Is the Latest Example of Why Socialism Doesn’t Work
It seems the “Socialism of the 21th Century” is really no different from socialism from the past. Venezuela’s current tragedy, simultaneously culminating in food shortages, a crime epidemic, and an energy collapse, is the latest example of why centralized planning economy does not work—and how it is indistinguishable from tyranny. In the South American country,…Gabriel de Arruda Castro -
- Opinion
The Problem With the Government’s New Small-Dollar Loan Regulation
The Consumer Financial Protection Bureau has issued its long-awaited rule proposal to regulate small-dollar lenders such as those who provide payday loans. Formally, the CFPB’s proposal applies to payday, vehicle title, and certain high-cost installment loans. While it’s impossible to analyze all the details in this piece—because the proposed rule is more than 1,300 pages—it…Norbert Michel -
- News
House Bill Would Strengthen Welfare Work Requirement
Rep. Jim Jordan introduced a bill Thursday that would reform food stamps. “Welfare programs are meant to be a temporary safety net, but they have become a permanent way of life for millions of Americans,” Jordan, R-Ohio, said in a statement. “Instead of giving impoverished families and individuals a helping hand, the current system penalizes positive…Faith Vander Voort -
- Opinion
Congress Should Think Twice Before Creating Another Mandatory Spending Program
The latest development in Congress’s ambition to achieve “regular order” is the push to reauthorize the water resources development programs last authorized in 2014. But one provision in the House’s bill would actually work against Congress’s ambition for order by moving a large portion of spending out of the regular appropriations process. Both the House…Michael Sargent -
- News
Is It Time to Increase Defense Spending? McCain Proposal Sparks Debate
At a time when the U.S. is in combat in Afghanistan, Iraq, and Syria, while facing the constraints of sequestration, Sen. John McCain is setting up a dramatic debate on defense spending as he and his colleagues consider the annual defense policy bill. On Wednesday, citing what he calls a “dangerous mismatch” between worldwide threats,…Josh Siegel -
- Opinion
As Government Regulations Grow, Business Opportunities Shrink
A recent study by The Heritage Foundation revealed that President Barack Obama has created a whopping total of 20,642 regulations during his presidency. Now that he’s in his final year in office, we face an additional 2,000 proposed rules he intends to push through to complete his tarnished legacy. Businesses cannot be expected to thrive and…Rep. Doug Lamborn -
- News
Congress Examines Welfare Reform: ‘The Most Effective Anti-Poverty Program Is a Job’
For the first time in a decade, the House Ways and Means Committee held a full committee hearing on welfare reform, addressing how to get low-income Americans out of poverty. “Today’s hearing is about people, and right now there are more than 46 million people in our nation who are living in poverty,” Committee Chairman…Leah Jessen -
- Opinion
A Skeptical Look at Regulatory Budgeting
The burden of federal regulation on the U.S. economy has often been compared to a tax. Unlike ordinary taxation, however, these regulatory burdens are not accounted for in the federal budget. Unfortunately, the vision is as unattainable as it is tempting. Some members of Congress would like to create a “regulatory budget” specifically to limit…James Gattuso -
- Opinion
Thanks to GOP, Washington’s Summer Spending Spree Has Started
Washington’s summer spending spree is off to a very bad start for taxpayers. Congress couldn’t agree on a budget deal earlier this spring, but that isn’t stopping them from passing spending bills at historic levels. And President Barack Obama is fully engaged in budget gimmickry as well. The good news is that the majority of…Genevieve Wood -
- Opinion
The Case for a Regulatory Budget
The federal regulatory state is out of control. It is out of control economically, costing Americans between $1 trillion and $2 trillion per year in artificially inflated prices. And it is out of control politically, as federal bureaucrats now write upwards of 95 percent of all new federal “laws” without winning a single vote in Congress or…Sen. Mike Lee -
- News
House Conservatives Mull Budget ‘Trigger’ That Could Reduce Federal Spending
Conservatives are considering a budget compromise that would reduce spending by $30 billion unless the House is able to pass at least 10 appropriations bills. The “trigger” proposal, first reported by Roll Call, is the latest spending suggestion designed to break a stalemate in the ongoing budget battle. A long shot and a bit of…Philip Wegmann -
- News
How Maine’s Time Limit on Welfare Pushed One Woman to Pull Herself Out of Poverty
Jill Rothrock knows the moment she hit rock bottom. It was 2007, and Rothrock went into the pharmacy in Bucksport, Maine, to pick up a prescription for Vicodin that she had called in herself. Her two daughters were in the car, and after she had picked up the pills, Rothrock got back into a car…Melissa Quinn -
- Opinion
Government’s Obsession With Regulation Just Drove Uber Out of Austin
On May 9, residents of Austin, Texas, accomplished what many New York City regulators and legislators have tried in vain to achieve: they forced Uber and Lyft out of their city. Over the weekend, a mere 17 percent of the voters went to the polls and a majority voted in favor of retaining restrictive and…Jason Snead -
- News
Meet the Woman Who Oversaw Maine’s Welfare Reform
For Mary Mayhew, reforming the state’s welfare system hasn’t been easy. But the impact those reforms have had on Maine residents makes it all worth it. Since joining Gov. Paul LePage’s administration in 2011, Mayhew, commissioner of the Maine Department of Health and Human Services, and LePage, a Republican, have implemented changes to Temporary Assistance…Melissa Quinn -
- Opinion
Mixed News in April Jobs Report
The Bureau of Labor Statistics’ April jobs report contained mixed economic news. The agency reported wages grew healthily, overall unemployment did not rise, and long-term unemployment fell slightly in April. At the same time, job growth slowed and labor force participation dropped. The labor market is not contracting, but it is not growing as quickly…James Sherk -
- News
House Republicans to Move Forward on Spending Without a Budget Number
House Majority Leader Kevin McCarthy, R-Calif., just ended a civil war that has raged inside the chamber’s Republican conference for months. GOP leadership will not bring a budget plan to the floor next week for a vote, McCarthy’s office told Politico Thursday afternoon. And without a budget resolution, the House Appropriations Committee can begin moving…Philip Wegmann -
- News
The Left’s Push to Get Rid of Government Spending Transparency
How transparent is your state government’s budget? According to North Dakota Treasurer Kelly Schmidt, it can vary widely from state to state. In an interview with The Daily Signal, Schmidt explains why no matter where you live, citizens should be aware of a growing movement among liberal lawmakers to make it harder for you to…Genevieve Wood -
- News
How Republicans Lost Control of the Spending Fight in Congress
Republicans arrived in Washington this year promising a return to “regular order” in Congress. It was a hallmark of Paul Ryan’s quest to be House speaker and Mitch McConnell’s way of showing that the Senate could get things done. Gone were the days of omnibus spending bills and continuing resolutions—or the dreaded combination of the…Robert B. Bluey -
- News
House Freedom Caucus Chairman Vows to Push Conservative Amendments to Spending Bills
The chairman of the House Freedom Caucus said Wednesday that Republicans should be able to put forth “conservative policy riders” to appropriation bills. “If we really are about quote ‘regular order’ then that means the ability to offer amendments and push for those policy changes that we think make sense,” Rep. Jim Jordan, R-Ohio, told…Josh Siegel