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
Economic Freedom Is the Way Out of Extreme Poverty
A recent report by McKinsey Global Institute contains a startling fact. From 1990 through 2013, an estimated 1.1 billion people escaped extreme poverty—defined as subsisting on less than $1.90 per day—in the 71 developing countries covered by the report. Of those individuals, an estimated 1,057,000,000—about 95 percent—lived in just 18 countries. Interestingly, these are the… -
news
Government Regulations Are Putting Some Homeowners’ Dreams on Hold
BRYAN, Texas—Born and raised in Houston, Melody Woodard moved an hour and a half away from her hometown to start anew here in Bryan, outside College Station, Texas. But after her husband died, things changed. An animated, outspoken woman, Woodard was determined to make it on her own. But without help from her husband, things… -
opinion
Here Are 5 Things the Senate’s 2020 Budget Would Do
The Senate Budget Committee will move one step closer to producing a new budget this week when it meets for a mark-up hearing on its fiscal year 2020 budget resolution. The proposal as it exists now would take steps to avoid another irresponsible budget deal and would eliminate one particularly egregious budget gimmick. Yet the… -
opinion
Budget Cuts Would Stifle US Broadcasting to Post-Soviet Regions
The Trump administration’s budget proposal for the U.S. Agency for Global Media for fiscal 2020 reflects indifference—if not disdain—for the agency whose self-proclaimed mission is to “inform, engage, and connect people around the world in support of freedom and democracy.” The spending blueprint released on March 18 would reduce the budget for the agency, formerly… -
news
Trump Taps Stephen Moore for Federal Reserve Board
President Donald Trump will name economist Stephen Moore, a visiting fellow at The Heritage Foundation and former Wall Street Journal economics writer, to the Federal Reserve Board to oversee the nation’s monetary policy. “I will be nominating Mr. Moore for the Fed,” Trump told reporters Friday at the Palm Beach International Airport. “You know who… -
opinion
How Trump’s Tariffs Hiked Taxes on Americans by $14.4 Billion in 2018
Each year, the Council of Economic Advisers releases the “Economic Report of the President,” which assesses the state of the U.S. economy and the impact of the current administration’s policies. The 2019 report was published this week, and it contains valuable information on the economic effects of the Trump administration’s approach to trade. According to… -
opinion
Closing So-Called ‘Carried Interest Loophole’ Would Hurt the Economy
Increasing taxes on investment is always a bad idea, and that’s exactly what a new bill in Congress aims to do. Sen. Tammy Baldwin, D-Wis., and Rep. Bill Pascrell Jr., R-N.J., want to increase taxes on investments that support businesses and jobs all across in America. The Carried Interest Fairness Act of 2019 is simply… -
opinion
The Long History of the Economic Costs of Higher Tariffs
What are the economic effects of tariffs? That question has been studied in detail dating back to Adam Smith’s “The Wealth of Nations” in 1776, and a general consensus was long ago agreed to among economists. Tariffs decrease the health, happiness, and fortunes of those engaging in trade by: Steering trade toward inefficient producers. Encouraging… -
news
‘Self-Sufficiency, Not a Sinkhole’: JOBS Act Updates Work Requirements for Welfare Recipients
Republicans in the House and Senate are making another legislative push to enforce work requirements for able-bodied adults on welfare. Sen. Steve Daines, R-Mont., and Republicans on the House Ways and Means Committee on Thursday announced the Jobs and Opportunity with Benefits and Services Act. The JOBS Act comes as the Trump administration makes a… -
news
Bernie Sanders Says ‘Many Thousands’ Will Die as Budget Chief Predicts Stronger Medicare
President Donald Trump’s budget proposal would extend the life of Medicare by eight years, the administration’s budget chief told a Senate committee Wednesday. But Sen. Bernie Sanders, I-Vt., had a sharp question during the Senate Budget Committee hearing. “How many thousands do you think will die because of massive cuts to Medicare and Medicaid?” Sanders… -
opinion
What Liberals Forget: Before the Welfare State, Americans Took Care of Each Other
Over the weekend, Democratic fresh face and socialist darling Rep. Alexandria Ocasio-Cortez, D-N.Y., spoke at the South by Southwest conference. While sitting amidst the enormous bounty provided by capitalism—top-notch electronic equipment, a massive crowd of paid ticket holders—AOC tore into capitalism. She called the system that has raised 80 percent of the globe from extreme… -
news
Government Lays Out $4.6 Million on Lobster and Crab in Spending Spike
Against the backdrop of a record-breaking $22 trillion in national debt, the revelation that the federal government spent $4.6 million on lobster tail and crab is only one line item in a report that may disturb cash-strapped taxpayers. OpenTheBooks.com, a government watchdog nonprofit working to put all government spending online, has published “The Federal… -
opinion
Trump’s Military Budget Request Would Build on Recent Gains
The Pentagon on Tuesday released the president’s budget request for defense, which calls for the resources needed to sustain the increase in military readiness experienced over the last two years. The total funding request of $750 billion would represent an increase of 4.7 percent over the 2019 budget, largely aligned with the needs expressed by… -
opinion
Why the Commerce Secretary Shouldn’t Testify to Lawmakers About the Census
Commerce Secretary Wilbur Ross is scheduled to testify Thursday before the House Oversight and Reform Committee in a hearing on the Trump administration’s reinstating a standard citizenship question on the U.S. census. But with civil litigation over that very issue now before the Supreme Court, the House committee should cancel the hearing in recognition of… -
opinion
Trump’s Budget Reaffirms Commitment to Work-Based Welfare Policy
President Donald Trump issued an executive order last April that called for policy reforms to, among other things, “improve employment outcomes and economic independence.” Nearly one year later, the president’s budget proposal for fiscal year 2020 doubles down on this goal by renewing policies to promote work in means-tested welfare programs. Trump’s “Budget for a… -
opinion
US-China Trade Dispute Is Already Hurting US Farmers and Ranchers
The ongoing U.S.-China trade dispute is threatening the U.S. economy as a whole, and is hurting American farmers and ranchers. In recent years, China has been among the top two largest markets for U.S. agricultural exports. And much more potential for increased exports remains. The U.S. Department of Agriculture has said that “China offers our… -
news
Trump’s 2020 Budget Seeks More Border Wall Funding, Work Requirements for Welfare
President Donald Trump’s fiscal 2020 budget proposal would eliminate the federal deficit in 15 years, add new work requirements for welfare recipients, and fund additional construction of a border wall. The reaction to the spending blueprint by Democrats was predictably negative. The $4.7 trillion proposal, which projects a $1.1 trillion deficit, also asks Congress to… -
news
Kosovo’s Leaders Say a Durable Peace With Serbia Is Key to Economic Growth
PRISTINA, Kosovo—A former soldier whose nom de guerre was “The Snake,” Kosovar President Hashim Thaçi demonstrates both the easygoing demeanor characteristic of a combat veteran and the polished charisma of a politician as he explains how he has put old animosities aside for the sake of his country’s future. “I want to achieve lasting peace… -
opinion
Trump’s Budget Would Chip Away at the Debt, but More Work Still Needed
Budget season is officially upon us. On Monday, President Donald Trump released a preliminary sketch of his fiscal year 2020 budget proposal. The outline reflects a good first step toward restoring fiscal sustainability. It would cut spending by trillions of dollars and rejects the notion that another massive budget cap-lifting deal is essential to provide… -
opinion
Whirlpool Advocated for Tariffs on Washers. Now, It’s Going Through the Wringers.
Last year, the Trump administration implemented a three-year tariff rate quota on residential washing machines and parts. The tariffs were implemented because the government determined that washer imports were injuring Whirlpool Corp., the petitioning company and primary domestic manufacturer. The U.S. International Trade Commission recently initiated an investigation to monitor the impact of the tariffs….