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 April Jobs Report Shows Need for More Pro-Growth Reforms
The April jobs report is in, and the Trump administration is taking a victory lap. That’s because the Bureau of Labor Statistics reported an increase of 211,000 jobs (up from an unimpressive 79,000 in March) and a drop in the unemployment rate from 4.5 percent to 4.4 percent—the lowest rate since May 2007. In addition,… -
news
Why Conservatives Are Unhappy With the Final Spending Bill
The House of Representatives, with 103 Republicans voting no, passed a $1.1 trillion spending package Wednesday to keep the government running through September. Conservative lawmakers who opposed the omnibus spending bill in the 309-118 vote said they’re disappointed the final plan doesn’t reflect that Republicans hold the levers of power in Washington. Republicans hold 238… -
news
Trump’s Agriculture Chief Tosses Out Michelle Obama’s School Lunch Rules
Former first lady Michelle Obama’s dictates on school lunches were thrown out Monday by one of President Donald Trump’s Cabinet members. Agriculture Secretary Sonny Perdue signed a proclamation to begin to undo federal standards that the Obama administration placed on lunches in public schools and return those decisions to local schools. “This announcement is the… -
opinion
Massive Spending Bill Fails to Meet Conservative Priorities
Early Monday morning, congressional negotiators released text of a massive omnibus appropriations bill that would fund the government through Sept. 30. The bill is expected to pass later this week with bipartisan support and avoid a government shutdown. While the bill does make progress on issues like additional defense funding and increasing border security, it… -
news
Spending Deal Near After Congress Gives Itself a Few More Days to Craft Package
Hours before the federal government’s spending authority expired Friday at midnight, the Senate advanced a one-week continuing resolution by voice vote, putting spending on autopilot and avoiding a looming government shutdown. The Senate action followed a 382-30 House vote to pass the one-week extension. Without the measure, the government would have run out of money… -
opinion
Why Shoring Up Fannie and Freddie Would Hurt the Housing Market
Almost a decade removed from the last housing crisis, the economy and housing market have improved—yet the federal government continues to hold significant influence over the housing finance system. The housing market is showing some signs of growth, including a steady decrease of “underwater” homeowners—a trend certainly driven by the increases in home prices across… -
opinion
Your Household Share of Federal Spending Keeps on Rising. Here’s the Solution.
It’s sometimes hard to fully visualize a massive sum of money. Take $3.854 trillion for instance—the amount the federal government spent in 2016. That’s a lot of money, but America is a large country. It may be easier to picture if we knew how much spending each household would be responsible for if households all… -
opinion
Congress Should Resist Cotton Cronyism in Upcoming Spending Measures
This week, Congress returns to Washington to address government funding. Unfortunately, two costly corporate welfare programs could be expanded. In the 2014 farm bill, Congress created two massive programs whose projected costs to taxpayers have nearly doubled. Originally projected to cost $18 billion over five years, the programs are now projected to cost a shocking… -
news
13 Ways Trump Has Rolled Back Government Regulations in His First 100 Days
As President Donald Trump reaches his 100th day in the White House on April 29, he will have worked with Congress to rescind more regulations using the Congressional Review Act than any other president. “We’re excited about what we’re doing so far. We’ve done more than that’s ever been done in the history of Congress with… -
opinion
Even With Republicans in Charge, Upcoming Budget Battle Looks Grim
And so it begins. The GOP surrender in the budget battle. Despite all the campaign promises to “rein in government” and “get the country’s fiscal house in order,” the groundwork is already being laid by Republican lawmakers to explain why they just aren’t going to be able to put the brakes on spending after all…. -
opinion
Seattle Ordinance Limiting Landlord Rights Undermines Economic Liberty and Should Be Rescinded
Should a landlord be required to rent an apartment to the first “qualified” person to appear on his or her doorstep? The city of Seattle seems to think so. Its imposition of this obligation, however, is being challenged by the free market-oriented Pacific Legal Foundation, a watchdog organization that litigates nationwide for limited government, property… -
opinion
Why US Economic Growth May Be Stronger Than We Think
Could the U.S. economy be growing more than the official growth figures let on? In a recent National Bureau of Economic Research working paper, “Why is Growth Better in the United States Than in Other Industrial Countries,” Martin S. Feldstein, former chairman of the Council of Economic Advisers, suggests that government statisticians have been underestimating… -
news
School Forced to Cut More Than 20 Classes in Order to Pay Labor Union
The University of Massachusetts, Boston is cutting more than 20 summer courses as the school desperately attempts to manage a $30 million operating deficit that is due in part to a project labor agreement that requires unions to be the “sole and exclusive” source of job-site labor. The university has been plagued by controversy, ranging from… -
news
How States Are Trying to Force Federal Government to Control Spending
Georgia state Rep. Paulette Rakestraw helped lead her state to be the first to join a formal interstate compact to push the federal government to balance the budget since she doesn’t believe the federal government will fix its own fiscal mess. “The problem in Washington is the structure, you can replace everyone there and it’s… -
opinion
How Free Trade and Economic Freedom Help the Poor
Today, many people argue that trade disproportionately hurts poor Americans. They say free trade creates a wage gap between low- and high-income earners, and constructs barriers that make it increasingly difficult for the less fortunate to climb the economic ladder. But recent data from The Heritage Foundation shows that this simply is not true. The… -
news
What’s at Stake in the Coming 4-Day Spending Fight
When Congress returns from its Easter recess April 24, lawmakers will have only four legislative days left to decide on a spending plan that prevents a government shutdown. With such a narrow window, the House and Senate will have little choice but to pass a huge, omnibus spending bill and again put off a return… -
news
OMB Director Set to Tell Agencies to Prep for Substantial Cuts
Office of Management and Budget Director Mick Mulvaney is reportedly slated to send a letter to federal agencies later this week warning them to prep for substantial budget cuts. The guidance letter falls in line with President Donald Trump’s March 13 executive order aimed at making the government leaner and more efficient, Axios first reported. The order… -
opinion
Weak March Jobs Report Shows Need for More Reforms in Washington
Friday’s jobs report announced that businesses created 98,000 jobs, underperforming expert predictions, and showing the weakest gains in almost a year. It appears that the “Trump bump,” based on confidence from President Donald Trump’s election, has subsided as job creators await Washington’s next concrete steps on taxes or trade. On the positive side, the jobs report… -
opinion
Economic Freedom the Biggest Loser in Ecuador’s Election
Last Sunday, economic freedom and sound governance took a hit in Ecuador. Lenín Moreno, the nation’s former vice president and socialist candidate, won by a narrow margin amid widespread charges of electoral fraud. The outcome all but secures a fourth consecutive term for outgoing President Rafael Correa’s socialist Alianza Pais party. Ecuadorian law prevented Correa…