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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- News
Lawmakers: Obama Administration Illegally Diverted Billions Intended for US Treasury to Insurers
Republicans on Capitol Hill are questioning the legality of a move by the Obama administration to give billions to insurers under a program implemented under Obamacare that they say is equal to an insurer bailout. At issue for lawmakers on the House Energy and Commerce Committee is whether the Centers for Medicare and Medicaid Services…Melissa Quinn -
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Meet Business Owners Fighting San Diego’s Proposed Minimum Wage Hike
Following in the footsteps of cities in northern California, San Diego is weighing an increase to its minimum wage that small business owners warn could serve as a “job killer” for them. The city is gearing up to vote on a proposal to raise its minimum wage to $10.50 an hour—50 cents higher than the…Melissa Quinn -
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Business Leader Predicts Oregon Will Lose 62,700 Jobs Due to Minimum Wage Hike
Oregon state legislators, acting despite the concerns of business groups, have passed a geographically based increase in the minimum wage. Two of the state’s business leaders, speaking to The Daily Signal, say they’re worried about what comes next. Jason Brandt, president and CEO of the Oregon Restaurant and Lodging Association, said he expects “significant, unintended consequences,” adding: We are…Leah Jessen -
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Why a Growing Gig Economy Is a Good Thing
When you buy an antique on eBay or use Lyft for taxi service, you’re a customer in the growing “gig economy.” According to new research from the JPMorgan Chase Institute, about 1 in 100 American adults receives income via one of these new “online earning platforms” each month. That’s not a big share of the…Paul Sukkar -
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The Economic Value of Marriage
In honor of National Marriage Week, consider this question: Does marriage impact the economic well-being of societies? One of the most important answers to the solution of poverty lies not in government programs, but in the institution of marriage. For the past 50 years, our country has been losing the war against poverty. More than…Elisabeth Zenger -
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Conservatives and Paul Ryan Talk Terms During Ongoing Budget Battle
There wasn’t any arm-twisting or shouting inside a closed-door Republican huddle on Capitol Hill. Instead, House Speaker Paul Ryan brought charts and graphs to plot how he thinks the GOP can move forward if they stomach a budget that increases government spending. A source inside the room tells The Daily Signal that Ryan laid out…Philip Wegmann -
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How This GOP Governor Cut His State’s Unemployment Rate in Half
When Florida Gov. Rick Scott took over as the Sunshine State’s chief executive in 2011, the state’s economy was struggling—unemployment hovered around 11 percent, Florida’s tourism industry was suffering and the state had added $5.2 billion to its debt. Now, as Scott heads into his fifth year serving as governor, he’s touting the successes he’s…Melissa Quinn -
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Q&A: What You Need to Know About Presidential Budget Process
President Barack Obama has released his final budget to Congress, shifting the federal budget process into high gear. Budgeting for the nation is a complicated and iterative process. Here is how the president’s budget fits in to that process: Q: Who writes the president’s budget? A: Starting in the spring of the previous year, the…Mollie McNeill -
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January Job Growth Shows New Normal in US Economy
American employers created 151,000 net jobs in January, reflecting an economy that is growing, but below its previous trends. The Bureau of Labor Statistics also reported that participation in the labor force was 62.7 percent, higher than the previous months but lower than the January, 2015, level. The best news was that average hourly wages…Salim Furth -
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Don’t Believe the Defense Budget Hype
Secretary of Defense Ash Carter has given a series of speeches outlining highlights of the 2017 defense budget request. The full budget request won’t be released by the administration until next week, so we don’t have the full picture. But as we see exciting headlines driven by the secretary’s speeches, we should keep a few…Justin Johnson -
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The New Budget Showdown: Conservatives Want to Disavow Boehner Deal
House Speaker Paul Ryan’s call for unity is facing a familiar challenge that tripped up Republican leaders before him: the budget and spending. In October, in his effort to “clear the barn” for Ryan, then-Speaker John Boehner helped negotiate a two-year budget deal with President Barack Obama and Democrats. It raised the 2017 spending level…Josh Siegel -
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It’s Time Congress Passes a Conservative Budget
The 2016 budget season kicked off last week with a particularly bleak forecast. The Congressional Budget Office (CBO) warned that the deficit in 2016 will be $130 billion higher than projected last August. Over the next nine years, deficits will be $1.5 trillion higher. And by the end of the next ten years, an additional…Paul Winfree -
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Proposed Legislation Would Increase Bureaucratic Interference in Housing Market
The Senate may move forward this week on an energy bill that would result in more government meddling and wasting taxpayer dollars on activities better left for the private sector. Members have offered more than 150 amendments, many of which would make an already bad bill even worse. One such example comes from Sens. Michael Bennet,…Norbert Michel -
- Opinion
US Ties Lowest Economic Freedom Score Ever
While nations around the world are working hard to enhance economic freedom, America’s score in the 2016 Index of Economic Freedom continues to slip. With economic freedom diminishing in eight of the past nine years, the U.S. tied its worst score ever in 2016 and remains mired in the ranks of the “mostly free.” It…Tori K. Smith -
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America Mired Below Top 10 in Economic Freedom
America’s economy remains less free than in past years even as the world’s other economies have grown more free overall, according to the 2016 Index of Economic Freedom released Monday by The Heritage Foundation and The Wall Street Journal. The U.S. came in at No. 11 on the list of 178 nations evaluated, edging up from No. 12 in…Kristiana Mork -
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Terrorists Won’t Be Eligible for Welfare Under This Congressman’s Plan
A congressman plans to introduce legislation Monday that would block terrorists from receiving food stamps. “I am shocked that our current law does not prevent the criminals who have been convicted of plotting and carrying out acts of terrorism against innocent Americans from getting welfare benefits,” Rep. Bruce Poliquin, R-Maine, said in a statement. Poliquin’s…Leah Jessen -
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How Unions Hope to Win a $15 Minimum Wage in California
Labor unions are pushing to raise California’s minimum wage to $15 an hour with two initiatives competing for voters’ approval. Two different unions are trying to get questions on the ballot for Californians to have a say on a $15 minimum wage. “One in four Californians is living in poverty because wages are too low to…Leah Jessen -
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Americans Less Focused on Budget Deficits. Why Experts Say That’s a Problem
As Congress gears up to mount discussions on their fiscal books, a new report has found that Americans’ focus on deficits is waning. However, the economic outlook for the next 10 years has budget experts saying that both the American people and their elected officials should turn their attention to government spending and federal deficits….Melissa Quinn -
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Oakland’s Minimum Wage Is Up, Wal-Mart Is Out
A minimum wage of $12.55 an hour in Oakland, Calif., may be the culprit for a Wal-Mart store’s closure. Wal-Mart announced Jan. 15 it will close 269 stores globally, including 154 locations in the United States—affecting about 10,000 associates across the nation. “The minimum wage in the city of Oakland played a factor, was one of the…Leah Jessen -
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Data Show These 6 Big Cities Aren’t Faring Well After Minimum Wage Hikes
Data shows a downhill economic trend for six big U.S. cities that hiked the minimum wage to $10 or more an hour in 2015. “Chicago, Oakland, San Francisco, Seattle, Los Angeles and Washington, D.C.—all on the leading edge of the push for big minimum wage hikes—all show worrisome job trends,” wrote Jed Graham of Investor’s…Leah Jessen