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
Another State Looks to Drug-Test Welfare Recipients
A bill that would require drug tests for welfare recipients is slated to be introduced by two Republican lawmakers in South Dakota. State Rep. Lynne DiSanto, R-Rapid City, and state Sen. Betty Olson, R-Prairie City, are putting together the bill, which they expected to introduce this week. “The taxpayer-supported welfare system provides assistance to those in need….Leah Jessen -
- Opinion
5 Reasons Why America Is Headed to a Budget Crisis
On Tuesday, the Congressional Budget Office released its preliminary budget and economic outlook for 2016-2026. The report shows that despite temporary improvements over the past few years, the country continues to be on an unsustainable budget path. From the report it remains clear that our nation is on the wrong path. Spending, deficits, and debt…Justin Bogie -
- Opinion
Brazil Has Fallen Into Its Worst Recession Since 1930s
Brazil, world-famous for its carnival celebrations in Rio and elsewhere, is canceling the festivities this year. As the Financial Times reports, across the country, towns and cities “are being forced to scrap the annual carnival parade as the country is braced for what is expected to be the worst recession since at least the 1930s.”…James M. Roberts -
- News
House Conservatives Say New Trouble Brews Over Old Spending Deal
BALTIMORE—Republicans retreated to the Baltimore Inner Harbor to talk strategy for their 2016 legislative blitz. But when they return to Washington, they’ll have to settle a skirmish in their own ranks. The disagreement revolves around the budget deal negotiated in October by President Obama and then-House Speaker John Boehner. That agreement locks in government spending…Philip Wegmann -
- News
Conservatives Ponder Rerun of Legislative Play to Push Welfare Reform
Conservatives are considering whether to redeploy a fast-track process known as reconciliation to advance welfare reform and other policy goals in 2016. They ran that legislative play late last year to send a bill repealing the Affordable Care Act to President Obama’s desk. Republicans may use reconciliation to win more reforms of welfare, said Rep….Philip Wegmann -
- Opinion
The Economy Is Still Hurting, Despite Strong December Jobs Report
The Bureau of Labor Statistics’ December employment report showed robust labor market growth. The headline numbers show employers added 292,000 net new jobs while the unemployment rate remained constant at 5.0 percent. Delving deep, the details of the employment report also showed mostly good news. The household survey reported almost a half million Americans (466,000)…James Sherk -
- Opinion
How the ‘Green Revolution’ Has a Backward View on Economic Growth
The Paris climate change conference, which took place last month, was full of exhibitions highlighting new green technology. One of these, called the SolarSoundSystem, involved people pedaling stationary bicycles in order to run generators. While this may seem fun for a while, it provides an important glimpse into the benefits of the affordable, reliable energy…Nicolas Loris -
- Opinion
How the Government Held Back a Real Housing Market Recovery in 2015
Seven years after the housing market collapse, the housing market continued a lopsided recovery in 2015. Overall, the housing market was stalled by a combination of meddling from the federal government and the continued weaknesses in the broader economy and labor market. Those select housing markets showing strength did so mostly in terms of house…John Ligon -
- Opinion
Budget Cuts Are Hampering Navy’s Role In Fighting ISIS
Last week, in another defense of the current approach to defeat ISIS, President Barack Obama reemphasized that we are “hitting ISIL harder than ever.” The U.S. and its coalition partners have increased the pace of airstrikes- totaling nearly 9,000 since the start of the engagement. In absolute terms we may be hitting them harder, but…Rachel Zissimos -
- Opinion
Why the Government Shouldn’t Subsidize Student Loans
Good government should always take account of human nature: one aspect of human nature is that you are more careful about conserving resources when you are dealing with your own property. Any child knows that if he breaks his toy by being reckless, he had better not be reckless. But what if the parent always…Lindsey Burke -
- Opinion
Here’s a Better Idea Than the Massive Government Spending Bill
The omnibus spending bill soon to come before us is chock-full of controversial policies that never would have passed had they been exposed to the light of day. Not only does this bill spend an additional half-billion dollars on an unreformed and failing Head Start program, and not only does this bill air-drop an entire…Sen. Mike Lee -
- News
House Conservatives Deride Spending Bill for Not Including Conservative Priorities
Conservative House lawmakers aren’t happy about the $1.1 trillion omnibus spending bill released early Wednesday morning. “Sadly, this bill does not adequately address the security issue, nor does it have the common sense, widely-supported pro-life riders that we suggested,” said Rep. Jim Jordan, an Ohio Republican and chairman of the House Freedom Caucus, in a…Philip Wegmann -
- Opinion
What’s Wrong With the Massive Omnibus Spending Bill
Early Wednesday morning, the House Rules Committee posted text for the Consolidated Appropriations Act of the 2016 fiscal year (FY). This $1.1 trillion spending package, known as the omnibus, shows Washington at its worst. Lawmakers are being asked to sign off on 2,200 pages (with an additional 1,000 pages of explanatory materials), at the 11th…Romina Boccia -
- News
Campaign Finance Measure Opposed by Conservatives Kept Out of Spending Deal
Conservatives may be lamenting the absence of measures in the omnibus spending bill addressing Syrian refugees and Planned Parenthood, but the massive legislation notably left out a campaign finance measure opposed by both conservative lawmakers and Democratic groups. Absent from the $1.1 trillion spending is a measure backed by Senate Majority Leader Mitch McConnell, R-Ky.,…Melissa Quinn -
- News
Democrats Are Celebrating These Conservative Policies Not Being in Omnibus Spending Bill
Democrats are claiming they scored significant policy victories in the $1.1 trillion omnibus spending bill. Hours after the mammoth spending bill dropped, Democrats are counting their triumphs, outlining conservative policy riders and priorities that were not included in the final spending bill. A top Democratic Senate aide summed it up in a single tweet. Adam…Philip Wegmann -
- Opinion
Why You’d Be Wrong in Thinking the Fed Just Raised Interest Rates
For the first time in seven years, the Federal Reserve has raised its target for the federal funds rate. Some news reports get this story right, but most repeat the standard line that the Fed has raised interest rates. This is wrong. The Fed does not set interest rates, and it’s more than just semantics….Norbert Michel -
- News
Here’s What’s in Congress’ Spending and Tax Package
Congressional leaders announced the details of a $1.1 trillion spending bill to fund the government on Tuesday night. But with spending levels already predetermined, lawmakers were more concerned with what policy provisions were attached to the legislation. The spending legislation will be introduced with a package renewing billions of dollars in tax breaks for businesses and…Josh Siegel -
- Opinion
A Vote for Green Climate Fund in Omnibus Spending Bill Is a Vote for Paris Agreement
What better time than Christmas to spend other people’s money and give presents to the environmental activists? In addition to the other generous handouts renewable companies would receive in the omnibus spending bill, backroom negotiators are also pushing for President Barack Obama’s $3 billion pledge for the Green Climate Fund, a key component of the…Nicolas Loris -
- Opinion
The 12 Tariffs of Christmas
Thanks to U.S. trade policy, Americans will find themselves paying above-market prices for many Christmas gifts this year. The United States has free trade agreements with 20 countries around the world, which reduce most tariffs on imports from these countries to zero. However, these agreements cover only approximately 36 percent of U.S. annual imports. To…Tori K. Smith -
- News
Paul Ryan, Criticizing a Spending ‘Railroad,’ Promises to Put the House on New Track
House Speaker Paul Ryan became the unwilling engineer of the spending locomotive that John Boehner built. But he says the appropriations process established by his predecessor “is no way to run a railroad” and promises sweeping reforms. Before a packed crowd gathered Tuesday for a breakfast event hosted by Politico, Ryan promised that the “number-one”…Philip Wegmann