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
Banks Should Not Be Forced to Buy ‘Stock’ in the Federal Reserve
A week ago, President Barack Obama signed a new highway funding bill that will effectively tax banks and raid the Federal Reserve to pay for new highway spending. That whole ordeal exposed the convenient fiction that the Federal Reserve needs capital. The truth is, however, that the Fed doesn’t need capital, since it can just…Norbert Michel -
- News
House Conservatives Frustrated by Ryan’s Secret Budget Talks With Democrats
More than a trillion taxpayer dollars are on the table as House Speaker Paul Ryan and House Minority Leader Nancy Pelosi negotiate a massive spending deal. But while those talks drag on between Pelosi, D-Calif., and Ryan, R-Wis., many House Republicans say they’re growing frustrated by the secrecy surrounding the process and the lack of…Philip Wegmann -
- News
Freedom Caucus: Top Priority for Spending Bill Is Stricter Screenings of Syrian, Iraqi Refugees
Despite no one believing them, members of the conservative House Freedom Caucus have insisted that their votes could be had on a forthcoming government spending bill even though they believe it spends too much money. The way to their votes, some members claim, is for negotiators to tack on always-contentious policy provisions to the spending…Josh Siegel -
- Opinion
End Wind Welfare
Unnecessary government subsidies promote inefficiency, limit competition, and cost taxpayers more than they get in return. A prime example is the wind energy Production Tax Credit, or PTC. While this wasteful tax credit is currently expired, President Barack Obama wants to revive the PTC and make it a central component of his harmful “Clean Power…Rep. Kenny Marchant -
- Opinion
Why Isn’t There More Talk About Out-of-Control Spending With the Government Funding Deadline So Close?
With a Dec. 11 government funding lapse looming, lawmakers have every opportunity to rein in reckless spending increases (and they should). But few are taking a stance to protect taxpayers from higher spending. This is puzzling because the Obama-Boehner budget deal (Bipartisan Budget Act, or BBA), which was signed into law on Nov. 2, established…Romina Boccia -
- Opinion
Here Are Some Budget ‘Life Hacks’ the Government Should Use
The holiday season is fast upon us—that time of year when Americans across the country gather ’round the warm glow of their computer screens and try to figure out how on earth they are going to balance their budgets. Political debates can seem a long way away when you’re in a room alone with your…Salim Furth -
- Opinion
November Jobs Report Shows Positive Growth
The Bureau of Labor Statistics found that the labor market continued to grow steadily in November. Employers added 211,000 net new jobs, while the unemployment rate remained constant. Across the economy, most labor market indicators either improved or remained constant. The household survey showed that the unemployment rate remained at 5 percent in November. However,…James Sherk -
- News
What Conservatives Want to See Included in the $1.1-Trillion Spending Bill
In order for House GOP leadership to earn conservatives’ support on the omnibus spending bill, conservative lawmakers are pushing for several policy riders to be included in the package, with their first priority centered on strengthening the system that allows Syrian refugees to resettle in the United States. At the monthly Capitol Hill event Conversations with…Melissa Quinn -
- Opinion
We Can’t Afford the Latest Budget Deal
On November 2, President Barack Obama signed the Bipartisan Budget Act (BBA), which passed Congress with 233 Democrats and 97 Republicans voting in its favor. Enactment of the BBA was a historic event. For the first time in modern history, Congress granted a president unlimited borrowing authority for nearly an entire term in office. The…Paul Winfree -
- Opinion
Kazakhstan’s Economy: Collateral Damage From Low Oil Prices and Russia’s Recession
2015 has not been kind to Kazakhstan’s economy (the largest in Central Asia). Although it has the highest levels of economic freedom in the region, the country’s growth has slowed, with estimates now calling for just 2.8 percent, significantly less than last year’s 4.3 percent. The culprits in the decline? A weakened Russian currency and…James M. Roberts -
- News
Maine Doubles Down on Welfare Reform Despite Media Backlash
Mary Mayhew, commissioner of Maine’s Department of Health and Human Services, knows her politics aren’t always popular. “I can’t stress enough what an attack campaign it has been from the media for four and a half years,” Mayhew said Thursday at an anti-poverty forum in Washington, D.C., hosted by The Heritage Foundation. Then there are the…Madaline Donnelly -
- Opinion
80 Trillion Yen Later, Another Recession
Japan is in recession, again. A year ago, I wrote about Japan facing back-to-back decline in its quarterly gross domestic product (GDP). Despite the Japanese government’s admirable changes to corporate and social policies, continued misguided monetary policies have effectively created a black hole of wealth for Japanese bond holders. Preliminary results for Japan’s third-quarter GDP…Riley Walters -
- News
How Michigan’s Welfare Population Declined by 70% in 4 Years
Since Michigan Gov. Rick Snyder assumed office, the number of welfare recipients in the state has declined by a staggering 70 percent, according to a news report. A total of 64,492 individuals received cash assistance from the state this past August, down from 227,490 in 2011. Snyder, a Republican, took office in January 2011 and was re-elected in November…Sara Jones -
- News
Poll: Most Americans Dissatisfied With Budget Deal That Allows More Spending
The majority of Americans dislike the budget deal Congress passed in October, according to a poll from the Economist Group and YouGov. Sixty-one percent of those polled—Democrats, Republicans, and independents—said they are dissatisfied with the bipartisan budget deal and believe that “lawmakers should have stuck to lower spending levels.” The remaining 39 percent agreed that the deal “is…Joshua Gill -
- Opinion
US Postal Service Announces $5-Billion Loss
For most businesses, losing over $5 billion would be a shock. Share prices would plummet, and management would fear for their jobs. But over at the U.S. Postal Service, which on Friday morning announced a $5.1-billion loss for its just completed fiscal year, it’s nothing new. Losing money has become a bit of a tradition…James Gattuso -
- Opinion
Many Who Are Trapped on Welfare Don’t Apply for Jobs
There are jobs are out there, according to data released Nov. 12 by the Bureau of Labor Statistics. The question is, who wants them? The rate of available job openings in the private sector—as a percent of all private-sector jobs—rose in September to its second highest level since the Bureau of Labor Statistics began reporting…Patrick Tyrrell -
- Opinion
Get Ready for Two Big Budget Showdowns in Congress
It hasn’t gotten much attention, but two big budget showdowns are looming in Washington in the weeks ahead. The first is what to do about raising the $18-trillion debt ceiling. And the second is whether to retain the spending caps/sequester cuts in the 2016 budget. Treasury Secretary Jack Lew announced last week that Congress will bump up against the…Stephen Moore -
- Opinion
Venezuela’s Economic Crisis
The effects of 21st-century socialism in Venezuela are horrifying. According to the International Monetary Fund, Venezuela’s economy will shrink by at least 10 percent in the upcoming year. Venezuela is suffering from the fastest inflation rate in the world, with the rate reaching triple digits. Their currency, the bolivar, is practically worthless despite the exchange…Arlecchino Gomez -
- News
Feeling a Part of the Process, Freedom Caucus Eyes ‘Gut Check’ for Paul Ryan on Spending Bills
After experiencing the first week of Speaker Paul Ryan’s House, conservatives say they feel right at home. A week into Ryan’s tenure, members of the House Freedom Caucus are crediting the speaker for delivering on his promise to open up the legislative process, and delegate authority to rank-and-file members. And though the outcomes of the…Josh Siegel -
- Opinion
The Government Just Slapped Crowdfunding With a Bunch of New Regulations
Two events from last week exemplify federal officials’ refusal to let people live their own lives and earn money as they see fit. One deals with the Department of Labor (DOL)’s new fiduciary rule, the other with the Securities and Exchange Commission (SEC)’s new rules for crowdfunding. The 2010 Dodd-Frank Act required the SEC to study the…Norbert Michel