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
Sacramento’s Minimum Wage Hike Drives Costs Up for Small Businesses
The city of Sacramento recently approved a gradual increase in minimum wage to $12.50 by 2020, and with that a raise in the cost of operating small businesses. While the California Legislature passed a proposed minimum wage of $10 to take effect Jan. 1, Sacramento’s increase to 12.50 over the next four years will put…Joshua Gill -
- Opinion
Here’s a Radical Idea: Government Should Test to See if Taxpayer-Funded Programs Actually Work
It was one of the largest prisoner re-entry programs ever undertaken. RExO (Re-Integration of Ex-Offenders) aimed to help ex-cons find jobs, thereby reducing recidivism. Over the years, the U.S. Labor Department poured almost $743 million into the program. Only one problem: it didn’t work. And there are plenty more federal programs whose effectiveness has never been demonstrated. In some cases,…David B. Muhlhausen -
- Opinion
New Jobs Added in October, but Long-Term Unemployment Remains a Serious Problem
The October jobs report showed the economy growing robustly in October—a marked turnaround from September’s disappointing numbers. The payroll survey reported that employers added 271,000 net new jobs in October, almost double the number of net jobs created in September. The household survey found unemployment falling slightly to 5.0 percent—the lowest since early 2008. Digging…James Sherk -
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New Food Stamp Bills in Wisconsin Aim to Curtail Welfare Fraud and Abuse
As part of continued efforts by Gov. Scott Walker and legislators, welfare fraud and abuse legislation will be put to a vote on Tuesday in Wisconsin. A series of four bills, three of which target abuse of Wisconsin’s food stamp program, are expected to pass. The legislation (Wisconsin Assembly Bills 222, 200, and 188) would require…Leah Jessen -
- News
Conservatives Vow to ‘Not Back Down’ in Spending Fight
Looking to protest a budget agreement that increases spending by $80 billion over two years, conservatives may be inclined to advance appropriations bills that include controversial riders, such as a provision to defund Planned Parenthood. “Absolutely conservatives should push hard and not back down,” said Sen. James Lankford, R-Okla., in an interview with The Daily…Josh Siegel -
- Opinion
The Budget Process ‘Stinks,’ So Let’s Fix It
It can’t be overstated: Our current fiscal track is unsustainable and our ways of repairing it are inadequate. Or in the words of new House Speaker Paul Ryan, R-Wis., “the process stinks.” The Senate Budget Committee held a hearing this week on reforming the budget process and exploring ways to avoid the looming financial crisis….Ben Mordini -
- Opinion
More Spending Adds Up to Underwhelming Math and Reading Scores
New results are in from the test known as the “report card” for the nation’s schools, and they’re not good. The U.S. Department of Education just released data from the 2015 National Assessment of Educational Progress, a nationally representative test measuring student achievement in mathematics and reading. The NAEP, administered every other year in math…Lindsey Burke -
- News
The US Continues to Slash Its Military Budget. Here’s Why That Matters.
The United States is scaling back its military while nations hostile to American interests continue to grow in strength and aggression, according to The Heritage Foundation’s annual Index of U.S. Military Strength, released Wednesday. The index, rolled out nearly a week after President Barack Obama vetoed the nation’s annual defense bill, found that the military…Natalie Johnson -
- Opinion
This Is the Worst Budget Deal GOP Has Negotiated Since George H.W. Bush Violated No New Taxes Pledge
Halloween is looking especially scary this year. On Monday, Republican leaders in Congress declared an unconditional fiscal surrender to President Barack Obama and the left, negotiating a dangerous budget deal that eliminates all of the checks on Washington’s spend-and-borrow binge by breaking the budget caps, ending the sequester and raising the debt ceiling by over…Stephen Moore -
- News
In New York, Restaurant Industry Fights Minimum Wage Hike, Argues NY Governor Guilty of ‘Executive Overreach’
The National Restaurant Association is fighting New York’s anticipated $15-per-hour minimum wage hike in the restaurant industry’s latest wage battle. The association filed a petition last week pressing the New York Industrial Board of Appeals to scrap the anticipated increase for fast food workers in the state. The group argued that the New York Department…Natalie Johnson -
- News
Poll: 61% of Americans Oppose Debt Limit Hike or Want It Tied to Spending Cuts
Speaker John Boehner stepped to the podium this morning to proclaim that he listened to the American people when crafting his budget deal with President Barack Obama. 56% of Americans would shut down the government to achieve spending cuts. “Having listened to our members and listened to the American people, we have a budget agreement,” Boehner…Robert B. Bluey -
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How Conservatives Are Reacting to John Boehner’s Barn-Cleaning Budget Deal
Just days before he leaves Congress, Speaker John Boehner has once again managed to enrage conservatives. This time, it’s a mega-budget deal he struck with President Barack Obama—Boehner’s attempt to “clean the barn” upon his exit. “Based on what I know now, it appears the president got whatever he wanted,” Sen. Jeff Sessions, R-Ala., told…Robert B. Bluey -
- Opinion
How Marriage, Strong Families Contribute to Economic Growth
Is there a connection between strong families and a thriving economy? A new study, “Strong Families, Prosperous States,” takes a step toward answering the question. “Despite the clear economic gains associated with strong families at the individual level, economists across the ideological spectrum have failed to investigate whether strong families increase economic growth,” co-authors Brad Wilcox,…Rachel Sheffield -
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Jeff Flake Explains Why Republicans Want Entitlement Reform in Debt, Spending Deal
Congress has until November 3 to raise the debt limit so the government can borrow to pay its bills and avoid the risk of defaulting on its obligations. Meanwhile, government funding expires on Dec. 11. Today, multiple media outlets reported that House and Senate leaders are negotiating a two-year budget agreement that would raise the…Josh Siegel -
- News
Obama Celebrates a Drop in the Budget Deficit as the National Debt Balloons
The Obama administration is trumpeting a shrunken federal deficit as new justification for more spending and an end to mandatory budget cuts. The Congressional Budget Office, though, already has warned of “dramatic” debt trouble ahead. The Department of Treasury last week released the numbers for fiscal year 2015, announcing a $44-billion drop in the deficit from…Philip Wegmann -
- News
Seattle Voted to Hike the Minimum Wage to $15 an Hour. Here’s What Happened to Seattle’s Job Market.
The $15 minimum wage increase in the Seattle area “is getting off to a pretty bad start,” according to a new report. Data shows that the Seattle Metropolitan Statistical Area (MSA) lost 700 restaurant jobs from January to September of this year, and a report from the American Enterprise Institute suggests that this could be the product…Leah Jessen -
- News
Old Budget System Makes Modernizing Nuclear Defense Difficult
The need to modernize the U.S. nuclear arsenal is inevitable, but modernization of Major Force Programs for budget projections needs to come first, said panelists at The Heritage Foundation this month. The panel explained how informed discussion about the future costs of modernizing the nuclear triad is hampered by the disparity between the different…Joshua Gill -
- Opinion
Why Congress Must Work to Balance the Budget
Important budget questions were discussed this week at a widely attended event by the Institute to Reduce Spending that featured Chairman of the House Budget Committee Dr. Tom Price, R-Ga., as well as a panel of experts (I was delighted to be among the panelists). Price explained that the goal of fiscal policy and of…Romina Boccia -
- Opinion
How Congress Can Mess Up the Highway Spending Bill
With the threat of a government shutdown largely averted (at least until December), Congress is turning to address other must-pass measures it has skirted this fiscal year. Chief among them is the authorization for highway and transit spending, which is set to expire at the end of October following its latest $8-billion bailout in July….Michael Sargent -
- Opinion
Because of Defense Spending Cuts, Navy Won’t Have Aircraft Carrier in Middle East Anymore
Is the world becoming safer or more dangerous? Few people would select the first option. It doesn’t take Russia launching air strikes in Syria (to cite only one recent example) for most to admit that tensions are rising. So why in the world are we cutting defense spending? And not by small amounts. The U.S. military—which is…Ed Feulner