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
What Is the Link Between Culture and Economic Opportunity?
At a panel discussion on Tuesday at The Heritage Foundation, contributors to the 2015 Index of Culture and Opportunity discussed what they characterized as the essential link between culture and economic opportunity. Jennifer Marshall, the vice president of the Institute for Family, Community, and Opportunity, said that opportunity isn’t just limited to economics, but is…Kate Scanlon -
- Opinion
September Jobs Report: Unexpected Weakness
The Bureau of Labor Statistics’ September jobs report showed unexpected weakness in the labor market. The payroll survey showed that employers created only 142,000 jobs in September. The economy created only 167,000 net new jobs a month in the 3rd quarter—a substantial drop from the 231,000 jobs a month pace in the 2nd quarter. The numbers are…James Sherk -
- News
California Labor Union That Fought for $15 Minimum Wage Now Wants an Exemption
The labor union that led the charge for a $15 minimum wage hike in cities across California is now moving to secure an exemption for employers under union contracts. The Los Angeles County Federation of Labor buried the exemption on the eighth page of its 12-page proposal for the Santa Monica City Council to review…Natalie Johnson -
- Opinion
Can Two Polar Opposite Senators Muzzle the Federal Reserve?
The Federal Reserve has injected trillions into the banking system since the 2008 crisis, and we’re still stuck in a low-growth economy. Yet rather than question the Fed’s overall mission and effectiveness, we’ve become obsessed with interest rates: Did the Fed make rates too low? Should it raise rates now or wait till December? If…Norbert Michel -
- Opinion
US Spends Far More on Social Welfare Than Most European Nations
The U.S. Census Bureau has released its annual poverty report. Conventional wisdom holds that the U.S. has a small social welfare system and far more poverty compared with other affluent nations. But noted liberal scholars Irwin Garfinkel, Lee Rainwater, and Timothy Smeeding challenge such simplistic ideas in their book “Wealth and Welfare States: Is America…Robert Rector -
- Opinion
Can Uber End Traffic Jams? CEO Has Bold Plan to Overhaul Transportation Industry
Travis Kalanick gave a rare interview in San Francisco this week at the mega Dreamforce conference. Since Uber began getting regularly hammered in the press for its aggressive political tactics and potential legal violations, the once outspoken CEO hasn’t given the public much direction about the future of the multi-billion-dollar transportation company. This week, he gave…Greg Ferenstein -
- Opinion
The Budget Battle: What You Need to Know
Federal funding for most government agencies and departments expires on Sept. 30. Lawmakers have just a few working days left to avert a government shutdown. At the same time, Congress is also facing budget deadlines this winter on the national debt, highway programs, regulations, and taxes. So can lawmakers do? The Heritage Foundation has published…Genevieve Wood -
- Opinion
3 Reasons to Focus on Something Other Than the Fed’s Interest Rate Target
Stocks tumbled in several major markets earlier this week because, supposedly, investors were nervous about this weeks Fed meeting. The Fed has flirted with raising its interest rate target for months now, but mixed economic news keeps giving them cold feet. When it does finally raise its target rate, it will be the first time…Norbert Michel -
- Opinion
The Redistributive State: How Government Shifts Economic Resources from High- to Low-Income Households
This week, the U.S. Census Bureau will release its annual report on income and income inequality. Historically, the official Census figures on inequality are misleading because they fail to account for most government fiscal redistribution. The high taxes paid by affluent households are ignored, and most of the government benefits and services received by lower-income…Robert Rector -
- Opinion
Five Years After the Recession, Only 21% of Small Businesses Say They’ve Recovered
More than five years after the end of the “Great Recession,” only 21 percent of small businesses* say they have fully recovered. During the recession, lack of sales ranked as the top problem small business faced. Taxes placed second, and “government regulations and red tape” placed third. And since 2012, at least one in five…Karen R. Harned -
- News
Conservative Group Won’t Support a Spending Bill That Funds Planned Parenthood
The House Freedom Caucus, a group of conservative lawmakers, has announced that it will oppose any spending bill that grants taxpayer funds to Planned Parenthood. In a statement, members of the group said: Given the appalling revelations surrounding Planned Parenthood, we cannot in good moral conscience vote to send taxpayer money to this organization while…Kate Scanlon -
- Opinion
A Higher Minimum Wage Would Eliminate Opportunity for Success
Watching the news these days, it may seem as though a minimum-wage job is the equivalent of a life sentence of poverty. But nothing could be farther from the truth. A minimum-wage job is not an end, but a beginning of what could be a very successful career. For more than a year, union-backed protesters have…Nick Novak -
- Opinion
Government Regulations Have Created the Problem of Unaffordable Housing
Why is housing so expensive in some cities, and relatively cheap in others? Place the blame on land-use restrictions put in place by local governments. During the housing boom of 2000 to 2005, the cry often went up from Washington that housing wasn’t affordable anymore. From 2000-2005 the median sales price of American single-family homes…Patrick Tyrrell -
- Opinion
Over 1 in 10 With Student Loans Don’t Even Know They Have Them
A postsecondary credential is almost universally viewed as important. As student debt levels continue to rise, however, Americans are losing confidence in the quality and affordability of their higher education. A clear majority of Americans think that the quality of higher education in the United States has stagnated or declined, and almost three-quarters think that…Matthew M. Chingos -
- Opinion
The Connection Between China’s Stock Market Collapse and Its Past Spectacular Growth
In mid-June, China’s Shanghai Composite Index was up a dazzling 60 percent since the beginning of the year. It was the highest level in more than six years. Some took it as a sign that the recent weakness in China’s economy would be short-lived. Yet it is only a little more than two months later,…William T. Wilson -
- News
E-Commerce Startup Co-Founder Talks Risk and Reward
Before 27-year-old Justin Chen was ever appointed CFO of an emerging startup, he was just a kid selling sneakers for fun. “There’s Nikes, and Jordans, and this whole community,” Chen explains. “I’m a huge collector. In high school, I would basically pay for all my purchases by reselling my sneakers. Just buying and selling them…Madaline Donnelly -
- Opinion
Jobs Report Shows Some Growth, But There Are Warning Signs About Economy’s Future
The Bureau of Labor Statistic’s August jobs report showed little change in the labor market. The payroll survey reported employers added a net 173,000 jobs last month. This was slightly below the 218,000 net jobs a month growth in the first seven months of the year. That difference is well within the survey’s margin of…James Sherk -
- News
SBA List to Screen Planned Parenthood Videos for Democrat Staffers
The Susan B. Anthony List has organized a screening of the Center for Medical Progress’s undercover videos for Democratic Capitol Hill staffers. The Susan B. Anthony List, an organization that works to elect pro-life lawmakers, will screen each video on Thursday morning for the staffers in attendance. Copies of the full-length videos will be available after…Kate Scanlon -
- News
Study: Half of Immigrant Households Used at Least One Welfare Program
The majority of immigrants in the U.S. receive some form of government welfare, significantly outpacing native-born Americans who use benefit programs, according to a study released Wednesday. The Center for Immigration Studies, a non-profit organization that advocates for decreased immigration, reported that 51 percent of immigrant households used at least one welfare program in 2012…Natalie Johnson -
- Opinion
The Fed Shouldn’t Pay Attention to Short-Term Changes in Stock Market
Back in grad school (not all that long ago), we pondered whether a central bank should target equity (or other asset) prices to conduct monetary policy. In theory, as the value of consumers’ stock portfolios rises, they will spend more, because they are wealthier. It turned out, though, that the empirical link among monetary policy,…Norbert Michel