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
How Welfare Spending Hurts the People It’s Supposed to Help
Federal and state governments spent $1.02 trillion on welfare in 2014—an increase of $274 billion, or 36 percent, since 2003 after adjusting for inflation. At the federal level, the welfare bureaucracy spans numerous agencies and includes more than 80 different means-tested aid programs that provide cash, food, housing, medical care and social services to poor…Paul Winfree -
- Opinion
Cultural Woes Affect Our Economy, Too
A thriving society needs a strong economy. The reverse is just as true: A healthy economy is built on a vibrant culture that promotes individual and social well-being. It’s helpful to think of a society as an ecosystem—one in which cultural, political and economic spheres greatly overlap. As in any ecosystem, change in one sector…Rachel Sheffield -
- Opinion
GOP Leadership Prioritizes Corporate Welfare Over Defunding Planned Parenthood
It’s hard to believe what happened in Washington this weekend. The U.S. Senate attached an amendment resurrecting a dead corporate welfare program to the highway bill while refusing to even allow a vote to end taxpayer funding for Planned Parenthood. Conservatives have been fighting to stop the Export-Import Bank, which is a taxpayer-financed bank that…Jim DeMint -
- Opinion
The Connection Between Economic and Cultural Policies
As we publish the second Index of Culture and Opportunity, I am reminded of the differences between how Washington operates and how real life happens across America. Inside the Beltway, federal policymakers tend to think in terms that separate “economic” policy from “social” policy. But life in homes and communities around the country doesn’t organize…Jim DeMint -
- News
Martin O’Malley at Iowa Caucus Forum Series: Wants an ‘Inclusive’ Economy
DES MOINES, Iowa—Former governor of Maryland Martin O’Malley spoke at the Iowa Caucus Consortium 2016 Candidate Series in Des Moines Friday afternoon. O’Malley said he votes for the “sensible rebalancing” of the economy. “Together we have to choose to make a more inclusive economy that works for all of our people,” O’Malley said. The Caucus…Leah Jessen -
- News
How a Transportation Bill Could Revive the Export-Import Bank and Tackle Planned Parenthood
As the Senate prepares to debate legislation addressing the financial future of the Highway Trust Fund, several senators are looking to the bill as a vehicle to address controversial issues, including Obamacare and Planned Parenthood’s federal funding. The Senate voted Wednesday night on a procedural measure to advance the highway funding bill, which has been dubbed…Melissa Quinn -
- Opinion
Greek Economy Has Shrunk More Than U.S. Did in Great Depression
After 1945, the U.S. promoted economic freedom and growth in Europe to keep Communism at bay. Today, by backing the European Union in Greece, the Obama administration is driving Greece deeper into a depression that already has brought the far left to power. Greece desperately needs pro-market reforms. It spends too much on welfare; its…Ted Bromund -
- Opinion
What Paul Krugman Gets Wrong When He Claims Minimum Wage Hikes Don’t Cost Jobs
New York Times columnist Paul Krugman wrote today about the relationship between minimum wage hikes and jobs. “There’s just no evidence that raising the minimum wage costs jobs, at least when the starting point is as low as it is in modern America,” he wrote. [View the story “Why Paul Krugman Reads too Much…James Sherk -
- Opinion
Don’t Be Fooled by Promises of Entitlement Savings
Medicare is in serious need of fundamental reform. The old way in which Medicare reimbursed physician services was broken and needed to be scrapped. It was understandable that Congress wanted to find a permanent solution to the Medicare “Doc Fix” rather than relying on another short-term patch. The “Doc Fix” that was enacted in March…Paul Winfree -
- Opinion
Why I’d Never Invest in the Chinese Stock Market (And It’s Not Just Because of the New Decline)
From the summer of 2009 through 2012, I was an American economist living in Beijing. Although an avid stock investor, I have never once owned a Chinese listed company. Let me tell you why. Traditionally, Chinese households have had (basically) two places to put their savings: the banking system and residential real estate. With housing…William T. Wilson -
- News
Thanks to Minimum Wage Hike, San Francisco Chipotle Customers Paying $1 More for Burrito Bowls
Following a 14 percent minimum wage increase in San Francisco, Chipotle Mexican Grill Inc. had to raise its prices proportionately, according to a report from William Blair, a global investment banking and management firm. William Blair claimed that the price hike was likely a direct result of the increased minimum wage. Chris Arnold, a Chipotle…Chelsea Scism -
- News
Marco Rubio’s Economic Plan to Make America ‘Greater Than We’ve Ever Been’
WINDSOR HEIGHTS, Iowa—At a summer cookout here Tuesday evening, Florida Sen. Marco Rubio outlined the economic policies he would enact if elected president. “I’m running for president not because I think America’s doomed,” Rubio said. “I don’t believe America is doomed. I’m running for president because I believe that we are leaving on the table…Leah Jessen -
- Opinion
The Federal Reserve Hasn’t Reduced Frequency of Recessions. Why Is It Necessary Again?
In two months the Federal Reserve Bank of Kansas City will hold its annual symposium in Jackson Hole, Wyoming. It is here that, for more than 30 years, “participants from across the globe gather … to discuss important policy issues of mutual interest.” Previous topics have included labor market dynamics and unconventional monetary policy, but this year’s theme is…Norbert Michel -
- Opinion
Obama’s Pessimistic Outlook Hurts Our Trade Dealings
No thanks to his fellow Democrats, President Barack Obama won a victory in Congress last week when Republicans voted to give him the authority to negotiate trade agreements in Asia and Europe. Too bad so much of the president’s case for the agreements is based on his belief that the United States is in decline….Ted Bromund -
- News
Bernie Sanders Talks ‘Real Issues’ With Iowans: Campaign Finance and Minimum Wage
FORT DODGE, Iowa—Bernie Sanders, the second-term independent senator from Vermont, spoke on “real issues” at Iowa Central Community College today, promising that his policies would “strengthen families” if he were elected president. Sanders, who is running as a Democrat in 2016, stated a top priority of his is combating the Citizens United Supreme Court ruling—allowing…Leah Jessen -
- Opinion
June Unemployment Rate Drop Can Be Explained by Americans Dropping Out of Work Force
Today’s Bureau of Labor Statistics’ jobs report showed solid but not spectacular labor market growth in June. The payroll survey showed net employment jumping by 223,000 jobs while the household survey reported unemployment falling to 5.3 percent—a drop entirely driven by falling labor force participation. A smaller proportion of Americans are working or looking for…James Sherk -
- News
Poverty Pimps, Free Markets and Freedom: Walter Williams Talks Race and Economics
For decades economist Walter E. Williams has served as a strong supporter for fiscal conservatism. In his interview with The Daily Signal, Williams talks about several different topics, ranging from race to why conservative principles work best for those who are poor and impoverished. “Racial discrimination and racism could have died a well deserved death,…Jamie Jackson -
- News
Top Export-Import Bank Official Deletes Text Messages Sent During 2014 Midterm Elections
A government watchdog has learned a top-ranking official at the Export-Import Bank deleted text messages sent during the 2014 midterm elections, sparking a lawsuit calling for the recovery of the records. Cause of Action, a nonpartisan government accountability organization, submitted a Freedom of Information Act request to Ex-Im on Nov. 14, 2014, asking for text…Diana Stancy -
- News
The Latest Federal Mandate Threatening Doctor’s Offices
Gerald Harmon, a member of the American Medical Association’s Board of Trustees, owns a small, family medical practice in coastal South Carolina. A doctor for more than 20 years, his practice is among the many private, independent doctor’s offices threatened with financial insolvency because of an impending unfunded government mandate. Doctors have just over 90…Natalie Johnson -
- News
Rhode Island Hikes Minimum Wage for the Fourth Time in Four Years
Rhode Island lawmakers have approved legislation that will raise the state’s minimum wage. The Ocean State will increase its hourly wage from $9 to $9.60 starting on Jan. 1, 2016. According to NECN, the increase will be Rhode Island’s fourth minimum wage hike in four years. Gov. Gina Raimondo, D-R.I., signed the bill into law…Kate Scanlon