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
Time to Get Federal Government Out of Highway Spending Decisions
America’s interstate highway system, which broke ground in 1956 and was completed in the early 1990s, enables us to affordably travel more than 3 trillion miles per year on its roads. But even 20 years after its completion, funding for maintenance of the interstate highway system remains in the hands of Congress and federal bureaucrats….Michael Sargent -
- News
John Kasich on Export-Import Bank: ‘Get Rid of It’
Gov. John Kasich tells The Daily Signal that he’d like to see the Export-Import Bank shut down. “There’s been corruption in the bank. If they can dramatically restructure it, that would be OK with me but I’d rather at this point get rid of it,” the Ohio Republican said in an interview Friday at the…David Brody -
- Opinion
How Liberals Manipulate Data About the Minimum Wage
Does the U.S.-Canadian speed gap bother you? Americans can drive no faster than 65 on Massachusetts highways. Meanwhile Canadian motorists zip along at speeds of up to 100. Congress should close this inequitable speed gap! This argument sounds ridiculous, because it is. Canadians measure speed in kilometers per hour, not miles per hour. Moreover, many…James Sherk -
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How the House Revived Obama’s Trade Deal
The House took the first step today to save President Obama’s trade agenda when it granted him negotiating power over a legacy-building deal with 11 Pacific Rim nations. In the first part of an elaborate strategy by Republican leadership, the House voted 218-208 for Trade Promotion Authority, legislation that would make it easier for Obama…Josh Siegel -
- Opinion
Ending the Ex-Im Bank Is a Good Step to Rebuilding Our Economy
With the charter of the Export-Import Bank of the United States set to expire June 30, its supporters claim its demise would result in the loss of jobs, harm to the economy, and damage to U.S. competitiveness overseas. The truth, however, is that eliminating the billions of dollars of subsidies provided by the bank would…Bill Peacock -
- Opinion
Why Jeff Immelt’s Wrong That Letting Ex-Im Bank’s Charter Expire Would Be ‘Economic Catastrophe’
General Electric Chairman and CEO Jeff Immelt unleashed yet another barrage of fearmongering today about the potential expiration of export subsidies. Before a speech at the Economic Club of Washington, Immelt claimed that allowing the charter of the Export-Import Bank to expire would be “economic catastrophe.” The facts say otherwise. GE and the other beneficiaries…Diane Katz -
- Opinion
CBO’s Long Term Outlook Sees Smaller GDP Growth and Lower Interest Rates
The Congressional Budget Office released its annual 2015 Long Term Budget Outlook today, including the economic assumptions on which that outlook relies. Setting aside the report’s confirmation of rapid growth in federal spending and a daunting fiscal outlook, the report contains some noteworthy changes in economic assumptions that affect the future budget outlook. For starters,…Rachel Greszler -
- Opinion
A Spotlight on Government Waste and Corporate Welfare
While it is no surprise to most Americans that government tends to operate less efficiently than the private sector, the amount of money that is lost or mishandled is often much higher than many people imagine. The United States Postal Service (USPS), for example, faced losses of approximately $2 billion per quarter in the 2014…Amber Athey -
- Opinion
The Cures Act and the Limitations of the Budget Control Act
What do you do when one-third of your budget is limited by a spending cap? Shift funding to the part of the budget that is not capped, of course! That is, if you are a Member of Congress. The House Energy and Commerce Committee recently passed the 21st Century Cures Act (H.R. 6) with unanimous…Romina Boccia -
- News
Entering 2016 Race, Jeb Bush Pledges 19 Million New Jobs, 4% Economic Growth
Jeb Bush didn’t keep his audience in suspense, announcing within four minutes of taking the stage in his adopted home of Miami that he is indeed a candidate for the Republican nomination for president. Bush made a direct appeal to conservatives in his speech at Miami Dade Community College, echoing Ronald Reagan’s emphasis on getting…Ken McIntyre -
- News
History Lesson: Opposition to Export-Import Bank Has Grown Over Time
Supporters of the Export-Import Bank cheered last week when the majority of United States senators voted in favor of reauthorizing the embattled agency. However, the vote also demonstrated growing opposition to the bank among Republican senators—a trend that has evolved in recent years. Since 1992, opposition to Ex-Im has grown substantially among Republicans in the…Melissa Quinn -
- Opinion
Obama Once Called This a Fund for Corporate Welfare. Now Congress Could Kill It.
Congress does two things well: nothing and overreact. Well, I have some good news: Doing nothing when it comes to the Export-Import Bank is exactly what we need right now. That’s because the charter for the Export-Import Bank, which provides taxpayer-backed loans to foreign countries and companies to pay for U.S. products, is set to…Ed Feulner -
- News
How Obama’s Trade Deal Unraveled in the US House
President Obama’s last-minute push to whip votes for his trade bill backfired Friday as the House of Representatives killed a related measure providing aid to workers displaced by trade. The legislation was critical to the president’s pursuit of greater authority to negotiate trade agreements. The 126-to-302 vote marked a failure for Obama after forging an…Natalie Johnson -
- News
Here’s the Most Critical Amendments to the Military Spending Bill
This week, the Senate is debating the National Defense Authorization Act, which outlines the U.S. Department of Defense budget for fiscal year 2016. The legislation covers a broad scope of U.S. military policies and has been passed for 53 consecutive years. This year’s bill currently has over 500 amendments, ranging from military child care, funding…Diana Stancy -
- News
What Happens If the Export-Import Bank’s Charter Expires?
As its expiration date nears, the Export-Import Bank’s biggest beneficiaries and supporters are warning that Ex-Im’s end could be bad for business. But what would actually happen if the bank were not reauthorized by June 30? “American exports won’t stop on July 1,” Dan Holler, spokesman for Heritage Action for America, told The Daily Signal….Melissa Quinn -
- Opinion
Senator Rand Paul Cracks Down on Government Waste and Corporate Welfare
This afternoon, the U.S. Senate Subcommittee on Federal Spending Oversight and Emergency Management will hold a hearing on “Wasteful Spending in the Federal Government.” Romina Boccia, the Grover M. Hermann Research Fellow in Federal Budgetary Affairs and Research Manager at The Heritage Foundation, will testify on eliminating wasteful government spending by cutting corporate welfare. Corporate welfare, one form of crony capitalism, redistributes taxpayer resources to well-connected interest groups, rather…Amber Athey -
- Opinion
New Labor Department Overtime Regulations Will Kill Flexible Schedules for Employees, Not Jobs
New Labor Department regulations will soon require employers to pay overtime to many salaried workers. The administration bills this as a way to raise wages; opponents argue it will kill jobs. One thing is certain: The change will kill flexible schedules for entry- and mid-level salaried employees. Federal law requires employers to pay overtime rates…James Sherk -
- News
In New Hampshire, Chris Christie Shares His Plan for Entitlement Reform
GOFFSTOWN, N.H.—Speaking at a town hall meeting tonight, New Jersey Gov. Chris Christie promised to work towards entitlement reform should he become president. “Folks will tell you in politics, ‘don’t talk about that subject,’” Christie said at the event in New Hampshire. “They call it the third rail of American politics. They say, ‘don’t touch…Kate Scanlon -
- Opinion
Unions Are Utterly Shameless. Here’s the Real Story Behind Their Minimum Wage Campaign.
Utterly shameless. There really is no other way to describe what some unions are trying to pull when it comes to the minimum wage. The issue, of course, has been in the news quite a bit lately, especially in Los Angeles, with supposedly incensed workers waving their “Fight for 15” placards. It’s all perfectly packaged for the media,…Ed Feulner -
- Opinion
May Jobs Report: Springing Into Higher Wages
According to the Bureau of Labor Statistics, May was a month of solid labor growth. The payroll survey found employers added 280,000 net new jobs, and the household survey found large numbers of Americans entering the labor force. Average wages also rose substantially. Over the past year average earnings have risen almost twice as fast…James Sherk