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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Study: Only 33 U.S. Cities Have Recovered From Recession
Americans might have jobs, but they probably aren’t getting raises. In spite of the unemployment rate falling to its lowest level since 2008, wage growth is still lagging significantly behind job growth, according to a report by The Wall Street Journal. The Wall Street Journal conducted an analysis of 400 metropolitan areas in the United…Kate Scanlon -
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Republicans Face ‘Principled Debate’ Over Export-Import Bank’s Future
The future of the Export-Import Bank, which provides taxpayer-backed loans to foreign countries and companies to pay for U.S. products, is causing a divide among House Republicans. With Ex-Im’s charter set to expire June 30, House Financial Services Committee Chairman Jeb Hensarling acknowledged Wednesday that House Republicans are having a “principled debate” concerning the bank’s…Diana Stancy -
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How This Small Business Succeeded Without Government Financing From Export-Import Bank
Supporters of the embattled Export-Import Bank argue the bank helps small businesses move into global markets and remain competitive. But a California-based company is speaking out about how the agency provided its competitors with an unfair advantage. “The winners should prevail by playing the game better than others, not by forcing taxpayers to give them…Melissa Quinn -
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GOP Lawmakers Question ‘Troubled’ $100 Million Export-Import Bank Deal
Just two weeks before the controversial Export-Import Bank’s charter expires, members of Congress today criticized the bank’s top official for pursuing a deal in which the bank—and taxpayers—could be on the hook for more than $100 million. Reps. Mick Mulvaney, R-S.C., and Bill Huizenga, R-Mich., repeatedly questioned Ex-Im Chairman Fred Hochberg on bank loans awarded…Melissa Quinn -
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New Report on Export-Import Bank Finds Problems With Transparency, Cronyism
A new report that takes a deep dive into the Export-Import Bank’s transactions found that in addition to heavily subsidizing large corporations, the government agency benefited some small businesses while pushing others out of the market. It also rewarded a former employee who pleaded guilty for bribery with a six-figure salary and bonuses. Open the…Melissa Quinn -
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How Congress Can Put a Stop to Cronyism and Corporate Welfare
This month will mark the end of an 80-year-old Washington institution that promotes cronyism and corporate welfare. On June 30, Congress appears prepared to let the Export-Import Bank’s charter expire—ending a government favor factory that began during the FDR administration. This new video from The Heritage Foundation showcases some of the bank’s most notorious deeds.Ben Howe -
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Who’s Hurt Most by Los Angeles’ $15 Minimum Wage
The Los Angeles City Council voted to raise the city’s minimum wage to $15 an hour by 2020, a move that will help some workers at the expense of others and lead to higher prices for consumers as businesses pass along the new expense. Occupational Employment Statistics estimates that there are 837,000 people in Los…Salim Furth -
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U.S. Chamber Should Be Promoting Commerce, Not Cronyism
Here’s a half-serious question: How much do taxpayers have to pay off Boeing to make the Export-Import Bank finally and irrevocably go away? If the feds wrote a check to Boeing for $100 million, would they then let the Ex-Im Bank fade away after the current portfolio winds down? I ask this because the aerospace…Stephen Moore -
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The Founders’ Model of Welfare Actually Reduced Poverty
Which approach to welfare policy is better for the poor: that of the Founders or that of today’s welfare state? The more we spend on the poor, the harder it seems for them to attain decent, productive lives in loving families. The federal government has spent $22 trillion on anti-poverty programs since the beginning of…Thomas West -
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Here’s How We Combat Cultural Cronyism
What do you do if you’re pursuing unpopular interests that are contrary to the public good? How do you force change in a democratic republic when you can’t win everything you want through open debate? You rig the game. You ingratiate yourself to those who hold the levers of power and use your connections to…Mike Needham -
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Los Angeles Unions: Minimum Wage Hike for Thee, but Not for Me
Los Angeles recently hiked its minimum wage to $15 an hour. Los Angeles unions strongly support this move, with a catch. They want the increase to apply only to non-union companies. The Los Angeles Times reports local unions are now lobbying the city council to exempt unionized firms from the higher rate. If they get…James Sherk -
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Bachelet’s Labor Reforms Could Reduce Economic Freedom in Chile
Chile has the highest level of economic freedom in Latin America and was the 7th most economically free country in the world according to the 2015 edition of the annual Wall Street Journal/Heritage Foundation Index of Economic Freedom. But, if the Chilean Congress passes President Michelle Bachelet’s proposed changes to Chile’s labor code, that high…James M. Roberts -
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Trade Deal Passes, Bill to Restrict NSA ‘Spying’ Program Fails: Here’s What the Senate Did Before Skipping Town for Recess
The Senate passed trade legislation and blocked a bill that would curb the federal government’s bulk collection of phone records before leaving town on a week-long Memorial Day recess. In a vote late on Friday evening, the Senate approved Trade Promotion Authority, 62-37. It gives President Obama the authority to negotiate trade deals with other nations, and then…Kate Scanlon -
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A Key Conservative Group Is Opposing the Export-Import Bank. But Some of Its Members Continue to Support It.
Some members of the U.S. House's Republican Study Committee are bucking the committee’s opposition to the Export-Import Bank and instead expressing steadfast support for the bank’s reauthorization. The Republican Study Committee today announced its opposition to the Export-Import Bank and called on Congress to allow its charter to expire on June 30. “Federal bureaucrats should not be…Melissa Quinn -
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Lawmakers Had 10 Months to Fix Broken Transportation Funding. They Didn’t Do Anything.
Another day, another punt on important policy matters by members of Congress. Faced with a May 31st deadline, lawmakers’ latest “fix” for highway funding—a two-month extension of current policy—comes after members had given themselves ten months to devise a long-term solution. To almost no one’s surprise, the ten months flew by without a whisper of…Michael Sargent -
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Making This Change to Tax System Would Help Businesses, Economy Thrive
Rep. Pat Tiberi, R-Ohio, is poised to reintroduce legislation that would make permanent so-called “bonus depreciation.” This legislation would enable businesses to deduct half their capital expenses when incurred rather than being forced to wait years before they can deduct their costs. This bill, which represents an important step towards tax reform, would reduce the cost…David Burton -
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Why Donald Trump Won’t Touch Your Entitlements
DES MOINES, Iowa—Donald Trump says if he runs for president he’ll make sure entitlement programs aren’t touched. “I’m not going to cut Social Security like every other Republican and I’m not going to cut Medicare or Medicaid,” Trump told The Daily Signal. “Every other Republican is going to cut, and even if they wouldn’t, they…David Brody -
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Program in Trade Bill Likely Hurts, Not Helps, Workers and Promotes Cronyism
This week, the Senate appears likely to move Trade Adjustment Assistance and Trade Promotion Authority as a single package. The ineffective and costly Trade Adjustment Assistance provides generous income support and training to workers displaced by international trade. Trade Promotion Authority, otherwise known as “fast track,” speeds up and limits the legislative approval process of…David B. Muhlhausen -
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Small Business Left With ‘Bitter Taste’ After Deal With Export-Import Bank Goes Sour
For Induction Innovations of Elgin, Ill., the services provided by the Export-Import Bank seemed perfect for a small business. But after purchasing an insurance policy to protect its exports, the company of just 29 employees found itself left with a “bitter taste” from the bank after an overseas buyer failed to pay. “It was not…Melissa Quinn -
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Government Regulation Is on the Rise Under Obama. This Infographic Explains Why.
The number and cost of government regulations continued to climb in 2014, intensifying Washington’s control over the economy and Americans’ lives. The addition of 27 new major rules pushed the tally for the Obama administration’s first six years to 184, with scores of other rules in the pipeline. The cost of just these 184 rules…James Gattuso