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
What French McDonald’s Restaurants Tell Us About the Pros and Cons of a Minimum Wage Hike
President Obama said in a YouTube interview last month that he wanted to focus, during his last two years as president on helping people get ahead. “In particular, how can I make sure that folks who are working hard…cannot just survive, but how can they thrive? How can they get ahead?” Obama said. Many think…Jack Wilson -
- News
This Bookstore Is Closing Because of San Francisco’s Upcoming Minimum Wage Hike
After 18 years in business, San Francisco bookstore Borderlands Books announced it will close in March, despite having its “best year” in 2014. Why? According to the bookstore, it’s because of San Francisco’s upcoming minimum wage hike. We’re tremendously sorry to announce that Borderlands Books will be closing in March. More info: http://t.co/hKZA1tTbsb — Borderlands Books (@borderlands_sf)…Kate Scanlon -
- Opinion
Why Is the United States’ Economic Freedom Ranking So Low?
If you were to rank all the countries of the world based on their level of economic freedom, you'd think the United States would be a shoo-in for first place, right? Surely we would be at least somewhere in the top five. We're not. We're not even in the top 10. Because this isn't a…Ed Feulner -
- Opinion
Annual Defense Spending Has Shrunk By 25% Since 2010. What Should the Defense Budget Be in 2016?
The White House is slated to release its budget request for fiscal year 2016 next Monday, ostensibly kicking off the budget season for Congress. This year, Congress can do much in the way of improving the state of the military by increasing the defense budget to $584 billion. A recently published report, lays out the…Diem Salmon -
- Opinion
Early Indications Are Nothing Was Learned from Last Year’s Defense Budget Mistakes
Several days before the White House release of the fiscal year 2016 budget, the Pentagon leaked its budget request totaling $585 billion. The Department of Defense budget includes $534 billion for the base budget and $51 billion for the overseas contingency operation account, an emergency supplemental that is exempt from the spending caps established in…Diem Salmon -
- Opinion
Senate Hearing: Four Surface Transportation Policies Worth Knowing About
The latest bailout of the Highway Trust Fund (HTF) expires at the end of May, so the Senate Environment and Public Works Committee called a hearing to discuss the reauthorization of the federal highway and transit programs funded through the trust fund. Conspicuously absent from the discussion were calls to eliminate wasteful spending in reliable…Emily Goff -
- Opinion
How Much Did Extended Unemployment Insurance Increase Unemployment?
It is well-established in theory and practice that unemployment insurance increases unemployment. But by how much? A new working paper by well-known labor economists found that canceling the unemployment benefit extension a year ago caused an “employment miracle” as large as 1.8 million net new jobs in 2014. Although improvements to the methodology and data…Salim Furth -
- News
Here’s Paul Ryan’s Recipe for Achieving Economic Freedom
Rep. Paul Ryan has a simple recipe for how the U.S. can achieve greater economic freedom. Ryan, R-Wis., said Tuesday that stronger trade policies and stomping out cronyism can make the country’s economy more free. Ryan, speaking at the Heritage Foundation to introduce the 21st edition of the Index of Economic Freedom, joked that he’s…Kate Scanlon -
- Opinion
2015 Economic Freedom of Japan
Japan’s economic freedom score is tied for the second highest it’s ever been since the Index of Economic Freedom was first published more than 20 years ago. Scoring a 73.3, Japan ranks 20th in the world for economic freedom, an improvement over the previous year’s rank of 25. It continues to rank sixth among countries…Riley Walters -
- Opinion
In Index of Economic Freedom, U.S. Is 12th Freest Economy
There is no single formula for overcoming challenges to economic development and maintaining economic dynamism, but one thing is clear: Around the globe, governments that respect and promote economic freedom provide greater opportunities for innovation, progress and human empowerment. The 2015 Index of Economic Freedom, released today, tracks policy developments affecting economic freedom across the…Anthony B. Kim -
- News
Federal Agencies Stonewall House Committee’s Benghazi Investigation
Some federal agencies continue to stonewall when it comes to the ongoing investigation into the Benghazi terrorist attacks, according to insiders familiar with the process. They say the House Benghazi Select Committee isn’t getting access to all relevant documents and witnesses. That will be the topic of the committee’s first public hearing of 2015 called…Sharyl Attkisson -
- Opinion
Obama Is Likely to Trumpet the Unemployment Rate Tonight. What the Real Story Is.
In a video previewing his State of the Union address, President Obama touted recent jobs numbers. “Last year was the best job growth we had seen since the 1990s,” he said, “The unemployment rate’s now dropped to 5.6 percent.” But there’s more to the story. Despite the falling unemployment rate, long-term unemployment remains high at…Salim Furth -
- Opinion
Free Markets Smash Chinese Rare Earth Minerals Monopoly
Last week China announced that it would adhere to a World Trade Organization (WTO) ruling from last year by removing export quotas among other restrictions on rare earth minerals (RE). After controlling the global market for a number of years and extracting handsome rents, why is Beijing suddenly deciding to comply? It probably has little…William T. Wilson -
- Opinion
Pushing Reforms in 2015 for Japan’s Economy
This year will be important for Japan’s economic growth as the country continues to struggle to control its debt problem. In the coming months, observers should watch several key indicators of Japan’s economic performance. Given Japan’s economic troubles, it is important that Prime Minister Shinzo Abe push ahead with his “third arrow” reforms, including continued…Riley Walters -
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Audit: Va. Department of Transportation Squandered Millions on Lousy Contractor
RICHMOND, Va. — A confidential audit found that the Virginia Department of Transportation wasted millions of tax dollars by failing to fine a nonperforming contractor. The Office of the State Inspector General concluded “at least $3 million” was “wasted” by VDOT management for not holding Serco Inc. accountable for allegedly incomplete or undone work. Serco…Kenric Ward -
- News
There Hasn’t Been One Since 2001. Can This New Budget Chairman Deliver a Balanced Budget?
A balanced budget and health care reform. Those are two things Rep. Tom Price, R-Ga., is pledging to deliver as he takes the helm of the House Budget Committee. Price delivered a speech outlining his priorities for the Budget Committee during the 2015 Conservative Policy Summit. Heritage Action for America, the lobbying arm of The…Melissa Quinn -
- News
New Year, New Minimum Wage Fights In These 6 Cities
A minimum-wage hike could be coming soon to a city near you. Impatient with the federal government and inspired by the examples of Seattle, San Francisco and Oakland, several cities across America plan to raise the minimum wage on their own. Nineteen states began 2015 with a higher minimum wage and several more will see…Philip Wegmann -
- Opinion
Young Workers Hurt Most by Minimum Wage Hikes
On New Year’s Day, the minimum wage increased in 20 states and the District of Columbia. This follows a year in which protesters hit the streets in major cities, camping in front of fast food stores and demanding a hike in the minimum wage. Last summer, Seattle raised its minimum wage to $15 an hour…Stephen Moore -
- News
Facing Budget Shortfall, State Considers ‘Sin Tax’ on Cigarettes
CULLMAN, Ala.—As the power structure in Montgomery looks for ways to make up a budget shortfall in 2015, a state cigarette tax increase may be on the table. Gov. Robert Bentley has said he might sign a bill if it came across his desk after some legislators expressed an interest in targeting cigarettes as a…Johnny Kampis -
- News
Even in Liberal Minnesota, Labor Unions Are Losing Members
Prominent media coverage of recent protests by workers targeting Twin Cities fast food outlets, Walmart and Minneapolis-St. Paul International Airport gave the impression of unions on the rise in Minnesota. Despite a “Week of Action” pickets last month, federal government labor statistics reveal a decade of decline for union membership in Minnesota and nationwide. “The…Tom Steward