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
In 1 Chart, What Your Favorite Fast-Food Items Would Cost With $15 Minimum Wage
For Americans hitting the drive-thru at their local McDonald’s, a $15-an-hour minimum wage could hit them in their wallets. According to a January report released by James Sherk, a former research fellow in labor economics at The Heritage Foundation, fast-food prices would rise by 38 percent under a $15-an-hour minimum wage and cause a 36… -
news
Senate Confirms Mick Mulvaney as OMB Director
The Senate voted 51-49 Thursday to confirm Rep. Mick Mulvaney, R-S.C., who will be tasked with addressing the nation’s $20 trillion in national debt, as director of the Office of Management and Budget. Mulvaney, a Republican representing South Carolina’s 5th Congressional District in the House since 2011, will be responsible for directing the budget process… -
news
Trump Picks Alexander Acosta as Labor Secretary
President Donald Trump picked R. Alexander Acosta to lead the Department of Labor Thursday, just one day after CKE Restaurants CEO Andy Puzder withdrew his name from consideration. Acosta is a former federal prosecutor and the dean of the Florida International University College of Law in Miami. “After careful consideration and discussions with my family, I… -
opinion
US Economic Freedom Has Hit a Historic Low. What Happened?
It’s already been eight years since the Great Recession, yet the U.S. economy has been just inching along, with its productivity flagging and millions being locked out of the labor market. One critical underlying factor for this lack of economic dynamism has been the startling decline of America’s economic freedom, an unfortunate legacy of Barack… -
news
Trump’s Acting Treasury Secretary, an Obama Holdover, Helped Craft Iran Nuclear Deal
As President Donald Trump’s nominee for treasury secretary continues to wait for Senate confirmation, an architect of the Obama administration’s Iran nuclear deal is currently running the agency. “Once Iran came to the table, we reached a strong, comprehensive deal,” Adam Szubin says. Acting Treasury Secretary Adam Szubin—who had been a career department employee—previously served… -
opinion
Your Chicken Sandwich Costs More With a $15 Minimum Wage
Progressives are touting a $15 minimum wage as a low-cost policy to reduce poverty and income inequality. However, the costs of a high minimum wage are higher than its proponents would like to believe. In a recent Heritage Foundation backgrounder, James Sherk outlined the costs to consumers of a $15 minimum wage and took issue… -
opinion
The Racist Roots of Minimum Wage Laws
There is little question in most academic research that increases in the minimum wage lead to increases in unemployment. The debatable issue is the magnitude of the increase. An issue not often included in minimum wage debates is the substitution effects of minimum wage increases. The substitution effect might explain why Business for a Fair… -
opinion
This Woman’s Minimum Wage Story Shows the Left’s Troubling Mindset
JoAnn Wise thinks she wasn’t treated well. In an op-ed published Tuesday by The Washington Post, Wise writes, “I already know what Trump/Puzder economics look like because I’m living it every day. Despite giving everything I had to [labor secretary pick Andy] Puzder’s company for 21 years, I left without a penny of savings, with no… -
opinion
Congressional Ban on Earmarks Hasn’t Stopped Pork-Barrel Spending
When members of Congress defend earmarks with “power of the purse” rhetoric, don’t fall for it. Congressional earmarks threaten the integrity of government spending. This January, Senate Republicans led by Arizona Sen. Jeff Flake voted to continue the moratorium on earmarks for the 115th Congress. Flake backed his sentiment with a witty comment that “you… -
opinion
The Truth Behind the Solar Jobs Report
As the Obama administration recedes into history, policymakers would be well advised to rethink the feasibility of taxpayer-funded renewable energy schemes. In just a few weeks, the Solar Foundation, a Washington-based nonprofit group, will release its latest annual report touting growth figures for solar jobs while it also warns against policies that could result in… -
opinion
Our Economy Is Barely Growing. Here’s 4 Steps We Can Take to Change That.
Late last week, we were reminded of how much work needs to be done to clean up the mess President Barack Obama left when the Bureau of Economic Analysis announced the economy grew at a dismal 1.9 percent in the fourth quarter—wrapping up 2016 with a growth rate of just 1.6 percent. This growth is… -
opinion
Before Leaving Office, Obama Administration Admits It Got Student Loan Data Wrong
In case you ever had any doubts about the inefficiencies of the Department of Education, look no further than the recent revelation that the agency has been vastly overestimating student loan repayment rates. On the last day of the Obama administration’s tenure, the College Scorecard the department established has been quietly revealed to have serious… -
opinion
CBO Report Shows Why Action Needed Now to Avoid Budget Crisis
The Congressional Budget Office’s budget and economic outlook for the next decade paints a grim picture of the nation’s fiscal situation and shows we continue to be on an unsustainable budget path. Despite years of warnings by CBO and others that this path will lead to fiscal disaster, Congress continually has failed to make substantive reforms…. -
opinion
Trump’s Pipeline Approvals Are a Win for the Economy and Environment
In a win for the economy and the environment, President Donald Trump signed executive orders backing the construction of two unnecessarily controversial energy infrastructure projects: the Keystone XL pipeline and the Dakota Access pipeline. Getting the green light for the completion of the pipelines is kind of like receiving your appetizer halfway through your meal…. -
news
Newt Gingrich Explains How Trump’s Policies Will Lead to a Balanced Budget
President-elect Donald Trump’s policies, if implemented, will ultimately lead to a balanced budget, predicted former House Speaker Newt Gingrich. Speaking Tuesday at The Heritage Foundation for the third of a six-part series on understanding Trump and Trumpism, Gingrich explained what a “Trumpian balanced budget” would look like. According to Gingrich, what makes both Trump and… -
opinion
Lemons in America Are About to Get Cheaper
Thanks to the U.S. Department of Agriculture, Americans will be making a whole lot more lemonade this year, and saving money while they’re at it. On Dec. 23, the Department of Agriculture eliminated a 15-year-old ban on lemon imports from northwest Argentina, the world’s top producer of lemons. Domestic producers had long argued that Argentine… -
news
Popular NY Restaurant Shuts Its Doors, Blames ‘Suffocating’ Government Regulations
A popular New York City restaurant is closing its doors after 25 years because of what the owners call a stifling regulatory environment that treats the restaurant as a “cash machine.” China Fun, a Chinese restaurant in Manhattan, announced its Jan. 3 closure because of increases in minimum wage and a city atmosphere that treats… -
news
Labor Secretary’s Bid to Lead Democrats Comes Under Legal Scrutiny
Labor Secretary Tom Perez is campaigning actively to become the next chairman of the Democratic National Committee, prompting a watchdog group to investigate whether he has violated a law prohibiting federal government employees from engaging in partisan politics while on the job. Two other Cabinet-level department heads in the Obama administration previously were found to… -
news
Trump’s ‘Penny Plan’ Could Slash Federal Spending Over Decade
Being penny-wise could pay off big over the next decade, according to budget experts looking at part of President-elect Donald Trump’s spending plan. While campaigning in September, Trump told the New York Economic Club, “If we save just one penny of each federal dollar spent on nondefense, and non-entitlement programs, we can save almost $1… -
opinion
A Labor Secretary Who Knows How to Create Jobs
President-elect Donald Trump has selected Andy Puzder, CEO of Carl’s Jr., the successful fast-food hamburger restaurant chain, as his secretary of labor. This has set off a bit of protest by the hard left and the union bosses. How could Trump select someone who actually knows something about hiring workers and creating jobs? How dare he!…