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
A Little Cafe That Sparked a Big Minimum Wage Debate
STILLWATER, Minn.—With its waitress and single cook, its retro-style booths with pale green cushions and its stainless steel wrap-around countertop, the Oasis Cafe could be any local diner in any town in the Midwest. But what makes the Oasis Cafe different is an extra 35-cent “minimum wage fee” tacked onto each patron’s check. A patron…Eric Boehm -
- News
What Embattled Agency Busted Its Travel Budget for Three Years Running?
A beleaguered federal agency has overspent its travel budget by at least $3 million, House investigators determined. The Export-Import Bank allocated $1.3 million for travel this year, but is projected to spend $2.3 million, according to records obtained by The Hill. Last year, the agency budgeted $1.2 million for travel but spent $2.2 million, and in 2012 it budgeted $1.7…Melissa Quinn -
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38 Years of Your State’s Unemployment Data Displayed in One Map
A new map—presented as a GIF—is putting unemployment rates in historical context. Courtesy of Metric Maps, the image shows how unemployment rates have changed state-by-state from 1976 to 2014. From the economic downturn in the late 1970s and early 1980s to the oil boom that has lowered the unemployment rate in North Dakota to national lows, the evolution of…Melissa Quinn -
- Opinion
No, This Report Doesn’t Prove Income Inequality Slows Economic Growth
Monica Potts accuses conservatives of perpetrating a “big, long, 30-year conservative lie.” “It took the worst economic crisis since the Great Depression for many economists, liberal or not, to finally say publicly what many had long argued: Inequality is bad for the economy,” Potts wrote in an article published last week in the Daily Beast….Salim Furth -
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Report: Many Americans’ Paychecks Have Shrunk Since Recession
Today many Americans are taking home a smaller paycheck than they used to, according to a study released Monday by the United States Conference of Mayors. According to the report, people who worked in job sectors particularly hard hit by the recession had an average salary of $61,637 before the recession. But when it comes…Philip Wegmann -
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Gubernatorial Hopeful Wants to Freeze State’s Minimum Wage Hike
As momentum gathers for a “living wage” across the country, one Minnesota gubernatorial hopeful is bucking the trend. On the campaign trail for the Republican nomination, Scott Honour announced that not only does he oppose increasing the minimum wage, he’s also in favor of freezing the current rate. On Aug. 1, the state bumped the minimum…Philip Wegmann -
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Cafe Adds 35-Cent Surcharge to Offset State’s Minimum Wage Hike
A small-town cafe ignited a firestorm of controversy that has engulfed Minnesota. On Aug. 1, the state bumped the minimum wage from $7.25 to $8 an hour. A few days later, Stillwater Oasis quietly added a corresponding 35-cent “minimum wage fee” to customer receipts. The company’s Facebook page became ground zero of the debate as…Philip Wegmann -
- Opinion
Chile: Bachelet Fails First Test of New Term by Raising Taxes
Michelle Bachelet, president of Chile, is reforming the country’s education system and paying for it by raising corporate taxes. Bachelet aims to increase the corporate income tax from 20 percent to 25 percent, which would collect approximately $8.2 billion, or roughly 3 percent of gross domestic product. Bachelet also plans to eliminate the “taxable profits…Ashley Wright -
- Opinion
Think the National Debt Is Large? Well, the Entitlements Deficit Is Even Bigger
Long-term unfunded obligations in Medicare and Social Security alone reached nearly $49 trillion, according to the 2014 report from the Social Security and Medicare Boards of Trustees. That’s nearly three times the size of the total national debt of $17.6 trillion, or more than $150,000 for every person in the U.S. It helps to break…Romina Boccia -
- News
This Democrat Ticked Off Business Leaders. Now He Wants Export-Import Bank to Lure Them Back.
A Massachusetts liberal who helped mastermind new legal restrictions from Congress that shook up Wall Street now sees reauthorization of the Export-Import Bank as a chance for Democrats to win back business leaders most affected by the regulatory changes he pushed. In an interview with Huffington Post, former Rep. Barney Frank said extending the life…Melissa Quinn -
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Union-Backed City Council Members Clear the Way for Referendum on $12.25 Minimum Wage
Oakland City Council members who favor a minimum-wage increase have received campaign donations and research from wage-hike activists and labor unions. Last week, the council voted, 5-3, against a moderate proposal to raise the minimum wage over time and to exempt small businesses in the early stages so they could adjust. The council did so to…Bre Payton -
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This State Benefits Big From the Export-Import Bank. Want to Know Why?
The home state of Boeing’s airplane division benefits the most from financing by the U.S. Export-Import Bank, and by a huge margin, a state-by-state analysis shows. Using public data from the Export-Import Bank, a researcher at George Mason University analyzed the proportion of the federal agency’s disbursements each state received over the past seven years….Melissa Quinn -
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City Will Let Voters Decide on $12.25 Minimum Wage Hike
Councilmen in Oakland, Calif., rejected an increase in the city’s minimum wage, opting instead to let residents vote in November on a plan to hike the rate from $9 per hour to $12.25. The proposal the city council rejected last week was drafted as a business-friendly alternative to the more aggressive initiative pushed by the Lift Up…Philip Wegmann -
- Opinion
Jobs Report: The Status Quo Remains the Same
On the jobs front, it’s a story of not much better and not much worse. The Bureau of Labor Statistics’ July employment report shows middling growth in the labor market. It shows no hint of economic backsliding, but it also shows few signs of the robust growth many economists hoped for—and expected. The report stated…James Sherk -
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Split on Border Spending Bill Prompts Republicans to Delay Recess
On their last scheduled day in session before leaving for August recess, House Republican leaders pulled legislation to address the border crisis after conservatives criticized the proposal for failing to address the problem. Wary of leaving town without addressing the border crisis, lawmakers planned to stay in Washington, D.C., Friday to resolve the split among…Josh Siegel -
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Lawmaker Who Backed Export-Import Bank in 2012 Now Says He’s Undecided
Rep. Mike Kelly, R-Pa., who previously voted to reauthorize the Export-Import Bank, told The Daily Signal this week he’s undecided about whether he’ll support the bank this time around. “There’s been a lot of reforms put forward,” he said after speaking atThe Heritage Foundation. “I want to see the total package as we get closer to the end…Kelsey Bolar -
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Obama Administration Halts Export-Import Bank Deals With Russia
The Export-Import Bank announced today it would halt financing deals with Russia and Russian companies. The Department of Treasury notified House Financial Services Chairman Jeb Hensarling of the decision to include Export-Import Bank financing in President Obama’s latest round of sanctions against the country. In a statement, the Texas Republican commended Obama for his decision: The…Melissa Quinn -
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Virginia Senate Candidates Spar Over Reauthorizing Export-Import Bank
As Virginia’s race for the U.S. Senate heats up, the Export-Import Bank has emerged as a key difference between incumbent Democratic Sen. Mark Warner and his Republican challenger, Ed Gillespie. The candidates faced off for a debate Saturday covering a myriad of topics, including the Export-Import Bank. Warner, who supports the bank’s reauthorization, came under…Melissa Quinn -
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Liberal Politicians Spend a Week Living on Minimum Wage
Can a person survive on $77 a week? Former Ohio Gov. Ted Strickland and Rep. Tim Ryan, D-Ohio, are going to try. The liberal advocacy group Americans United for Change says $77 is how much a full-time worker earning the $7.25 federal minimum wage has to spend each week after taxes and housing expenses are…Maggie Thurber -
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Obama Faces Pressure Halt Export-Import Bank Deals With Russia
Three high-ranking Democrats this week asked President Obama to impose more sanctions on Russia. Now, a conservative Republican is offering one way for Obama to cut off support: immediately end the Export-Import Bank’s deals with Russia. House Financial Services Chairman Jeb Hensarling, R-Texas, said Russia’s repeated attempts to undermine Ukraine and its connection to the…Robert B. Bluey