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
Two Prominent Voices Debate Future of Export-Import Bank
As the Export-Import Bank’s future continues to be a topic of intense debate among lawmakers on Capitol Hill, two of the most prominent voices for and against the bank went head-to-head this week to debate whether the government agency should be ended for good. Tim Carney, a columnist at the Washington Examiner, and Tony Fratto,…Melissa Quinn -
- Opinion
Why Are U.S. Interest Rates Falling? Thank the Chinese
U.S. employment growth has recently accelerated, and the Federal Reserve is winding down its program of buying U.S. Treasuries with expectations of raising interest rates as soon as early next year. Yet the yield on the benchmark 10-year Treasury note has fallen from 3 percent at the end of 2013 to approximately 2.5 percent today….William T. Wilson -
- News
Animated U.S. Maps Show Unemployment Changes Under Last 6 Presidents
The latest unemployment report released this month revealed rare "good news" about the U.S. labor market. The 6.1 percent unemployment rate marked an all-time low since the 2008 recession. Although June’s report indicates an encouraging sign for the job market, that hasn't always been the case under President Obama. A series of interactive maps—from Jimmy Carter's…Natalie Johnson -
- Opinion
China: Free Trade Zone Fumbles Reform
Last October, China debuted the Shanghai free trade zone (FTZ). Chinese officials hoped to attract foreign investment into Shanghai’s Pudong district with a free flow of capital, less restrictive business regulations, and market-determined interest rates. China’s top commerce minister, Gao Hu Cheng, described the new FTZ as part of “a more active opening up strategy”…Jack McKenna -
- Opinion
5 Facts About the Export-Import Bank for Obama to Remember
At his event in Seattle tonight, it won’t be surprising if President Obama praises the Export-Import Bank as a “jobs creator” that “doesn’t cost taxpayers anything.” It’s a far cry from how he used to describe the Export-Import Bank—as “little more than a fund for corporate welfare.” The president may hope that his audience is…Rep. Jeb Hensarling -
- News
Jeb Hensarling Slams Export-Import Bank Supporters for Seeking ‘Special Privilege’
The chairman of the House Financial Service Committee scolded the leaders of Boeing and National Association of Manufacturers for their lobbying efforts to preserve the Export-Import Bank. In a letter to Boeing chief executive James McNerney and National Association of Manufacturers chief executive Jay Timmons, Rep. Jeb Hensarling characterized the reauthorization debate as a decision…Philip Wegmann -
- News
Company That ‘Saved’ HealthCare.gov Faces Questions of Cronyism
Jarred by the defect-riddled rollout of the Obamacare website, Obama administration officials signed up a technology company to rid HealthCare.gov of its bugs. Now, though, congressional Republicans are scrutinizing that outfit for a potential conflict of interest because its sister company, UnitedHealthcare, is among insurance companies selling plans to Americans through online marketplaces, or “exchanges.” “If…Melissa Quinn -
- News
City Officials Accused of Cronyism in Fight Over Uber, Lyft
MEMPHIS—City officials, citing public safety concerns, have imposed cease-and-desist orders against private ride-share companies Uber and Lyft. Now, in the wake of those decisions, officials are facing questions of possible cronyism. Memphis officials have a strong incentive to help cab companies beat back any competition, said Justin Owen, president of the Nashville-based Beacon Center of…Chris Butler -
- Opinion
An Interactive Timeline of the Export-Import Bank
See the history of the Export-Import Bank—from its inception in 1934 through the current debate over its reauthorization—in The Daily Signal’s interactive timeline. Use the arrows to advance or jump to an event using the scrollbar at the bottom.Philip Wegmann -
- Opinion
Export-Import Bank Creates Unfair Playing Field For American Business
You can tell a lot about a piece of legislation by looking at who is for it and who is against it. The battle over whether to keep the Export-Import Bank alive is a case in point. The Ex-Im Bank was established during FDR’s administration to encourage more trade with the Soviet Union. The Soviet…Genevieve Wood -
- News
Socialists, Billionaires Back LA’s Minimum Wage Hike Proposal
An activist group is pushing to raise the minimum wage in Los Angeles to $15 an hour with the help of philanthropic billionaires, tax dollars and a socialist workers party. Armed with cash flowing from public coffers as well as the likes of George Soros, the Los Angeles Workers Assembly submitted a proposal to the…Bre Payton -
- Opinion
States Already Have Transportation Funding Independence
Campaigning this week for more federal transportation spending, President Obama said, “There’s something called the Highway Trust Fund [HTF]—I suspect this crew is familiar with it. It helps states support transportation projects. If Congress fails to fund it, it runs out of money.” Indeed, the House just passed a $10.8 billion bailout of the HTF…Emily Goff -
- Opinion
Budget Process Does Little to Cut Waste and Flawed Spending—Here’s Something That Can
Taxpayer-funded rides for bourbon-swilling journalists and international trips for indie music executives—federal funding for obscure programs like these is one reason why Heritage budget expert Romina Boccia has proposed a new budget commission modeled on the Defense Department’s Base Realignment and Closure Commission (BRAC). Such a commission would be separate from Congress and composed of…Michael Sargent -
- Opinion
Government Spending on Health Care Projected to Rapidly Increase
One of the biggest contributors to the nation’s spending crisis is federal spending on government health care programs, according to the Congressional Budget Office’s Long Term Budget and Economic Outlook projections released this week. And Obamacare only exacerbates that problem. Here are the main takeaways: Health spending is projected to surpass all other government programs….Alyene Senger -
- Opinion
IMF to U.S.: Increase Taxes and Badly Hurt Your Economy
The International Monetary Fund (IMF) recently released preliminary suggestions for ways the U.S. could strengthen the economic recovery and improve the economy’s long-term outlook. U.S. policymakers should ignore the IMF’s recommendations. One of the themes the IMF focuses on is “keeping public debt on a sustained downward path.” There is certainly broad agreement that the…Curtis Dubay -
- News
Paul Ryan on Export-Import Bank: ‘I Want to Get Rid of It’
Rep. Paul Ryan, chairman of the House Budget Committee, spoke today of his support for ending the Export-Import Bank. “I want to get rid of it,” Paul said of the bank. The bank’s charter is set to expire Sept. 30, unless Congress votes to reauthorize the bank. The Wisconsin Republican labeled the institution a manifestation…Philip Wegmann -
- Opinion
New CBO Report Projects the 10-Year Deficit at $9.6 Trillion as Spending Grows
Today the Congressional Budget Office (CBO) released its 2014 Long-Term Budget Outlook, projecting U.S. spending, taxes, deficits, and the debt for the next 25 years. The CBO report stressed the nation’s unsustainable public debt path, calling it “a trend that could not be sustained indefinitely.” This report should serve as a wake-up call to President…Romina Boccia -
- Opinion
Why Is Congress Again Using a Budget Process that Will Protect Ineffective Programs?
Last week, Senate Appropriations Chair Barbara A. Mikulski, D-Md., signaled her chamber already has begun to lay the groundwork for an omnibus budget bill in September, CQ Roll Call reports. Instead of debating on their own merits each of the 12 spending bills that fund government agencies and programs, Congress would bundle all of them…Romina Boccia -
- Opinion
Spending $3.3 Million to Uncover the Truth About Benghazi Is Worth It
Reportedly, House Minority Leader Nancy Pelosi’s office leaked the proposed budget of the House Select Committee to Investigate Benghazi to illustrate how extravagant the committee’s request was. Instead, it did the opposite. The Benghazi committee’s budget is quite modest compared to most standing House committees. Moreover, if the Obama administration had cooperated with any of…Helle Dale -
- News
House Republicans Attempt to Lift ‘Veil of Secrecy’ From Federal Reserve
Rep. Bill Huizenga, R-Mich., wants to lift the “veil of secrecy” he said obscures the dealings of the Federal Reserve. Would enhanced congressional oversight of the central bank’s decision-making help the economy? Or would it lead to counterproductive meddling? That was the question members mulled Thursday in a hearing Thursday before the House Financial Services…Natalie Johnson