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
Lawmakers Spar Over Whether to Renew Export-Import Bank
Republicans and Democrats on the House Financial Services Committee faced off today at a hearing on the future of the Export-Import Bank and its role in subsidizing companies such as Boeing, Caterpillar and General Electric. Rep. Jeb Hensarling, R-Texas, chairman of the committee, established the narrative early into the hearing that although the 80-year-old federal agency is a boon…Melissa Quinn -
- News
Marco Rubio: It’s Time to End Export-Import Bank
Sen. Marco Rubio, R-Fla., today joined the growing list of conservatives speaking out against reauthorization of the Export-Import Bank. On CNBC’s “Squawk Box,” Rubio said it was time for the bank—which provides taxpayer-backed loans to foreign companies and governments to buy U.S. products—to end. Unless Congress acts to save it, the bank’s charter expires Sept….Melissa Quinn -
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A Taxpayer’s Guide: Export-Import Bank Under Microscope at House Hearing
Rep. Jeb Hensarling today convenes the House Financial Services Committee for a much-anticipated hearing on the fate of the U.S. Export-Import Bank, a federal agency that the Texas Republican says has a well-deserved reputation for corporate welfare and cronyism. The Export-Import Bank, which provides taxpayer-backed loans to foreign companies and governments to buy U.S. products, turned…Melissa Quinn -
- Opinion
10 Free Market Principles That Could Transform Agriculture
Agriculture policy affects all Americans. From policies that drive up food prices to government control of your dietary decisions, it warrants significant attention. Unfortunately, central planning has been entrenched in agriculture policy for more than 80 years. The 2014 farm bill didn’t change that reality. When it comes to agriculture, many legislators ignore any free-market…Daren Bakst -
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Export-Import Bank Faces Tough Road to Reauthorization After Kevin McCarthy’s Opposition
Today was supposed to be the day supporters of the Export-Import Bank struck back. After weeks of disappointing news and dimming prospects for the bank’s reauthorization, the U.S. Chamber of Commerce and National Association of Manufacturers picked Monday to roll out an “all-hands-on-deck” public-relations campaign in favor of the government agency. The leaders of both…Robert B. Bluey -
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Sunlight Report: Don’t Underestimate Export-Import Bank’s Corporate Friends
Despite losing a friend in House leadership and now his successor’s avowed lack of interest, the Export-Import Bank — which has been criticized for promoting corporate welfare — remains well-positioned to secure reauthorization this fall. That’s the conclusion of the Sunlight Foundation, which analyzed the lobbying efforts of the bank’s corporate beneficiaries. In fact, it’s…Kevin Mooney -
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Incoming House Majority Leader Kevin McCarthy Says Export-Import Bank Should Close
The Export-Import Bank’s path to reauthorization just got more complicated. Kevin McCarthy, the California Republican who will soon become House majority leader, said on “Fox News Sunday” that he opposes renewing the bank’s charter. Watch the part at 22 seconds where McCarthy explains one of the biggest problems with government.Robert B. Bluey -
- Opinion
The Sport of Cronyism
Jurgen Klinsmann, the coach of the U.S. soccer team, caught flak for saying that it’s “not realistic” to believe that his men can win the World Cup. While a U.S. victory would indeed be a shock, the most unrealistic thing about the World Cup is the wider hopes that are pinned on it. In 1994,…Ted Bromund -
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Starbucks CEO: Minimum Wage Hike ‘Right Thing to Do’ Despite ‘Traumatic Effects’ on Small Business
Starbucks CEO Howard Schultz said he supports an increase to federal minimum wage even though it could have “traumatic effects” on small business owners and employees. In an interview with CNN Money’s Poppy Harlow, Schultz declined to say what he thinks the minimum wage should be, but he said the $15 minimum wage enacted in his…Philip Wegmann -
- Opinion
You’re Paying for America’s Political Economy
Legendary computer scientist Alan Kay once said “The best way to create the future is to invent it.” It’s an ethos that has animated every great American entrepreneur and driven our nation’s economy since its founding. Will that attitude survive the times we live in? Today, two competing impulses vie for the soul of our…Mike Needham -
- Opinion
Laughing All the Way to the Export-Import Bank
This fall, the charter for the Export-Import Bank is set to expire. The Kronies don’t want you to know who or what is truly behind the bank. But here is the truth: Since its creation in 1934, the Ex-Im Bank has become “little more than a fund for corporate welfare.” At least that’s what Barack…Wesley Coopersmith -
- Opinion
IMF Channels Obamanomics on U.S. Minimum Wage
This week the International Monetary Fund’s (IMF) annual U.S. economy review urged an increase in the U.S. minimum wage rate, describing it as “low by both historical and international standards and saying an increase would raise incomes for millions of working poor Americans.” Actually, it’s just the opposite. As Heritage’s James Sherk testified last year,…James M. Roberts -
- Opinion
Make Export–Import Bank Accounting ‘Fair’ to Taxpayers
The Wall Street Journal in recent days has published a variety of opinions on congressional reauthorization of the Export-Import Bank—which doles out subsidies to foreign firms to purchase U.S. products. Most of the arguments—pro and con—merit polite consideration. But others require a response. Such is the case with the June 17 letter to the editor…Diane Katz -
- Opinion
Economic Crisis Survival: Germany Shows That Preparation Is Key
What do countries that weathered the Great Recession better than others have in common? They got in better shape before the crisis struck. Germany is one example. Reunification meant great opportunity for Germany, but it also meant a prolonged period of economic weakness. The fiscal and structural reforms lawmakers made in response continue to pay…Romina Boccia -
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Cutting Federal Spending, One Portrait at a Time
Conservatives are putting the finishing touches on legislation to end government spending on portraits of cabinet secretaries and members of Congress—artwork that regularly costs taxpayers tens of thousands of dollars per sitting. Today, portraits are commissioned when committee chairmen retire or are displaced by their party losing control of their house of Congress. The portraits…Philip Wegmann -
- Opinion
The Lousy Weather Isn’t the Reason for Our Disappointing Economy
Despite massive fiscal and monetary stimulus since the financial crisis, the economy continues to disappoint. The big news this past week was that the BEA revised its first quarter GDP estimate downward to reflect a 1% decline – far worse than its previous estimate of 0.1% quarter-to-quarter growth. Why so bad? A popular explanation seems…Norbert Michel -
- Opinion
For Poorer Workers, the Recession Is Nowhere Near Over
The more you play a sport or instrument, the better you get. It’s the same story with work: with more experience, workers become more productive and earn higher pay. Sadly, during the recession the length of the average workweek shortened. While work hours have since bounced back for many employees, poorer workers haven’t seen their…Filip Jolevski -
- News
Eric Cantor’s Loss Reverberates at Boeing, Biggest Beneficiary of Export-Import Bank Subsidies
Boeing, the biggest beneficiary of the U.S. Export-Import Bank, watched its stock drop by the biggest margin in months following House Majority Leader Eric Cantor’s primary election defeat Tuesday. A federal agency that subsidizes American exports, the Export-Import Bank regularly subsidizes Boeing’s foreign sales. Just last month, Boeing announced the bank would underwrite $10 billion…Philip Wegmann -
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Vermont Governor Signs Minimum Wage Hike at Bakery Unaffected by Law
MIDDLESEX, Vt.—Gov. Peter Shumlin yesterday signed a law requiring businesses in Vermont to pay workers a minimum wage of $10.50. The kicker? Shumlin, a Democrat, staged the signing at the Red Hen Baking Co., a local organic business that won’t be affected by the legislation because it has no minimum-wage workers. “[This is a time] in…Bruce Parker -
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Conservatives: Obama’s Approach to Student Loans Hurts Millennials
The job market and student loan debt had lawmakers waxing philosophical at today’s Conversations with Conservatives event on Capitol Hill. “When I graduated from undergrad, I had a degree in Spanish literature and a minor in philosophy. I knew I wasn’t going to get a job,” Rep. Raúl Labrador, R-Idaho, said. In fact, he joked,…Kelsey Bolar