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
The Left’s Fuel Economy Regulations Could Cost You $3,800
As Michigan voters head to the polls on Tuesday, they should ask candidates whether they will leave in place costly regulations that have added thousands to the price of new cars and depressed sales for the state’s iconic industry. Federal regulations that force ever-increasing automobile fuel economy standards cost consumers thousands of dollars more than… -
opinion
Long-Term Unemployment Remains High Despite Strong February Job Gains
The Bureau of Labor Statistics’ February jobs report showed continued growth in the labor market. The payroll survey reported that employers added 242,000 net new jobs last month. The payroll survey showed unemployment remaining unchanged at 4.9 percent. Even more encouragingly, unemployment stayed flat despite over half a million (+555,000) new workers entering the labor… -
news
House GOP Leaders Argue Against Scrapping Budget Deal
For House Republicans, the time for choosing starts Thursday. At a GOP conference meeting, leadership plans to gauge support for adopting a new budget with old spending numbers that conservatives, among others, consider too high. House Budget Chairman Tom Price, R-Ga., is set to preview his committee’s budget resolution for Republican lawmakers. How lawmakers receive the… -
opinion
How Oregon’s $14.50 Minimum Wage Will Hurt Those It’s Supposed to Help
Good intentions can produce terrible results. Recently the Oregon legislature passed an unprecedented minimum wage hike in effort to help workers within their state, but the legislation will hurt the workers it’s supposed to help. By 2022, the state’s minimum wage will rise to $14.50/hour in the Portland area, $12.50/hour in rural areas, and $13.25/hour… -
opinion
The Minimum Wage Killed 1 out of 11 Jobs on This Tropical Island
Congress is considering potential responses to Puerto Rico’s depression and fiscal crisis. Fiscal conservatives are considering whether outside oversight by a “control board” would force feckless local legislators to make difficult choices, such as consolidating rural schools and laying off bureaucrats. However, if Congress gives the board authority only to cut government spending and raise… -
news
Lawmakers: Obama Administration Illegally Diverted Billions Intended for US Treasury to Insurers
Republicans on Capitol Hill are questioning the legality of a move by the Obama administration to give billions to insurers under a program implemented under Obamacare that they say is equal to an insurer bailout. At issue for lawmakers on the House Energy and Commerce Committee is whether the Centers for Medicare and Medicaid Services… -
news
Meet Business Owners Fighting San Diego’s Proposed Minimum Wage Hike
Following in the footsteps of cities in northern California, San Diego is weighing an increase to its minimum wage that small business owners warn could serve as a “job killer” for them. The city is gearing up to vote on a proposal to raise its minimum wage to $10.50 an hour—50 cents higher than the… -
news
Business Leader Predicts Oregon Will Lose 62,700 Jobs Due to Minimum Wage Hike
Oregon state legislators, acting despite the concerns of business groups, have passed a geographically based increase in the minimum wage. Two of the state’s business leaders, speaking to The Daily Signal, say they’re worried about what comes next. Jason Brandt, president and CEO of the Oregon Restaurant and Lodging Association, said he expects “significant, unintended consequences,” adding: We are… -
opinion
Why a Growing Gig Economy Is a Good Thing
When you buy an antique on eBay or use Lyft for taxi service, you’re a customer in the growing “gig economy.” According to new research from the JPMorgan Chase Institute, about 1 in 100 American adults receives income via one of these new “online earning platforms” each month. That’s not a big share of the… -
opinion
The Economic Value of Marriage
In honor of National Marriage Week, consider this question: Does marriage impact the economic well-being of societies? One of the most important answers to the solution of poverty lies not in government programs, but in the institution of marriage. For the past 50 years, our country has been losing the war against poverty. More than… -
news
Conservatives and Paul Ryan Talk Terms During Ongoing Budget Battle
There wasn’t any arm-twisting or shouting inside a closed-door Republican huddle on Capitol Hill. Instead, House Speaker Paul Ryan brought charts and graphs to plot how he thinks the GOP can move forward if they stomach a budget that increases government spending. A source inside the room tells The Daily Signal that Ryan laid out… -
news
How This GOP Governor Cut His State’s Unemployment Rate in Half
When Florida Gov. Rick Scott took over as the Sunshine State’s chief executive in 2011, the state’s economy was struggling—unemployment hovered around 11 percent, Florida’s tourism industry was suffering and the state had added $5.2 billion to its debt. Now, as Scott heads into his fifth year serving as governor, he’s touting the successes he’s… -
opinion
Q&A: What You Need to Know About Presidential Budget Process
President Barack Obama has released his final budget to Congress, shifting the federal budget process into high gear. Budgeting for the nation is a complicated and iterative process. Here is how the president’s budget fits in to that process: Q: Who writes the president’s budget? A: Starting in the spring of the previous year, the… -
opinion
January Job Growth Shows New Normal in US Economy
American employers created 151,000 net jobs in January, reflecting an economy that is growing, but below its previous trends. The Bureau of Labor Statistics also reported that participation in the labor force was 62.7 percent, higher than the previous months but lower than the January, 2015, level. The best news was that average hourly wages… -
opinion
Don’t Believe the Defense Budget Hype
Secretary of Defense Ash Carter has given a series of speeches outlining highlights of the 2017 defense budget request. The full budget request won’t be released by the administration until next week, so we don’t have the full picture. But as we see exciting headlines driven by the secretary’s speeches, we should keep a few… -
news
The New Budget Showdown: Conservatives Want to Disavow Boehner Deal
House Speaker Paul Ryan’s call for unity is facing a familiar challenge that tripped up Republican leaders before him: the budget and spending. In October, in his effort to “clear the barn” for Ryan, then-Speaker John Boehner helped negotiate a two-year budget deal with President Barack Obama and Democrats. It raised the 2017 spending level… -
opinion
It’s Time Congress Passes a Conservative Budget
The 2016 budget season kicked off last week with a particularly bleak forecast. The Congressional Budget Office (CBO) warned that the deficit in 2016 will be $130 billion higher than projected last August. Over the next nine years, deficits will be $1.5 trillion higher. And by the end of the next ten years, an additional… -
opinion
Proposed Legislation Would Increase Bureaucratic Interference in Housing Market
The Senate may move forward this week on an energy bill that would result in more government meddling and wasting taxpayer dollars on activities better left for the private sector. Members have offered more than 150 amendments, many of which would make an already bad bill even worse. One such example comes from Sens. Michael Bennet,… -
opinion
US Ties Lowest Economic Freedom Score Ever
While nations around the world are working hard to enhance economic freedom, America’s score in the 2016 Index of Economic Freedom continues to slip. With economic freedom diminishing in eight of the past nine years, the U.S. tied its worst score ever in 2016 and remains mired in the ranks of the “mostly free.” It… -
news
America Mired Below Top 10 in Economic Freedom
America’s economy remains less free than in past years even as the world’s other economies have grown more free overall, according to the 2016 Index of Economic Freedom released Monday by The Heritage Foundation and The Wall Street Journal. The U.S. came in at No. 11 on the list of 178 nations evaluated, edging up from No. 12 in…