This Week in Economics: 3 Stories You Should Know About

Here is a rundown on some of the biggest economic developments this week. 1.) Former Fed Chair Paul Volcker passes away. Paul Volcker, who’s chairmanship of the Federal Reserve played a pivotal role in Reagan’s supply-side prosperity boom, passed away at 92 this week. Tributes have poured in for Volcker — a literal and figurative economic giant — who will be remembered for his role in slaying the Carter-era inflation as well as the distinguished career in public service that followed. On Fox Business, economist Arthur Laffer remembered Volcker for his role in the supply-side revolution and, intriguingly, his opposition

Why President Trump’s Latest Tariffs Are the Most Nonsensical

This week, President Trump took to Twitter to announce new tariffs on steel and aluminum imports from Brazil and Argentina. Although the Trump administration has had its share of puzzling trade war escalations — including declaring auto parts a threat to national security — this is potentially the most indefensible one yet. Anecdotally, the most frequent argument I hear from supporters of Trump’s trade policies is “we need to confront China.” On this point, I would simply note that it is both true that 1) China is guilty of serious, ongoing human rights abuses and 2) China’s greater embrace of

Will a Weak Global Economy Drag Down the U.S. With It?

Pundits and politicians are vociferously debating the health of the U.S. economy, but one subject that isn’t up for debate is the health of the world economy — it stinks. Economic growth has slowed precipitously in China, India, Germany, France, U.K., Italy, Japan, India and much of the developed world. For now, the U.S. is still the world’s economic lifeboat — but with increasing signs that we won’t be immune to the global economic slowdown. Consider the following: In September, U.S. manufacturing activity plummeted to a 10-year low. In September, growth in the service sector of the U.S. economy slowed

This Week in Economics: 3 Stories You Should Know About

Welcome back from Labor Day weekend! I hope it was a great one for all our readers. I was out in Texas for the first time, and as a good conservative, it pains me to be back in the swamp! But, lucky for us, this shortened work week did provide us with some exciting economic news to come home to. Here are three of the biggest stories from this week: 1.) Trump is asking you if you support his plan to index capital gains for inflation. This week Steve Forbes retweeted a column by Senator Ted Cruz (R-Texas) and Americans

Trump’s 2020 Chances Could Hinge on China Trade Deal

Recently, the stock market has been on a wild ride after trade war escalations including the U.S. labeling China a currency manipulator, the announcement of $550 billion in new tariffs, and a confusing tweet ordering U.S. manufacturers to make contingency plans to relocate from China. As Steve Forbes noted on Fox Business, the stock market is sending a clear warning signal that the trade war must be resolved, and the longer President Trump waits, the greater political risk he is taking. To see such major trade war escalations as the 2020 election cycle heats up is perplexing, especially since the President

Amid Chinese Threat to Cut Rare Mineral Exports, U.S. Should Start Mining Its Own

Stocks were rocked yesterday after China’s People’s Daily newspaper published an editorial warning that China could restrict exports of rare earth minerals if trade tensions continue escalating. This threat spooked markets because rare earth minerals are critical components of everything from smart phones to batteries to defense technologies — and the U.S. is highly reliant on China for them. In light of this ace-up-China’s-sleeve during trade negotiations, it is prudent to revisit a recent study by the Committee to Unleash Prosperity on America’s mineral resources. As the report notes, America is uniquely and abundantly blessed with rare and critical earth

This Week in Economics: 4 Stories You Should Know About

The U.S. economy showed surprising strength in the first quarter of 2019, with initial estimates of GDP growth coming in at a solid 3.2 percent, and more significantly, year-over-year productivity growth hit 2.4 percent — the highest reading since 2010. National Economic Council Director Larry Kudlow summed it up best when he said the latest economic data shows the administration is “killing it on the economy,” and President Trump’s economic approval rating has hit a new all-time high. The U.S. economy is off to a great start this year. Here are some economic stories to look out for as we

Does Apple’s Stock Dive Spell Trouble for the U.S. Economy?

Yesterday, Apple sent the already wobbly stock market tumbling after lowering its earnings expectations for the first quarter of 2019. As of writing, Apple’s stock was on pace for its largest single-day decline in 6 years. Since Apple is the world’s largest company by market cap — and this was the first time in over 15 years that the company slashed a quarterly earnings forecast — it behooves us to dive into CEO Tim Cook’s letter to investors to see what gives. Here is a summary of what Cook wrote: While we anticipated some challenges in key emerging markets, we

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