• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • economic growth

    Morning Bell: 6 Things the Next U.S. Budget Should Do

    It’s time for Congress to make a real budget—and not just any budget. It’s been four years since the U.S. had a real budget. While the House of Representatives has passed budgets, the Senate has stopped each one. Instead, the Senate under Majority Leader Harry Reid (D-NV) has done short-term, … More

    Attention, Reporters: A Trade Deficit Is Not Bad

    The latest trade deficit figures are out, and, as always, most reports fail to accurately explain what these numbers mean. Consider the following widely reported statement: A narrower trade gap boosts growth because it means U.S. companies are earning more from overseas sales while U.S. consumers and businesses are spending … More

    Debt Drag: Krugman, Konczal Miss the Point

    On their respective blogs, economists Mike Konczal and Paul Krugman criticize the widely cited finding that a nation’s debt above 90 percent of its gross domestic product (GDP) slows economic growth. They presume that the limitations of one study by Carmen Reinhart and Kenneth Rogoff mean that its warning can … More

    Morning Bell: Obama's Sequester Smokescreen

    Suppose you desperately needed to lose weight but had a Big Mac with fries and a Coke staring you in the face. You could take your need to diet seriously and say, “No thanks, I’ll have a salad.” Or you could decide to reduce the Big Mac meal by 2 … More

    St. Louis Fed Report Finds Imports, Not Exports, the Lifeblood of U.S. Manufacturing

    A new report published in the Federal Reserve Bank of St. Louis Review provides strong evidence that the Administration’s obsessive focus on boosting exports as a way to help U.S. manufacturers is just plain wrong. The study debunks the idea that changes in either imports or exports affect growth in … More

    Bernanke’s Defense of Fed Policies Neither Comforting nor Convincing

    Do the risks from the Federal Reserve’s trillion-dollar annual stimulus program justify the rewards? That was the central question at Tuesday’s Senate Banking Committee hearing featuring Fed chairman Ben Bernanke. Bernanke worked hard to defend the Fed’s quantitative easing policy, but he appears to oversell the rewards by a mile … More

    CHART: Obama 2013 Tax Increase Twice as Large as Looming Sequestration

    While President Obama is traveling across the nation campaigning against sequestration at the very last minute, the economy is working through a tax increase nearly twice the size of the sequestration cuts for fiscal year (FY) 2013. The President knew for more than a year that sequestration was looming and … More

    The "Buffett Rule" Returns

    President Obama’s so-called Buffett Rule just won’t go away. It is back in its latest iteration because Senate Democrats proposed it to partially offset the soon-to-begin sequestration spending cuts. In the Senate Democrats’ version, the Buffett Rule, named after famed investor and vocal advocate for (and benefactor of) liberal policy … More

    High Debt Threatens Economic Growth

    Economic scholars have recently shown how high government debt has a negative effect on long-term economic growth. Government debt crowds out private investment, slowing the growth of gross domestic product (GDP) and wages. The consensus is that “debt drag” gets worse as debt rises. Like piling bricks on a sled, … More

    Rule of Law Essential for Business

    In a globally competitive world, competition is key. Fundamental for competition is the rule of law, according to Myron Brilliant, Senior Vice President for International Affairs of the U.S. Chamber of Commerce, who spoke at a recent Heritage Foundation event. In his remarks, which elaborated on a chapter he contributed … More