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May 6, 2025
The Department of Government Efficiency recently spotlighted unemployment benefits paid to tens of thousands of individuals whose reported birthdates indicated they were either children or dead. One claimant’s birthdate even suggested he or she hadn’t been born yet. As Elon Musk said, “Your tax dollars were going to pay fraudulent unemployment claims for fake people born in the future!” The $382 million DOGE identified that taxpayers lost on the associated improper payments is real money. But it’s also just…
April 28, 2025
Congressional Republicans are undertaking a massive budget reconciliation effort involving significant reforms to the federal student loan system. House Republicans introduced their proposal on Monday, which would sweep away the maze of nearly a dozen different loan repayment plans and create just two: a standard repayment plan and an entirely new income-driven repayment (IDR) plan. In addition…
April 24, 2025
We have all gotten used to the idea that generative AI can help bad writers become better (or at least appear to be better) than they are when left to their own skills. This has resulted in some challenges for hiring managers struggling to cope with the tsunami of applications and cover letters that make…
April 24, 2025
The Continuing Resolution (CR) Congress approved and President Donald Trump signed in March reflected a reversal of recent partisan roles on legislation preventing a government shutdown. That is, contrary to recent type, nearly all Democrats cast votes that would have shut down the federal government while Republicans overwhelmingly voted to keep it open. But that wasn’t the…
April 21, 2025
Among the sectors of the US economy most exposed to AI-driven automation is finance. This is unsurprising given that banking and financial advising are massive knowledge management operations, constantly scanning the globe—like the Eye of Sauron—for opportunities and risks. One of the main applications of AI in the finance sector is helping firms understand themselves,…
April 17, 2025
As Congress negotiates a bill to overhaul the federal budget, lawmakers looking to save money should note $30 billion in potential savings hiding in plain sight. The Public Service Loan Forgiveness (PSLF) program, which fully discharges the student loans of borrowers who work for the government or a nonprofit for 10 years, is one of…
April 11, 2025
After the federal government suspended student loan repayment for four and a half years, payments are finally due again—yet less than half of borrowers are repaying their debts on time. These high rates of student loan nonpayment threaten to ruin many borrowers’ credit records and send millions into default. Low student loan receipts could also cost taxpayers…
April 9, 2025
A new working paper from the National Bureau of Economic Research, Measuring Human Leadership Skills With AI Agents, presents evidence that artificial intelligence may soon play a central role in evaluating human soft skills—long considered too complex and subjective to measure objectively. Conducted by Ben Weidmann and David Deming et al. at the Harvard Kennedy School,…
April 9, 2025
Last Friday, we showed that the Trump Administration’s tariff formula contained an error that made its calculated tariffs up to four times too large. The entire premise of the administration’s approach—that a country’s tariff and non-tariff trade barriers can be derived solely from the bilateral trade balance with that country, and that the goal of…
April 8, 2025
Health insurance subsidies, especially as provided by Medicaid, are under scrutiny as Republicans scout for savings to make way for their tax agenda. However, instead of selective cuts, Congress should simplify the enrollment rules, treat individuals with similar incomes more equally regardless of where they get their coverage, and implement reforms which will lower costs…