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October 18, 2024
Harris and Trump Are Equally Silent on the Expanding US Debt
Donald Trump and Kamala Harris seem to agree that one of the nation’s most important challenges should remain unaddressed — a problem that has been slowly eroding the foundations of economic prosperity for decades. That problem? The national debt. The non-partisan Congressional Budget Office reports that federal debt held by the public averaged 48.3 per…
October 17, 2024
Harris’ Tax Plans Would Reduce Long-Term Prosperity. Trump’s Proposals Might Be Even Worse.
AEI Scholar and Director of Economic Policy Studies Michael R. Strain contributed to the Dispatch’s Symposium titled Economic Policy Experts: Doom, Thy Name Is Populism, as a group of experts outlined the many ways in which either potential administration’s populism could lead to poor policy and worse economic outcomes. Below is a section from Michael R. Strain contribution….
October 9, 2024
Learning the Right Lessons from the “China Shock”
An influential 2013 paper by economists David Autor, David Dorn, and Gordon Hanson finds an average reduction in manufacturing employment of 90,000 jobs per year from 1990 to 2007 because of U.S. competition with imports from China. Those economists published another important paper, along with economists Daron Acemoglu and Brendan Price, that found import growth from China led to…
June 26, 2024
American Workers Are Doing Great. They Could Be Doing Even Better.
Editor’s note: This is one of a pair of essays responding to the Economic Innovation Group’s report, “The American Worker: Toward a New Consensus”, by Adam Ozimek, John Lettieri, and Benjamin Glasner. The other is by Paul Krugman of the New York Times. To the Economic Innovation Group’s attempt to articulate a “new consensus” about the American…
December 18, 2023
The State of Democratic Capitalism: 2023
How to assess the health of democratic capitalism in the United States? Fundamentally, it is very strong. The marriage of democratic politics and a free-market economy continues to strengthen each, with free markets generating the employment opportunities and prosperity that lead to widespread support for our political system and the rule of law, strengthen democratic…
December 14, 2023
The Myth of the 1%
The skewing of income toward the top 1% of earners has become a central issue in American politics, with both Republicans and Democrats proposing higher taxes on the rich. But new research finds that it may not be true, suggesting that policymakers would do better to focus more on helping the working class. WASHINGTON, DC—For…
October 17, 2023
What Poor Children Need
When it comes to helping poor children in America grow up to enjoy successful adult lives, progressives and conservatives each have half the truth on their side. There is strong evidence to support both broad public spending programs and policies designed to encourage personal responsibility and stable households. What is the best way to help…
December 15, 2022
The Myth of Income Stagnation
According to the conventional wisdom, income stagnation and inequality are large and growing threats to broad-based prosperity in the United States. Many economists, journalists, business leaders, and elected leaders (from both parties) believe that for a large share of households, real (inflation-adjusted) income has not increased for decades, and that income inequality – the gap between higher- and lower-income households –…