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September 19, 2023

Senator Tim Scott’s New Plan to Cut Taxes

Senator and Republican presidential candidate Tim Scott (R-SC) released a new economic plan this week. The plan addresses issues such as the national debt, federal spending, trade, and the economy. The plan includes several significant tax policies. His plan focuses on cutting taxes for both individuals and businesses and argues that this would grow the economy. The…

By Kyle Pomerleau

September 18, 2023

A GOP Plan to Raise the Minimum Wage Is Also a Bid for Immigration Reform

Republicans have talked a lot in recent years about becoming a “workers party,” without having much of an agenda to match the rhetoric. A new Senate proposal aims to start changing that. The bill would raise the federal minimum wage from $7.25 to $11 per hour while also requiring employers to check that their employees are legally…

By Ramesh Ponnuru

September 18, 2023

No Culture Wars, Please, We’re Academics

A few years ago, Melissa S. Kearney got into a taxi cab and asked the driver about a photo of a young girl on his dashboard. The driver confirmed it was his daughter and then proudly showed her more pictures. The girl lived with her mother, he explained. Kearney, a professor of economics at the…

By Naomi Schaefer Riley

September 18, 2023

Biden’s Latest Student-Loan Plan Is Another Disaster

Late last month, President Biden and his Department of Education announced the launch of the “SAVE” Plan, a reform that expands existing income-driven repayment (IDR) programs to the tune of up to $550 billion. Now, it’s been reported that as many as 4 million borrowers have signed up for the plan, many of them enrolled automatically. Last week, Senator Bill…

By Beth Akers | Joe Pitts

September 15, 2023

Why Industrial Policy Fails

With Democrats and Republicans alike supporting a shift from free markets toward government planning, the United States has clearly entered a new era of economic policymaking. Yet all the reasons why such strategies generally fail to make good on politicians’ promises are as valid as ever. WASHINGTON, DC – Industrial policy is all the rage…

By Michael R. Strain

September 13, 2023

American Dreamers

In January, the American Enterprise Institute (AEI) launched the American Dream Initiative (ADI), a new, multifaceted policy and practice effort to build on and extend the nation’s legacy of liberty, opportunity, and economic progress for generations to come. Through ADI, AEI scholars are investing time and energy in policy analysis and development to expand access to the…

By Brent Orrell

September 5, 2023

Trump’s Tariffs Won’t Address the Trade Deficit

Last month, the Washington Post reported that former president Donald Trump plans to enact a 10 percent tariff on all imports if reelected. After facing sharp criticism, Trump defended his proposal in a letter to the Wall Street Journal. He argued that the trade deficit is a “loss” for the US economy and that his tariffs would be the “best way” to…

By Kyle Pomerleau

August 31, 2023

The Future of Work: Augmented, not Automated

In my first AEI report, “STEM Without Fruit,” I argued the case for the pre-eminence of noncognitive skills in a world of rapidly advancing technology. As part of that report, I cited evidence drawn from employer surveys, as well as wage and labor-share data, showing that across the economy the highest demand from employers and highest wage returns…

By Brent Orrell

August 22, 2023

Is Paid Leave a Pro-Growth Policy?

Some pro-growth public policies seem super obvious, like attracting more high-skill immigrants or reducing the federal paperwork needed to build clean energy facilities and infrastructure. Paid leave, whether mandated by Washington or funded by new taxes on rich people and large companies, might seem like another obviously good thing. Rarely do I ever hear about…

By James Pethokoukis

August 21, 2023

Four Shocking Truths about the American Economy! (Well, Shocking to Some.)

I recently wrote a brief essay, “Generative AI and Economic Growth,” for Exponential View, the great newsletter by Azeem Azhar. And I knew one particular passage would be sure to raise eyebrows: A lengthy and fundamentally solid expansion would allow the economic progress of the pre-pandemic period — falling inequality, rising real wages across the income…

By James Pethokoukis