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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…
November 14, 2023
Forget the Economics of Grievance
Introduction Donald Trump’s ascendancy has inflicted many changes on the right, including substantially altering its posture on economic issues.1 Where this blend of economic nationalism and conservative populism has been tried, it has been found wanting—at least, if you take the goal of working-class populism to be better opportunities and outcomes for the working class. And…
November 13, 2023
The Jobless AI Future Is Still a Long Way Off
Tech billionaire Elon Musk recently prophesied that there “will come a point where no job is needed,” owing to advances in artificial intelligence. But the fear that AI will cause mass unemployment is rooted in a zero-sum mentality that fundamentally misunderstands how economies evolve. WASHINGTON, DC – In a recent discussion with British Prime Minister Rishi…
October 30, 2023
Does Wage Theft Vary by Demographic Group? Evidence from Minimum Wage Increases
Using Current Population Survey data, we assess whether and to what extent the burden of wage theft — wage payments below the statutory minimum wage — falls disproportionately on various demographic groups following minimum wage increases. For most racial and ethnic groups at most ages we find that underpayment rises similarly as a fraction of…
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…
September 23, 2023
Did Pandemic Unemployment Benefits Increase Unemployment? Evidence from Early State-level Expirations
Abstract During the 2021 pandemic year, the generosity of Unemployment Insurance benefits was expanded (Federal Pandemic Unemployment Compensation [FPUC]) and eligibility for benefits was broadened (Pandemic Unemployment Assistance [PUA]). These two programs were set to expire in September 2021. In June 2021, 18 states exited both FPUC and PUA and three states exited FPUC (but…
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…
March 15, 2023
Can Businesses Boost Upward Mobility?
Event Summary On March 15, AEI and the Brookings Institution convened a panel of labor economists and experts to discuss the role businesses play in advancing upward mobility for workers. AEI’s Brent Orrell moderated the discussion among the panelists. Harry Holzer of Georgetown University spoke first about the economics of good and bad jobs and…
January 5, 2023
Defending the American Dream with Michael Strain
Our interview this week is with the American Enterprise Institute’s Michael Strain. Michael is the author of The American Dream Is Not Dead: (But Populism Could Kill It), and we talk about how real blue-collar wages in America have not been stagnant for decades, despite what you might have heard.