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December 20, 2024

Fixing Inflation, Right-Sizing the Federal Government

Thirty years ago next month, Federal Reserve Board Chairman Alan Greenspan testified before a joint session of the House and Senate Budget Committees with talk of deficit reduction in the air. In January 1995, Republicans had just won control of both houses for the first time in 42 years. The federal debt had reached 48…

December 18, 2024

Employers Should Drop Hiring Preferences for “Elite 34” Colleges

How do you know if someone went to Harvard? They’ll tell you. If a recent Wall Street Journal story is any indication, though, that classic joke may soon be outdated. According to the Journal, some employers have dropped hiring preferences for graduates of elite universities—and a few even consider an Ivy League degree a black mark. The cases…

December 17, 2024

Make America Smart Again: The Jeopardy Test for Graduation

President-elect Donald Trump has signaled his intention to try to abolish the Education Department, long considered wasteful in a nation where public education is provided locally. If he were to succeed — a long shot, to be sure — state and local education overseers would have to step up to ensure quality education. On this front, the news is not promising….

December 17, 2024

Industrial Policy and Deficits: Dark Clouds for Democratic Capitalism

Democratic capitalism is a system that marries liberal democracy and free-market capitalism. This union creates tensions, and requires balancing competing aims. But this tension is healthy, not destructive — provided that democracy and capitalism are properly balanced, each sphere reinforces the other. Over the long term, capitalism requires liberal politics; and democracy will not maintain…

December 17, 2024

States Should Drop Accreditation Requirements for New Colleges

Key Points  Read the full pdf. Introduction Accreditation is a major barrier to higher education reform. In a bid to reduce the agencies’ power over state universities, Florida and North Carolina have passed laws requiring public colleges to periodically change accreditors.1 Florida Governor Ron DeSantis spoke for many policy-savvy conservative leaders when he declared that you…

December 13, 2024

Economics & Data-Driven Inquiry

At the behest of New College Florida and the Global Freedom Initiative, AEI scholar Kevin Corinth joined a distinguished group of scholars and practitioners for the Symposium on Ideological Capture of Universities and Institutions to discuss the ideological capture—or politicization—of America’s educational, professional, and political institutions. Dr. Corinth, along with co-panelists Veronique de Rugy of the Mercatus…

December 11, 2024

US Students Best Other Nations—in Achievement Gap Growth

US scores on the 2023 Trends in Mathematics and Science Study (TIMSS) are another sign not only that American students are losing ground in math and science, but that the achievement gap between high-performers and low-performers has grown dramatically. As I wrote a couple days ago, these trends started well before the pandemic and are…

December 11, 2024

Some College Graduates Are Taking Lower-Paying Jobs

The promise of higher education is to equip students with new ideas and skills that will help them land higher-paying jobs. For many students, this dream comes true—but that is not what happens across the board. As college degree attainment has risen over time, many graduates find themselves taking jobs that traditionally belonged to those…

December 10, 2024

Fighting in-work poverty: the minimum wage versus in-work benefits

Abstract We review evidence on the effectiveness of the minimum wage versus in-work benefit policies in reducing poverty in OECD countries. The most credible evidence suggests that raising the minimum wage is an ineffective policy tool for reducing poverty. On net, minimum wage increases tend to redistribute rather than reduce poverty. In contrast, government subsidies…