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June 17, 2024
Fixing the Roof on Sunny Days—and Other Lessons in Administering Unemployment Benefits
A recent hearing of the House Ways and Means Subcommittee on Work and Welfare confirmed that the financing of the nation’s Unemployment Insurance (UI) system is enormously complicated. Even the name of the federal payroll tax (FUTA—short for the Federal Unemployment Tax Act that authorizes it and pronounced “few-ta”) is confusing. That complexity sent subcommittee members searching…
May 30, 2024
Building a High Tech Workforce for the Future
The Wall Street Journal reported recently that a bidding war has broken out among the tech giants for scarce and valuable generative AI talent. This scramble is part of a much bigger talent shortage that looms over the US economy in coming years as AI becomes critical business infrastructure. Since generative AI (GAI) burst onto the scene in late 2022, the technology has sped ahead, driven…
May 29, 2024
Liberals Should Decide Whether Being a Homemaker Is Demeaning or Worthy of Huge New Government Benefits
Kansas City Chiefs kicker Harrison Butker struck a nerve. In a commencement address at Benedictine College in Kansas, he ventured to female graduates that some “careers in the world” are less fulfilling than many believe. He also suggested that being a homemaker is “one of the most important titles,” praising his wife Isabelle for “living her vocation…
May 29, 2024
Holding out Hope for a Left-Right Consensus on Federal Student Lending
For as long as we can remember, Republicans and Democrats have been talking past one another when it comes to federal student loan policy. Both sides of the aisle want students from all backgrounds to have access to a valuable and high quality education, but where progressives prioritize federal support, conservatives call for reining in…
May 23, 2024
Biden’s Unending Student Loan Forgiveness Run
On Tuesday, the Biden administration announced $7.7 billion in student debt cancellation for about 161,000 borrowers, equating to about $48,000 per borrower. Compared to what has already been spent on loan forgiveness since the pandemic began, that’s an enormous drop in a gargantuan bucket. AEI’s Student Debt Forgiveness Tracker, which I run, tracks all student loan revenue from…
May 22, 2024
Missed Opportunities in the Proposed Farm Bill
House Agriculture Committee Chairman Glenn Thompson’s proposed Farm Bill reauthorization, The Farm, Food, and National Security Act of 2024, heads to committee markup today. The Farm Bill is a tough reauthorization normally, and even more difficult in a tightly divided House. While there are provisions that would improve the program, Supplemental Nutrition Assistance Program (SNAP) needs…
May 21, 2024
Did AI Just Pass the Turing Test?
A recent study by UC San Diego researchers brings fresh insight into the ever-evolving capabilities of AI. The authors looked at the degree to which several prominent AI models, GPT-4, GPT-3.5, and the classic ELIZA could convincingly mimic human conversation, an application of the so-called Turing test for identifying when a computer program has reached human-level intelligence. The results were telling:…
May 6, 2024
How Much Are You Willing to Spend on Student Loan Forgiveness?
Last Wednesday, the Biden administration announced $6.1 billion in student debt cancellation for over 300,000 borrowers who attended the Art Institutes, a defunct network of for-profit colleges that, according to the Department of Education, defrauded borrowers. This cancellation is generous—all borrowers, regardless of their current economic circumstances, who attended the Art Institutes between 2004 and 2017 will have their…
April 29, 2024
New “Scorecard” Report Promotes Better Use of Data to Prevent Unemployment Fraud
Criminals inflicted unprecedented fraud on taxpayer benefits during the pandemic, and some of the most abused programs were those that provided temporary federal unemployment benefits. As we documented in a January 2024 report (Pandemic Unemployment Fraud in Context: Causes, Costs, and Solutions), official government tallies of improper payments and fraud stretch toward $200 billion, while unofficial estimates…
April 26, 2024
Washington, District of Benefit Cliffs
As the welfare state expands while policymakers struggle to contain its costs, one unintended result is the creation of significant benefit cliffs. A little-noticed September 2023 report authored by Elias Ilin and Alvaro Sanchez of the Federal Reserve Bank of Atlanta (“Mitigating Benefits Cliffs for Low-Income Families: District of Columbia Career Mobility Action Plan as a Case Study”) explains…