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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

August 9, 2023

The AI Apocalypse Can Wait

The rise of artificial intelligence (AI) has ignited fears about its potential to disrupt the labor market. There has been no shortage of predictions of huge impacts AI will have on the future of work—especially for workers with higher levels of education—fueling both anxiety and the risk of overzealous regulation. A recent report from the Organisation for Economic Co-operation and Development…

By Brent Orrell

August 3, 2023

Expanding Economic Opportunities Through Evidence-Based Sector Training

Read the PDF. Introduction The Workforce Futures Initiative is a research collaboration among the American Enterprise Institute, the Brookings Institution, and the Project on Workforce at Harvard Kennedy School’s Malcolm Wiener Center for Social Policy. The initiative aims to develop concise and actionable reviews of exist­ing research for federal, state, and local policymakers. Since August…

By Brent Orrell et al