January 8, 2025
Menu Adjustment in Response to the Minimum Wage: A Return to the New Jersey-Pennsylvania Border
Abstract This paper studies how output prices are affected by increases in the minimum wage. To the best of our knowledge, we provide the first examination of how the prices of an entire menu of items at a single business adjust in response to a minimum wage increase. Using data we gather from a fast-food…
January 7, 2025
Tax Policy Should Prioritize Shoring Up the Family
During the Biden years, tax policy related to the family revolved around the child tax credit (CTC). Attempts to expand the credit to make it easier for two-parent families to have kids and rely on a sole breadwinner were thwarted by objections that a child allowance would also promote single-parent families in which no one…
January 7, 2025
More Skilled Immigrants for More Economic Growth
The recent appointment of venture capitalist Sriram Krishnan, an Elon Musk ally, to the incoming Trump administration sparked controversy on X (formerly Twitter) among MAGA supporters. The conflict arose from Krishnan’s past support for removing green card country caps for skilled immigrants, a position aligned with Silicon Valley but controversial among some Trump supporters. Amid this debate,…
January 6, 2025
Congress Can Block Student Loan Cancellation—Forever
Over the holiday season, the Biden administration withdrew two pending regulations to unilaterally cancel hundreds of billions of dollars’ worth of student loans. Officials evidently judged that the administration would not have time to finalize and implement the new regulations before the Trump administration takes over. For the time being, loan cancellation by executive action is dead. But a…
January 3, 2025
Thanks, Joe Manchin
During transitions of power, it’s easy to fixate on a new administration’s nominees and legislative agenda while losing sight of those exiting the political stage. But as the new Congress begins today, we shouldn’t ignore the significant contributions of outgoing Senator Joe Manchin (I., W.Va.), a stalwart advocate of work over welfare dependency — even when…
December 31, 2024
Farewell, President Stimulus
When it comes to stimulus, President Joe Biden has carved out a signature spot in American history. From his role as “sheriff” overseeing Democrats’ massive 2009 stimulus law to signing an even bigger stimulus bill as president in 2021, Biden is more closely associated with partisan stimulus policy than any other politician. And the disastrous political consequences of…
December 30, 2024
What’s behind the unprecedented rise in homelessness, and how can we reverse it?
The annual United States homeless population estimates for 2024 were released last week. Homelessness grew by a record 18% annually in 2024, following a then record 12% increase in 2023. As shown in the figure below, the recent spike in homelessness is unprecedented. Going back 17 years since national homeless counts began, homelessness never before…
December 29, 2024
Why Rent Regulation Remains So Hard to Undo in NYC
Few would argue that New York City is mired in a housing crisis — as defined by high prices and low vacancies. There’s good evidence for that conclusion. The most recent federal New York City Housing and Vacancy Survey reported a vacancy rate of just 1.4%, “a stark contrast to the 4.54 rate in 2021”. Over the same period,…
December 27, 2024
DOGE Can Drive Reforms in America’s Broken Safety Net Programs
America’s broken safety net system has over 80 programs, costs $1.6 trillion annually, and perpetually underperforms. It’s inefficient, costly, and perversely functions like a snare net that traps people in poverty. But reform could be on the horizon, led by the new Department of Government Efficiency (DOGE). DOGE can address these staggering failures by identifying…
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…