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Problems with Protectionism

The New Washington Consensus on Trade Is Wrong

June 17, 2023

According to James C. Capretta and Stan Veuger, a political shift in favor of protectionism over free trade—a “new Washington consensus,” in the words of National Security Adviser Jake Sullivan—threatens prosperity at home and abroad. Underscoring free trade’s historical and contemporary benefits, Capretta and Veuger argue that this new “consensus” would jeopardize Americans’ enormous gains from trade.

 

 

More than half of all Medicare beneficiaries are now enrolled in Medicare Advantage, which provides an alternative private plan instead of traditional Medicare. Benedic N. Ippolito and Boris Vabson investigate what Medicare Advantage’s popularity means for Medicare’s prescription drug coverage and its consequences for drug competition and costs.

 

On June 7, Angela Rachidi testified before the House Agriculture Committee about the poor health and employment outcomes of Supplemental Nutrition Assistance Program (SNAP) recipients. Rachidi contrasted SNAP’s statutory purposes of safeguarding health and encouraging employment with evidence that it has failed to meet these goals.

 

Mark J. Warshawsky challenges the narrative that recent declines in the number of federal disability beneficiaries reflects a problem in the Social Security Administration (SSA). He contends that this decline instead highlights “at least one area” where the SSA is functioning well and responding to an aging population, a strong job market, and recent reforms.

 

On June 11, 2018, the Federal Communications Commission’s (FCC) repeal of “net neutrality”—a regulatory rule treating internet service providers like public utilities—went into effect, despite intense backlash from activists purporting “the death of the internet.” Five years later, Ajit Pai reflects on how the repeal, which he supported as FCC chairman, defied its opponents’ predictions and fostered a freer, faster, and more accessible internet.

Testimony on Antipoverty and Family Support Provisions in the Tax Code

On June 14, Bruce D. Meyer appeared before the Senate Finance Committee to speak on proposals to transform the child tax credit into a fully refundable child allowance. Meyer first presented a summary of the historical evidence on tax and benefit changes for low-income Americans, showing that pro-work policies enacted in the 1990s have reduced poverty dramatically, increased employment, raised living standards, and reversed a 30-year trend of rising single parenthood. Then, he offered his assessment of the proposed child allowance’s likely consequences, which he said would reverse the gains of welfare reform. Lastly, he discussed evidence for and against child allowances and identified “pronounced weaknesses” in the evidence used to support the policy. In conclusion, Meyer warned that the proposed child allowances run the risks of past policies that encouraged dependence while discouraging work and strong family formation.

 

 

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