To view this email as a web page, click here

.
AEI's weekly digest of top commentary and scholarship on the issues that matter most

The Ironies of Statecraft

Welcome to the New Era of Nuclear Brinkmanship

September 2, 2023

“The Ukraine war is the first great-power nuclear crisis of the 21st century—and it won’t be the last,” warns Hal Brands. To prevail in our rivalries against Russia and China, the US will need to successfully manage the dynamics of nuclear coercion.

 

 

As the US government and many technology companies push to move electronics and computing supply chains outside of China, what countries are best suited to host relocated manufacturing? While the focus has fallen on neighboring Asian countries, Chris Miller and David Talbot argue that Mexico’s potential for high-tech manufacturing is being overlooked.

 

A House Republican investigation has revealed that even as scientists ridiculed the lab-leak theory of COVID-19’s origins in public with statements and research, they admitted its plausibility privately. Christine Rosen digs into how “astonishingly incurious” the media outlets were toward this story.

 

In 1997, Congress created the 510(k) Third Party Review Program to speed up approval of low- to moderate-risk medical devices, but only 2.4 percent of eligible devices use this pathway. Writing for the Journal of Medical Systems, Brian Miller, William Blanks, and Brian Yagi diagnose the program’s failings and propose reforms to improve device regulation.

 

How compatible is originalism with the natural law tradition of theorists like Thomas Aquinas? Responding to natural law critics of originalism, Joel Alicea emphasizes both traditions’ shared basis in popular sovereignty.

Depositor Discipline and the Banking Panic of 2023

What were the underlying causes of the 2023 banking panic that saw the liquidation of four major banks: Silvergate, Signature, Silicon Valley, and First Republic? In May, AEI hosted a roundtable of experts to explore this question, and their findings have now been published in a special issue of the Journal of Applied Corporate Finance. In his contribution, Paul H. Kupiec explores the role of uninsured depositors in these banks’ collapse. Economists conventionally assume that uninsured depositors’ exposure to risk causes them to discipline banks’ risk-taking, but Kupiec documents how uninsured depositors continued to fund each of these banks’ dangerous investment strategies until it was too late. If uninsured depositors will not exert market discipline, bank supervision from Treasury and the Federal Reserve will need to be much more effective than it was in 2023.

 

 

More from AEI
RESEARCH AND COMMENTARY

The New Bank Bailout

Paul H. Kupiec and Alex J. Pollock
Wall Street Journal

By Skimping on the Budget for Competition with China, Washington Makes War More Likely

Mackenzie Eaglen
AEIdeas

Mexico’s Microchip Advantage

Chris Miller and David Talbot
Foreign Affairs

The Government Weighs In on Social Media Platforms’ First Amendment Rights

Clay Calvert
AEIdeas

The Trump Trial Date Is a Big Mistake

Ross Douthat
New York Times

PODCASTS AND VIDEOS

What Should I Read This Summer? Best Things First by Bjorn Lomborg

Marc A. Thiessen, Danielle Pletka, and Bjorn Lomborg
What the Hell Is Going On?

Generation Flex

Jonah Goldberg and Jean Twenge
The Remnant with Jonah Goldberg

Chris Stirewalt Unpacks the GOP Debate and 2024 Presidential Race

Chris Stirewalt, Jeff Pickering, and Sam Raus
The Campus Exchange

Prigozhin’s Out. Now What?

Giselle Donnelly, Dalibor Rohac, and Iulia Joja
The Eastern Front

Uncertainty and Technology: The Adaptability Imperative of Automation

Brent Orrell and Shane Tews
Hardly Working

QUOTE OF THE WEEK

With a combination of strategic foresight, stakeholder engagement, and capacity building, governments can harness the power of AI to truly transform public service, making it more responsive and citizen-centric than ever before.

John Bailey