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

Abandoning Free Enterprise

The Trump-Biden Consensus is Bad for Business

February 3, 2024

From tariffs to industrial policy, the Trump and Biden administrations have pursued broadly similar economic policies that reflect a shared hostility to free enterprise. Writing in the Financial Times, Michael R. Strain explains why business leaders need to more vocally oppose this shift, which harms businesses, workers, and consumers.

 

 

Spiraling spending on Medicare, Medicaid, and the Affordable Care Act is overwhelming the federal budget and weakening economic growth. In testimony before the House Committee on Energy and Commerce, Subcommittee on Health, Benedic N. Ippolito identifies bipartisan opportunities to lower these health care costs by introducing transparency and competition.

 

This week, House Republicans and Democrats worked together to pass legislation trading business tax breaks for an expansion of the child tax credit that costs over $78 billion. Robert Doar argues that House Republicans have unwisely abandoned their commitment to fiscal responsibility for poorly designed handouts.

 

In 2023, chronic absenteeism from public schools remained 75 percent higher than the pre-pandemic baseline. In a new AEI report, Nat Malkus comprehensively documents the scope of this trend, which threatens to entrench learning losses from the pandemic.

 

Universities’ falling enrollments and political vulnerability present a golden opportunity for conservative higher education reform. In the Wall Street Journal, Benjamin Storey and Jenna Silber Storey suggest that the best way to reshape academia is to follow the left’s playbook by creating new fields of study, like civic thought, more receptive to conservative ideas.

Pandemic Unemployment Fraud in Context: Causes, Costs, and Solutions

During the COVID-19 pandemic, Congress expanded unemployment benefits, while administering agencies faced an unprecedented surge in demand. The result was unprecedented fraud: Official estimates of improper payments approach $200 billion, while unofficial analyses suggest $400 billion or more may have been lost. In a new AEI report, Matt Weidinger and Amy Simon explore the scope of this failure, investigate its causes, and propose reforms for state and federal policymakers. The poor policy design of the expansion—allowing claimants to self-certify eligibility—combined with the lack of administrative resources to combat fraud on the state level to allow for significant abuse. And while this became quickly evident, Congress was far too slow to respond. Weidinger and Simon urge Congress to invest in reforms now so Congress can more appropriately, and accurately, target benefits in a future emergency.

 

 

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