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

The Dilemmas of US Foreign Policy

The Age of Amorality

February 24, 2024

“Strategy, for a liberal superpower, is the art of balancing power without subverting democratic purpose.” Writing in Foreign Affairs, Hal Brand weighs the moral and strategic dilemmas of aligning with other autocratic states to resist Russian, Chinese, and Iranian aggression.

 

 

The Biden administration recently decided to stop approving liquefied natural gas exports despite the stunning growth of this industry in the US. James W. Coleman explains why this indefensible decision could have catastrophic consequences for America’s geopolitical strength and the world at large.

 

Administrative spending makes up around 25 percent of the United States’ total health care costs, amounting to about $1 trillion every year. Brian J. Miller and Ted Cho highlight the immense potential of artificial intelligence to reduce these costs, especially in Medicaid.

 

The Trump and Biden administrations have collectively destroyed the United States’ global leadership in trade policy by embracing protectionism and sabotaging international negotiations. Claude Barfield documents the missed opportunities and costs of this retreat.

 

Is Special Counsel Jack Smith’s effort to bring Donald Trump to trial for the events of January 6 before the 2024 election inappropriately rushed? Peter J. Wallison argues that voters won’t be able to make an informed decision if the facts are not presented at trial before the election.

Sanctions on Russia and the Splintering of the World Oil Market

After Russia’s invasion of Ukraine, Western governments sanctioned Russia’s oil industry, putting it under restrictions similar to those of Iran and Venezuela. Two years on, how effective have these sanctions been, and what effect have they had on global oil markets? In a new AEI report, Chris Miller, Nick Kumleben, and Caroline Nowak provide a comprehensive analysis. They estimate sanctions have cost Russia around $50 billion in 2022 and 2023, as it is forced to sell at discounted prices. But countries willing to buy sanctioned oil, such as China, India, and Turkey, have benefited from cheaper energy prices, saving as much as $22 billion in the past year. As a whole, the world oil market has grown less efficient and more opaque as a result of this fracturing between sanctioned and non-sanctioned spheres. Western governments will need to carefully weigh these costs and benefits when designing future sanctions regimes.

 

 

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QUOTE OF THE WEEK

It is ironic that opponents of aid to Ukraine—aid that primarily flows to American companies and supports American jobs—are often the same individuals who call for the reindustrialization of America and the revival of American manufacturing. Ironic, too, that these self-described ‘populists’ are standing in the way of majority rule, are standing against public opinion.

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