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

Presidential Election in Turmoil

Our Deformed Party System

July 13, 2024

As President Joe Biden resists calls to step aside as the Democratic Party’s presidential nominee, it seems the American people will be forced to choose between a “physically and mentally unfit” candidate and a “psychologically unfit” candidate. Social, Cultural, and Constitutional Studies Director Yuval Levin shows how the institutional deformation of our political parties has created this failure of candidate selection.

 

 

The US can ill afford this breakdown of presidential politics. In a new AEI report, Giselle Donnelly, Dalibor Rohac, and coauthors argue that American leadership is needed more than ever to strengthen NATO in order to defeat Russia in Ukraine and defend our vital interests in Europe.

 

The war in Ukraine has also brought into focus a disturbing global trend—the rise of targeted killing and assassinations as both a wartime tactic and a broader tool of statecraft. While the US has relied on these against terrorists for decades, AEI senior fellow and National Security Council veteran Kenneth M. Pollack and Daniel L. Byman highlight the risks of normalizing this tactic, especially for open societies, against geopolitical rivals capable of retaliating.

 

In a world where developed countries’ populations are aging, one of the US’s great geopolitical advantages remains its openness to immigration. In new research, AEI adjunct fellow and vice president at the Federal Reserve Bank of Dallas Pia M. Orrenius and coauthors quantify the economic benefits of the current immigration surge.

 

The US economy has also been bolstered by the rapid decline in price pressures over the past year as supply chains have normalized. In a new AEI Economic Policy Working Paper, Steven B. Kamin and John M. Roberts develop a model to show how the interaction of wages and prices will shape the future course of disinflation.

 

Reconsidering the Ban on Physician-Owned Hospitals to Combat Consolidation

The US health care market is increasingly consolidated, producing harms for patients and employees while stifling innovation and driving up costs. On the provider side, this problem has been exacerbated by the Affordable Care Act’s 2010 ban on new or expanded physician-owned hospitals (POHs). In a new law review article in the New York University Journal of Legislation & Public Policy, Brian J. Miller, writing with three other medical and legal experts, analyzes the history and negative effects of this legislative provision. They document how POHs introduce competition and innovation into the hospital sector and consequently why incumbent hospitals successfully lobbied to ban them. Ultimately, if Congress wants to reduce health care consolidation, ending the ban would be one of their most effective policy options. 

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QUOTE OF THE WEEK

Reforming the tax code in 2025 will not be easy. Lawmakers will need to make several difficult trade-offs. However, it is worth it. The right reform will grow the economy and improve living standards without adding to the federal government’s fiscal challenges.

Kyle Pomerleau