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

Advice for the Trump Administration

AEI Scholars Offer Ideas on Education, Welfare, and Tariffs

February 1, 2025

As the Trump administration gets underway, AEI scholars are identifying and proposing solutions to the most pressing policy issues facing our country. In a new AEI report, AEI education expert Nat Malkus identifies surprising links between declines in US student test scores and those of adults.

 

 

There are significant opportunities to save money and reduce government dependency by reforming federal safety-net programs. In a new report, Angela Rachidi and Erik Randolph propose changes to the Supplemental Nutrition Assistance Program to eliminate benefit cliffs, improve employment outcomes, and potentially save $30 billion.

 

Medicaid and Medicare are both in desperate need of cost cutting and structural changes to end unsustainable spending. In a podcast interview, AEI health care expert James C. Capretta talks with AEI President Robert Doar about actions the executive branch and Congress can take. For more, read Capretta’s latest report on budgetary dysfunction and reform.

 

Throughout his campaign and early days in office, Donald Trump has made tariffs a centerpiece of his policy agenda. In a joint letter with former Treasury Secretary Larry Summers in The Wall Street Journal, AEI scholar and former Senator Phil Gramm warns of the severe economic consequences of increasing trade barriers.

 

Beyond these discrete policy issues, AEI scholars are studying broader social and cultural trends that are reshaping the fabric of American life. In new public opinion research, Director of AEI’s Survey Center on American Life Daniel A. Cox and Kelsey Eyre Hammond document Americans’ increasing and troubling failure to find long-term romantic partners.

 

The Targeting of Place-Based Policies: The New Markets Tax Credit Versus Opportunity Zones

Place-based tax policies use tax incentives to encourage investment in areas with lower economic development and resident well-being. In a new National Bureau of Economic Research working paper, Deputy Director of AEI’s Center on Opportunity and Social Mobility Kevin Corinth and coauthors compare the effects of the United States’ two major place-based programs that went into effect in 2018: the New Markets Tax Credit Program, in which government-approved entities select investments, and Opportunity Zones (OZs), a program that allows private investors to choose projects. OZs significantly expanded the number of low-income communities benefiting from place-based policies, but they tended to favor areas already receiving private investment. As Congress considers tax reform, additional place-based policies may be necessary to reach census tracts with the lowest levels of private investment, which both programs tended to miss.

More from AEI
RESEARCH AND COMMENTARY

Trump Isn’t King, and Congress Isn’t Coequal

Jay Cost
The Wall Street Journal

How Colleges Will Try to Use Race as a Factor in Admissions Without Getting Caught

Naomi Schaefer Riley and James Piereson
Washington Examiner

Facilitating a Trump Peace Plan for Ukraine

Marc A. Thiessen and Jack Keane
American Enterprise Institute

A Warning Against Warning Labels on Social Media Platforms

Clay Calvert
AEIdeas

An American "Iron Dome" Would Help the US—and Our Allies

Kyle Balzer
National Review

PODCASTS AND VIDEOS

The Arts in America

Christopher J. Scalia and Daniel Asia
The Back of the Book

Unleashing American Infrastructure

James Pethokoukis and James W. Coleman
Political Economy with James Pethokoukis

Bob Woodson: Civil Rights Icon

Ian Rowe et al.
The Invisible Men

Curtis Yarvin Yearns for Serfdom

Jonah Goldberg
The Remnant with Jonah Goldberg

What Is Going On with Birthright Citizenship? Adam J. White Explains.

Danielle Pletka et al.
What the Hell Is Going On?

QUOTE OF THE WEEK

Voters, especially minorities, intuitively understand the importance of opportunity over divisive rhetoric preached by cultural elites. They seek an equal shot at the American Dream, not an equal outcome. By rejecting the failed approaches of the past and implementing practical, market-driven reforms, the Trump administration can address the real drivers of inequality and pave the way for lasting economic and social progress.

Tobias Peters and Edward J. Pinto