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

Removing Regulatory Barriers

Housing Roadblocks: Paving a New Way to Address Affordability

March 22, 2025

America faces a crisis of housing affordability driven by a lack of supply; at the start of 2025, we are building 38 percent fewer single-family homes than we were 20 years ago. In new testimony before the Senate Committee on Banking, Housing, and Urban Affairs, economist and housing policy expert Edward L. Glaeser explains what went wrong and how federal policy can incentivize housing construction.

 

 

Similar concerns about higher education affordability have driven significant increases in financial aid provided by federal and state governments. In a new AEI report, higher education expert Preston Cooper documents 30 years of college tuition and financial aid trends to evaluate these policies’ effectiveness.

 

This week, President Donald Trump signed an executive order directing Secretary Linda McMahon to begin dismantling the Department of Education as the administration continues to pursue its objective of cutting staff and costs. AEI Education Policy Studies Director Frederick M. Hess assesses these actions, cautioning that indiscriminate or opaque cuts on their own will not reduce red tape or improve outcomes for students and educators.

 

President Trump’s efforts to broker peace in Ukraine continued this week in a phone call with Vladimir Putin and the scheduling of new talks for March 24. Matthew Continetti warns that Trump’s approach of weakening Ukraine and flattering Putin is repeating his predecessor’s mistakes and risks embarrassment and failure.

 

The president’s approach to the economy is similarly failing to deliver results. AEI Economic Policy Studies Director Michael R. Strain cautions that embracing tariffs and a populist economic vision magnifies the risks of recession and a public backlash that could sink the positive aspects of the administration’s agenda.

Capitalism and the American Revolution

On March 11, AEI published the second volume in its ongoing “We Hold These Truths: America at 250” series dedicated to reintroducing Americans to the unique value of their national inheritance. In Capitalism and the American Revolution, leading historians, political scientists, and economists analyze the market economy’s role in the creation of the United States. Contributors including Jay Cost, Christopher DeMuth, and Richard A. Epstein reveal how the founding generation viewed the promises and perils of capitalism in securing America’s future, providing vital perspective on debates today. Read all the essays and watch a recording of the contributors’ symposium on AEI’s America at 250 website.  

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QUOTE OF THE WEEK

If the White House wants to stave off a future where weapons of mass destruction spread to nonnuclear friends and foes alike, it should take steps to shore up its reputation as the leader of the Free World. It should lift the pressure it has placed on Ukraine and shift it to Russia—where it always belonged. And it should squash all talk of deep nuclear arms reductions with Russia and China—which have no chance of success in the near term and will only rattle allied confidence in Washington.

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