Also: Tuition Transparency and SNAP Demographics

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Happy Thursday! In today’s newsletter, we examine the AI productivity gap, transparency in college tuition, and the demographics of the Supplemental Nutrition Assistance Program.

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1. Which Jobs Benefit from AI? ([link removed] )

5.07_Bailey ([link removed] )

Topline: Among American AI users, 53 percent of those earning more than $150,000 per year say the technology makes them more productive, versus 30 percent of those earning under $25,000. AEI’s John Bailey asserts ([link removed] ) that AI’s benefits are flowing not only to those with higher income, more education, and better workplace support but also to organizations that have smartly organized and matched tasks to the right AI tools.

Income and Education: AI use closely tracks income and education, as do AI’s reported gains. Fifty-two percent of individuals with bachelor’s degrees feel the technology makes them more productive, while 31 percent of those with only a high school diploma report the same.

Seeing Success: As Bailey explains, AI doesn’t replace whole jobs but improves specific tasks in them. Consequently, organizations that break work into smaller operations and match those with the right AI tools are seeing the biggest gains.

“This is why ‘AI adoption’ is the wrong frame, and why the productivity gap won’t close on its own. The organizations pulling ahead aren’t buying more licenses; they’ve decomposed work into tasks and matched those tasks to the right tools and people. Without that redesign, adoption becomes a tax on workflows that aren’t ready for it: more tools, same bottlenecks, widening gap.”

—John Bailey ([link removed] )

More on Artificial Intelligence
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2. Tuition Bait and Switch ([link removed] )

5.07_Cooper ([link removed] )

Topline: Second-year university students at private, nonprofit schools receive over $1,500 less in institutional financial aid than their first-year counterparts, according to data from the National Postsecondary Student Aid Study (NPSAS). AEI’s Preston Cooper warns ([link removed] ) that private colleges appear to offer generous first-year financial aid—only to reduce it later.

The Bait and Switch: More than 80 percent of first-year students receive some financial aid, meaning that most do not pay the online sticker price. But according to the NPSAS data, if private colleges provided the same amount of financial aid to upperclassmen as they do to freshmen, the average student would receive $4,300 more in institutional aid over their college career.

Two Solutions: The Trump administration’s proposed Student Tuition and Transparency System would require colleges to report tuition and institutional aid for each student to the Department of Education. Representative Virginia Foxx’s College Cost Reduction Act would go further, requiring ([link removed] ) colleges receiving certain federal funds to offer students a “maximum total price guarantee” by disclosing the degree’s full cost upfront.

“Price transparency is critical for well-functioning markets. Students should be able to understand the full price of their education before they enroll—not just a rosy first-year ‘introductory offer.’ Better information about how colleges hike prices for upperclassmen could make the higher education market more price-competitive—and might even bring down overall prices, too.”

—Preston Cooper ([link removed] )

More on College Tuition
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3. SNAP’s Rapid Growth ([link removed] )

5.07_Rachidi ([link removed] )

Topline: Supplemental Nutrition Assistance Program (SNAP) participation has more than doubled over the past 25 years—from 17 million to over 42 million participants—and inflation-adjusted total costs have tripled. AEI’s Angela Rachidi highlights ([link removed] ) that this growth coincides with a shift toward elderly participants.

Demographic Changes: In 2023, for the first time, the share of SNAP households with an elderly person exceeded the share with a child. While general population aging has contributed to this phenomenon, the ratio of SNAP participants to population has steadily increased for those 60 and older since 2000, even as rates have declined in recent years among non-elderly adults and children.

Policy Causes: SNAP rules treat elderly households differently. These households can claim uncapped income deductions for expenses like medical care and housing, face longer SNAP recertification periods, and are not subject to work requirements. As a result, households with an elderly or disabled person qualify for SNAP at higher gross income levels and can receive more benefits than non-elderly or nondisabled households can.

“SNAP remains an important resource for many low-income households. However, efforts to control its long-term growth must confront the realities of population aging and the past policy choices that today shape how elderly households increasingly qualify for and receive benefits.”

—Angela Rachidi ([link removed] )

More on SNAP
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Dive into More Data

5.07_Pethokoukis ([link removed] )

Smartphone Bans in Schools ([link removed] )

More on Smartphones
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5.07_CTP ([link removed] )

Evaluating the Campaign Against Iran ([link removed] )

More on Iranian Missile Forces
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Special thanks to Henry Long, Rosalie Blacklock, Drew Kirkpatrick, and Hannah Bowen.

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