Political Economy with Jim Pethokoukis

Today on Political Economy , I’m chatting with Hal Brands about America’s place in the changing global order. Under the Trump administration, the US has acted less as an “ordering power,” as Brands puts it, than it has over the past century. We talk about the evolving relationship between the US and its allies, in addition to the role of emerging technology in the competition with China. Brands is...

Today on Political Economy , I’m talking with Tobias Peter about housing: From homeownership rates to construction types, we go over the many factors that play into a healthy housing market and explore what is holding back US homeowners. Tobias is the codirector of the Housing Center at AEI. As a senior fellow, his research focuses on housing risk and mortgage markets. Tobias has testified before...

Today on Political Economy , I talk with Mackenzie Eaglen about the Pentagon’s evolving strategy to confront today’s national defense challenges. Mackenzie and I take a look at the military doctrine of recent administrations compared to that of today. We discuss America’s state of preparedness, the changing defense-industrial base, and the role of automation. Eaglen is a senior fellow here at AEI...

Stories are the way we communicate our values, explore complex ideas, and learn to empathize with those who fundamentally differ from ourselves. Christopher Scalia ’s most recent book, 13 Novels Conservatives Will Love (but Probably Haven’t Read) , delves into the particular benefit conservatives may find in literature they likely hadn’t considered. Today on Political Economy , I talk with Chris a...

Today on Political Economy , I’m talking with Edward Glaeser about the problem with American housing supply and the many hurdles to building affordable homes. Ed and I look at the past century of urban and suburban construction and the attitudes and policies that have held back the US housing market. Ed is the chair of the economics department at Harvard University , where he has been a professor...

You remember your fourth grade history textbook: The British Empire unfairly taxed the American colonies. Tea was dumped in the Boston Harbor. Colonists refused taxation without representation. Therefore, the American Revolution was driven by economics, right? Well, maybe not. Today on Political Economy, I’m talking with Deirdre McCloskey about the core ideas that drove the Revolution. We explore...

Today on Political Economy, I’m talking with Andrew Biggs on why policymakers, the media, and most Americans are convinced of a retirement crisis that Biggs argues . . . doesn’t exist. Andrew and I discuss why this misperception continues to persist, and where the real flaws are in the American retirement system. Andrew is a senior fellow here at AEI where he researches Social Security reform, pub...

Today on Political Economy , I talk with Derek Scissors about what the Trump Administration’s newly-declared tariffs mean for US-China relations and what to make of today’s economic uncertainty. Derek is a senior fellow here at AEI, where he focuses on US-Asia economic relations. He is the chief economist of the China Beige Book and previously served as a commissioner on the US-China Economic and...

Today on Political Economy, I talk with Mark Warshawsky about the state of the Social Security system as we size up some of the reforms currently on the table.

The arc of human history is a story of economics. Social values, human behavior, and the defining events of history are all woven into this field that seeks to explain how and why societies prosper — and why they often don’t. Today on Political Economy , I talk with Andrew Leigh about the economic lessons we miss in history class and what we gain from a basic understanding of how our economy works...

Today on Political Economy , Michael Strain and I discuss the key challenges currently facing the American economy; namely, the growing debt burden, lingering inflation, the market response to tariffs, and general uncertainty. Strain is the director of Economic Policy Studies and the Arthur F. Burns Scholar in Political Economy here  at AEI. He has published dozens of articles in leading acad...

Energy, transportation, housing — pro-growth advocates from Washington to Silicon Valley are calling for a revival of American infrastructure. They say, “It’s time to build.” One massive problem, however: decades of environmental regulation, such as the National Environmental Policy Act, have slowed these efforts to a snail’s pace, if not halted them altogether. Today on Political Economy , I talk...

The US government has acted as major contributor to science research since the mid-20th century, both in terms of broad basic research and targeted projects. As industrial policy has gained traction, especially during the Biden Administration, the distinction between industrial and science policy has become increasingly obscure. Hybrid policies like the CHIPS and Science Act have spurred continued...

Computer chips are the driving force behind everything from smartphones and cars to military defense systems and artificial intelligence. Not only are they the essential element of modern digital infrastructure, they are a critical element in the global balance of power. Taiwan is home to the most advanced and productive chip plants in the world, precariously placing the technology between Communi...

Growth is good for everyone in an economy, but it is also inherently disruptive. Today on Political Economy, I talk to Glenn Hubbard about why fear of change can trap us in an economic zero-sum game, and how embracing the growing pains of innovation can free us from that scenario, making things better for everybody. Hubbard is a nonresident senior fellow here at AEI, where he writes about a wide r...

The Biden administration has set ambitious goals to decrease US carbon emissions. Starting in 2022, the Inflation Reduction Act granted clean energy tax credits to businesses in hopes of encouraging a greener economy. Kyle and Shuting Pomerleau see a carbon tax as a superior approach. To offset any regressive effects, they propose a revenue swap, using the income from the tax to directly finance a...

American families are getting smaller, even as parents spend more time parenting; and while quality of life has ostensibly gone up, our willingness to bring children into our abundant world has seemingly gone down. Economists try to pinpoint market explanations and propose policy solutions to the falling birthrate, but  Tim Carney  has a more basic explanation for our shrinking, stressed...

The US dollar is the dominant global currency, but is it possible that the dollar could one day lose its top-tier status? And, if so, would that necessarily be a bad thing? To find out the answers to those and other questions, I asked AEI’s Steven Kamin . Kamin’s research at AEI centers on international macroeconomics and finance. Prior to AEI, Kamin worked at the Federal Reserve as director of th...

When it comes to deploying a new technology, there are no guarantees. While developers and policymakers do their best to minimize risk, innovation always requires a leap of faith. The policy debate around artificial intelligence seems to be a guessing game on all sides. Today, I talk with Bronwyn Howell about how we should be thinking about regulating AI, based on what we know from recent history,...

The Child Tax Credit is a tax benefit available to many American families for the purpose of reducing their federal income tax liability. It’s specifically designed to help offset the cost of raising children. The CTC of today, however, differs starkly from its pre-pandemic structure. Many economists, including Kevin Corinth , think that the post-pandemic changes were a step in the wrong direction...

Generation after generation seem to pine for “the good old days,” an elusive time when many of us think morals, institutions, and the quality of life, in general, were higher. Americans are no exception to this rule, but there’s something unique about American nostalgia. While we reminisce about the past, we also owe much of our success as a nation to our forward-thinking culture that embraces the...

Medicare is a trillion-dollar federal health insurance program designed to meet the medical needs of senior citizens and Americans with disabilities. Yet, despite its staggering amount of funding, Medicare is far from a perfect system. Here on Political Economy, I sit down with Joe Antos to discuss the current state of Medicare and its systemic challenges. Antos is a senior fellow here at AEI wher...

Milton Friedman was one of the most influential economists of the 20th century, right alongside John Maynard Keynes. His work pushed economic thought toward free markets in the 1970s and 1980s. His passionate defense of capitalism and economic freedom had global appeal right through the present day. As such, the closing decades of the 20th century have been termed "The Age of Friedman," yet commen...

Over the past 40 years, children born to parents without college degrees have become less and less likely to grow up with the advantages of a two-parent home. This trend is perpetuating inequality between college-educated and non-college-educated families. To talk about this issue, I’ve invited on Melissa Kearney. Melissa is the Neil Moskowitz Professor of Economics at the University of Maryland a...

From the dawn of agriculture in Jericho to the artistic achievements of the Italian Renaissance in Florence, what lessons can we learn from great cities throughout history? What factors give rise to periods of innovation and creativity? In this episode of  Political Economy , Chelsea Follett previews her new book,  Centers of Progress: 40 Cities That Changed the World . Chelsea is a poli...