Michael Strain: On the State of the US Economy

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 about the unique role of novels in the development of strong morals, leadership, and sense of self.Chris is a senior fellow in the Social, Cultural, and Constitutional Studies department here at AEI. He previously served as director of AEI’s Academic Programs department. Chris is a former professor of 18th- and early 19th-century British literature at the University of Virginia’s College at Wise. He is the coeditor of On Faith: Lessons from an American Believer, and Scalia Speaks: Reflections on Law, Faith, and Life Well Lived.

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 since 1992. He is also a visiting senior fellow here at AEI where his research focuses on urban economic policy. His most recent co-authored paper, “America’s Housing Supply Problem: The Closing of the Suburban Frontier?” is published in the National Bureau of Economic Research.

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 American capitalism and the idea of equal opportunity as America grows closer to its 250th birthday.Deirdre is a senior fellow at the Cato Institute. She is also a distinguished professor emerita of economics and history at the University of Illinois at Chicago, as well as a professor emerita of English and communication. She is the author of some two dozen books, including the Bourgeois trilogy, and has a wonderful article, “Economic Causes and Consequences of the American Revolution,” published in AEI’s recent book, Capitalism and the American Revolution, part of our America at 250 series.

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, public and private sector compensation, and state and local government pensions.Prior to AEI, Biggs was principal deputy commissioner of the Social Security Administration. In 2005, he served as the associate director of the White House National Economic Council. He is also the author of the new  book, The Real Retirement Crisis: Why (Almost) Everything You Know About the US Retirement System Is Wrong.

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 Security Review Commission. He is also the author of the China Global Investment Tracker.

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.Leigh is a member of the Australian House of Representatives and serves as the Assistant Minister for Competition, Charities, and Treasury. His 2024 book, HowEconomics Explains the World: A Short History of Humanity, is the latest of his 11 books on economics, leadership, and public policy.

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 academic and policy journals in addition to his 2020 book, The American Dream is Not Dead. He is a professor at Georgetown University’s McCourt School of Public Policy and a research fellow at the Institute for the Study of Labor.

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 with James Coleman about the kinds of policy reforms need before we can build.Coleman is a nonresident senior fellow here at AEI. Concurrently, he is also a scholar of energy law at the University of Minnesota, where he specializes in North American energy infrastructure, transport, and trade. He previously taught law at Southern Methodist University, the University of Calgary, and Harvard Law School.

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 debate surrounding role and value of federal funding for science research. Today on Political Economy, I talk to Tony Mills about American science policy past, present, and future.Mills is a senior fellow here at AEI and director of the Center for Technology, Science, and Energy. He is also a senior fellow at the Pepperdine School of Public Policy and a scholar associate of the Society of Catholic Scientists. His new paper, “Recovering Science Policy,” explores the blurred lines between US industrial and science policy in today’s political landscape.