Subject: The rise of robots (AEI Economics Ledger)

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New problems, old solutions?
Dont look now: Robot workers could tear Americas social fabric. Michael Strain: We are a long
way from the Luddite riots of 19th century England, when protesters smashed the trappings of progress.
But worries about the rise of the machines are still with us, and for good reason. Will the machines take
our good-paying jobs? Many economists offer a quick no. . . . This dismissal is too flip.
80s-style economic poli cy wont work today. J im Pethokoukis: Light taxation and small government
are principles worth preserving. But they must be applied in a modern fashion. If conservatives and
Republicans desire a return to relevancy, then they can't offer today's voters reruns from the '80s and '90s
in an attempt at solving yesterday's problems.
Policies to get the economy back on track
Get Ameri cans back to work. Michael Strain: A good first step toward building a stronger labor market
would be to lower the barriers that now keep workers from potential jobs. Rolling back oppressive
licensing requirements would be a big help. . . . Conservatives should also rethink the way unemployment
benefits are provided and allow workers interested in moving in search of employment to receive
relocation assistance in place of continued unemployment benefits.
A better way than Obamacare to reduce the number of uninsured. J ames Capretta: Lower-income
households will need public subsidies, for example, to be able to secure at least catastrophic insurance
coverage and participate in a thriving consumer market, and those subsidies will have a budgetary cost.
The new plan will also have to be designed so as not to unduly disrupt the insurance arrangements of the
millions of middle-class families who now have coverage they are happy with.
Health care spending i s not high because of the pri vate sector. Stan Veuger: Health spending as a
share of state income is actually lower in states that rely more on the private sector in the provision of
health care.
Remove the safety net for business. J ames Pethokoukis: There is a big difference
between crony or state capitalism and free-market, entrepreneurial capitalism. In order for our market
economy to work effectively, it is the governments job to establish a level but intensely competitive
playing field for business where the most innovative and dynamic companies winnot the most politically
influential or connected ones.
After all, if Detroit s not too big to fail . . . Alex Pollock: With the instructive Detroit precedent,
shrunken populations, and underfunded municipal pensions common, we can conclude that no city, not
even Chicago, should be thought of as too big to fail.
Deal with outsized government. Ramesh Ponnuru: The federal government has taken on more and
more responsibilities, inserting itself into every nook and cranny of American life, yet it seems incapable
of performing even the most basic tasks competently. Restoring something like constitutional government
is a task that will take generations, and it will have to be undertaken by citizens and legislators as well as
by courts.
Its that time of year
FROM THE ARCHIVES (2013) Commencement speakers: Conservatives need not appl y. Kevin
Hassett: To gauge how rare it is for a conservative to be invited to speak at a college graduation, I
looked at commencement and other announced graduation event speakers for 2012 and 2013 from the
top 100 universities and top 50 liberal arts colleges (according to the U.S. News & World Report
rankings). Then I tried to identify them as liberal or conservative based on their party affiliation, if I could
determine it. . . . All told, there were only three identifiably conservative speakers at the top 50 colleges
and 12 at the top 100 universities, compared with a total of 69 identifiably liberal speakers.
College graduation echo chamber. Sita Slavov: While most of the recent commencement
controversies have involved protests from the left, the echo chamber concern applies equally to the right
and the left. When I taught at a small liberal arts college, I often crossed paths with liberal and
progressive faculty members who truly believed that anyone who disagreed with them must be either evil
or stupid.
In other news
Dont weaken mortgage standards to juice the economy. Edward Pinto: First is the desire to use
easy credit to juice an anemic economic recovery. Yet we have already had 6 years of the lowest interest
rates in generations, combined with already loose lending standards. The result has been increasing
home prices in concert with stagnant incomes, leading to reduced affordability, particularly in places like
California.
Focus on currency manipulation. Desmond Lachman: Martin Feldstein, the renowned Harvard
University economist, is calling on the U.S. Treasury Department to end its 20-year practice of reporting
to Congress on a semi-annual basis as to whether America's main trading partners have been
manipulating their exchange rates. The Treasury and Congress would be well-advised to ignore
Feldstein's call.
AEI EVENT VIDEO Economic liberty and human flourishing: Perspectives from political philosophy
AEI EVENT VIDEO Trading up: Representative Charles Boustany J r. on free trades growth
opportunities
Mark your calendar

6.4 International trade data (April)
6.5 J obless claims (weekly)
6.6 Employment situation report (May)
6.12 AEI EVENT: After Snowden: The road ahead for cybersecurity
6.23 AEI EVENT: A conservative vision for social justice

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