Economics

On September 5, the New York Times reported that the Trump administration is preparing to extend federal childcare subsidies to stay-at-home parents. The proposal turns staying home to provide childcare into a subsidized activity. This scenario is politically and legally unlikely. But it illustrates how the proposal treats federal welfare as a tool for winning the culture war, without regard for the broader economic damage caused by the reform. Congress should not subsidize childcare at all. 

The advocates of protectionist trade policies face a significant challenge in public opinion. Although tariffs are often promoted as a way to protect and strengthen the working class, Americans without college degrees remain unconvinced that current trade policies are helping them.

This week’s rate hike was defensible, but the Fed still needs an objective method of conducting monetary policy.

Rather than requiring younger Americans to surrender more of their paychecks to finance growing payments to affluent retirees, Congress should refocus Social Security on protecting seniors from poverty. Gradually slowing benefit growth for higher-income retirees would preserve reliable support for vulnerable Americans while putting the program on a more sustainable fiscal path.