Economics

Prof. David Autor joins Possible podcast hosts Reid Hoffman and Aria Finger to discuss everything from the cross-country road trip that helped inspire his research focused on technology, work and inequality to how AI might impact American workers. Autor notes that if AI technologies are implemented in the best way possible for humankind, “we would give people more secure and fulfilling work. We would give them more access to education and access to better healthcare, everywhere. And those things alone would improve welfare in so many dimensions. Not just in terms of material standard living, not just in comfort, but investing in our kids, creating opportunity for the next generation.”

A new book edited by Prof. Gary Gensler and Prof. Simon Johnson examines the current administration’s impact on the global economy and how new policies could lead to “a profound weakening of both US economic dynamism and the global system it once led,” reports Sam Sutton for Politico.

Prof. Jonathan Gruber speaks with Newsweek reporter Jasmine Laws about the increase in cigarette taxes in various states across the United States. “There is a large body of economic evidence that shows that higher taxes will reduce smoking – particularly among the young and the poor,” says Gruber. “The downside is that the poor will pay more for cigarettes, stretching their budgets, but that is largely offset by the fact that they will smoke less. If the revenues are used to fund smoking cessation efforts among the poor, which have shown to be effective, this is a great policy opportunity." 

Prof. Gary Gensler speaks with Bloomberg Surveillance about his new book examining the potential economic impacts of current policies in Washington. “I don’t think the tariffs are going to help,” says Gensler. “I think they’re going to hurt and interestingly they’re going to particularly hurt also in rural communities because rural communities have to sell their farm goods and they’re agricultural products overseas.” 

Prof. Daron Acemoglu speaks with Salon reporter Russell Payne to explain how “the calculations made by the current generation of AI are fundamentally different from how humans think.” Acemoglu explains: “The more talk of artificial super intelligence we have, the more of a boost these companies get, especially in terms of being able to raise funding, in terms of being in the spotlight and high status, high ability to convince others.” 

Prof. David Autor speaks with Wired reporter Will Knight about the anticipated impact of AI on employment. “If demand for software were like demand for colonoscopies, no improvement in speed or reduction in costs would create a mad rush for the proctologist's office,” says Autor. “But if demand for software is like demand for taxi services, then we may see an Uber effect on coding: more people writing more code at lower prices, and lower wages.” 

Prof. Simon Johnson speaks with Wired reporter Paresh Dave about the financial and social cost of AI implantation in the workforce, making the case that governments should lower payroll taxes for entry-level roles to encourage hiring and help humans build careers. “The right lever to pull is one that reduces costs to employers,” says Johnson.  

Postdoc Isabella Loaiza speaks with ABC News reporter Max Zahn about her study examining how jobs and tasks across the U.S. economy shifted between 2016-2024. Loaiza and her colleagues found that “rather than dispense with qualities like critical thinking and empathy, workplace technology heightened the need for workers who exhibit those attributes,” Zahn explains. “It is true we’re seeing AI having an impact on white-collar work instead of more blue-collar work,” says Loaiza. “We found that jobs that are very human-intensive are probably more robust.” 

Prof. Daron Acemoglu, Prof. Peter Diamond and Prof. Simon Johnson are among the six Nobel laureate economists that warn the “massive budget bill passed by Housemakers last month… would weaken key safety-net programs while greatly lifting the federal debt,” reports Alain Sherter for CBS News. The economists also said that “large tax cuts under the legislation, combined with the hits to Medicaid and food stamps, would increase inequality,” writes Sherter. 

Prof. Emeritus Stanley Fischer PhD '69, “one of the most influential economists of recent decades,” has died at age 81, reports Greg Ip for The Wall Street Journal. Through his various roles, “Fischer helped shape how an entire generation of central bankers and economic policymakers do their jobs,” writes Ip. 

Prof. Emeritus Stanley Fischer PhD '69, an economist and central banker who helped “guide global economic policies and defuse financial crises for decades,” has died at the age of 81, reports James R. Hagerty for The New York Times. While at MIT, “Mr. Fischer became a magnet for graduate students,” writes Hagerty. “He encouraged them to visit him every week, ‘especially if you have nothing to say.’” 

Prof. Daron Acemoglu speaks with WBUR On Point host Meghna Chakrabarti about the role of trust in institutions. “Institutions crucially depend on the trust that people place in them,” says Acemoglu. “Corruption is the tip of the spear, because once you start suspecting that people in high office are using their position for corrupt ends, it tarnishes the entire set of institutions. And I think that's the situation we're in, and we're getting deeper and deeper.” 

Joseph Coughlin, director of the MIT AgeLab, speaks with Barron’s reporter Megan Leonhardt about the longevity economy, workforce trends, and why he sees opportunities for innovation and growth as the senior population in the U.S. increases. “The future isn’t just about living longer—it is about living better. This gap between traditional aging and modern aspirations creates a white space ripe for investment and innovation,” says Coughlin. “We need to look at what a 100-year life span does to our expectations and behaviors, and probably most important, how government and business are going to innovate around disruptive demographics that don’t fit the story line that has been in place for the past century.”

Writing for Forbes, Research Scientist Christian Catalini, founder of the MIT Cryptoeconomics Lab, discusses the future of the crypto industry. “Crypto isn’t above the fundamental laws of economics. Like any startup, crypto projects need to target genuine utility first, then use tokens to speed up adoption or address market failures in their ecosystem,” writes Catalini. “In short, while economists may be eager to play engineer, their ideas shine most when a project already has some traction.” 

Prof. David Autor speaks with Rogé Karma from The Atlantic about the role of tariffs in the American manufacturing industry. “Letting free trade rip is an easy policy,” says Autor. “Putting up giant tariffs is an easy policy. Figuring out some middle path is hard. Deciding what sectors to invest in and protect is hard. Doing the work to build new industries is hard. But this is how great nations lead.”