Economics

Writing for Financial Times, Prof. Daron Acemoglu discusses the issues behind monopolies ahead of an EU ruling on Google’s advertising technology. “For too long, Silicon Valley has dictated the rules of the internet, shaping markets to serve its own interests while competition dwindles and inequality soars,” writes Acemoglu. “By setting course to break up Google’s advertising monopoly, Europe can show that democratic institutions, not monopolies, should shape our digital future.” 

Prof. David Autor speaks with Financial Times reporter Martin Wolf about the impact of AI on the workforce. “I think [AI] will be quite important, it will be pervasive, it will be transformative in some activities, but I don’t think in general, it’s going to cause an economic implosion of work anytime in the near future,” explains Autor. 

Speaking with Wall Street Journal reporter Justin Lahart, Prof. Sendhil Mullainathan makes the case that people have a choice about what kind of technology AI becomes. “People imagine that AI is going to automate things, but they don’t appreciate that automation is just one path. There’s nothing intrinsic about machine learning or AI that puts us on that path. The other path is really the path of augmentation,” says Mullainathan. “Whether we end up building things that replace us, or things that enhance our capacities, that is something that we can influence.”

Prof. Simon Johnson joins CNBC’s Squawk Box to discuss the potential impact of U.S. tariffs on the global economy. 

Wall Street Journal reporter Lauren Weber spotlights a paper by Prof. David Autor that finds import tariffs have had little effect on job creation and preservation in the U.S., particularly in parts of the country with tariff-protected industries. Autor and his colleagues found “manufacturing employment didn’t increase, though it also didn't fall (other research found that U.S. companies had a hard time selling more products abroad, which may help explain why manufacturers didn't add jobs),” Weber explains. “Worse than that, retaliatory tariffs from trading partners led to job losses, especially in agriculture.”

Writing for The New York Times, Prof. Catherine Wolfram and Columbia Prof. Glenn Hubbard make the case that to help end the war between Russia and Ukraine, the U.S. should “impose sanctions on any company or individual – in any country – involved in a Russian oil and gas sale.” They write: “Ideally, the policy would pressure Russia into negotiations, where its removal could be part of a deal. If not, the United States would still collect billions annually, which could help fund Mr. Trump’s proposed tax cuts.” 

Lee Selwyn PhD '69 speaks with WVCB reporter Ben Simmoneau about how gas companies in Massachusetts promised consumers discounts on their March and April bills, following soaring energy costs this winter. 

Prof. Jonathan Gruber speaks with Marketplace reporter Elizabeth Trovall about looming labor shortages within the caregiving industry and elder care. “We have no plan for credibly meeting that massive change in the long-term care needs of our population,” says Gruber. 

Prof. Jeffrey Harris speaks with Newsweek reporter Jasmine Laws about how a recession could impact Medicare. "A recession could impact many critical decisions of federal lawmakers, private insurers, healthcare providers, and patients,” says Harris. “The U.S. Congress may decide to let stand the Medicare physician payment cut that became effective on January 1 of this year. Reduced physician payments under conventional Medicare may cause doctors, hospitals and other providers to shift their resources toward the care of younger, commercially insured patients."

Prof. David Autor speaks with Financial Times reporter Tom Davis about the impact of dataism – the belief that through gathering increasing amounts of information businesses can make the right decisions and create value - and automation in business management. “You can think of automation as a machine that takes a job’s inputs and does it for the worker,” says Autor. “[And] augmentation as a technology that increases the variety of things that people can do, the quality of things people can do, or their productivity”.

MIT has been named among the top-performing intuitions in the QS World University Rankings by Subject 2024, reports The Economic Times. MIT ranks “first in 12 subjects, maintaining its stronghold in fields like engineering, technology, and computer science,” explains Economic Times. 

Prof. Jonathan Gruber speaks with GBH All Things Considered news anchor Judie Yuill to address recession concerns. “I think the important takeaway I have is that the real risks for our nation are not really short term, they’re long term,” explains Gruber. “We are a knowledge, investment and innovation-based economy. That’s what made America great for 80 years. The base of that innovation — the base of this knowledge economy — is our world-leading universities. If we start cutting them, we’re going to pay a long-run price in terms of our ability to grow as a nation.”

Prof. Jonathan Gruber speaks with WCVB reporter Jackie DeFusco about the role of tariffs on manufacturing jobs in the United States. "Regardless of where the tariffs end up, the fact they're moving around so much is going to lower hiring,” says Gruber. “Whether the tariffs end up raising or lowering hiring once they're locked in, I think it is unclear.” 

Writing for the Financial Times, Prof. Abhijit Banerjee and Prof. Esther Duflo highlight the importance of foreign aid. “Reaffirming the most basic principle of aid would provide clarity,” they write. “The goal should be to invest in projects that will have the largest impact on the quality of life of poor people around the world. Saving lives during environmental catastrophes qualifies, as does financing global public goods such as vaccinations or epidemic control. Helping local actors to learn from each other and adopt the most effective ways to fight poverty can also have enormous benefits, even if this sounds a bit vague. That is because any aid money invested can then be spent in the best way possible.” 

Writing for Project Syndicate, Prof. Daron Acemoglu addresses the potential benefits and risks posed by AI advancements. “AI, properly developed and used, can indeed make us better – not just by providing ‘a bicycle for the mind,’ but by truly expanding our ability to think and act with greater understanding, independent of coercion or manipulation,” explains Acemoglu. “Yet owing to its profound potential, AI also represents one of the gravest threats that humanity has ever faced. The risk is not only (or even mainly) that superintelligent machines will someday rule over us; it is that AI will undermine our ability to learn, experiment, share knowledge, and derive meaning from our activities.”