Policy

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

Writing for The Hill, Prof. Fiona Murray and Sloan Lecturer Gene Keselman underscore the importance of investment in U.S. universities, noting that the “traditional contributions of universities — advancing knowledge through research and patents — remain fundamental to America’s economic and national security dynamism.” An MIT program called Proto Ventures is building on this tradition, by turning “breakthroughs made in tech labs into real-world solutions that can help all Americans.” They note that: “By bridging the gap between groundbreaking research and tangible outcomes, universities can address their critics, strengthen the nation and focus on their highest purpose: advancing human progress through knowledge and innovation,” they write. 

Writing for Science, Prof. Fiona Murray and Research Affiliate Stefan Raff-Heinen underscore the necessity of federal investment in university research, noting that “without sustained federal support, the country risks losing its technological edge, threatening economic competitiveness and national security.” Murray and Raff-Heinen write: “Translational research funding is crucial for moving discoveries and early-stage technologies from labs to real-world applications. Government support gives scientists the time to refine nascent technologies, which can be a long and uncertain process. But this approach has had substantial payoffs.” 

Ben Armstrong, executive director of the MIT Industrial Performance Center, speaks with Marketplace reporter Samantha Fields about the impact of tariffs on manufacturing in the U.S. “Things like magnets, which are really critical for batteries and other core electronic technologies, we’ve really lost the capacity to build in the U.S.” Armstrong adds that it’s possible to build that capacity here, but “it takes a long time, and it takes really significant investment,” likely from the government and from companies.

Writing for The Wall Street Journal, Sloan Senior Lecturer Robert Pozen highlights the impact of U.S. tariffs on foreign investment in U.S. Treasury securities and U.S. corporate bonds. “Nevertheless, since target countries will want to respond to reciprocal tariffs, they may stop buying or even sell U.S. debt securities,” explains Pozen. “Either response would increase U.S. interest rates and decrease economic growth. International trade flows and international investing are two sides of the same street.” 

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.” 

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. 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 The Boston Globe, Prof. Pierre Azoulay and Prof. Jeffrey Flier of Harvard Medical School make the case that any reforms at the NIH “should be grounded in evidence rather than tradition, avoiding the influence of special interests or political considerations.” They add that this approach “is an acknowledgement of NIH’s accomplishments and a charge to adapt it to the new realities of 21st-century science. The overarching goal must be to secure and enhance the decades-long role of the United States at the forefront of biomedical research, an outcome that the public both wants and deserves.”

A study by researchers from MIT and elsewhere has concluded that tariffs have “failed to restore jobs to the American heartland,” reports Paul Wiseman for the Associated Press. The study found that “tariffs ‘neither raised nor lowered U.S. employment’ where they were supposed to protect jobs,” writes Wiseman. 

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.”

Writing for The Boston Globe, President Emeritus L. Rafael Reif highlights the fundamental contributions made by universities across the United States in the advancement of scientific and technological innovations, and the role of government funding in these sectors. “Since World War II, the ideas born in university research laboratories have helped to make America great,” writes Reif. “Universities’ contributions should be recognized, and the systems that allow them to contribute should not be recklessly derailed.” 

Prof. Jonathan Gruber speaks with GBH’s Boston Public Radio hosts Jim Braude and Margery Eagan about the CARD Act and the Consumer Financial Protection Bureau. “There is a legitimate role for credit in our society for those who use it appropriately,” explains Gruber. “And you don’t want to shut that down… We need to really be rethinking how we do regulation in the U.S.”