Economics

Prof. Simon Johnson speaks with Freakonomics guest host Adam Davidson about his new book, economic history, and why new technologies impact people differently. “What do people creating technology, deploying technology— what exactly are they seeking to achieve? If they’re seeking to replace people, then that’s what they’re going to be doing,” says Johnson. “But if they’re seeking to make people individually more productive, more creative, enable them to design and carry out new tasks — let’s push the vision more in that direction. And that’s a naturally more inclusive version of the market economy. And I think we will get better outcomes for more people.”

Prof. Kristin Forbes speaks with Bloomberg reporters Haidi Stroud-Watts and Sherry Anh about her outlook on the future of the economy and economic policy “We just don’t know right now where unemployment could settle, where inflation settles around 2%,” says Forbes. “We don’t know where interest rates could settle to balance growth and employment, according to the Fed’s mandate.”

A new working paper co-authored by Prof. Nathan Wilmers finds that affordable chain restaurants can provide “much more socioeconomic integration than do independently owned commercial businesses — or, for that matter, traditional public institutions,” reports Catherine Rampell for The Washington Post. “The authors analyzed a massive trove of geolocation data to assess where and when Americans come into contact with people of different income classes than themselves,” writes Rampbell, “if they do at all.”

Research by Alden Cheng PhD ‘23 “suggests that big college football games in October 2016 distracted voters from seeing fake news stories that favored Donald Trump,” reports Kevin Lewis for The Boston Globe. “Counties around colleges that played a big game in that month had fewer online searches for pro-Trump fake-news-related terms and had lower percentages of votes for Trump than would otherwise have been expected, given other political demographics,” writes Lewis.

Prof. Nina Roussille has found that “women on average asked for 3.3% less than men for a full-time engineering job, with that gap growing to 6% for women with more experience,” reports Alicia Wallace for CNN. “However, when salary transparency was employed on the site and a median wage was given, the gap closed.” 

Prof. Amy Finkelstein speaks with Politico reporters Erin Schumaker, Daniel Payne and Evan Peng about her new book “We’ve Got You Covered: Rebooting American Health Care.” “Health insurance is not delivering on its function,” says Finkelstein. “Over 1 in 10 Americans under 65 are uninsured at any given moment, and of the 30 million Americans who are uninsured, 6 in 10 are eligible for free or heavily discounted health insurance coverage. And yet they don’t have that coverage.”

Prof. David Autor and his colleagues have documented China’s impact on manufacturing jobs in the U.S. after joining the World Trade Organization in 2001, an effect known as the China shock, reports Shawn Donnan for Bloomberg in an article about how manufacturing job losses impacted Rockingham County in North Carolina. “Declining populations of young workers, as well as lower pay, have persisted in Rockingham and other communities hardest hit by this China shock, the researchers found in a 2021 paper,” writes Donnan.

Fortune reporter John Singer spotlights Prof. Amy Finkelstein’s new book, “We’ve Got You Covered: Rebooting American Health Care.” The book details “an approach that could potentially transform the multi-dimensional dysfunctionality that is the U.S. healthcare system,” writes Singer.

Prof. David Autor speaks with Delphine Strauss of the Financial Times about the risks AI poses to jobs and job quality, but also the technology’s potential to help rebuild middle-class jobs. “The good case for AI is where it enables people with foundational expertise or judgment to do more expert work with less expertise,” says Autor. He adds, “My hope is that we can use AI to reinstate the value of skills held by people without as high a degree of formal education.”

MIT Innovation Fellow Brian Deese speaks with CNBC host Andrew Ross Sorkin about the state of the U.S. economy and the impact of “Bidenomics,” President Joe Biden’s economic philosophy.

Prof. Daron Acemoglu speaks with Boston Globe reporters Alex Kantrowitz and Douglas Gorman about how to address the advance of AI in the workplace. “We know from many areas that have rapidly automated that they don’t deliver the types of returns that they promised,” says Acemoglu. “Humans are underrated.”  

Prof. Kristin Forbes speaks with New York Times reporter Jeanna Smialek about the future of interest rates in the United States. “Now, the economy has learned to function with higher interest rates,” says Forbes. “It gives me hope that we’re coming back to a more normal equilibrium.”

Prof. Simon Johnson speaks with Reuters reporter Mark John about the impact of AI on the economy. “AI has got a lot of potential – but potential to go either way,” says Johnson. “We are at a fork in the road.”

Forbes reporter John C. Goodman spotlights “We’ve Got You Covered,” a new book co-authored by Prof. Amy Finkelstein and Stanford economist Liran Einav, which explores the idea of offering universal health insurance coverage with no increase in government spending. “An important argument made by Finkelstein and Einav is that Americans are paying about twice as much as we really need to pay for medically necessary health care,” writes Goodman. “So, if we gave the government’s share to people directly, they would be able to buy essential coverage with that money alone." 

Studies by researchers at MIT have found “that shifting to electric vehicles delivers a 30% to 50% reduction in greenhouse gas emissions over combustion vehicles,” reports Tom Krisher for Associated Press. According to Prof. Jessika Trancik, “electric vehicles are cleaner over their lifetimes, even after taking into account the pollution caused by the mining of metals for batteries,” writes Krisher.