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Daron Acemoglu

Articles by Daron Acemoglu

The Bitcoin Fountainhead

18 days ago

While it is clear that cryptocurrencies are here to stay, it remains to be seen what economic role they will – or should – play. In the case of Bitcoin, the technology’s success lies entirely in what it promises, rather than in what it can actually deliver.

CAMBRIDGE – With the price of Bitcoin reaching new highs, and El Salvador and Cuba deciding to accept it as legal tender, cryptocurrencies are here to stay. What implications will this have for money and politics?
India’s Taliban Problem


Behind the Modern Malaise

PS OnPoint

Kiran Ridley/Getty Images

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What Climate Change Requires of Economics

25 days ago

Although the economics discipline has evolved over time to acknowledge environmental risks and costs, it has yet to rise to the challenge of climate change. A problem as massive as this one will require a fundamental reconsideration of some of the field’s most deeply held assumptions.

BOSTON – This summer’s record-breaking heat wave in the American northwest offered a reminder – as if it were needed – of what anthropogenic climate change will mean for living conditions now and in the future. Average global temperatures have already risen to 1.2° Celsius above pre-industrial levels and could increase by another 5°C over the next 80 years. This warming is hastening the extinction of many species and rendering parts of

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The EU Must Terminate Hungary’s Membership

September 2, 2021

The West’s meltdown in Afghanistan shows that democratic institutions cannot be established by force and foreign aid. The lesson for the European Union should be clear: if it does not lead by example and expel its own authoritarians, its stated commitment to democracy will mean nothing.

BOSTON – Following Hungary’s adoption of legislation banning “LGBTQ content” in schools this past June, Dutch Prime Minister Mark Rutte concluded that the country “has no place in the EU anymore.” He’s right. The European Union should begin the process of expelling Hungary, and it should then consider doing the same with Poland.
The AI Revolution and Strategic Competition with China


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Why Nation-Building Failed in Afghanistan

August 20, 2021

Although the United States clearly could have done a better job of managing its departure from Afghanistan, the tragedy playing out this month has been 20 years in the making. From the outset, America and its allies embraced – and never reconsidered – a top-down state-building strategy that was always destined to fail.

ISTANBUL – The United States invaded Afghanistan 20 years ago with the hope of rebuilding a country that had become a scourge to the world and its own people. As General Stanley McChrystal explained in the run-up to the 2009 surge of US troops, the objective was that the “government of Afghanistan sufficiently control its territory to support regional stability and prevent its use for international

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The Dangers of Decoupling

July 22, 2021

With Sino-American relations increasingly coming to resemble the geopolitical dynamics of the original Cold War, the world is heading toward a fraught new equilibrium. While some in the West long for a new "Sputnik moment" to motivate investments and reform, they should be careful what they wish for.

BOSTON – The Chinese government’s crackdown on Alibaba last year, and on the ride-hailing company Didi this month, has generated fevered speculation about the future of that country’s tech industry. Some view the recent Chinese regulatory interventions as part of a justifiable trend paralleling US authorities’ own intensifying scrutiny of Big Tech. Others see it as a play for control of data that might otherwise be

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The Real Inflation Risk

July 6, 2021

While the risk of sustained US inflation should not be ignored, nor should it cloud our view of what is really at stake in the current post-pandemic economy. American democracy is in trouble, and a robust, inclusive government-led recovery may offer the last best chance of putting it on a sounder footing.

CAMBRIDGE – With the annual inflation rate in the United States reaching 5% in May, economists and investors are right to be apprehensive about deficit spending, public debt, and the risk of sustained price growth – which is higher now than it has been for almost four decades. But it would be a mistake to respond to these concerns by pumping the brakes on the economy.
Attack of the COVID Zombies

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CEOs Are the Problem

June 2, 2021

The latest wave of corporate virtue signaling should not be taken as a sign that a new era of stakeholder capitalism is upon us. On the contrary, corporate leaders are feeling public pressure and seeking to position themselves as part of the solution to problems that they caused.

CAMBRIDGE – ExxonMobil recently announced a five-year plan to reduce greenhouse-gas emissions and is pumping out ads proclaiming its commitment to a green future. Tobacco giant Philip Morris is touting its plans to help smokers quit. Facebook is calling for new internet regulations. And these moves come less than two years after the Business Roundtable, representing the CEOs of America’s largest corporations, issued a statement calling for business to

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The Right Way to Worry

May 14, 2021

After a year in which COVID-19 has suspended normal economic life around the world, humanity has acquired a new appreciation for risk. But simply acknowledging potential threats is merely the beginning of the process; the real challenge comes in deciding which problems warrant our attention, and in what order.

CAMBRIDGE – The reign of the dinosaurs was brought to an end 65 million years ago by an asteroid that crashed into what is now the town of Chicxulub in Mexico. Although this lump of rock and metal was not particularly large – probably about ten kilometers (six miles) across – it struck the Earth at more than 60,000 kilometers per hour (37,000 miles per hour), generating an explosion billions of times greater than that of

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Climate Change vs. Techno-Utopia

April 28, 2021

Given all of the great feats of human ingenuity over the past few centuries, it is tempting to believe that we ultimately will solve the problem of climate change with some yet-to-be developed technological breakthrough. But such thinking carries serious risks.

BOSTON – Humanity has never faced a collective challenge as daunting as climate change. Net global greenhouse-gas (GHG) emissions must be reduced to near-zero within the next three decades to give us even a fighting chance of keeping the temperatures within 2° Celsius of pre-industrial levels. The further we exceed that threshold, the more likely we are to run into truly catastrophic scenarios. With the United States back in the Paris climate agreement, this is the time

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Biden’s Great Tax Rebalancing

April 14, 2021

US President Joe Biden’s plan to overhaul America’s outdated and self-defeating corporate-tax structure is as bold as it is necessary. With provisions to level the playing field for workers and end the global race to the bottom, it could revolutionize taxation worldwide, while stemming the increase in US government debt.

BOSTON – US President Joe Biden’s spending plans have been grabbing headlines, and rightly so. The administration’s relief package and infrastructure plan could remake the US welfare state by bolstering the social safety net and increasing spending on transportation, broadband, and education.

The Geography of Pandemic Effects

PS OnPoint

Peter Zelei

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Vaccine Nationalists Are Not Immune

March 11, 2021

Rich countries’ failure to lead a coordinated global response to the pandemic has been regarded as a moral failure. But now that the continued spread of the virus elsewhere is producing new variants, it has turned out to be a practical failure, too.

BOSTON – Although mass vaccination campaigns are picking up speed in the West, the end of the COVID-19 pandemic still is not even in sight. For that, the United States and other rich countries have only themselves to blame.

China’s Himalayan Salami Tactics

Costfoto/Barcroft Media via Getty Images

How Economists and Non-Economists Can Get Along

Damian Gillie/Construction

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The Case for a Higher Minimum Wage

February 24, 2021

In their push to increase the US federal minimum wage from $7.25 to $15 per hour, President Joe Biden and his fellow Democrats are on solid ground not just economically but also politically. A higher wage floor would create an impetus for good jobs, which is precisely what Western economies are lacking.

BOSTON – Efforts in the United States to increase the federal minimum wage from $7.25 to $15 per hour have gained steam now that the Democratic Party controls the White House and Congress. Such a move makes sense both economically and politically.

No Time to Waste

PS OnPoint

John Keatley 
Free to read

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Give Workers a Fighting Chance

February 2, 2021

At a time when businesses are awash in technologies capable of replacing human labor, the US tax code is encouraging them to embrace excessive levels of automation – even to the point where it is no longer efficient to do so. Rarely before has the deck been stacked so fully against workers.

CAMBRIDGE – The first months of US President Joe Biden’s administration will be defined by the efforts to contain COVID-19 and deliver vaccinations on a mass scale. Over the medium term, however, the economy will determine the administration’s success. Here, Biden has indicated that tax reform will be a high priority, and he has released plans to address long-running fiscal problems such as federal government revenue shortfalls

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US Institutions After Trump

January 20, 2021

It would be a mistake for Americans to take comfort in the fact that their democratic institutions survived four years of attacks by Donald Trump, culminating in the January 6 insurrection at the US Capitol. In fact, most of these institutions have been failing and are in desperate need of repair and reform.

BOSTON – The storming of the US Capitol by Donald Trump’s supporters on January 6 may be remembered as a turning point in American history. The insurrection, incited by the president himself, has raised profound questions about the kind of political institutions future generations will inherit.


Joe Raedle/Getty Images

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Is Biden Up to the Good Jobs Challenge?

January 6, 2021

The pre-pandemic US economy may have had a record-low official unemployment rate and sky-high stock-market valuations, but it was hardly serving the majority of Americans. Good jobs for those without a college degree have been disappearing, and this ominous trend will not reverse itself without an overhaul of economic policy.

BOSTON – With US President-elect Joe Biden’s imminent inauguration and the rollout of COVID-19 vaccinations, there is growing optimism for an economic rebound in 2021. But such hopes are misplaced, and not only because the virus is likely to remain a problem for longer than people think. The real problem is that the pre-pandemic US economy is unworthy of being emulated.

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Antitrust Alone Won’t Fix the Innovation Problem

October 30, 2020

For all the attention on antitrust enforcement against the biggest US technology companies, the more important issue for the economy concerns the direction of technological change. Ensuring that innovation benefits the many will require a more comprehensive policy approach.

CAMBRIDGE – The US Department of Justice’s lawsuit against Google may be the first salvo in a forthcoming barrage of antitrust actions directed at Big Tech. Curbing these companies’ power is one of those rare issues that receives bipartisan support on Capitol Hill.

The US Election’s Chaos Quotient

J. Countess/Getty Images

Civil Liberties in a

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The Greatest Generation’s Squandered Legacy

September 16, 2020

As profound as the COVID-19 crisis seems to us now, it pales in comparison to what previous generations faced. Unlike in the past, however, today’s biggest threats must be addressed at both the national and global levels, implying the need for political leadership of a kind that is utterly lacking in today’s world.

CAMBRIDGE – To the interwar generation of the first half of the twentieth century, today’s crises would have appeared rather ordinary. They had seen much worse: the two bloodiest wars in human history, mass unemployment and destitution created by the Great Depression (which still dwarfs this century’s recessions), and far more serious threats to democracy in the form of Soviet communism, fascism, and

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Minding the Perils of Progress

August 5, 2020

The COVID-19 crisis has been a brutal reminder that, for all of our wealth and technological mastery, we are still vulnerable to catastrophic tail risks. To ensure future prosperity, we must adopt a growth strategy that places collective risks front and center, rather than treating them as an afterthought.

CAMBRIDGE – It is always worth remembering that in the grand sweep of history, we are the fortunate ones. Thomas Hobbes’s description of life as “solitary, poor, nasty, brutish, and short” was apt for most of human history. Not anymore. Famines and hunger have become rarer, living standards for most people have risen, and extreme poverty has been reduced substantially over the past few decades. Average life

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What We Owe Essential Workers

July 6, 2020

The praise in America for low-paid essential workers on the front lines of the COVID-19 pandemic is long overdue, but it should be followed with meaningful reforms. Beyond raising the federal minimum wage, the United States desperately needs to overhaul its approach to technological innovation.

BOSTON – The low-wage workers who make up nearly half of the US workforce have long been neglected, steadily falling behind highly educated workers in expanding industries such as technology, finance, and entertainment. Since the 1970s, real (inflation-adjusted) wages have stagnated for prime-age men with less than a college education, and declined significantly for those with a high-school education or less.

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The Great Debt Cleanup

June 23, 2020

Now that the COVID-19 pandemic has ushered in a steep economic downturn, highly indebted emerging markets and developing countries are facing potentially ruinous fiscal crises, the costs of which will fall on ordinary citizens. Fortunately, there is a way to address the problem that is both practical and just.

BOSTON – With more than $7.5 trillion owed to external creditors, emerging economies’ debt-service costs are becoming increasingly onerous just when they need as much fiscal space as possible to confront the COVID-19 crisis. While there is a strong case for canceling much of this debt, many key players oppose doing so, arguing that it would limit these countries’ access to international markets in the future,

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The Post-COVID State

June 5, 2020

CAMBRIDGE – The world is experiencing one of the most transformative moments of the last 75 years. The social, economic, and political consequences of the COVID-19 crisis have already been truly momentous, and they have most likely only just begun to be felt. In the United States, more than 40 million workers have filed unemployment claims since mid-March, and more and more families are being pushed to the brink of poverty. Around the world, millions more are facing even more precarious conditions, with 40-60 million people expected to fall below the extreme poverty line of less than $1.90 per day.

Rage Against the Pandemic

Stephanie Keith/Getty Images

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How the Other Half Automates

April 24, 2020

As the COVID-19 pandemic escalates, and its effects reverberate around the world, Project Syndicate is delivering the expert scientific, economic, and political insights that people need. For more than 25 years, we have been guided by a simple credo: All people deserve access to a broad range of views by the world’s foremost leaders and thinkers on the issues, events, and forces shaping their lives. In this crisis, that mission is more important than ever – and we remain committed to fulfilling it.
But there is no doubt that the intensifying crisis puts us, like so many other organizations, under growing strain. If you are in a position to support us, please subscribe now.
As a subscriber, you will enjoy unlimited access to our On Point suite of long reads and book

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The Post-Trump Agenda

March 16, 2020

The stakes in November’s US presidential election are high, given how much damage to America and the world a second Trump term could cause. But even if Trump is defeated, Americans must address the deeper problems that made his presidency possible.

CAMBRIDGE – The experience of the past three years has shattered the myth that the US Constitution on its own can protect American democracy from a narcissistic, unpredictable, polarizing, and authoritarian president. But the country’s problems are not limited to the menace in the White House. All Americans also bear responsibility for the current state of affairs, because we have neglected critical institutions and ignored the intensifying structural weaknesses that

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Social Democracy Beats Democratic Socialism

February 17, 2020

Now that US Senator Bernie Sanders has emerged as a leading contender for the Democratic Party’s presidential nomination, his brand of democratic socialism warrants closer scrutiny. Simply put, it is neither a close approximation of the "Nordic model" that Sanders often invokes nor a solution to what ails the American economy.

CAMBRIDGE – It used to be an unwritten rule of US politics that a socialist could never qualify for high national office. But now a self-proclaimed “democratic socialist,” US Senator Bernie Sanders, is the leading candidate for the Democratic presidential nomination. Should America embrace the change?
The White Swans of 2020

Mikhail Svetlov/Getty Images

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Is America Going Fascist?

January 15, 2020

Given US President Donald Trump’s propensity for racist, divisive rhetoric, it is easy to see why so many of his opponents would describe him as a modern-day Benito Mussolini or Adolf Hitler. But by implying that all Trump supporters are irredeemable extremists, such rhetoric merely plays into his hands.

CAMBRIDGE – White nationalism is on the rise in the United States. According to the Anti-Defamation League, there were 6,768 incidents of extremism and anti-Semitism (mostly from the right) in the US in 2018 and 2019. That figure is significantly higher than in previous years, leading many to conclude that President Donald Trump is to blame for the uptick in domestic extremism.
Financial Markets’ Iran

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Elizabeth Warren’s Bold Ideas Don’t Go Far Enough

December 18, 2019

For decades, US median household wages have barely budged, and politicians on both the left and right have lost sight of what drives a modern economy. What America needs are policies to shape the direction of technological development and restore workers’ bargaining power.

CAMBRIDGE – Forget the stock market and the low unemployment rate: the US economy isn’t working. Productivity growth, a key gauge of economic health, remains historically low. Median wages, an indicator of middle-class living standards, have barely grown in four decades. Inequality is high, and market power is increasingly concentrated in the hands of just a few companies. Americans used to dismiss Europe as the land of government-protected,

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The Fall of the Berlin Wall and Social Democracy

November 13, 2019

The fall of the Berlin Wall heralded not only the collapse of communism in Europe, but also the destruction of a broader – and far more constructive – social-democratic compact. To prevent a return to extremism and instability, that compact must be refashioned for the twenty-first century.

CAMBRIDGE – It was already clear 30 years ago that the fall of the Berlin Wall would change everything. But precisely what that change will mean for world politics in the twenty-first century still remains to be seen.
Abolish the Billionaires?

PS OnPoint

Aurelien Meunier/Getty Images

Is Economic Winter Coming?

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Are the Climate Kids Right?

November 5, 2019

The young activists leading school strikes and mass protests around the world have been highly effective in sounding the alarm about climate change. But if the movement is going to be anything more than a flash in the pan, it must adopt realistic policy objectives that the broader public can support.

CAMBRIDGE – The increase of greenhouse-gas emissions (GHGs) in the atmosphere has caused average global surface temperatures to rise by almost 1°C over the past century. There is no doubt in the scientific community that these changes are a direct consequence of human activity. Yet it seems increasingly unlikely that we will be able to reduce GHG emissions sufficiently to halt and then reverse global warming.

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How to Stem Ukraine’s Corruption

October 14, 2019

In terms of economic growth, the Polish and Ukrainian experiences in the decades since the fall of communism have been a portrait in contrasts. Whereas Poland embraced the power of democratic civil society and grew wealthier, Ukraine remained trapped by kleptocratic institutions that bred a culture of corruption and destroyed public trust.

CAMBRIDGE – In the euphoric moment immediately following the collapse of the Soviet Union, few would have guessed that Ukraine – an industrialized country with an educated workforce and vast natural resources – would suffer stagnation for the next 28 years. Neighboring Poland, which was poorer than Ukraine in 1991, managed almost to triple its per capita GDP (in purchasing power

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The Constitution Won’t Save American Democracy

September 24, 2019

The US Constitution will not save American democracy from the depredations of President Donald Trump. Only American society, which has always been more democratic than the country’s founders, can do that.

CAMBRIDGE – Revelations that a whistleblower from the intelligence community has accused US President Donald Trump of making inappropriate promises to a foreign leader have reignited the hopes that recently hung on the report of Special Counsel Robert Mueller. Many of those exasperated with Trump’s norm-violating, truth-bending, and polarizing presidency had believed that the system would somehow discipline, restrain, or remove him. Yet these hopes were misguided then, and they are misguided now.

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