Today, Peter Berkowitz analyzes the complex diplomatic and political situation in which the Trump administration currently finds itself; Joshua Rauh compiles some of his recent work on fiscal policy issues, including wealth tax proposals; and Dan Wang teams up with a former senior China policy official to examine what the US government needs to do—and not do—to sustain American competitiveness in the artificial intelligence race.
Determining America’s Role in the World
In his weekly column for RealClearPolitics, Senior Fellow Peter Berkowitz offers “ten propositions to illuminate the perplexing juncture at which US diplomacy stands.” Leading the list is the observation that “the Trump administration entered office split on questions of foreign policy,” with some officials, like Marco Rubio and former national security advisor Mike Waltz, advocating a “peace-through-strength view of national security,” while another faction, led by Vice President JD Vance, “wished to reduce America’s responsibility for maintaining world order.” After reviewing the progression of the Iran war, Berkowitz writes that “the Trump administration did not prepare adequately for Operation Epic Fury,” in part because it did not sufficiently “inform the public about the Iran challenge during its first 13 months in office.” The former Trump administration State Department official says that this incomplete domestic messaging has “enlarged the fractures within the right concerning America’s role in the world.” Read more here.
Fiscal Policy
Over at the Liberty Lens Substack, Senior Fellow Joshua Rauh provides a roundup of some of his recent writing on taxes and spending. Topping his list is a piece on California Governor Gavin Newsom’s curious argument against a wealth tax in his own state: that the likely 2028 presidential candidate wants a nationwide wealth tax instead. Rauh notes that Newsom has been “repeating the thoroughly debunked claim that the wealthy pay lower tax rates than ordinary workers.” The economist counters that “once income and taxes are measured using standard definitions, that talking point simply doesn’t hold up.” Rauh also links to his work showing that education funding is being “swallowed by pension contributions rather than reaching students.” That post highlights a new Hoover Institution online tool allowing anyone to check how much of their local schools’ funding goes toward school workers’ pensions. Read more here.
Artificial Intelligence
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After a flurry of AI safety and national security news has appeared in recent weeks, Research Fellow Dan Wang and former State Department and National Security Council official Julian Gewirtz take to the New York Times opinion page to offer lessons for American AI and China policy. “Washington and American AI labs need to treat each other with greater sincerity and seriousness going forward,” they argue, adding that companies must first stop intentionally “doom trolling,” or making “panicked claims about the destructive potential of AI.” Wang and Gewirtz then call on the US government to do its part to maintain trust with frontier labs—not least by refraining from making political hay of AI firms’ troubles and tangles with the government. They conclude that “the AI chaos of recent weeks is self-defeating” and that American policymakers should take greater care to avoid alienating the talent, allies, and business leaders upon whom American victory in the AI race depends. Read more here.
Health Care and Philosophy
What if the surgery that fixed your knee did no better than fake surgery? EconTalk host Russ Roberts speaks with Dr. John Mandrola about a striking clinical trial in which patients who received sham knee surgery (a real incision, but no actual repair) did as well or better than those who had the actual procedure—one performed 700,000 times annually in the US. The conversation ranges from the power of placebo and nocebo effects (how expectation of harm can cause real suffering) to the broader philosophy of "medical conservatism"—the idea that humility, watchful waiting, and honest counsel often serve patients better than the knife. Mandrola argues that financial incentives, professional identity, and language itself (terms like "bone on bone” or "the widowmaker”) conspire to push patients toward interventions that can do more harm than good. Watch or listen here.
Visiting Fellow Dr. Brian Miller joined the podcast of the State Employees Association of North Carolina to discuss why health care is so expensive and what can be done about it. Miller talks about how hospital consolidation, steering and preferred provider strategies, income‑adjusted premiums, and price transparency affect health care costs. The conversation also covers drug costs and practical steps the North Carolina state health plan is taking to lower costs and protect members. Dr. Miller is well positioned to discuss health costs in this particular context, as he currently serves as vice chair of the board of the North Carolina State Health Plan, which covers 750,000 local and state government employees and retirees. Many of the issues discussed, however, have nationwide relevance. Listen here.
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