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AEI's weekly digest of top commentary and scholarship on the issues that matter most

American Prosperity at Risk

The Fiscal Impact of Immigration

September 13, 2025

In 2024, the US foreign-born population increased to 51 million, making up a historically high 15.4 percent of the total population. While surging illegal immigration provoked political backlash, a new AEI Economic Perspectives report from Pia M. Orrenius, Alan D. Viard, and Madeline Zavodny charts the significant fiscal benefits of increased immigration and highlights the economic costs of the administration’s anti-immigration approach.

 

 

Republicans’ reconciliation legislation included a massive $170 billion investment in border security, funding the border wall and turning Immigration and Customs Enforcement into the single largest federal law enforcement agency. With the border secured, Philip Wallach argues that Donald Trump and Republicans should seize this opportunity to purse a politically popular, lasting settlement to America’s broken immigration system.

 

President Trump’s use of US soldiers for domestic law enforcement is just one example of how his administration is increasingly disregarding norms around the military’s political neutrality. In an essay adapted from her forthcoming book, The State and the Soldier: A History of Civil-Military Relations in the United States, AEI Foreign and Defense Policy Director Kori Schake highlights the serious risk of eroding Americans’ trust in the armed forces.

 

It is especially important for the American military to continue to be seen as a xxxxxx of democracy in a moment when authoritarian regimes around the world are increasing their threat to the free world. Dalibor Rohac warns that Russia’s incursion into Poland this week demands a response from the United States and its allies that demonstrates NATO’s resolve against escalating aggression.

 

While the average college degree is still worth the cost, too many higher education programs fail to deliver value and economic mobility for their students. In a new collection of six reports, Preston Cooper and a bipartisan group of experts offer six paths universities and policymakers can pursue, including accreditation reform and risk sharing on student debt, to build on the accountability reforms Congress passed in July.

Deep Learning for Solving Economic Models

The ongoing revolution in artificial intelligence, especially deep learning, is transforming research across many fields. In a new working paper, Jesús Fernández-Villaverde explores how deep learning is revolutionizing quantitative economics. Because equilibrium economic models lack formulaic solutions, economists traditionally rely on iterative computation to approximate solutions—a method that necessarily requires simplification to maintain computational feasibility. Deep learning allows economists to escape this “curse of dimensionality” because it can efficiently and accurately approximate the complex functions behind these models with fewer compromises. Fernández-Villaverde introduces the basic concepts of deep learning, demonstrates how it interacts with the neoclassical growth model, and highlights the broader potential for future research.

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QUOTE OF THE WEEK

The murder of Charlie Kirk could yet serve as a turning point. It could be an occasion for Americans to step away from the abyss and recover the moral clarity and habits of heart that sustain a republic. But if we fail—if the moment passes, if the tit for tat escalates, if we retreat from the public square into our private redoubts—then the abyss won’t recede.

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