# Economics ![Charts depicting the economy and stock market](/sites/cato.org/files/styles/optimized/public/2021-01/GettyImages-1127256104%20%281%29.jpg?itok=fJ2uAJCi) At a Glance The foundations of economic freedom are personal choice, voluntary exchange, and open markets. As Adam Smith, F. A. Hayek, and Milton Friedman stressed, freedom of exchange and minimally regulated markets provide the fuel for economic progress. Without exchange and entrepreneurial activity that is coordinated through markets rather than by governments, modern living standards would be impossible. Cato scholars explore policy reforms that could increase growth by strengthening property rights and the rule of law, safeguarding the value of money, reducing excessive taxes and regulations, scaling back government interference with trade and immigration, and reducing federal spending on programs that harm economic productivity. Subscribe to the Economic Policy email newsletter Join the Conversation [\#CatoEcon](https://x.com/hashtag/CatoEcon) Share This Topic #### Topics - [Banking and Finance](/banking-finance) - [Monetary Policy](/monetary-policy) - [Regulation](/regulatory-studies) - [Tax and Budget Policy](/tax-budget-policy) [![CMFA Annual Conference_2026](/sites/cato.org/files/styles/content_teaser/public/2026-04/CMFA%20Annual%20Conference_2026.jpg?itok=g7KfmqUU)](https://www.cato.org/events/money-markets-american-experiment-250-years-financial-opportunity) events ## [Money, Markets, and the American Experiment: 250 Years of Financial Opportunity](/events/money-markets-american-experiment-250-years-financial-opportunity) Featuring Jeffrey Anderson, David Burton, Charles Calomiris, Jill Castilla, [Veronique de Rugy](https://www.cato.org/people/veronique-derugy), Jeff Dinwoodie, Judge Glock, [Jeb Hensarling](https://www.cato.org/people/jeb-hensarling), Summer Mersinger, [Norbert J. Michel](https://www.cato.org/people/norbert-michel), Brian Quintenz, & Emily Russell Join leading scholars, historians, and policymakers to explore why American financial markets became the envy of the world, how they have contributed to prosperity, and what role Washington should—or should not—play in sustaining them. [![Childcare hero](/sites/cato.org/files/styles/content_teaser/public/2022-12/childcare-hero.png?itok=j3kDBBs1)](https://www.cato.org/blog/new-right-discovers-welfare-without-work-requirements) blog ### [The New Right Discovers Welfare Without Work Requirements](/blog/new-right-discovers-welfare-without-work-requirements) By [Krit Chanwong](https://www.cato.org/people/krit-chanwong) and [Adam N. Michel](https://www.cato.org/people/adam-n-michel) On September 5, the *New York Times* [reported](https://www.nytimes.com/2026/09/05/us/politics/stay-at-home-parents-subsidies.html?unlocked_article_code=1.AFE.3NzE.q8jCV_cOX1El&smid=url-share) that the Trump administration is preparing to extend federal childcare subsidies to stay-at-home parents. The proposal turns staying home to provide childcare into a subsidized activity. This scenario is politically and legally unlikely. But it illustrates how the proposal treats federal welfare as a tool for winning the culture war, without regard for the broader economic damage caused by the reform. Congress should not subsidize childcare at all. [![tariffs](/sites/cato.org/files/styles/content_teaser/public/2026-07/tariffs%20money%20.jpg?itok=LCqbtP3_)](https://www.cato.org/blog/working-class-americans-arent-sold-tariffs) blog ### [Working-Class Americans Aren’t Sold on Tariffs](/blog/working-class-americans-arent-sold-tariffs) By [Emily Ekins](https://www.cato.org/people/emily-ekins) and [Jonah Messinger](https://www.cato.org/people/jonah-messinger) The advocates of protectionist trade policies face a significant challenge in public opinion. Although tariffs are often promoted as a way to protect and strengthen the working class, Americans without college degrees remain unconvinced that current trade policies are helping them. [![Federal Reserve Building in Washington DC](/sites/cato.org/files/styles/content_teaser/public/2024-04/GettyImages-939248364.jpg?itok=eFx0lkwi)](https://www.cato.org/blog/feds-rate-hike-exposes-lack-underlying-framework) blog ### [Fed’s Rate Hike Exposes Lack of Underlying Framework](/blog/feds-rate-hike-exposes-lack-underlying-framework) By [Jai Kedia](https://www.cato.org/people/jai-kedia) This week’s rate hike was defensible, but the Fed still needs an objective method of conducting monetary policy. [![A payroll tax hike chart](/sites/cato.org/files/styles/content_teaser/public/2026-09/Screenshot%202026-09-14%20at%2018.43.32.png?itok=ETKqf5vg)](https://www.cato.org/blog/what-would-social-security-payroll-tax-hike-cost-you) blog ### [What Would a Social Security Payroll Tax Hike Cost You?](/blog/what-would-social-security-payroll-tax-hike-cost-you) By [Romina Boccia](https://www.cato.org/people/romina-boccia) Rather than requiring younger Americans to surrender more of their paychecks to finance growing payments to affluent retirees, Congress should refocus Social Security on protecting seniors from poverty. Gradually slowing benefit growth for higher-income retirees would preserve reliable support for vulnerable Americans while putting the program on a more sustainable fiscal path. [![Defending Globalization logo with earth illustration](/sites/cato.org/files/styles/promo_block/public/2023-09/defending_globalization.jpg?itok=te_TH3fL)](https://www.cato.org/defending-globalization) ##### Featured Project ### [Defending Globalization](https://www.cato.org/defending-globalization) Globalization today faces renewed attention—and criticism. Like any market phenomenon, the free movement of people, things, money, and ideas across natural or political borders is imperfect and often disruptive. But it has also produced undeniable benefits—for the United States and the world—that no other system can match. [Defending Globalization](https://www.cato.org/defending-globalization) is a new Cato Institute multimedia project on all aspects of the *fundamentally human* activity that we call “globalization.” [Learn More](/defending-globalization) #### Meet Our Experts [![Nicholas Anthony Cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-02/NicholasAnthony-cropped.jpg?itok=Tuaw2hKw)](/people/nicholas-anthony) ##### [Nicholas Anthony](/people/nicholas-anthony) Research Fellow, Center for Monetary and Financial Alternatives [![David J. Bier](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-01/David%20Bier.jpg?itok=JEvQToSZ)](/people/david-bier) ##### [David J. Bier](/people/david-bier) Director, Immigration Studies, and The Selz Foundation Chair in Immigration Policy [![Romina-Boccia-cropped2.jpg](/sites/cato.org/files/styles/bio_picture_mobile/public/2022-09/Romina-Boccia-cropped2.jpg?itok=JFTKLQrg)](/people/romina-boccia) ##### [Romina Boccia](/people/romina-boccia) Director of Budget and Entitlement Policy [![Ryan Bourne](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-01/Ryan%20Bourne.jpg?itok=dnTzPmPS)](/people/ryan-bourne) ##### [Ryan Bourne](/people/ryan-bourne) R. Evan Scharf Chair for the Public Understanding of Economics [![Krit Chanwong Cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-07/Krit%20Chanwong.png?itok=MFo06-NI)](/people/krit-chanwong) ##### [Krit Chanwong](/people/krit-chanwong) Quantitative Analyst [![tad_dehaven_cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2026-05/tad_dehaven_cropped.jpg?itok=03QvoUHm)](/people/tad-dehaven) ##### [Tad DeHaven](/people/tad-dehaven) Policy Analyst [![James A. Dorn](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-01/James%20dorn.jpg?itok=dft5Y53-)](/people/james-dorn) ##### [James A. Dorn](/people/james-dorn) Senior Fellow Emeritus [![Chris Edwards](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-01/Chris%20Edwards.jpg?itok=7VKn-jwF)](/people/chris-edwards) ##### [Chris Edwards](/people/chris-edwards) Kilts Family Chair in Fiscal Studies and Editor, DownsizingGovernment.org [![Jerome-Famularo-cropped.jpg](/sites/cato.org/files/styles/bio_picture_mobile/public/2023-07/Jerome-Famularo-cropped.jpg?itok=Ay_4r8Ne)](/people/jerome-famularo) ##### [Jerome Famularo](/people/jerome-famularo) Quantitative Research Associate, Center for Monetary and Financial Alternatives [![Thomas A. Firey](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-01/Thomas%20Firey.jpg?itok=SUNokn4A)](/people/thomas-firey) ##### [Thomas A. Firey](/people/thomas-firey) Senior Fellow and Managing Editor of *Regulation* [![Santiago Forster Cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-11/Updated%20Santiago%20Forster%20Headshot%20Cropped.png?itok=yfI277fq)](/people/santiago-forster) ##### [Santiago Forster](/people/santiago-forster) Research Associate [![Yasmeen Kallash-Kyler Cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-07/Yasmeen%20Kallash-Kyler%20Cropped.png?itok=OKFq0sAL)](/people/yasmeen-kallash-kyler) ##### [Yasmeen Kallash-Kyler](/people/yasmeen-kallash-kyler) Research Associate [![jai-kedia-cropped.jpg](/sites/cato.org/files/styles/bio_picture_mobile/public/2023-07/jai-kedia-cropped.jpg?itok=VxskPH73)](/people/jai-kedia) ##### [Jai Kedia](/people/jai-kedia) Research Fellow, Center for Monetary and Financial Alternatives [![Christian Kruse - cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-06/Christian%20Kruse-cropped.jpg?itok=D3A_Oovb)](/people/christian-kruse) ##### [Christian Kruse](/people/christian-kruse) Policy Engagement Specialist, Center for Monetary and Financial Alternatives [![Scott Lincicome cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2023-10/scott-lincicome-square.jpg?itok=a5RaMdZx)](/people/scott-lincicome) ##### [Scott Lincicome](/people/scott-lincicome) Vice President, General Economics and Stiefel Trade Policy Center [![Norbert Michel Cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-01/norbert-m-cropped.jpg?itok=jAZb-6u2)](/people/norbert-michel) ##### [Norbert J. Michel](/people/norbert-michel) Vice President and Director, Center for Monetary and Financial Alternatives [![Nathan Miller](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-08/Nathan%20Miller%20Cropped.png?itok=gO7vd3Lt)](/people/nathan-miller) ##### [Nathan Miller](/people/nathan-miller) Research Associate [![j-mironcropped.jpg](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-04/j-mironcropped.jpg?itok=febB3FKu)](/people/jeffrey-miron) ##### [Jeffrey Miron](/people/jeffrey-miron) Vice President for Research [![nowrasteh_cropped](/sites/cato.org/files/styles/bio_picture_mobile/public/2026-05/nowrasteh_cropped.jpg?itok=ZDVkFtZQ)](/people/alex-nowrasteh) ##### [Alex Nowrasteh](/people/alex-nowrasteh) Senior Vice President for Policy [![Alan Reynolds](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-01/Alan%20Reynolds.jpg?itok=n13krecm)](/people/alan-reynolds) ##### [Alan Reynolds](/people/alan-reynolds) Senior Fellow [![Stephen Slivinski headshot square](/sites/cato.org/files/styles/bio_picture_mobile/public/2024-11/Stephen-Slivinski-cropped.jpg?itok=G41eZx7X)](/people/stephen-slivinski) ##### [Stephen Slivinski](/people/stephen-slivinski) Senior Fellow [![Ritvik Thakur](/sites/cato.org/files/styles/bio_picture_mobile/public/2025-08/Ritvik%20Thakur%20Cropped.png?itok=dffVmgZ0)](/people/rivtik-thakur) ##### [Ritvik Thakur](/people/rivtik-thakur) Research Associate [![Peter Van Doren](/sites/cato.org/files/styles/bio_picture_mobile/public/2021-01/Peter%20Van%20Doren.jpg?itok=vp2XoPCR)](/people/peter-van-doren) ##### [Peter Van Doren](/people/peter-van-doren) Senior Fellow and Editor of *Regulation*