Issue No. 5, Winter 2019

Enterprise Report Restoring Liberty, Opportunity, and Enterprise in America

Defending American Leadership By AEI President Robert Doar

As we enter the new year, I am full of gratitude for the excellent work of AEI scholars and the support of the AEI community in 2019. I am thankful for the warm welcome I received from many of you in my first six months as president of AEI, and I look forward to meeting more AEI supporters and community members in the coming year. The year ahead is sure to hold many challenges for our country. This is, however, precisely the moment that AEI’s investments in long-term visionary thinking and empirical scholarship will pay off. In the past year, AEI has bolstered our scholar ranks with key hires in Social, Cultural, and Constitution Studies and Domestic Policy Studies. At every opportunity, these and other AEI scholars will push back against ideas that hinder a free and open economy or promote antidemocratic values around the world. One area that will be hotly debated in a contentious election year—both in Washington and at kitchen tables across the country—is foreign policy. The long-standing consensus on America’s role in the world is breaking down. This “The year ahead is sure to hold many challenges for your country. This is, however, precisely the moment that AEI’s investments in long-term visionary thinking and empirical scholarship will pay off.”

challenge requires a vigorous and clear defense of a strong American presence on the world stage—advocating for free people, free trade, democracy, self-government, and strong alliances that protect weaker states from the reach of more powerful nations such as China, Iran, and Russia. Our nation needs new and innovative thinking about the best ways to bring these values to bear on today’s global realities. At this critical time in our nation’s history, I am pleased to announce that we have named Kori Schake to lead these efforts as the incoming resident scholar and director Robert Doar of AEI’s Foreign and Defense Policy team. Kori’s experience working under President AEI President and George W. Bush at the State Department, Defense Department, and National Security Morgridge Scholar Council, as well as her highly respected academic work and popular writings, makes her the right choice to lead our foreign and defense team. Most importantly, Kori understands that the United States is an exceptional nation that plays a special role in the world. You can read more about her background on page 4 of the Enterprise Report. I would also like to express my gratitude to AEI’s longtime vice president of Foreign and Defense Policy, Danielle Pletka, who decided in June to step down from her managerial responsibilities to focus on her own scholarly work. Under her leadership, the team has achieved new heights and has been an unparalleled defender of American values and leadership. I am grateful that Dany is staying on as an AEI senior scholar and that we will continue to benefit from her scholarship and mentorship. As you will read in the pages of this Enterprise Report, Dany’s successor will be leading an extremely productive and talented group of scholars. On issues from veterans’ affairs to Chinese demographic change to instability in the Middle East, AEI scholars are making original, valuable contributions that deepen our understanding of our country’s challenges, bolster our national security, and advance the case for freedom around the world. You will also read about AEI’s three newest trustees—Martin Eltrich, Jody Jonsson, and Pat Neal—and the efforts of Andrew Klaber, a leader in AEI’s Enterprise Club. With a strong bench of scholars and the leadership of these AEI community members—and supporters like you—AEI is prepared to face the challenges of the coming year with intelligent, fact-driven, and civil analysis. Thank you for your support. AEI Annual Dinner and Irving Kristol Award Honors Ambassador Nikki Haley

On October 29, nearly 2,000 members of the AEI community gathered in Washington, DC, to honor former US Permanent Representative to the United Nations and Governor of South Carolina Nikki Haley with the Irving Kristol Award, the highest honor conferred by AEI. Amb. Haley’s remarks focused on the principles and values that make America an exceptional nation—equality before the law, freedom, and inalienable rights—and the importance of leading “Equality before the law. Freedom. Inalienable rights. These are not the world in accordance with those abstractions. They are our inheritance as human beings. The Declaration values. Her remarks also touched of Independence outlined them. The Constitution established them as a on her experience as the child of system of government. It is these sacred principles that make me optimistic. immigrants to the United States, They anchor our nation. And they show us the way forward.” the importance of respect for the Constitution, and why she is optimistic “We are a nation with a history, borders, and a common language. about the country’s future. We are also the first nation devoted to a higher good.Our beliefs are During her time at the UN, Amb. Haley what make us Americans. Our Constitution is what allows this great experiment stood out for effectively orchestrating the in democracy to survive and thrive.” adoption of stringent sanctions against —Amb. Nikki Haley North Korea, educating members about the dangers of the Iranian regime, fighting reforming education, and moving people Please visit www.aei.org/research for America’s ally Israel, and driving the from welfare to work. She recently -products/speech/2019-irving- passage of a security arms embargo released a memoir reflecting on her kristol-award-remarks/ to read against South Sudan. Her governorship time in public office titledWith All Amb. Haley’s Irving Kristol Award of South Carolina was marked by Due Respect: Defending America with speech and view video of the event. opening markets, reducing regulation, Grit and Grace (St. Martin’s Press, 2019).

3 Kori Schake Named New Director of AEI New Fellow AEI Foreign and Defense Policy Studies Joins Tax Policy Team

Kori Schake is the British to American Hegemony (Harvard incoming resident University Press, 2017); State of Disrepair: scholar and director of Fixing the Culture and Practices of the foreign and defense State Department (Hoover Institution Press, policy studies at 2012); and Managing American Hegemo- AEI. Schake was ny: Essays on Power in a Time of Dominance the deputy director- (Hoover Institution Press, 2009). general of the She is also coeditor, along with former International Institute Secretary of Defense Jim Mattis, of War- for Strategic Studies in London. She has riors and Citizens: American Views of Our Kyle Pomerlaeu recently joined AEI had a distinguished career in government, Military (Hoover Institution Press, 2016). as a resident fellow focusing on tax working at the US State Department, Schake has been widely published issues. He was previously the chief the US Department of Defense, and the in policy journals and the popular press, economist and vice president of National Security Council at the White including in CNN.com, Foreign Affairs, economic analysis at the Tax Foundation, House. She has also taught at Stanford, Politico, New York Times, Wall Street where he led the tax modeling team West Point, Johns Hopkins University’s Journal, and the Washington Post. She and oversaw the research of the School of Advanced International Studies, is a contributing writer at the Atlantic Center for Economic Analysis. His National Defense University, and the and War on the Rocks. work has been cited in most major University of Maryland. Schake has a PhD and MA in govern- media outlets throughout the country. Schake is the author of five books, ment and politics from the University of Pomerlaeu holds an MPP from the among them America vs the West: Can the Maryland, as well as an MPM from the McCourt School of Public Policy at Liberal World Order Be Preserved? (Penguin University of Maryland School of Public Georgetown University. Random House Australia, Lowy Institute, Policy. She received a BA in international 2018); Safe Passage: The Transition from relations from Stanford University.

New Trustees Elected to AEI Board

“We are honored to have new board members who share AEI’s commitment to open inquiry, vigorous debate, and the advancement of freedom and opportunity for all. Their advice and guidance are key in this new chapter for the Institute, and I know they will greatly contribute to AEI’s culture of integrity, intellectual rigor, and excellence.” —Robert Doar

Martin Eltrich III is a partner at AEA the Management Committee of Capital been a home builder and community Investors LP, where he leads the consumer Group, one of the largest mutual fund developer on Florida’s Gulf Coast. Neal is and retail investment practice. Before managers in the United States. She has also a chair of Florida TaxWatch, Florida’s joining AEA in 2001, he was an investment worked at Capital since 1990. Before that, tax and budget policy research institution. banker at Greenhill & Co. in New York, she was an analyst at Fidelity Management Previously, he was a member of the Florida which he joined at its inception in 1996. & Research Company and an officer in the House of Representatives, the chair of the Eltrich started his career at Morgan public finance division of Irving Trust Florida Senate’s Appropriations and Stanley. He serves on the boards of Company. She is a member of the Natural Resources committees, and the directors of At Home, 24 Hour Fitness, CFA Institute and serves on the Stanford chair of the Florida Commission on Ethics. Jack’s, Melissa & Doug, Traeger Grills, Graduate School of Business Advisory He also served on Gov. Rick Scott’s and ThreeSixty, and 1-800 Contacts. Council and the board of Alpha USA. Gov. Ron DeSantis’ transition teams, working with Florida’s Department of Joanna F. Jonsson is a partner, Pat Neal is founder and CEO of Neal Management Services. portfolio manager, and member of Communities. For nearly 50 years he has

4 New from AEI Scholars Foreign and Defense Policy Scholarship

A number of AEI Foreign and Defense demographic realities. Chapters address liberalize and diversify their economies Policy scholars have recently released the conflicts arising between state control while scaling back social welfare commit- new scholarship on a broad range of the family and Confucian values, family ments. To accompany the report, Young of topics. structure changes among urban and rural released the Gulf Economic Policy Tracker, families, the transformation in kinship which provides a visual representation Mapping Veterans: Not Who You structures, and how changing family struc- of economic, fiscal, and social policy Think, Not Where You Think (AEI) tures may affect Chinese military cohesion. changes in these countries since 2015. by Rebecca Burgess. Burgess recently released a report examining the current In Defense of Globalism (Rowman & Aiding and Abetting: U.S. Foreign concentration of veteran populations Littlefield) by Dalibor Rohac. Assistance and State Violence and the sharp changes the US veteran Rohac makes the (Stanford University Press) by demographic profile will face in the conservative case in Jessica Trisko Darden. Drawing on four near future. Current data on veteran favor of international decades of data on US demographics are outdated and prevent organizations and economic and military policymakers from enacting legislation cooperation, arguing aid, Aiding and Abetting that adequately addresses the changing that mechanisms explores whether needs of American veterans. Burgess’ of international foreign aid does more report provides demographic projections cooperation have harm than good. Trisko to highlight the discrepancy between been instrumental to humankind’s Darden challenges where veterans actually live and where freedom, prosperity, and peace. He long-standing ideas we think they live. provides research and analysis assessing about aid and its consequences and and explaining the strengths, flaws, and highlights key patterns in the relationship Age of Iron: On Conservative relevant trade-offs of different forms of between assistance and violence. The Nationalism (Oxford University global governance. book encourages both advocates and Press) by Colin Dueck. Dueck’s critics of foreign assistance to focus efforts new book seeks to Seven Pillars: What Really Causes on expanding human freedom. Before demonstrate that Instability in the Middle East? the book’s release, Trisko Darden released conservative national- (AEI Press) coedited by Michael the report “Development Assistance ism is the oldest dem- Rubin and Brian Katulis (Center and Counterterrorism,” providing ocratic tradition in US for American Progress). This edited recommendations for how US foreign foreign relations. Dueck volume brings together development assistance can effectively describes the shifting a bipartisan group support counterterrorism efforts. coalitions over the past of leading experts to century among foreign policy factions unravel the core causes Beyond Counterterrorism: Defeating in the Republican Party and shows how of instability in the the Salafi-Jihadi Movement(AEI) by President Trump upended many of them Middle East and Katherine Zimmerman. Zimmerman in the 2016 presidential election. North Africa and help argues that the US needs to reframe its policymakers and approach to the Salafi-jihadi movement China’s Changing Family Structure: students of the region understand the from counterterrorism, which addresses Dimensions and Implications (AEI) Middle East on its own terms. only the terrorism threat, to one that edited by Nicholas Eberstadt. will weaken and eventually defeat the This new edited volume Mapping Economic Diversifications movement entirely. The report offers considers how 2,500 Across the Gulf Cooperation Council concrete steps for policymakers, years of family tradi- (AEI) by Karen Young. Young’s report including enabling strategic planning tion in China is on an tracks policy changes from the countries and coordination in the State Depart- unavoidable collision of the Gulf Cooperation Council (Bahrain, ment, severing Salafi-jihadi ties to course with 21st- Kuwait, Oman, Qatar, Saudi Arabia, and Sunni communities, and breaking the century China’s new United Arab Emirates) as they seek to counterterrorism mindset.

5 &

Q with AEI Scholars A

affordable childcare but many other issues as well.

Pethokoukis: Increasing the national Featuring Resident Fellow Tim Carney, Senior Fellow Lynne Cheney, Resident Scholar housing supply in high-productivity cities. Aparna Mathur, AEIdeas Editor and DeWitt Wallace Fellow James Pethokoukis, and Visiting Fellow Ramesh Ponnuru. Ponnuru: Higher education. Federal policy does a lot to shape it, and right now we are investing a lot in a Best book you read this year: Ponnuru: Jonathan Chait at New York system that is not working for most Timothy Carney: Dignity: Seeking Magazine. He’s perceptive, honest, young people. Respect in Back Row America by funny, and often mistaken. Chris Arnade. Your hometown and what you love Something you learned in 2019: most about it: Lynne Cheney: Working by Robert Caro. Carney: Americans of all stripes see Carney: New York City. Pizza and the Mets. Aparna Mathur: I have read at least alienation as a huge threat.

two fantastic books this year. The first is Cheney: How smart twentysomethings Cheney: Wyoming. The mountains, titled Defeat Is an Orphan: How Pakistan are—particularly my research assistants. the big open sky, and the people. Lost the Great South Asian War by Myra MacDonald, and the second is The Siege: Mathur: That many clichés are correct! Mathur: I grew up in India, and more 68 Hours Inside the Taj Hotel by Cathy Having faith in yourself and your work specifically, Delhi, and still regularly travel Scott-Clark and Adrian Levy. Excellent does get you through tough times, as there to be with family—and, of course, reads, both of them. does having boisterous kids and a enjoy delicious Indian food! supportive family! James Pethokoukis: Gorbachev: His Pethokoukis: Chicago. Lots of Greeks Life and Times by William Taubman. Ponnuru: The opioid disaster isn’t mostly who make great avgolemono soup. about the abuse of prescription drugs. Ramesh Ponnuru: Rick Brookhiser’s Best advice you have received in John Marshall: The Man Who Made the Policy issue you think should be your career: Court Supreme. front and center in the 2020 presidential race: Carney: Go where you can do the Commentator you often disagree best work. with but always read: Carney: Removing roadblocks to family Cheney: Find work you love. Cheney: I have given up on opinion formation and parents staying at home. pieces—unless they are by someone Cheney: Foreign policy and Mathur: There is power in positive at AEI. national security. thinking—advice from my dad. Absolutely true! Mathur: I disagree some of the time with Mathur: For me, policies that encourage, most commentators but try to read widely enable, and support Americans as Pethokoukis: If your mother says she and regularly! And then there is Twitter. they meet their responsibilities toward loves you, check it out. I am on it but sometimes wish I wasn’t! their work and family should be critical Ponnuru: You don’t need to go to law Pethokoukis: Martin Wolf of the in the 2020 presidential race. That school to write about the law. Financial Times. of course includes paid leave and

6 AEI Introduces Initiative on Faith & Public Life In Memoriam Paul Volcker

In the fall, AEI Academic Programs announced a new name for the Values & Capitalism program: the AEI Initiative on Faith & Public Life. Selected to better reflect how the program is distinctive after 10 years of growth, the new name seeks to highlight the program’s intellectual heft; authentically Christian grounding and mission; principled, nonpartisan approach to intellectual inquiry; and focus on the personal and professional development of the next generation of Christian leaders. “People like Paul Volcker do not come The Initiative on Faith & Public Life will continue Values & Capitalism’s mission along very often. The combination of seeking to engage Christian higher education to advance a moral case for free of intellect, integrity, drive, and enterprise and cultivate an understanding of the conditions necessary for human commitment—along with decency, flourishing. Over the past decade, Values & Capitalism has had a lasting impact honor, and good humor—is rare and on the Christian higher education ecosystem, reaching thousands of students and to be treasured and celebrated.” faculty with the economic, political, and cultural principles of a free society through —Norman Ornstein an authentically Christian lens. Core activities include: The AEI community mourned the passing Student Outreach and Events. Executive Councils (student leaders who coor- of Paul Volcker in December. Volcker dinate AEI outreach on their campus) are at the center of AEI’s outreach to Christian guided US monetary policy and finance college students. We are currently engaged with more than 30 top Christian for nearly three decades as president of campuses with 200 students serving as Executive Council leaders. In partnership the Federal Reserve Bank of New York, with these students, we will host more than 100 campus events this year. chairman of the Federal Reserve, and chair of the President’s Economic Summer Honors Program. AEI’s annual Summer Honors Program offers Recovery Advisory Board. courses for 60 Christian college students on topics including the relationship Legendary for his success in combating between Christianity and capitalism, Christian faith and American foreign policy, inflation as chairman of the Federal and international economic development. Students also hear guest lectures Reserve from 1979 to 1987, AEI awarded from high-profile experts, visit relevant sites around DC, and participate in the Francis Boyer Prize (the precursor to networking events. the Irving Kristol Award) to Volcker in 1987. Volcker’s remarks (which you can read Intensive Educational Opportunities. Each year, the Initiative on Faith & here: www.aei.org/research- Public Life offers a number of intensive educational opportunities to students, products/speech/public-service/) including small-group seminars on topics such as entrepreneurship and focused on the importance of human flourishing, the morality of markets, and character and leadership public service. development, as well as a scholarship program that encourages students to AEI Resident Scholar Norman Ornstein undertake a high-level research project on a topic of economics, public policy, published a personal remembrance of law, or political theory. Volcker from their time working to establish the National Commission on Faculty Outreach. The Initiative on Faith & Public Life has a faculty network Public Service. You can read Ornstein’s of more than 320 professors who help recruit students for our program and reflections here:www.aei.org/ receive AEI books and curricular resources. We host an annual faculty seminar economics/rip-paul-volcker/. on defenses and critiques of the market, as well as other opportunities to engage with AEI scholars’ work.

For more information or to recommend a student to the Initiative on Faith & Public Life, contact [email protected] or visit www.faithandpubliclife.com/.

7 Giving Make a Legacy New Book Commitment to AEI Barone Releases Book on Political Parties

In October, AEI parties will continue to adapt to changes Resident Fellow and in the political landscape while retaining longtime political their core characters. observer Michael Barone released the book at a public Barone released event at AEI, which included a panel How America’s discussion with Patrick Ruffini (Echelon Political Parties Insights), Sean Trende (AEI and Real- Change (and ClearPolitics), and Amy Walter How They Don’t) (Cook Political Report). AEI’s Karlyn At AEI, we believe we have a moral (Encounter Books). The book explains Bowman moderated the panel and obligation to future generations to why the two American parties have offered introductory remarks. A crew defend our nation’s founding values of been so resilient and retained their basic from C-SPAN also attended the event. freedom, opportunity, and enterprise characters even as they have changed To view the discussion, visit www.aei. and safeguard against encroachments their positions on issues. Barone wrote org/events/how-americas-political- of the growing state. We hope you the book in response to hearing decades parties-change-and-how-they-dont- might consider joining AEI’s Legacy of false predictions of the death of one or a-book-talk-with-author-michael- Society by making a planned or estate both political parties. He argues that the barone. gift to AEI to ensure we have the resources necessary to carry out our mission well into the future. Major ways of making a planned AEI Awards Harlan Crow Community gift include will or trust provisions, retirement plan assets, life insurance Builder Award to Enterprise Club Leader policies, charitable remainder trusts, and charitable lead trusts. On October 29, AEI awarded the For more information, please visit Harlan Crow Community Builder Award www.aei.org/donate/planned to Enterprise Club member Andrew -giving or contact Nicole Ruman-Skinner Klaber. Klaber is a founding member of (202.862.7180; [email protected]). the AEI Enterprise Club (a select group of young supporters who are leaders in business, finance, law, and public policy) New AEI Podcasts and a member of the Enterprise Club National Board. Since Klaber helped Coming Soon establish the first Enterprise Club chapter “I bemoaned the fact that in a city as exciting and multidimensional as AEI will soon launch two new podcasts: in New York in 2011, the group has New York, it was difficult as a grown to include approximately “Hardly Working” hosted by AEI then-young person to be engaged 400 members across 25 cities and Resident Fellow Brent Orrell will feature in public policy and foreign affairs. 14 formal chapters in the United States, It was at that moment that we came up conversations with leaders in the workforce Canada, and the UK who regularly with the idea for the Enterprise Club.” development space. engage with AEI scholars and other —Andrew Klaber friends of the Institute on a broad array “Unprecedential” hosted by AEI of topics. AEI. Award recipients have made a Resident Scholar Adam White will focus The Community Builder Award significant contribution to the growth on constitutional issues affecting all three was created last year to honor AEI and flourishing of AEI as an institution branches of government. trustee Harlan Crow. It is granted by bringing people together and annually to an individual who most attracting new members to our Subscribe to these and other AEI podcasts exemplifies Crow’s incredible record community who share our mission on Stitcher, iTunes, or wherever you listen of community building in and around and ideals. to podcasts.

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