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AMERICAN ENTERPRISE INSTITUTE 2011 Annual Report

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AMERICAN ENTERPRISE INSTITUTE 2011 Annual Report AMERICAN ENTERPRISE INSTITUTE 2011 Annual Report Freedom. Opportunity. Enterprise. The American Enterprise Institute is a community of scholars and supporters committed to expanding liberty, increasing individual opportunity, and strengthening free enterprise. AEI pursues these unchanging ideals through independent thinking, open debate, reasoned argument, and the highest standards of fact-based research. Without regard for politics or prevailing fashion, we dedicate our work to a more prosperous, safer, and more democratic nation and world. Located in Washington, DC, AEI is one of America’s oldest and most influential think tanks. Its nearly sixty full-time scholars are leaders in their fields. In their research, writings, conferences, and government testimony, they stress empiricism over opinion, fact over folly, and reason over rhetoric. AEI is a 501(c)(3) nonprofit organization and is supported primarily by donations from individuals, corporations, and foundations. Gifts to AEI are fully tax-deductible. For more information about AEI, visit our website, www.aei.org. 2 Board of Trustees, Officers, Council of Academic Advisers 3 Message from the Chairman and President 4 The Year in Review: AEI’s Impact in 2011 16 AEI Scholars, In Their Own Words Peter J. Wallison, “Opening the Door on Housing Reform” 17 John H. Makin, “Reflecting on the Financial Crisis: New York and Washington Perspectives” 21 Scott Gottlieb, MD, “Delivering Innovation in Health Care” 24 Frederick M. Hess, “Challenging the Status Quo: Rethinking Education Policy” 28 Thomas Donnelly and Gary J. Schmitt, “Educating the Next Generation” 32 Karlyn Bowman, “Surveying the Election 2012 Landscape” 35 Frederick W. Kagan, “Serving the Nation: AEI Boots on the Ground in Afghanistan” 38 Danielle Pletka, “Planting Seeds: AEI and the Arab Spring” 41 44 AEI Scholar Transitions 46 Plans, Priorities, and Outreach 52 Invest in AEI 53 AEI’s Community 54 Finances 55 National Council 56 Research Staff Board of Trustees J. PETER RICKETTS Council of Academic Advisers President and Director KEVIN B. ROLLINS, Chairman Platte Institute for Economic JAMES Q. WILSON, Chairman Senior Adviser Research, Inc. Boston College and Pepperdine University TPG Capital EDWARD B. RUST JR. ALAN J. AUERBACH TULLY M. FRIEDMAN, Vice Chairman Chairman and CEO Robert D. Burch Professor of Chairman and CEO State Farm Insurance Companies Economics and Law Friedman Fleischer & Lowe, LLC University of California, Berkeley D. GIDEON SEARLE GORDON M. BINDER Managing Partner ELIOT COHEN Managing Director The Serafin Group, LLC Paul H. Nitze School of Advanced Coastview Capital, LLC International Studies MEL SEMBLER Johns Hopkins University ARTHUR C. BROOKS Founder and Chairman President The Sembler Company EUGENE F. FAMA American Enterprise Institute Robert R. McCormick Distinguished WILSON H. TAYLOR Service Professor of Finance The Honorable Chairman Emeritus Booth School of Business RICHARD B. CHENEY CIGNA Corporation University of Chicago HARLAN CROW WILLIAM H. WALTON MARTIN FELDSTEIN Chairman and CEO Managing Member George F. Baker Professor Crow Holdings Rockpoint Group, LLC of Economics Harvard University RAVENEL B. CURRY WILLIAM L. WALTON Chief Investment Officer Rappahannock Ventures LLC AARON L. FRIEDBERG Eagle Capital Management, LLC Professor of Politics and International Affairs MARILYN WARE Princeton University DANIEL A. D’ANIELLO Ware Family Office Co-Founder and Managing Director ROBERT P. GEORGE The Carlyle Group JAMES Q. WILSON McCormick Professor of Jurisprudence Boston College Director, James Madison Program in JOHN V. FARACI Pepperdine University American Ideals and Institutions Chairman and CEO Princeton University International Paper Company GERTRUDE HIMMELFARB CHRISTOPHER B. GALVIN Emeritus Trustees Distinguished Professor of History Emeritus Chairman City University of New York Harrison Street Capital, LLC WILLARD C. BUTCHER R. GLENN HUBBARD RAYMOND V. GILMARTIN RICHARD B. MADDEN Dean and Russell L. Carson Professor of Harvard Business School Finance and Economics ROBERT H. MALOTT Columbia Business School HARVEY GOLUB JOHN L. PALMER Retired Chairman and CEO, American PAUL W. MCCRACKEN Express Company University Professor and Dean Emeritus Chairman, Miller Buckfire PAUL F. OREFFICE Maxwell School of Citizenship and Public Affairs ROBERT F. GREENHILL HENRY WENDT Syracuse University Founder and Chairman Greenhill & Co. Inc. SAM PELTZMAN Ralph and Dorothy Keller Distinguished FRANK J. HANNA Officers Service Professor of Economics Hanna Capital, LLC Booth School of Business ARTHUR C. BROOKS University of Chicago BRUCE KOVNER President Chairman GEORGE L. PRIEST Caxton Associates, LP DAVID GERSON John M. Olin Professor of Executive Vice President Law and Economics MARC S. LIPSCHULTZ Yale Law School Partner JASON BERTSCH Kohlberg Kravis Roberts Vice President, Development JEREMY A. RABKIN Professor of Law JOHN A. LUKE JR. HENRY OLSEN George Mason University School of Law Chairman and CEO Vice President, MeadWestvaco Corporation Director of the National Research Initiative RICHARD J. ZECKHAUSER Frank Plumpton Ramsey Professor ROBERT A. PRITZKER DANIELLE PLETKA of Political Economy President and CEO Vice President, Kennedy School of Government Colson Associates, Inc. Foreign and Defense Policy Studies Harvard University Message from the Chairman and President President Arthur C. Brooks and Chairman Kevin B. Rollins As we write this message, the American Enterprise AEI is ramping up its efforts on many fronts. Institute, the Heritage Foundation, and CNN have But we know that, day in and day out, the bedrock just successfully hosted the November 22 Republican of the Institute continues to be its scholarship. The Presidential Candidate Debate. This is a significant event following report provides highlights of that scholar- for AEI and comes at the end of a highly successful year ship, including a new “In Their Own Words” section, for the Institute and on the heels of a series of important in which several of our scholars talk about their work. public events at AEI. Each provides an invaluable insight into the world This year, House Budget Committee chairman of AEI. But in truth, we could ask any of our scholars Paul Ryan rolled out the Republican House Budget at about their recent work and get the same result—a an AEI event entitled “The Case for Real Security and keen perspective on how AEI impacts not only the a Path to Prosperity.” Rep. Kevin Brady outlined for daily fights in Washington, but also the longer trend an AEI audience how Congress can control runaway lines in our nation and culture. spending. And Robert Gates came to AEI to give one As the threats to American liberties mount, of his last speeches as US secretary of defense. Other the need for our scholars to effectively disseminate important addresses were made by New Jersey gover- and communicate their work rises accordingly. nor Chris Christie, Indiana governor Mitch Daniels, Our scholars are collaborating closely with our Sen. Joseph Lieberman (I-D-Conn.), Sen. John McCain marketing department to reach key audiences on (R-Ariz.), Sen. Orrin Hatch (R-Utah), former vice the vital issues facing the nation. Through lawmaker president Dick Cheney, and others. briefings, public conferences, media appearances, In addition to hosting events featuring the most op-eds in the nation’s leading newspapers, and more, influential thinkers and leaders in America, we have AEI’s scholars are fully engaged in the policy battles. deepened our ties to the AEI community across We all know that 2012 will be a pivotal year the country. Our National Council now comprises for the future of America’s free enterprise system. more than sixty leaders from the worlds of commerce But at AEI, we also know that policy reform and and philanthropy, and the new AEI Enterprise Club national renewal never happen overnight, or with is attracting members from among the nation’s next one election. They take years of commitment and generation of business leaders. Our regional forums hard work, always adhering to the principles of allow scholars to engage with AEI supporters and freedom, opportunity, and enterprise. That means concerned citizens nationwide, and our campus searching for truth, not political victory—something events are now reaching thousands of college AEI has been doing from its earliest days. students at more than twenty campuses across the Only the backing of the AEI community—the country. Another important focus has been closer patriots who understand the vision of America’s collaboration with other policy organizations in areas Founders and are dedicated to sharing it with people of shared interest, and this year we hired AEI’s first- all around the world—makes our work possible. That ever Director of Coalitions to drive this process work is an expression of our common values and our forward. Our World Forum at Sea Island, Georgia, desire to leave a better world behind us, a shared legacy gathers strength each year as we convene many of for the good of our children and our grandchildren. the world’s most distinguished business leaders, statesmen, and scholars for intense, focused, off- Kevin B. Rollins Arthur C. Brooks the-record discussions. Chairman President Message 3 The Year in Review AEI’S IMPACT IN 2011 AEI’s scholars are providing policymakers, business leaders, journalists, and interested individuals throughout the world with arguments that can win the fight for free enterprise. They offer the latest facts, best research, and most cutting-edge
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