Issue No. 1, Spring 2017

Enterprise Report Restoring Liberty, Opportunity, and Enterprise in America

Ideas That Stand the Test of Time By AEI President Arthur Brooks

It is fair to say that a lot has changed since the last edition of this newsletter. In November, a major election upset completely reconfigured the country’s political landscape. In January, we celebrated the peaceful transition of power between two very different presidents. And in the weeks since, we have already seen the country’s policy trajectory shift considerably with a series of executive actions, a new cabinet, and a new Supreme Court appointment. As you may expect, these unexpected shifts in political winds have thrown much of Washington, DC, into disarray. So much of this city lives and dies with the volatile political weather. Of course, AEI prides itself on agility and responsiveness. Our scholars, communications experts, and outreach teams work together to produce and promote timely research that policymakers can put into practice today. But fundamentally, AEI is different. We are not short-term meteorologists who try to predict the political weather and change our work to suit the conditions. Instead, our focus is the underlying climate of ideas. We prioritize deep thinking and big-picture research that stands the test of time. Our experts produce top-flight scholarship on all the most pressing questions for America’s future. They write books that are remembered for decades. By investing in long-term ideas, we can study and inflect the enduring forces that shape policy and culture across generations. This focus empowers AEI to be even more useful and relevant in the near-term because our actionable ideas are backed by a rock-solid intellectual foundation— whatever the day’s headlines may bring. This core approach is on display throughout the pages of this newsletter. A few highlights:

• A prime example of AEI’s present impact is our new series, “What to Do: Policy Recommendations for 2017,” a bundle of innovative reforms and policy solutions designed to strengthen the United States, from economics to foreign affairs and Arthur Brooks AEI President and national defense. The project spans 27 different policy areas and features a wide Beth and Ravenel Curry variety of our scholars’ best work on these topics. Scholar in Free Enterprise • Another prime example is Michael Auslin’s new book, The End of the Asian Century: War, Stagnation, and the Risks to the World’s Most Dynamic Region. At a time when Asia’s future—and our relationship with Asia—is increasingly uncertain, Auslin shows why Asia and the United States must work together and take bold action to avert catastrophe.

• In a new volume edited by Robert Doar, A Safety Net That Works: Improving Federal Programs for Low-Income Americans, AEI scholars and other leading experts weigh in on reforming each of the major federal antipoverty programs. The volume was heavily promoted to a bipartisan audience of policymakers on Capitol Hill.

• Across several other important policy areas, AEI is expanding our work and recruit- ing new experts to lead our efforts. This edition of our Q&AEI features our new director of domestic policy studies, Ryan Streeter. Streeter oversees our growing research arm that focuses on education, poverty studies, criminal justice reform, American citizenship, political science and public opinion, and other critical areas.

• All this work is possible only because of the generosity and involvement of our national AEI community. Page 7 of this newsletter highlights some of the ways you can grow your personal involvement with AEI, whether you live inside the Beltway or thousands of miles away.

From AEI’s donor community to our state-based Leadership Network to our AEI on Campus initiatives to our scholars and staff right here in Washington, all of us share something in common. We believe that all people possess inherent human dignity that must be safeguarded and defended and tremendous human potential that they can realize only when they are empowered. These priorities ground all our work at AEI. By promoting the systems, policies, and values that best serve vulnerable people—and by cultivating a generation of new leaders who can translate these ideas into action—we dedicate all that we do to reunifying our country and restoring dignity and potential for more Americans and more people across the world. Thank you for standing with us.

Arthur Brooks What to Do AEI Scholars Leading Bipartisan AEI Scholars Offer Policy Efforts on the Hill Solutions for New Administration AEI scholars are at the forefront of

the most pressing issues facing the new presidential administration and The new administration faces a host of our nation’s military by adopting a Congress. Already in 2017, AEI has challenges with no obvious solutions, three-theater force construct is a hosted 13 events featuring Republican including crises in the Middle East national security imperative. and Democrat elected officials, and South Asia, failed education including committee chairmen, reform policies, strained entitlement Entitlement Programs. AEI’s House members, and senators, and programs, and a broken health care domestic policy scholars are AEI scholars have been called to testify system. AEI scholars are addressing recommending top-to-bottom before Congress six times. On Capitol these problems head-on with an reforms for every major federal Hill, scholars have led briefings on ongoing series, “What to Do: entitlement and antipoverty program, issues including education, poverty, Policy Recommendations for 2017.” offering detailed, actionable, and health care, Chinese investment, and In more than 27 policy areas, AEI bipartisan policy solutions aimed military readiness. scholars are providing actionable at making sure our limited resources Behind the scenes, AEI scholars recommendations to the new are directed to those who need it have been in high demand for strategic administration and Congress on ways the most. advice and have met frequently with to address our nation’s most pressing elected officials. They have engaged problems. Examples include: Jobs. In his book Men Without Work and related writing, Nicholas Eberstadt with the new administration’s transi- tion team both as official members Asia. President Trump has expressed presents a clear, thoroughly researched and informal advisers and hosted uncertainty about the “one China” look at the problem of prime-age men several listening sessions between policy, but Dan Blumenthal points who are unemployed but not looking administration transition staff and out the People’s Republic of China is for work. Michael Strain offers an array outside organizations. responsible for our frayed relationship. of conservative reform proposals aimed Additionally, in January, Arthur On the open question of the future of at addressing this critical problem and Brooks gave the opening keynote trade in Southeast Asia, Derek Scissors making work more attractive for those address of the joint Senate-House discusses what is next after the end of relying on government benefits. Republican retreat in Philadelphia, the Trans-Pacific Partnership and what addressing all elected Republicans is at stake. Health Care. AEI’s health policy scholars are focusing on the long- in Congress, as well as senior lead- ership and committee staff. AEI also Tax Policy. In response to the intro- term goal of transforming health care, cohosted the Bipartisan Program duction of a border adjustment tax and are promoting reforms that preserve for Newly Elected Members of into the House Republican tax reform consumer choice, competition, Congress with Harvard University’s plan, AEI’s Open Source Policy efficiency, and innovation, and that Institute of Politics, which included Center introduced a border adjust- provide all Americans with access to 32 House members-elect, including ment calculator, allowing users to make high-quality care at affordable prices. 13 Republicans and 19 Democrats. their own plan and see the results in real In the months ahead, AEI will cohost time. Using this tool, Alan Viard shows To read AEI scholars’ recommendations a series of follow-up dinners with that there is a right and wrong way to for the new administration, visit: this group to continue to facilitate pursue border adjustment. www.aei.org/spotlight/ what-to-do-policy- bipartisan discussion. Defense. The scholars from AEI’s recommendations-for-2017/. Marilyn Ware Center for Security Studies make the case that rapidly rebuilding

3 Auslin Releases The End of the Asian Century

On January 10, Michael Auslin, AEI Security. More than 150 people and

resident scholar and director of Japan a television crew from NHK, Japan’s

Studies, released The End of the Asian largest broadcasting organization,

Century: War, Stagnation, and the Risks attended the event. Since its release,

to the World’s Most Dynamic Region. Auslin has discussed the book in While it has been long assumed that dozens of radio, television, and online growing Asian countries are ascendant interviews, including on Fox News’ on the world stage, Auslin marshals America’s News HQ, the Wall Street Jour- comprehensive evidence proving the nal’s Opinion Journal, BBC World News, contrary position: that due to factors acting boldly and building closer rela- and Real Clear Defense. To learn more such as slumping economies, regional tionships with the United States. about the book, visit: www.aei.org/ instability, and environmental catastro- The book was released at a public publication/the-end-of-the phes, Asia’s future is uncertain. He event at AEI headquarters, featuring a -asian-century-war-stagnation argues that the best chance Asian nations discussion between Auslin and Robert -and-the-risks-to-the-worlds have to avert catastrophe is through Kaplan of the Center for a New American -most-dynamic/. Poverty Studies Scholars Promote Antipoverty Reforms

In August 2016, more than 30 years after decades of experience studying and Outcomes in Adulthood” AEI and the Los Angeles Times teamed implementing the crucial federal pro- (Richard V. Burkhauser, Cornell up to release a landmark opinion survey grams that assist low-income Americans University, and Mary C. Daly, Federal Reserve Bank of San Francisco) on poverty, they joined forces again to for a series of new essays featuring release an updated study on the actionable solutions for reforming each of • “Child Care Assistance in the United States” same subject. The survey found that the major federal antipoverty programs. (Angela Rachidi, AEI) 70 percent of Americans believe the • “WIC’s Expanding Eligibility, • “The Earned Income Tax Credit” conditions for the poor have either Rather Than Enhanced Services” (Bruce D. Meyer, AEI and University of (Douglas J. Besharov, University of stayed the same or gotten worse over Chicago) Maryland, and Douglas M. Call, the past 10 or 15 years, and 60 percent • “Viewing the Food Stamp Pro- University of Maryland) believe that most poor people will gram Through a 44-Year Lens” • “Improving our Federal Response probably remain in poverty. (Russell Sykes, American Public Human to Homelessness” Of course, not all of the problems fac- Services Association) (Kevin C. Corinth, AEI) ing low-income Americans will be solved • “Medicaid” (James C. Capretta, AEI) • “Federal Early Childhood Care and by federal antipoverty programs, but • “Empowering Child Support En- Education Programs: Advancing many of the existing assistance programs forcement to Reduce Opportunity Through Early do reduce poverty and, with thoughtful Poverty” (Robert Doar, AEI) Learning” (Katharine B. Stevens, AEI) reform, could be even more effective in • “Reducing Poverty by Reforming On February 21, AEI hosted a major helping struggling Americans move up. Housing Policy” (Edgar O. Olsen, release event on Capitol Hill for the A new volume edited by Robert Doar University of Virginia) volume, which included one-on-one strives to do just that by helping policy- • “Child Welfare: In Search of Last- boot camps with Hill staff on the makers understand how each program ing Reform” (Maura Corrigan, AEI) programs and issues addressed in functions—its strengths, as well as its • “Temporary Assistance for the volume. weaknesses. The volume, A Safety Net Needy Families” (Ron Haskins, Brookings Institution) To read A Safety Net that Works, visit: That Works: Improving Federal Programs www.aei.org/publication/a for Low-Income Americans, brings • “The Supplemental Security -safety-net-that-works-improving- together academics and practitioners Income Disabled Children federal-programs-for-low-income- Program: Improving Employment from across the political spectrum with americans/.

4 Busting School Bureaucracy

AEI Director of Education Policy To introduce the new curriculum, Studies Frederick Hess has launched Hess hosted a public event with a panel a new online course for teachers, of expert teachers, who discussed the designed to accompany his book The importance of cage-busting and how Cage-Busting Teacher (Harvard Educa- teachers can navigate and overcome tion Press, 2015). The course is intended misguided policies, inattentive adminis- to support aspiring or existing teacher trators, and funding challenges. leaders who want to better understand Listen or watch the event online how teachers can be change agents The course is available for free online at www.aei.org/events/bust- for the profession. It does so through with questions and activities designed to ing-the-school-bureaucracy-a- a series of modules designed to help help teachers identify problems, articu- curriculum-for-cage-busting equip teachers to break through school late practical solutions, and implement a -teachers/. To see the full course, visit: bureaucracy and make decisions that plan of action to create positive change www.aei.org/multimedia/the-cage- best serve their students. in their schools. busting-teacher-online-course/.

Coming Up in Education

AEI’s Education Policy Studies program tice. Hess does not offer an agenda for readable, and in-depth account of has three new books hitting shelves reform; instead, over the course of about where ESSA came from, what it says, this spring. two dozen letters, he shares a series of what it means for America’s schools disquisitions on the nature of school re- writ large, and the challenges and form, where reformers misstep, and how opportunities ahead. they might do better. Letters to a Young The Every Student Succeeds Act: Education Reformer (Harvard Education What It Means for Schools, Systems, Press) will be released in April. and States (Harvard Education Press) was released on February 28.

Education Savings Accounts: The New Frontier in School Choice, coedited by Nat Malkus, Gerard Robinson, and Adam Peshek from the Foundation for Excellence in Education, includes In his latest book, Letters to a Young 11 new research papers for a first-of-its- Education Reformer, Frederick Hess kind volume focused on the promise and reflects on the lessons that he has pitfalls of Education Savings Accounts learned in his decades as a school (ESAs) and the potential for ESAs to reform thinker to help would-be reform- reshape the American educational ers understand what policy can and The Every Student Succeeds Act: landscape to better meet the needs of cannot do and foster a more modest and What It Means for Schools, Systems, students and families. nuanced appreciation of what it means and States, coedited by Frederick Hess Education Savings Accounts: The New to be an education reformer today. and Max Eden from the Manhattan Frontier in School Choice (Rowman & Over the past few years, school reform Institute, includes 11 new research Littlefield) will be released in April. has increasingly been dominated by papers exploring pressing questions ambitious top-down reform proposals surrounding the Every Student Succeeds that have been disappointing in prac- Act (ESSA) to provide a coherent,

5 To help pay for your doctorate, you drove an 18-wheeler around the Q&AEI with Ryan Streeter country. What did you learn through that experience?

Ryan Streeter joined AEI in January as our first director of I learned that no one was safe so long domestic policy studies, overseeing research in education, as I was behind the wheel of a semi! American citizenship, politics, public opinion, and social I drove for a moving company, and I and cultural studies. Before joining AEI, he was executive quickly learned how hard life was for director of the Center for Politics and Governance at the guys who carry furniture every day for University of Texas at Austin. a living. Many were felons. Many did He has had a distinguished career in government this job because they couldn’t hold any service, including serving as deputy chief of staff for policy others. But like those young boys in for Indiana Governor Mike Pence, special assistant Chicago’s public housing, these guys for domestic policy for President George W. Bush, and were only different from me by accident policy adviser to Indianapolis Mayor Stephen Goldsmith. Outside of government, and circumstance. Like the graduate he has served as senior fellow at the Legatum Institute and research fellow at the student employing them, they wanted to Hudson Institute. make something of their lives. They just weren’t sure how to do so. What will be the focus of your work about how to order society. I learned at AEI? that every public policy proposal is Some of your work thus far has focused rooted in an understanding, or on the “skills mismatch” between those I will be focusing on aspirations and misunderstanding, of what is true graduating from school and out of upward mobility. How do people about human nature. Our job as policy- work and the demand for skilled labor. How can policy effectively play a role understand and achieve the American makers is to improve lives according to in addressing this challenge? dream? I have long been interested in the truth about who we are. the factors that contribute to people realizing their potential. Family, Given your wide range of experience We need to dignify and improve training education, faith, grit, networks, in government at the federal and for jobs that don’t require a four-year imagination, and a willingness to work local levels, in what areas do you college degree. I lived in Germany for and move—these things matter a lot, think government can help struggling two years and was astounded by how especially when you are born to a low- communities, and where is it doomed well they train people for meaningful income family. My research focuses on to fail? careers without sending them to the university—and how zero stigma is how public policy enables and inhibits The answer is different now than in attached to doing so. We’ve done a people with little to achieve a lot. the past. Today, government should pretty lousy job in America of training remove barriers to progress. For You hold a Ph.D. in political philosophy people in that “middle zone” between example, research shows that and originally planned on becoming high school and a four-year degree. a college professor. How does your startups succeed when they have a patent and Delaware registration. training in philosophy inform your What does your role at AEI help you approach to public policy? Ordinary startups fail. That’s because accomplish that has not been possible we’ve made it too hard to do things in previous roles? Philosophy, properly understood, is the old-fashioned way: start an the love of wisdom. It’s about big ideas, enterprise to make something new AEI is filled with more defenders of truth, and thinking correctly. Political and provide for your family. Government freedom and enterprise than anywhere philosophy is about how ideas, truth, policy has made issuing health insurance I’ve previously worked. I think that AEI institutions, and human behavior order and building new housing too expen- is better positioned than anywhere I’ve society. I discovered this in college sive. Freeing the productive powers of a worked to change the minds of policy- while tutoring teenage boys who lived community will do more to help makers and influencers in the direction in public housing in Chicago. They were those who are struggling than of freedom, opportunity, and purpose. imprisoned, not just in awful concrete any new social welfare program we buildings, but also by terrible ideas can imagine.

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In Memoriam: Michael Novak (1933–2017)

as our George Frederick Jewett Scholar in 26 honorary degrees received from col- Religion, Philosophy, and Public Policy. leges and universities, the Templeton The Spirit of Democratic Capitalism Prize for Progress in Religion (1994), and (1982), widely considered Novak’s the prestigious Lincoln Literary Award most important of his 35 books, (2016). And during the Reagan years, advanced a bold and important thesis: Novak was asked to join AEI’s Jeane America’s system of democratic capital- Kirkpatrick at the United Nations as a ism represents a fusion of our political, diplomat, serving as the US representa- economic, and moral-cultural systems. tive to the Helsinki Commission. This thread ran through Novak’s whole Novak’s curiosity and brilliance made career, and was the subject of one of him one of AEI’s most eminent scholars; Michael Novak was one of the most influ- several Bradley Lectures that Novak his gentle and warm personality made ential Catholic theologians of his genera- delivered at AEI, stretching back to the him a beloved friend at the Institute. To tion, a counselor to popes and presidents, series’ inception in 1989. read Arthur Brooks’ tribute to Michael and an AEI scholar from 1978 to 2010. His work earned numerous recogni- Novak, visit: www.aei.org/publication/ Novak built a hugely distinguished career tions. A few highlights include the aei-mourns-the-loss-of-michael-novak/.

AEI30. Launched in the past year, AEI30 AEI’s Growing Donor Community is a cohort of young leaders under 30 years of age in business, finance, and AEI’s work is only possible with the intel- work with AEI to promote our scholars’ entrepreneurship interested in serious lectual, moral, and financial support of work in their communities. There discussions on the most significant chal- our donors. Over the past several years, are currently 16 chapters in cities lenges facing our country. We currently we have made a concerted effort to across the country that frequently have chapters in New York City and reach broader audiences with our host AEI scholars for discussions San Francisco. scholars’ work than ever before. This across policy issues. growth in outreach has also expanded AEI Corporate Program. Support the number of ways in which our tight- Enterprise Club. AEI’s Enterprise from members of the private sector knit community of supporters can Club is an invitation-only group of signals a commitment to AEI’s mission to connect and engage with AEI. 30- to 40-year-old professionals who encourage a business and policy climate The following highlights some ways share an interest in policy, have an that stimulates economic growth, dyna- you can be involved with AEI. outstanding record of achievement, mism, and expanded opportunity for all. and have great potential for future National Council. Members of AEI’s impact. There are nearly 350 Enterprise AEI Foundation Supporters. A National Council are business leaders Club members in 12 chapters (or wide range of foundations share from all over the country who are 23 total cities) in the United States, AEI’s core principles, and foundation committed to the values and success of Canada, and the United Kingdom. founders, directors, board members, the Institute. They are ambassadors for and staff regularly join fellow members AEI and provide us with advice, insight, “Enterprise Club presents a constant of the AEI community for regional events, and guidance as we reach new friends yet dynamic way in which to interact as well as briefings and special events nationwide. There are currently nearly with my professional peers, as well at AEI headquarters. 200 public members of the National as those more senior in the world of Council from 32 states and abroad. business and public policy, in engag- For more information about how ing debate and discourse regarding you can engage with AEI, please AEI Regional Councils. The business the key issues of the day.” contact Toby Stock (202.862.5384; leaders, entrepreneurs, and professionals —Ganesh Betanabhatla, member of [email protected]). who comprise our regional councils the Enterprise Club Houston chapter

7 Nominate a Student for AEI’s Summer Honors Program

“AEI’s Summer Honors Program has challenged my worldviews, broadened my perspectives, and enabled me to meet phenomenal peers, scholars, and leaders from across the nation. I now have a better understanding of how free enterprise maxi- mizes personal potential— Throughout June, AEI Academic Pro- networking opportunities, and site it’s the notion of ‘earned grams will host our Summer Honors visits in Washington. Past site visits have success’ that Arthur Brooks Program, a series of one-week, fully included the DC offices of Google, often talks about.” funded opportunities for students to Facebook, and Uber. —Boston University student and immerse themselves in a chosen public This summer, the program will offer 2015 Summer Honors Program participant policy issue with AEI scholars and other six different week-long sessions, leading practitioners, for an unparalleled including “The Building Blocks of mix of high-level academic instruction on Human Flourishing” with Charles Murray, Applications are due March 15. free enterprise principles, policy analysis, “The Constitution: Original Meanings To learn more about the program and practical experience. In addition to and Modern Times” with John Yoo, or nominate a student, visit: policy instruction, students participate and “War and Decision Making” with www.aei.org /spotlight/ in professional development sessions, Fred Kagan. summer-honors-program/.

Values & Capitalism Releases Documentary

The documentary, titled To Whom To find out more, or to request a It Is Given: Business for the Common complimentary screening kit, visit Good, will be screened at a number www.aei.org/spotlight/ of college campuses this spring. values-and-capitalism- business- While today’s college students for-the-common -good/#join. are often told that the best way to help others is through redistribution and charity, this documentary AEI’s Values & Capitalism Program gives students concrete examples recently released a short documentary of those living an authentic spiritual highlighting the stories of three calling and helping their communities businesses whose respective owners through entrepreneurship and see entrepreneurship and business business. as a calling. The 30-minute documentary In addition to the documentary, also showcases roundtable discussions each of the three stories has been featuring leading thinkers on the broken out into stand-alone short 1789 Massachusetts Avenue, NW relationship between practical work videos, which are available on AEI’s Washington, DC 20036 202.862.5800 | aei.org and faith. YouTube page.

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