2016 Manhattan Institute President’s Update Manhattan Institute Trustees

Chairman of the Board Paul E. Singer Elliott Associates, L.P.

Vice Chairman Michael J. Fedak

Chairmen Emeriti Charles H. Brunie Brunie Associates

Richard Gilder* Gilder, Gagnon, Howe & Co.

Roger Hertog* Hertog Foundation

President Lawrence J. Mone

Trustees

Andrew Cader Maurice R. Greenberg Rodney Nichols C.V. Starr & Co., Inc. Ann J. Charters Nick Ohnell Fleur Harlan Ohnell Capital Anthony P. Coles DLA Piper US LLP Roger Kimball Robert Rosenkranz The New Criterion Delphi Financial Group, Inc. Ravenel Curry Eagle Capital Management, LLC William Kristol Nathan E. Saint-Amand, MD The Weekly Standard Timothy G. Dalton, Jr. Thomas W. Smith Dalton, Greiner, Hartman, Maher & Co. Daniel Loeb Prescott Investors Third Point LLC Sean Michael Fieler Donald G. Tober Equinox Management Partners, L.P. David Malpass Sugar Foods Corporation Encima Global LLC Kenneth M. Garschina Bruce G. Wilcox Mason Capital Management Thomas E. McInerney Cumberland Associates, LLC Blue Point Associates Kenneth B. Gilman Kathryn S. Wylde Rebekah Mercer The Partnership For New York City Harvey Golub Miller Buckfire & Co., LLC Jay H. Newman Elliott Associates, L.P.

*Former Trustee 2016 President’s Year -End Update 1 CITY JOURNAL SMITH SOCIETY ADAM LEADERS CIRCLE YOUNG BANNER EVENTS RESEARCH BOOKS MEDIA MI EXPERTS LETTER FROM THE PRESIDENT LETTER FROM THE OUR REACH POLICY AREAS Health Care Economy and Opportunity EnergyEnvironment and K-12 Education City New York Public Sector Table of Contents Table

Legal Policing 2 28 30 32 34 36 38 39 40 10 12 DEAR FRIENDS AND SUPPORTERS, With the results of the 2016 election, America enters a new era.

The best way to support the next The same goes for officials at the president and the incoming class of state and local levels. Reformist congressmen, governors, mayors, leaders continue to rise up in cities Sound public and state and local legislators is to and states across the country. Fresh provide them with ideas that can off electoral victories, governors and policies at respond to the frustration, alienation, mayors will want and need ideas on and despair clearly—and correctly— how to better their locales: what they all levels of felt by so many citizens. Elections do can do to advance improvements not alter MI’s fundamental mission in areas such as education, public government, of providing reasoned, fact-based safety, infrastructure, transit, and analysis and educating both policy- business regulation. strong families, makers and the general public. They do, however, inform our strategy of Moreover, we cannot neglect the and healthy how we seek to move the climate of urgent need to reinvigorate civil opinion and drive reform. society. Even with new leaders social norms… in office, there are limits to what Let’s start with Washington, D.C., government—at any level—can will all be where we anticipate having a new set hope to accomplish, especially with necessary to of opportunities to promote nation- respect to deep-seated social ills. al-policy change. The new adminis- unlock the tration will mean a shakeup within In short, MI recognizes that change the federal bureaucracy. We can can, and must, come from many promise of anticipate new appointments to the different sources. Sound public federal judiciary, including the U.S. policies at all levels of government, America. Supreme Court. Congress will have strong families, and healthy social to work with the administration to norms that help prepare and enable forge a governing agenda. Amid this individuals to succeed, will all be sea change in leadership, policymak- necessary to unlock the promise ers will be in search of new ideas. of America.

2 Heather Mac Donald in Chicago Paul Howard at an IQ2 event on drug prices

To move the needle on all of these working-class communities that exports. In December 2015, Congress fronts, MI has grown (and, as have struggled with the effects of showed that it was listening, voting stewards of philanthropic funds deindustrialization and cultural to lift the 40-year ban on U.S. entrusted to us, we have done so breakdown, and millennials who are domestic crude oil exports. There carefully). We have added to our saddled with student debt and unable remain, however, far too many other roster of scholars and have made to find jobs—all have good reason to anachronistic policies, enacted on a number of strategic additions to want better. the false premise that America and the staff responsible for ensuring the world are running out of energy. that our ideas reach an ever-wider Strong economic growth is a prereq- Such policies are barriers to realizing audience of citizens and officehold- uisite for broad-based prosperity the improved standard of living that ers. To publicize our research and and opportunity, and you can our energy abundance can provide. policy journalism, we have activated expect MI to call for policies that MI will work to clear these barriers new distribution channels, even as remove impediments to entre- away. Also, expect us to build on we have worked to maintain our preneurship, business expansion, our efforts in shaping debate over edge in traditional media—whether and investment. This starts with a the appropriate role of renewable op-eds, books, television, or radio. national energy-policy agenda that energy forms. Apocalyptic fears unleashes the economic potential about climate change have led many MI’s agenda, which encompass- of America’s domestic assets policymakers to adopt aggressive es a range of domestic issue areas, and ensures access to affordable, plans to transition to sources such as reflects a core vision and set of reliable, and abundant electricity solar and wind—but as Robert Bryce goals—with opportunity for all for businesses and consumers. In and Oren Cass argue, these policies, Americans chief among them. The this regard, we have made a tangible such as renewable mandates at the fact that many Americans feel their difference. For the past five years, state level and the EPA’s Clean Power opportunities are limited should senior fellow Mark Mills has argued Plan, will be of minimal benefit to come as no surprise to those who that the revolution in oil and gas the planet, while imposing devas- are familiar with our research, drilling techniques, as well as the tating costs on the economy and analysis, and commentary. Minority energy abundance that they have consumers, especially on people of citizens who have been stuck in unlocked, made it time to reverse modest means. cycles of intergenerational poverty, the decades-old ban on such energy

2016 President’s Year-End Update Letter From The President 3 Mark Mills at an MI energy event

MI’s legal policy team: Peggy O’Keefe, James Copland & Rafael Mangual

Our energy team at MI is a great example of how we choose to approach policymaking and persuasion. Those who write for us about energy policy bring a diversity of perspectives. They include a top labor economist, a seasoned reporter and author, a former business management consultant, a physicist and development engineer, and a lawyer and mechanical engineer. Not a day goes by without an MI fellow advocating for sound energy policy on the radio or in newspapers, or ness; Proxy Monitor will keep shining entrepreneurship and draw without citations or mentions of light on activists who seek to curtail Americans back into the workforce. their work shaping national thinking the democratic process by covertly These include lowering corporate on this issue. advancing their social and economic taxes and reforming entitlements agendas through shareholder votes; so that the young will not, as senior Clear laws and regulations, along and our Overcriminalizing America fellow Diana Furchtgott-Roth and with consistent enforcement, are project is working to rein in laws and her colleague Jared Meyer have prerequisites for business growth and prosecutorial practices, at the state put it, be “disinherited.” Furcht- investment. MI’s legal-policy shop, and federal levels, that misapply gott-Roth, who heads our economic led by James Copland, is dedicated criminal laws to matters that are better policy division, e21, champions to exposing actors who would take dealt with via civil proceedings—or are these and other reforms. She will advantage of the legal system for not wrongdoings at all. provide rapid-response analysis of personal gain; and to promoting the policy proposals being debated reforms that uphold the rule of law. To spur our economy, we believe that nationally. MI’s Shadow Open Market MI’s report series Trial Lawyers, Inc. we must not only beat back policies Committee (SOMC), composed of will continue to expose the economic that stand in the way of growth but top academic economists who follow consequences of excessive litigious- also propose ideas that can encourage and comment on the actions of the

4 Diana Furchtgott-Roth at the Politico “Boomer Women and the Election” panel

Federal Reserve, will challenge the costs, while finding more cost-effec- an important milestone in this area: Fed to make clear how and why it tive ways of expanding access for the the U.S. House of Representatives is crafting monetary policy. And needy and vulnerable. passed bipartisan legislation that Meyer will continue to shape the included many reforms that Huber national conversation about the Many diseases that we confront and other Project FDA contributors sharing economy and its potential to today, whether cancers or multiple have proposed. The U.S. Senate is drive innovation and job growth— sclerosis, require precision considering several pieces of legisla- if ill-conceived regulation is not treatments, tailored to an individ- tion that include similar reforms. We permitted to stifle it. ual’s biochemistry—treatments have reasons to be optimistic that at that medical science is now making least some elements of what we have A national opportunity agenda must possible. But the FDA’s protocols for fought for will become law, if not involve reform of the U.S. health- testing and approving new drugs and during the lame-duck session, then care system, from entitlement devices date back to a time when during the next Congress. Further- programs—Medicare, Medicaid, and doctors were combating diseases more, with leadership from Paul the Affordable Care Act (ACA)—to by treating us all alike. The need Howard and our newest health-care drug and device innovation. As MI for reform in this area is urgent; senior fellow, former U.S. senator scholars publicly predicted, the everyone will be a patient someday. Tom Coburn, M.D., we are confident ACA has led to dramatic increases in Over the past several years, MI’s that more progress in this space is premium costs for many consumers. Project FDA has sought to streamline not far away. The results of these That so many Americans are choosing and modernize the FDA’s approval policy changes are game changers, not to purchase so-called affordable process for new and innovative potentially accelerating drug devel- health-care plans, even if they treatments. In 2013, senior fellow opment by many lifesaving years. must pay a penalty for not doing so, Peter Huber’s book The Cure in reflects the limited choices that the the Code: How 20th Century Law Is Reforming the nation’s health-care ACA permits. MI’s health-care team, Undermining 21st Century Medicine system has ramifications for other led by senior fellow Paul Howard, explained how the FDA’s one-size- domestic concerns, such as poverty. will seize the opportunity afforded fits-all system was built before we As senior fellow Oren Cass demon- by the recent election to champion understood that complex diseases strates, inefficient spending on the reforms that rely on competition— affect and grow inside each human Medicaid health-care program does not more regulation—to drive down body differently. July 2015 marked too little to help the poor in whose

2016 President’s Year-End Update Letter From The President 5 Peter Huber’s book The Cure in the Code

Senior fellow Daniel DiSalvo

name it has grown. Reforming Medicaid, in his view, should be part of a broader reform to the federal safety net and how we seek to ameliorate poverty. Cass, in his analysis of federal poverty programs, makes clear that many include perverse incentives and discourage people from beneficial behaviors, such as marriage and work, which would help them move up from dependency. In 2017, look for MI to beat the drum for reforming the safety net, with an approach that of rising pension costs on a city’s the “crowd-out” effect of continued centers on the importance of getting ability to sustain core services will increases in benefit costs: fewer people back to work. be felt increasingly in the coming resources available to fund core public years. Given the importance of services and to invest in long-de- While working to influence debate pension reform to the financial and ferred infrastructure projects. Given over federal policy, we continue, as economic well-being of cities and how politically charged this issue is, we always have, to direct scholarly states, it remains one of our top we have found that focusing on the attention to what happens at the state policy priorities. This is why MI has math and on the prospect of declining and local levels. It is here that overex- assembled a team with extensive services is the best way to move the tended public pension funds risk knowledge of both public finance and conversation forward. robbing the local citizenry of a range the political influence of the public of services—from good education to sector: senior fellows Daniel DiSalvo, Any discussion of opportunity must clean streets—as spending is directed Stephen Eide, Steven Malanga, Josh reckon with the difficult subject of to retirees. Public pension reform is McGee, and E. J. McMahon. Our race—and how that factors into policy an issue that many officials would strategy is to educate citizens about discussions about issues such as prefer not to touch, and one that can how this issue affects them personally, policing and education. Police officers be hard to explain. But the effects particularly through highlighting who break the law, or fail to follow

6 Heather Mac Donald’s book The War on Cops

New senior fellow Max Eden

protocols in dealing with confron- year. Without active American law addition of Beth Akers. A specialist tations, must be held accountable. enforcement, that number will only in higher education, Akers will We cannot, however, abide a false continue to rise (according to the FBI, focus on America’s federal student- story about ubiquitous racism in homicides were up nearly 11 percent loan policies, developing ideas on American law enforcement. The more last year). how to make college a worthwhile traction that this canard gets—and investment—and offering constructive the more sway it has with elected Closing the achievement gap between plans about the right way to deliver leaders—the harder it will be for law urban and suburban students is a goal aid to the disadvantaged. enforcement to do its job: to protect that lies at the heart of MI’s education the vulnerable citizens who need the agenda. Failing public schools not Higher education, beyond preparing police the most. Given the misin- only deprive kids of opportunities individuals for the workforce, has a formation that pervades the public to develop and exercise their talents critical role to play in the formation discourse, MI senior fellow Heather but harm the overall U.S. economy, of future civic leaders. At America’s Mac Donald’s 2016 book, The War on which is ever more dependent on top business schools, MI is providing Cops, a New York Times and Amazon human capital. MI has been especially a context for an open discussion bestseller, could not have been active in the debate over charter about big ideas that may otherwise timelier. This summer, during the schools, refuting unsubstantiat- not get a hearing. MI’s Adam Smith days surrounding the heart-wrench- ed claims made by teachers’ unions Society, now in its sixth year, has ing assassination of five Dallas police and some public officials. This fall, chapters at 27 MBA programs and officers, Mac Donald’s book provided as Massachusetts was considering a membership of more than 6,000 a much-needed corrective to the allowing more charter schools, one students and alums. Through the half-truths about race and policing of our newest senior fellows, Max Society, we seek to introduce being promoted by some activists Eden, authored a study debunking discussion and debate about and their allies in public office. In his opponents’ main assertion: that public-policy issues and the moral endorsement of the book, Thomas the growth of the charter sector underpinnings of the free-enter- Sowell put it this way: “This is a book would deprive traditional schools of prise system. At the same time, we that can save lives.” We hope that is financial resources. Nor is our focus are challenging today’s students— true. What should be at the heart of limited to K–12 education. This fall, tomorrow’s industry leaders—to the national story are the 7,000 black we also expanded the size and scope think about their future civic Americans who are murdered each of MI’s education team through the responsibility. When capitalism is

2016 President’s Year-End Update Letter From The President 7 Tom Coburn speaking to the Harvard Adam Smith Chapter

New senior fellow Beth Akers

under fire, lamentably, the business fellow Jason Riley, who authors a community often is the last to rise regular column in the Wall Street in its defense. We expect much Journal and has been crisscrossing more from our members when they the country delivering lectures on become entrepreneurs and CEOs. Not college campuses, often about race only will they have had the benefit of relations. His nonconformist views speakers and courses, but they will led him to be “disinvited” from a enjoy the support of a community scheduled speaking engagement at that appreciates the virtues, as well Virginia Tech earlier this year—and as the complexities, of freedom, then reinvited after the story made competition, the rule of law, and national news. Riley will not shy all the other pillars of an opportu- away from voicing hard truths about nity society. This was a small idea race and poverty in America and the just a few years ago. Seeing these ways in which liberal social policies energetic, dedicated young people have, ironically, undermined black gives me hope for America’s future. upward mobility.

We would be fooling ourselves, City Journal represents an essential however, to believe that policy tool in MI’s work of turning intellect reforms, whether in the safety net, into influence. We do not expect entitlements, education, or criminal to change minds simply through justice, alone can resolve the difficult white papers, as compelling or as conditions in which many Americans conclusive as the research findings find themselves. Policy reform may be. We know that people matters a lot—but culture matters, need to understand why and how too. This is a theme often found in ideas matter through storytelling. MI’s City Journal, especially in the Telling stories, made vivid through writings of contributors such as Mac shoe-leather reporting, is what City Donald and Kay Hymowitz. It is also Journal does best. And I’m happy to a major theme of the work of senior report that MI’s City Journal, fresh

8 Edward Glaeser speaking at the William Bratton speaking at the July YLC event 2016 James Q. Wilson Lecture

off its 25th anniversary, is looking We cannot be sure what 2017 will at a record year for readership. The bring. But given the changes in magazine’s redesigned website, Washington and the reformist city-journal.org, is projected to leadership in place in many states, We seek to surpass 7.2 million page views, we anticipate having opportunities a 27 percent increase over 2015. to encourage meaningful change in introduce This has been the result, in part, many of the aforementioned areas. of an increased emphasis on article To take advantage of these opportu- discussion distribution through multiple social nities, we depend on your support. media channels—something that Please help MI start its 40th year off and debate you can expect to see even more of strong. I wish you and your family a in 2017, as part of MI’s enhanced happy holiday season. about public- distribution efforts. Sincerely, policy issues You may notice that this year’s and the moral President’s Update has a different structure from years past. Rather Lawrence Mone underpinnings than go into our customary depth about our issue areas, I thought it of the free- made more sense to provide concise descriptions of 2016’s efforts and enterprise spend more time on the opportunities that we will have next year—which system. also happens to be MI’s 40th anniver- sary. Of course, if you would like to have a fuller account of our recent work on any of the aforementioned issues, from the economy to legal PAGE FORWARD policy to education, give us a call or FOR OUR REACH AND ISSUE AREAS see the next few pages for highlights.

2016 President’s Year-End Update Letter From The President 9 OUR REACH38 STATES 517 EVENTS 7 COUNTRIES ARGENTINA CHICAGO TEXAS MI organized a delegation— Practitioners and policymakers City Journal launched its “Texas including former New York Police attended a private dinner in Rising” issue with a media Department commissioner Chicago on April 12 that MI hosted dinner in Austin on September Ray Kelly, Bryant Park Business to discuss James Copland and 15. Together with some of the Improvement District president Steven Malanga’s paper area’s leading journalists, Brian Daniel Biederman, and MI senior on reforming public pension Anderson, Robert Bryce, fellow Judith Miller—to meet with board governance. Josh McGee, and Aaron Renn the highest-ranking public-safety discussed the success of many officials in Argentina. In response to the rise in violent of the state’s public policies crime in Chicago, Heather Mac and what Texas needs to do to CALIFORNIA Donald was invited to speak maintain its edge. Former Secretary of State before two audiences of leading Bobby Tudor, chairman and CEO Condoleezza Rice spoke at an Chicagoans on October 24 about of Tudor, Pickering, Holt & Co., event sponsored by MI’s Adam the need for proactive policing. LLC, spoke on October 31 to Smith Society chapter at the Guests totaled about 150; approximately 75 student Stanford Graduate School of her remarks were followed by and alumni members of the Business on June 1. Rice treated roundtable conversations with Illinois Adam Smith Society in Houston students to a wide-ranging, off-the- law-enforcement officials. about the state of oil markets. record conversation. NEW YORK Surrounding public debate over MI held 143 events in New York in WASHINGTON, D.C. Proposition 61, a measure that 2016—with approximately one-third Former U.S. senator would cap the price that state geared toward next-gen audiences Tom Coburn, MI’s newest government agencies pay for (under 40). Notable speakers health-care senior fellow, spoke prescription drugs, on September included Governor Charlie Baker on drug pricing and medical 14, senior fellow Paul Howard of Massachusetts, constitutional law innovation at a dinner for traveled to San Francisco to scholar Randy Barnett, Timothy Washington, D.C. journalists meet with reporters, producers, Cardinal Dolan, and historian and reporters on April 27. and editorial boards. Every major Andrew Roberts. newspaper in the state has echoed Howard’s analysis on why Prop. 61 would be bad for medical innovation–and on Nov.8, voters rejected the proposition. NUMBER OF EVENTS HELD 1–4 5–14 15+ IN THE UNITED STATES

143 18 25 21

63

26 34 49

WE HAD EVENTS IN 6 COUNTRIES OUTSIDE THE UNITED STATES ARGENTINA | CANADA | CZECH REPUBLIC | ENGLAND | ISRAEL | MEXICO Paul Howard

MI’s Project FDA has sought to streamline and modernize the FDA’s approval process for new and innovative treatments.

Tom Coburn 2016 President’s Year -End Update 13 Ventura County Star, Orange Orange County Star, Ventura , which are intended to make the review and approval which are intended to make the review and approval 21st-Century Cures Act, MI health-care fellows are working to bring policymakers on both MI health-care fellows policymakers are working to bring we met part of these efforts, sides of the aisle behind our ideas; as to discuss President Joseph Biden earlier this year with Vice Moonshot initiative the Cancer to howadvance our agenda can accelerate the discovery of cures. California voters rejected Proposition 61, On Election Day, on prescription which would have imposed price controls the editorial boards of the voted, Before the public drugs. Howard’s echoed Paul following newspapers in California price controls (see arguments about the problems with Fewer “Higher Prices, Howard’s September issue brief, 61 Will Not Bring Drug-Price Choices: Why California’s Prop. Huber, coauthored with Peter and his new book, Relief,” Unlocking Precision Medicine: Los Angeles San Diego Union-Tribune, County Register, and Jose Mercury San News, San Francisco Chronicle, Times, Sacramento Bee. In an October Intelligence Squared debate on the reasons behind , Lori Reilly Howard and his partner, Paul rising health-care costs, and Neera bested Ezekiel Emanuel of the University of Pennsylvania Howard and Reilly American Progress. of the Center for Tanden brought an initially skeptical audience to the realization that compe- America’s health-care woes. is the cure for not regulation, tition, helped lay the intellectual groundwork for policies contained in MI’s Project FDA the House This legislation passed the U.S. process for new drugs more efficient. of Representatives in 2015; there is a good chance that the Senate will act on legislation year-end. containing some of the same provisions before HEALTH CARE HEALTH cost the comes, day in need. When that will be a patient each of us One day, on decisions that hinge us will to available the treatments of and quality to vowed have they will make; and Congress administration the incoming Act Care Affordable the especially system, health-care the nation’s revamp affecting policies decisions—regarding influence those To (Obamacare). is educating innovation—MI device drug and as well as care, quality to access practicable developing issues; of these public about the urgency the general and policy scientists, advocates, patient doctors, convening ideas; reform is heading our Howard Paul policymakers. key with and dialoguing experts; costs— help lower and choice can competition greater how explain to efforts improve Act—and Care the Affordable by consumers many up for driven Coburn Tom senator U.S. the addition of former With care. quality to access that policies for advocates which FDA, Project MI’s fellow, a senior as greater an even have to looks innovation, medical of the promise embrace in 2017. public voice Policy Area Policy To spur our economy, we believe that we must not only beat back policies that stand in the way of growth but also propose ideas that can encourage entrepreneurship and draw Americans back into the workforce.

Diana Furchtgott-Roth 2016 President’s Year -End Update 15

CNN, BBC, , among other networks among other and NPR, MSNBC, Meyer gave and 41 lectures in 14 states 29 that were on college including 3 countries, campuses or given to students. Jason Riley hosted MI’s second annual Work? Reform “Did Welfare conference on race, Diana Furchtgott-Roth and Jared Meyer Diana Furchtgott-Roth and Jared Meyer Sir Antony received the Atlas Network’s 2016 for Fisher International Memorial Award Is their book Disinherited: How Washington (Encounter Books). Betraying America’s Young Furchtgott-Roth has appeared on PBS, The Future of the Safety Net.” Riley gave lectures at: 14 college campuses Dayton Law School, Harvard, Carnegie Mellon, Ashland University, James Madison University, University of North Carolina at Chapel Hill, Michigan State Columbia University Law School, Maryville Florida Southern College, University, Westchester Robert Morris University, University, Dickinson University, Fairleigh Community College, and Bowdoin College. of Slate named Oren Cass as one Foer Franklin “with greatest entrepreneurs of several policy cachet on the right.” ECONOMY AND OPPORTUNITY AND ECONOMY essential are responsibility affirms personal that culture and a markets Free both. advance to work MI, we at and society, opportunity of an foundations Policy Area Policy MI’s Washington, D.C.–based policy division, e21 (Economic Policies for for Policies (Economic e21 division, policy D.C.–based Washington, MI’s rapid-response publishes Diana Furchtgott-Roth, led by Century), the 21st and citizens policymakers educating and regulations, laws to related analyses The job growth. and entrepreneurship for affect the climate they how to as of regulations—and years back roll to pledged has incoming administration so. do On to the best about how analysis timely provide continue to will we traits of character highlight the importance we side of the equation, cultural line. poverty the below living people, those especially empower can that in the media, and lectures presence constant a conferences, books, Through working are Riley Jason like MI fellows campuses, and university on college in enabling economic of culture the role for appreciation the public’s renew to net safety the to reforms advocating are Cass Oren like and fellows mobility, such choices, and behavior virtuous discourages actively it no longer that so work. and family to commitment as Proxy Monitor will keep shining light on activists who seek to curtail the democratic process by covertly advancing their social and economic agendas through shareholder votes.

Peggy O’Keefe and James Copland 2016 President’s Year -End Update 17

op-ed, “Why the Trial “Why Street Journal op-ed, the Trial Wall Michigan adopted reforms Michigan adopted reforms In late 2015, Center recommended by a joint MI–Mackinac study on overcriminalization in the state MI has analyzed besides Michigan, (to date, the criminal codes of North Carolina, South Carolina, South Carolina, North Carolina, and Minnesota). U.S. James Copland testified before the House Committee on Financial Services and Subcommittee on Capital Markets Government-Sponsored Enterprises about share- the problems with policy-oriented holder activism. After the federal Consumer Financial Protection Bureau (CFPB) signaled that it Supreme Court would override recent U.S. decisions affirming arbitration agreements in Copland responded with the financial sector, a Arbitration.” Detest Bar and Its Friends Stay tuned for MI’s forthcoming which will shed Inc. report, Lawyers, Trial light on the plaintiffs’ bar and its war on trial lawyers If successful, arbitration. could reverse the nationwide gains that tort reformers have made in lowering the economic costs associated with the lawsuit industry. LEGAL American the weaken that laws and of regulations thicket ever-growing is an There - economic the and compounding degenera vibrancy its threatening economy, legislative agencies, administrative by taken Actions years. eight the past tion of of this the core at are levels and state both the federal at and prosecutors bodies, the public, but to known government—lesser outside of actors a host problem; With worse. matters of their economic in terms effects—make invidious no less opportunities new will be there and Congress, House in the White leadership new the exposed has team legal-policy MI’s years, For realm. in the legal reform for trial lawyers, of the rent-seeking corrupt actions times, and, at counterproductive are who and others regulators, overzealous ambitious prosecutors, politically and the state system—at the legal misusing by potential growth America’s stifling criminal law, justice, of civil on the areas efforts Our its focuses team level. federal governance. and corporate Policy Area Policy Our energy team is a great example of how we choose to approach policymaking and persuasion.

Oren Cass Mark MIlls 2016 President’s Year -End Update 19 3

4 - by ave gas ower year. sh rp harmful carbon Manhattan Institute lectricity. f last economic ncreasing of atural renewable cost Sola so despised di tn .S.e an than make sector sen gU -panel ractions terms. mission they aster rf has le technique rogress solar hf , eneratin uc tota dp oom he electricity smalle where lg in sm sb percentage U.S. fue ga even in particular dent he he continue racking,t in yt no F st (and only emission for atural pplications 5 db sa fa sn coal ga years; irtually yo poised ev generate impressive emissions. ad variet recent burning America’ natural a ppear Wh n sm carbon-dioxide as to looks ya nk si ha find reduces The coal gain ow Carbon-Dioxide Emissions billio produced rn reducing coal sources rom ,936 is that tf of echnology subsidy. powe hif carbon-dioxide these the3 thet impressive shale, ls to solar in rom ederal progress much expense rom nd nf sf kWh) sf as he Is Reducing U.S. s( ubstantia ga achieved inda alf tt as th ea generou investment ower, generatio have othw atural us echnological ta abou riven gn yt ilowatt-hour sd only massive result,b lectricity ha withou nk a ’s increased ne extractin mits Not Solar P nd As billio technologies hi 3 even its se . for ga 18 o extraordinar ga country rowt he the only . theg Fracking, natural r, ramatically sometimes plummetin result,t ollutants),s nd a energy can falle environmentalists Renewable-energy sense, contributed As prices deployment in years to come. Howeve Burning dioxide—and will not make a significant dent for the foreseeable future. Conversely, airp Reality Check:

Oren Cass testified Oren Cass testified 91 TV and radio interviews on ENERGY AND ENVIRONMENT AND ENERGY of MI’s core the is at innovation technological of the potential Harnessing promote scholars energy MI’s policy. environmental and energy on agenda the full economic and reap to States will enable the United that ideas policy focus (a long-standing abundance energy of our domestic benefits geopolitical can sources dependence on renewable America’s Increasing of Mark Mills). and Robert Bryce but as someday); be possible may appealing (and sound sources, these to transition to specific proposals many explain, Oren Cass on consumers costs heavy impose would mandates, renewable as such meet To the environment. to with minimal benefit, if any, and businesses, that believe we goals, environmental needsadvancing while energy domestic of human ingenuity. well” the “bottomless all else, tap, above must America Policy Area Policy repealed the 40-year-old ban on ban on repealed the 40-year-old domestic crude oil exports—a reform for which Mark Mills had been advocating for years. House Majority Leader Kevin McCarthy cited Oren Cass’s Not Solar “Fracking, issue brief Carbon- Is Reducing U.S. Power, In December 2015, Congress Congress In December 2015, in a November Dioxide Emissions” 2015 Reuters op-ed. Robert Bryce remains the go-to on the dangers that wind expert turbines pose to wildlife; see his Journal Street May 2016 Wall Ill Wind: Open Season “An op-ed, on Bald Eagles.” In April 2016, before the Senate Committee on Energy and Natural Resources. MI fellows have So far in 2016, authored more than 65 op-eds and given with energy and environmental policy, 723 earned media mentions. We cannot abide a false story about “ubiquitous racism in American law

enforcement. The more traction that this canard gets, the harder it will be “ for law enforcement to do its job.

Heather Mac Donald 2016 President’s Year -End Update 21 - - August 21, 2016 August

by Eric Bolling. (St. Martin’s) by Eric Bolling. by Atul Gawande. (Metropolitan/Holt) Gawande. by Atul by Siddhartha (Scribner) Mukherjee. by Penn Jillette. (Simon & Schuster) Jillette. by Penn PRESTO!, PRESTO!, BEING MORTAL, UP AMERICA, WAKE THE GENE, Nonfiction Extended

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) † ( by David by David Cay Johnston. by David Cay Johnston. THE NEW YORK TIMES BOOK RE VIEW THE NEW YORK by Ta-Nehisi Coates. (Spiegel Coates. by Ta-Nehisi Print Hardcover Best Sellers Hardcover Print ) by Paul Kalanithi. (Random (Random Kalanithi. by Paul by Lin-Manuel Miranda and Miranda by Lin-Manuel † ( by Gary J. Byrne with Grant M. by Gary Byrne with Grant J. by Dinesh D’Souza. (Regnery)by Dinesh D’Souza. The by Jeffrey Toobin. (Doubleday) The story of Toobin. by Jeffrey ) by Heather Mac Donald. (Encounter) The Donald. (Encounter) Mac by Heather † ( by J. D. Vance. (HarperCollins) A Yale Law A Yale (HarperCollins) Vance. D. by J. by Dick Morris and Eileen McGann. (Humanix) and Eileen McGann. by Dick Morris by Nancy Isenberg. (Viking) the white The role of by Nancy Isenberg. by John Dickerson. (Twelve) Stories from more Dickerson. (Twelve) by John by Phil Knight. (Scribner)by Phil Knight. A memoir by the founder ) † by Glenn Beck. (Threshold) The author says progressive ( by Angela Duckworth. says (Scribner) A psychologist ) † Nonfiction conservative author and pundit warns of disaster if Hillaryconservative disaster author and pundit warns of Clinton is elected president. of Nike. of The political strategist offers a game plan for how to defeat Hillary a game plan for how to defeat offers The political strategist Clinton. GRIT, GRIT, THE PATRIOTS, AND LIES: LEGENDS BILL O’REILLY’S SHOE DOG, WHITE TRASH, THE MAKING OF DONALD TRUMP, WHISTLESTOP, HILLARY’S AMERICA, HILLARY’S LIARS, CRISIS OF CHARACTER, ARMAGEDDON, THE REVOLUTION, HAMILTON: ELEGY, HILLBILLY AIR, BECOMES WHEN BREATH AND ME, BETWEEN THE WORLD AMERICAN HEIRESS, ON COPS, THE WAR & Grau) A meditation on race in America. on race A meditation & Grau) passion and perseverance are the keys to success. passion and perseverance Patty Hearst’s kidnapping in 1974 by the Symbionese Liberation Liberation kidnapping in 1974 by the Symbionese Hearst’s Patty her crimes and her trial. Army, than 200 years of presidential campaign history, by the “Face the by the “Face history, presidential campaign than 200 years of moderator. Nation” author expands on her reporting on the “Ferguson effect,” the effect,” author expands on her reporting on the “Ferguson movement. and the Black Lives Matter system criminal-justice ( School graduate looks at the struggles of America’s white working America’s of the struggles looks at School graduate Belt. class through his own childhood in the Rust poor in American history. politicians gain power and control by exploiting Americans’ fears. politicians gain power and control by exploiting Americans’ Fisher. (Holt) Stories of the American Revolution; a companion the American Revolution; Stories of (Holt) Fisher. series. News volume to the Fox Jeremy McCarter. (Grand Central/Melcher Media) The libretto of of The libretto Media) Central/Melcher (Grand McCarter. Jeremy a production photos, musical, with backstage the award-winning history and interviews with the cast. (Melville House) An in-depth House) the presidential nominee, look at (Melville coverage. on decades of drawing Schmidt. A former Secret Service Street) (Center officer claims to have witnessed scandalous behavior by the Clintons. House) A memoir by a physician who received a diagnosis of A memoir by a physician who received a diagnosis of House) 36. the age of Stage IV lung cancer at

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Copyright © 2016 Copyright Times York Theby New dent book retailers (statistically weighted to represent all such outlets); national, regional and local chains; online and multimedia entertainment retailers; university, gift, supermarket, gift, supermarket, university, retailers; chains; online and multimedia entertainment all and local such outlets); national, regional to represent weighted (statistically dent book retailers that some book A dagger (†) indicates those of the book above. distinguishable from barely sales are that a book’s An asterisk (*) indicates and newsstands. discount department stores guides; journals and test preparation text, reference reading; classroom sellers; required perennial are: tracked not actively Among those categories bulk orders. receiving report stores nytimes.com/books. on the Web: available are puzzles. Expanded rankings and crossword shopping guides; comics counters; calorie and workbooks; Rankings reflect sales, for the week ending August 6, at many thousands of venues where a wide range of general interest books are sold nationwide. These of indepen sold nationwide. include hundreds are books interest of general a wide range where thousands of venues 6, at many ending August Rankings reflect sales, for the week

Heather Mac Donald’s Heather Mac Donald’s New York Cops was a New York on The War with more than bestseller, Times 40,000 copies sold to date. Donald has been Mac Since June, and her book mentioned, interviewed, . more than 375 times on TV and radio “If you Sowell, Thomas According to have on all sides heard the rhetoric of the issues involving the police, and would like some facts to put that there is no better rhetoric to the test, on Cops.…War source than The This is a book that can save lives.” featured MI Mac Donald In September, at a salon dinner for Chicago-area where they journalists and reporters, discussed her lead piece in the Summer “Chicago 2016 issue of City Journal, on about how the retreat from the Brink,” proactive policing has led to a rise in Windy City. violent crime in the and Amazon bestseller, has a national, widely cited voice on the critical on the critical voice cited widely a national, has and Amazon bestseller, that on the vital role attention focusing America’s of public safety, issue lives. had in saving has policing, applied properly, proactive POLICING decline 1990s, in the early beginning in violent crime The dramatic saved policing, has proactive in the revolution by in part driven in America’s of color living men young of lives—primarily thousands the foremost is among Kelling George fellow (MI senior inner cities of a series years, two past the But over this revolution). minds behind and police officers between confrontations involving incidents tragic with allegations of anti-cop rhetoric, an onslaught led to has suspects In this the country. across in police departments racism of systemic about public debate an honest to is committed always, MI, as context, the to with respect and unblinking in facts issues—grounded these Heather Smith Fellow W. Thomas relations. subject of race oft-charged Times , a New on Cops York The War year’s Mac Donald, of this author Policy Area Policy Closing the achievement gap between urban and suburban students is a goal that lies at the heart of MI’s education agenda.

Charles Sahm

Max Eden 2016 President’s Year -End Update 23 -

, and by Massachusetts and by Massachusetts Boston Herald, governor Charlie Baker himself. governor Charlie Baker himself. director MI education-policy Charles Sahm became a standing columnist Report. World News & for U.S. New York State Senate’s education York New committee about the need for greater and accountability in transparency City’s public schools. New York MI’s school-rating SchoolGrades.org, millions of parents, now reaches site, scholars through a and teachers, partnership with GreatSchools.org, helping users to find little-known, high-performing schools—especially those with underprivileged student populations. as Massachusetts considered This fall, allowing more charter schools to open, Max Eden published a report to debunk teachers’ unions’ main opposing argument, that raising the charter cap would take money away from other public schools; the and report was cited in dozens of articles in the Boston Globe and including editorials, the Former Florida governorFlorida Former headlinedBush Jeb symposium in New an MI education-policy of reforms and spoke to the urgency York competition, that can foster greater choice, and accountability in America’s schools. Marcus Winters testified before the - of choice, accountabil the rubrics under fall that reforms hoods—through put forward the myths debunking constantly are We and transparency. ity, firm for stand we unions; teachers’ as quo, such of the status defenders by kids. for best work that reforms education 12K– EDUCATION across workers century, of the twenty-first succeed economy in the To flexible more skilled, and more educated, be better to have will America help can we how shown have scholars MI’s years, For before. than ever and neighbor communities in poorer gaps—particularly achievement close Policy Area Policy MI’s task is to help citizens, and the city’s leadership, distinguish good ideas from the bad ones.

Nicole Gelinas 2016 President’s Year -End Update 25 - 53 percent on e-mail. MI sponsored a roundtable discussion MI sponsored a roundtable discussion Authority of about the future of the Port Roundtable and New Jersey. New York leadership, the agency’s including attendees, experts, and policy journalists, academics, including considered potential reforms, which can partnerships, public-private to help reconstitute and reform PANY/NJ Reforming the Port better serve the region. focus Authority has also been an ongoing which published four of MI’s City Journal, in 2016. feature-length pieces on the subject Another MI roundtable focused on how to bring market pricing enhance parking availability, parking system, York’s to New and boost various neighborhoods’ economic bring in revenue, De Blasio administration who attended officials prospects. said that the city was exploring such options and that the discussion at the roundtable had helped shape their thinking. , The BEAT MI has sent out a regular e-mail blast, Since 2015, with the facts on issues from charter Yorkers providing New Subscribership to schools to homelessness to housing policy. has increased by 215 percent on social media and The BEAT by report series, and Progress” “Poverty Findings from MI’s benchmarking the de Blasio administration’s success in achieving its stated goal of bettering the lives of disadvantaged , Post have appeared in editorials in the New York New Yorkers, Daily News, Crain’s New York in news stories in the New York and in segments and Gotham Gazette, Business, City & State, and BRIC TV. City & State TV, PIX 11, News 12, on NY1, NEW YORK CITY YORK NEW of the difference the nation for example a powerful home—and Gotham MI’s is policing, Windows Broken make. can ideas urban-policy (and bad) good that among many are charter schools) choice (notably, and school welfare-to-work, and other cities by being adopted before York in New effective proved that ideas the and under challenges, policy of a range faces presently York New states. some of forfeiting risk is at the city signs that are there administration, current in its importance York’s New Given decades. few past the made over of the gains the educate to hard MI is working the nation, to an example right, and as own renaissance, urban the recent drive helped have that the policies public about supply the limited from issues, help meet to pressing ideas develop to as well as neighbor in some poverty of intergenerational the persistence of housing to Policy Area Policy hoods to the need to improve transportation infrastructure. infrastructure. transportation hoods the need to improve to Given the importance of pension reform to the financial and economic well-being of cities and states, it remains one of our top policy priorities.

Josh McGee and E.J. McMahon 2016 President’s Year -End Update 27

, among among Chicago Business, magazine, Governing magazine, Barron’s, Bond Buyer, other outlets. in salon dinner MI held a private In March, Chicago that brought together policymakers, to and investment experts philanthropists, discuss the feasibility of implementing reforms “Safeguarding Public- recommended in MI’s study A Pension Systems: Governance-Based Approach,” by James Copland and Steven Malanga. by MI published a national analysis, This fall, Howard Husock authored a study analyzing Howard Husock authored a study analyzing which major in Bargain,” “Grand Detroit’s capital to philanthropies supplied millions in unfunded pension help backfill the city’s vast for concessions from liabilities in exchange which aspects of the He evaluated public labor. and bargain could be implemented in Chicago with his other distressed postindustrial cities, of Philan- findings appearing in the Chronicle thropy and Crain’s of the effects of rising teacher Josh McGee, to meet pension costs on resources available the Squeeze: “Feeling current educational needs, Are Crowding Out Education Costs Pension which drew national media attention Spending,” via and Reuters. Bloomberg, PUBLIC SECTOR PUBLIC public employees of retired costs legacy America, across states and In cities spending on out” “crowding of the budget, portions greater consuming are the in teachers to on the beat cops needs, from meet to current services MI champion at we government, effective in limited, believers As classroom. a assembled have end, we that To of public employment. the terms reforming DiSalvo, Daniel includes second none, which to on this issue of scholars team Our McMahon. agenda McGee, and E. J. Josh Malanga, Eide, Steven Stephen in the rise driven have that dynamics the political to alerting citizens involves unions often influential public-sector in which the way benefits: unaffordable get helped have they whom politicians with the same their contracts negotiate for security retirement provide can that reforms advocate elected. MI fellows pensions slashed see their future may locales in some (retirees public workers avoid to and states place) and enable cities take reforms unless dramatically cut public services. to having Policy Area Policy MI’s vision of urban life—safe, orderly, entrepreneurial, and culturally vibrant— is the overarching theme of our quarterly magazine, City Journal. 2016 President’s Year -End Update 29

John Tierney CJ NY dinner CJ NY dinner featuring SPECIAL TEXAS 2016 ISSUE SPRING 2016 ISSUE , CJ Austin dinner featuring Robert Bryce Renn Josh McGee, and Aaron biggest month for web traffic CJ’s Website relaunch Website CJ LA dinner featuring The War on Cops math; the immigrant communities that are are that communities the immigrant math; and strong work hard rising up through that companies and start-up families; blighted up shop in formerly setting are neighborhoods. and revitalizing areas it, there puts one writer as And because, enough and never enough beauty is never that difference on the report we truth, in make and philanthropy society civil life. enhancing urban MAY JULY JUNE APRIL MARCH AUGUST JANUARY OCTOBER FEBRUARY SEPTEMBER

FALL 10 blocks 10 blocks 2016 ISSUE 2016 ISSUE 2016 ISSUE WINTER SUMMER podcast launches Through street-level reporting, our writers our writers reporting, street-level Through and policies public what of story the tell cities, great America’s social norms do for readers introduce ill. We and for good for Windows put Broken who the cops to the residents practice—and policing into the a result; as safer are streets whose trying to are who and mayors governors in ships fiscal and cities’ right their states’ pension public-employee of scary the face At America’s top business schools, MI is providing a context for an open discussion about big America’s heritage of liberty and prosperity owes much to ideas that may otherwise innovators and entrepreneurs; those who imagined new products, took risks, and not get a hearing. embraced the freedom to create and build. Historically, captains of industry have not only driven the the Adam Smith Society at top business growth of the economy, but they have also schools across the country, through which been among the foremost advocates of the we bring to campus scholars, journalists, free-enterprise system, publicly expounding and business leaders to speak on the moral the broader societal benefits of the market foundations of capitalism and discuss and economy. The purpose of MI’s Adam Smith debate public-policy issues. Members, upon Society is to cultivate a generation of graduation from business school, become CEOs, financiers, and entrepreneurs who part of the Adam Smith Society professional will continue in this tradition, promoting network. As they grow in their careers, the public appreciation for the free-enterprise professional network will provide members system through their professional example, with ongoing education and a community philanthropy, public voice, and community of fellow market-minded professionals who leadership. To that end, for the past six feel a civic responsibility to advocate for years we have been setting up chapters of the principles of a free society. 2016 President’s Year -End Update 31 Professional Chapters Professional Austin Boston Chicago Houston City New York San Francisco Campus Chapters Campus Brandeis UC-Berkeley (Haas) Carnegie Mellon (Tepper) Chicago (Booth) Colorado Springs Columbia Cornell ( Johnson) Dartmouth (Tuck) Duke (Fuqua) (McDonough) Georgetown Harvard Michigan (Ross) MIT (Sloan) Northwestern (Kellogg) NYU (Stern) (Wharton)Penn Rice ( Jones) SMU Stanford (McCombs) Texas (Anderson) UCLA UNC (Kenan-Flagler) (Owen) Vanderbilt Virginia (Darden) Forest Wake Louis St. (Olin) Univ. Washington Yale

Academic Year MEMBERSHIP BY THE MEMBERSHIP BY THE NUMBERS A NETWORK OF OVER 1,3001,300 YOUNG PROFESSIONALS

1010 INSPIRING SPEAKERS A YEAR

Young professionals twenties and thirties, in cities are often on the the Young Leaders Circle lookout for opportunities to hosts monthly lectures, connect with people having similar featuring experts on an array interests. For those who care about public of policy issues and plenty of time for policy and want to have conversations about networking. Like the Adam Smith Society, issues that matter, this can be a challenge. the Young Leaders Circle is a piece of MI’s This is where MI’s Young Leaders Circle efforts to cultivate a network of future comes in. A membership organization for influentials who are passionate about seeing metropolitan-area professionals in their good ideas put to work. 2016 President’s Year -End Update 33

For years, MI has had a long-standing interest interest For years, MI has had a long-standing intellectual pluralism on greater in promoting students campuses, introducing our nation’s economics, to perspectives on public policy, that they limited government, and culture With support might not otherwise encounter. Smith Foundation Thomas W. the from and Isko Family Foundation, MI has been on college sending its fellows to give lectures of As a result the country. campuses across this effort, thousands of undergrads have many for the had the opportunity to hear, first time, arguments about the principles of economic choice and individual responsibility.

ON CAMPUS ON MI - ALAN DERSHOWITZ “YLC is made of bright, up “YLC people— thoughtful young is that group an incredible curious, unafraid intellectually and debate, in vigorous engage to and respect. civility to committed of In short, the members the best embody YLC can we of what in terms hope for of America’s public-policy future.” 2016BANNEREVENTS EVENTS

1. ALEXANDER HAMILTON AWARD DINNER 4. SOCIAL ENTREPRENEURSHIP AWARDS The Alexander Hamilton Award was created to honor those individuals Each year since 2001, the Institute, in conjunction with a committee of helping to foster the revitalization of our nation’s cities. We chose to name distinguished scholars, practitioners, and foundation leaders, selects up the award after Hamilton because, like the Manhattan Institute, he was to five individuals who have originated and effectively steered a nonprofit a fervent proponent of commerce and civic life. Throughout the years, organization providing direct services to those in need as winners of we have expanded the scope of our prize to celebrate leaders on local the Richard Cornuelle Award for Social Entrepreneurship. In keeping as well as state and national levels who have—whether in public policy, with the social entrepreneurship program’s emphasis on the vitality of culture, or philanthropy—made remarkable things happen. The 2016 American civil society, the award is aimed at those with original ideas Alexander Hamilton Awards were presented to Harvey Silverglate, civil brought to fruition with predominantly private support, rather than in liberties litigator, author and cofounder of Foundation for Individual Rights response to government grant programs. In addition, the Institute annually in Education (FIRE), and Bruce Kovner, founder of CAM Capital, and chair, presents the William E. Simon Prize for Lifetime Achievement in Social board of trustees, the Juilliard School. Entrepreneurship. This year’s winner was Chris Anderson, curator of TED, a nonprofit global media initiative devoted to “ideas worth spreading.” 2. HAYEK LECTURE The Hayek Lecture is delivered by the recipient of the Hayek Prize, which 5. WILLIAM E. SIMON LECTURE honors the book published within the past two years that best reflects Annually, since 2007, the Manhattan Institute has sponsored the William Hayek’s vision of economic and individual liberty. The Hayek Prize, with its E. Simon Lecture on philanthropy and social entrepreneurship. This lecture $50,000 award, is among the world’s most generous book prizes. It was series seeks to provide a framework—historical and current, scholarly and conceived and funded by Manhattan Institute trustee Thomas W. Smith to personal—for understanding trends in American charity and charitable recognize the influence of F. A. Hayek and to encourage other scholars to enterprises. The 2016 lecture was delivered by Emmett D. Carson, CEO of follow his example. The winner of the Hayek Prize is chosen from among the Silicon Valley Community Foundation. the nominations by a selection committee of distinguished economists, journalists, and scholars. Past winners include William Easterly, for The White Man’s Burden; John Taylor, for First Principles; and, most recently, 6. JAMES Q. WILSON LECTURE Philip Hamburger, for his work Is Administrative Law Unlawful? For 15 years, James Q. Wilson, who died in 2012, delivered an annual lecture for the Manhattan Institute. To continue to honor Wilson’s legacy, the Manhattan Institute has inaugurated an annual lecture series on 3. WRISTON LECTURE urban affairs bearing his name. Through this series, we intend to give In 1987, the Manhattan Institute initiated a lecture series in honor of prominence to new ideas that, like those developed by Wilson, can Walter B. Wriston: banker, author, government advisor, and member of the improve the quality of life in New York and cities across America. The third Manhattan Institute’s board of trustees. The Wriston Lecture has since annual James Q. Wilson Lecture on Urban Affairs was delivered by MI been delivered annually in New York City, with honorees drawn from the senior fellow and Harvard University economics professor Edward Glaeser. worlds of government, the academy, religion, business, and the arts. In establishing the lecture, the trustees of the Manhattan Institute—who serve as the selection committee—have sought to inform and enrich intellectual 7. ADAM SMITH SOCIETY NATIONAL MEETING debate surrounding the great public issues of our day and to recognize Every year, the Adam Smith Society holds its national meeting in New York. individuals whose ideas or accomplishments have left a mark on their world. This conference brings together MBA student and alumni members from The 2016 Wriston Lecture was delivered by Andrew Roberts, fellow of the across the country for an intense weekend of education and networking. Royal Society of Literature and visiting professor at the Department of War Past national meetings have featured keynote addresses by prominent Studies, King’s College, London. executives such as Whole Foods CEO John Mackey, former Hewlett- Packard CEO Carly Fiorina, and Amicus Therapeutics CEO John Crowley, in addition to industry-focused breakout sessions that pair scholars and practitioners, and panels on topics such as the morality of capitalism and how the media portrays business. The national meeting provides an invaluable context in which members can get to know one another, begin lifelong connections, and develop a spirit of camaraderie. 2016BANNER 2016 President’s Year -End Update

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Turning Food Deserts into Oases: Why NY’s Class Actions and the Economics of Poverty and Progress in New York IX: Public Housing Should Encourage Internal Dispute Resolution and Crime Trends in Public Housing, 2015–16 Commercial Development Financial Fee Forgiveness by Alex Armlovich by Howard Husock by Jason Scott Johnston Issue Brief 53, June 23, 2016 Report 23, October 25, 2016 Preliminary Report, August 19, 2016 Better Pay, Fairer Pensions III: Are Skilled Trades Doomed to Decline? Reforming the U.S. Youth Minimum Wage The Impact of Cash-Balance Pensions on by Mark P. Mills by Preston Cooper Teacher Retention and Quality Issues 2016, October 20, 2016 Report 18, August 9, 2016 by Josh B. McGee, Marcus A. Winters Report 15, June 22, 2016 Feeling the Squeeze: Pension Costs Are Is a $15 Federal Minimum Crowding Out Education Spending Wage Appropriate? Was Welfare Reform a Success? by Josh B. McGee by Oren Cass by Scott Winship Report 22, October 18, 2016 Issues 2016, July 28, 2016 Issues 2016, June 21, 2016

This Land Was Your Land: A Closer The Lessons of Long-Term Privatizations: Missing Benefits, Hidden Costs: Look at 80 by 50 Why Chicago Got It Wrong and Indiana The Cloudy Numbers in the EPA’s by Robert Bryce Got It Right Proposed Clean Power Plan Report 21, October 12, 2016 by Aaron M. Renn by Jonathan A. Lesser Report 17, July 7, 2016 Report 13, June 16, 2016 A Report on Corporate Governance and Shareholder Activism Does America Incarcerate Too Many Justice Out of the Shadows: Federal by James R. Copland, Margaret M. O’Keefe Nonviolent Criminals? Deferred Prosecution Agreements and the Proxy Monitor Report, September 27, 2016 by Heather Mac Donald Political Order Issues 2016, July 6, 2016 by James R. Copland, Rafael Mangual Will Free Tuition Increase the Report 14, June 15, 2016 Number of College Graduates? Political Spending and Lobbying by Max Eden by James R. Copland, Margaret M. O’Keefe Is There a Student Debt Crisis? Issues 2016, September 22, 2016 Proxy Monitor Finding, June 30, 2016 by Max Eden Issues 2016, June 9, 2016 Lifting the Massachusetts Cap on Exposed: How America’s Electric Grids Charter Schools: Pro and Con Are Becoming Greener, Smarter— Chicago Crowd-Out: How Rising by Max Eden and More Vulnerable Pension Costs Harm Current Teachers— Issue Brief 55, September 21, 2016 by Mark P. Mills and Students Report 16, June 30, 2016 by Josh B. McGee Higher Prices, Fewer Choices: Issue Brief 52, May 25, 2016 Why California’s Prop. 61 Will Not Environmental Issues Bring Drug-Price Relief by James R. Copland, Margaret M. O’Keefe Grading Schools Promotes Accountability by Paul Howard Proxy Monitor Finding, June 28, 2016 and Improvement: Evidence from NYC, Issue Brief 54, September 20, 2016 2013–15 Is America’s Safety Net Shrinking? by Marcus A. Winters Supportive Housing and the by Oren Cass Issue Brief 51, May 24, 2016 Mentally Ill Homeless Issues 2016, June 28, 2016 by Stephen Eide A Farewell to Reform: NYC’s Report 20, September 15, 2016 Has Obamacare Been Good for Education-Accountability System the Economy? by Marcus A. Winters Poverty After Welfare Reform by Casey B. Mulligan Issue Brief 50, May 24, 2016 by Scott Winship Issues 2016, June 27, 2016 Report 19, August 22, 2016 Over-Medicaid-ed: How Medicaid Distorts Proxy Access and Dilutes America’s Safety Net James R. Copland, Margaret M. O’Keefe by Oren Cass Proxy Monitor Finding, June 23, 2016 Report 12, May 19, 2016 The Manhattan Institute annually publishes numerous full-length research reports on topics related to key issue areas. This body of work—authored by our resident fellows, associated scholars, and outside experts—has shaped the thinking of policymakers, thought leaders, the media, and the general public.

Are Billionaires Buying Elections? The New CTE: New York City as Class Actions and Mass Torts 2016 President’s Year -End Update by Daniel DiSalvo Laboratory for America by James R. Copland Issues 2016, May 19, 2016 by Tamar Jacoby, Shaun M. Dougherty Trial Lawyers, Inc., January 28, 2016 Report 6, March 30, 2016 What Happens to an Economy When Charter Schools Are Better at Retaining Forced to Use Renewable Energy? Energy Policies and Electricity Prices: Hard-to-Educate Students by Robert Bryce Cautionary Tales from the European Union by Marcus A. Winters Issues 2016, May 4, 2016 by Robert Bryce Issues 2016, January 26, 2016 Report 5, March 24, 2016 The Pension Grand Bargain: Violent Criminals, Not the Police, Pose the A New Reform Model for Cities Keeping Score: How New York Can Encour- Real Threat to African-Americans by Howard Husock age Value-Based Health Care Competition by Heather Mac Donald Report 11, May 3, 2016 by Paul Howard, Yevgeniy Feyman Issues 2016, January 21, 2016 Report 4, March 23, 2016 Precision Oncology in the Era of HEALTH CARE 2.0, Part 1: How to Think Health Care Reform Out-of-Pocket Caps: The Wrong Way to About Market Forces in Health Care by Paul Howard Tackle High Drug Prices by Avik Roy Report 10, April 28, 2016 by Yevgeniy Feyman Issue Brief 46, January 20, 2016 Issue Brief 49, March 10, 2016 Who Pays the Bill for the Obama Poverty and Progress in New York VII: Climate Agenda? Are All the Economic Gains Going to English and Math Proficiency in NYC by Oren Cass the Top 1 Percent? Schools, 2013–15 Issues 2016, April 21, 2016 by Scott Winship by Alex Armlovich Issues 2016, March 10, 2016 Issue Brief 45, January 14, 2016 Will Obamacare Lead to Universal Coverage? Safeguarding Public-Pension Systems: America’s Southern Border Is Secure by Yevgeniy Feyman A Governance-Based Approach by Jacob L. Vigdor Issues 2016, April 15, 2016 by James R. Copland, Steven Malanga Issues 2016, January 12, 2016 Report 3, March 9, 2016 The Push for Proxy Access Continues Overcriminalizing the Palmetto State: by James R. Copland Wasted: How to Fix America’s Sewers A Primer and Possible Reforms for Proxy Monitor Finding, April 14, 2016 by Aaron M. Renn South Carolina Report 2, February 25, 2016 by James R. Copland, Isaac Gorodetski Guaranteed Volatility: Pension Costs and Issue Brief 44, January 7, 2016 State and Local Staffing Levels Overcriminalizing the North Star State: A by Stephen Eide Primer and Possible Reforms for Minnesota Report 9, April 12, 2016 by James R. Copland, Rafael Mangual Issue Brief 48, February 23, 2016 Are Women Paid Less than Men? by Diana Furchtgott-Roth Poverty and Progress in New York VIII: Issues 2016, April 6, 2016 Welfare Trends, 2013–15 by Alex Armlovich The OPEB Off-Ramp: How to Phase Out Issue Brief 47, February 17, 2016 State and Local Governments’ Retiree Health Care Costs Expanding America’s Petroleum Power: by Daniel DiSalvo, Stephen Eide Geopolitics in the Third Oil Era Report 8, March 31, 2016 by Mark P. Mills Report 1, February 11, 2016 Inviolable—or Not: The Legal Status of Retiree Medical Benefits for State and Only One-Third of College Enrollees End Up Local Employees in Jobs Requiring College Degrees by Amy B. Monahan by Preston Cooper Report 7, March 31, 2016 Issues 2016, February 4, 2016 37 2016BOOKS The War on Cops How the New Attack on Law and Order Makes Everyone Less Safe by Heather Mac Donald Encounter Books, June 2016 Violent crime has been rising sharply in many American cities after two decades of decline. Homicides jumped nearly 17% in 2015 in the largest 50 cities, the biggest one-year increase since 1993. The reason is what MI senior fellow Heather Mac Donald first identified nationally as the “Ferguson effect”: following the uproar after the 2014 police shooting of Michael Brown in Ferguson, Missouri, officers have been backing off of proactive policing, and criminals are becoming emboldened. The War on Cops gives a powerful voice to the many residents of high-crime neighborhoods who continue to want proactive policing.

Unlocking Precision Medicine by Paul Howard, Peter W. Huber Encounter Books, October 2016 New medicines in the pipeline can extend lives, save money, and stop disease before symptoms appear—if we don’t discourage their innovators and investors by trying to lower drug prices artificially. In Unlocking Precision Medicine, MI senior fellows Paul Howard and Peter Huber explore the environment necessary for creation of these health-care game changers and explain how the marketplace can make such medicines more affordable.

Uber-Positive Why Americans Love the Sharing Economy by Jared Meyer Encounter Books, May 2016 Entire industries are being transformed, consumers have more power than ever, and people are finding new ways to earn a living—even in today’s slow-growth economy. These improvements stem from the rise of the so-called sharing economy. Yet such innovation is in danger of being suppressed, explains MI fellow Jared Meyer in Uber-Positive, as governments shelter existing businesses at the expense of nimble start-ups—all under the guise of promoting consumer safety.

Retooling Metropolis How Social Media, Markets, and Regulatory Innovation Can Make America’s Cities More Livable by Michael Luca, Donald Shoup, Aaron M. Renn, Alex Armlovich, Jeffrey B. Liebman, Hanna Azemati Manhattan Institute, September 2016 The experiences that today’s urbanites have with technology, from the iPhone to Uber, set a high service- delivery bar that citizens expect government to meet. Meanwhile, problems of success, such as uneven economic advancement and soaring rents in many cities, pose challenges to future urban growth. Retooling Metropolis, which includes essays by MI’s Aaron Renn and Alex Armlovich, offers practical, novel solutions for a new generation of urban leaders. 2016MEDIA 2016 President’s Year -End Update WEBSITE STATISTICS SOCIAL MEDIA STATISTICS PODCAST LISTENERSHIP 482% 3,500 INCREASE DOWNLOADS IN SOCIAL PER MONTH TRAFFIC In its first year, City Journal’s Manhattan Institute’s Website traffic driven by “10 Blocks” podcast averaged web sessions, social media channels over 3,500 downloads per unique users, and (e.g., Twitter, Facebook) to MI’s month from its iTunes channel. pageviews increased website increased more than any other acquisition source. 10 BLOCKS 30% PODCAST FEEDBACK 450% Nerd Paradise INCREASE by Phillip Paige on May 04, 2016

in MI’s Facebook-post RATING engagement. Outstanding interviews and guests. I usually have to pause and take notes! WEBSITE DEVICE USAGE

City Journal broke Thank You its record with over 87% by KVD176 on April 23, 2016 INCREASE IN MOBILE TRAFFIC RATING Excellent podcast, dives into The number of combined users the real issues and gives the 93K visiting Manhattan Institute, City daily pageviews on appropriate backstory for Journal, and The Beat websites from October 10, 2016 historical context. I look forward a mobile device increased 87%. to listening as soon as the notification goes off. Great work guys, keep it going! ISSUES 2016 MI’s “Issues 2016” series cuts through the clutter to highlight research and analysis on the major policy issues Great guests, great hosts from this year’s election cycle. by NYRonin on Feb 28, 2016

RATING City Journal is one of the most under-rated political journals The Beat’s website users RANKED ON PAGES I've ever seen. It seems most and pageviews more than political shows are simply giving doubled and its e-mail AND a blow-by-blow of petty politics subscribership increased #1 #2 MI’s special “Issues 2016” but City Journal gets into the dirty webpage ranked on pages plumbing of urban affairs and 1 and 2 of Google during economics. 39 53% the election. MANHATTAN INSTITUTE EXPERTS

BRIAN C. ANDERSON EDITOR, CITY JOURNAL

MICHAEL KNOX BERAN CLAIRE BERLINSKI ALEX ARMLOVICH CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, ROBERT BRYCE CHARLES W. CALOMIRIS FELLOW CITY JOURNAL CITY JOURNAL SENIOR FELLOW ADJUNCT FELLOW

JAMES R. COPLAND THEODORE DALRYMPLE OREN CASS DR. TOM COBURN PRESTON COOPER SENIOR FELLOW, CONTRIBUTING EDITOR, SENIOR FELLOW SENIOR FELLOW FELLOW DIRECTOR, LEGAL POLICY CITY JOURNAL

DR. ANDREW VON DANIEL DISALVO STEPHEN EIDE RICHARD A. EPSTEIN ESCHENBACH TED FRANK SENIOR FELLOW SENIOR FELLOW VISITING SCHOLAR PROJECT FDA ADVISOR ADJUNCT FELLOW 2016 President’s Year -End Update 41 CITY JOURNAL CITY JOURNAL CITY JOURNAL ADJUNCT FELLOW EDITOR-AT-LARGE, EDITOR-AT-LARGE, ADJUNCT FELLOW; JUDITH MILLER STEFAN KANFER STEFAN MYRON MAGNET CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, STEPHANIE HESSLER DIRECTOR, EDUCATION POLICY EDUCATION DIRECTOR, CHARLES UPTON SAHM FELLOW CITY JOURNAL CITY JOURNAL CITY JOURNAL SENIOR FELLOW JARED MEYER JASON L. RILEY JASON L. CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, KAY S. HYMOWITZ S. KAY CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, WILLIAM E. SIMON FELLOW; WILLIAM E. THOMAS W. SMITH FELLOW; W. THOMAS VICTOR DAVIS HANSON VICTOR DAVIS HEATHER MAC DONALD HEATHER CITY JOURNAL CITY JOURNAL CITY JOURNAL CITY JOURNAL VICE PRESIDENT, VICE PRESIDENT, SENIOR FELLOW; SENIOR FELLOW SENIOR FELLOW; JOEL KOTKIN JOEL KOTKIN E. J. MCMAHON J. E. AARON M. RENN AARON M. HOWARD HUSOCK HOWARD CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, EDWARD L. GLAESER L. EDWARD RESEARCH & PUBLICATIONS; RESEARCH & PUBLICATIONS;

CITY JOURNAL CITY JOURNAL JIM MANZI SENIOR FELLOW; SENIOR FELLOW SENIOR FELLOW SENIOR FELLOW NICOLE GELINAS PETER W. HUBER PETER W. CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, JAMES PIERESON ANDREW KLAVAN ANDREW KLAVAN DIANA DIRECTOR, E21 DIRECTOR, SENIOR FELLOW SENIOR FELLOW SENIOR FELLOW, SENIOR FELLOW, SENIOR FELLOW, SENIOR FELLOW, PAUL HOWARD PAUL MARK P. MILLS MARK P. STEVEN MALANGA FURCHTGOTT-ROTH GEORGE L. KELLING GEORGE L. DIRECTOR, HEALTH POLICY HEALTH DIRECTOR, GEORGE M. YEAGER FELLOW; GEORGE M. SENIOR EDITOR, CITY JOURNAL SENIOR EDITOR, FRED SIEGEL SENIOR FELLOW; GUY SORMAN HARRY STEIN SOL STERN PETER SALINS CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, CONTRIBUTING EDITOR, SENIOR FELLOW CITY JOURNAL CITY JOURNAL CITY JOURNAL CITY JOURNAL

JOHN TIERNEY ADAM WHITE LUIGI ZINGALES CONTRIBUTING EDITOR, JACOB L. VIGDOR CONTRIBUTING EDITOR, MARCUS A. WINTERS CONTRIBUTING EDITOR, CITY JOURNAL SENIOR FELLOW CITY JOURNAL SENIOR FELLOW CITY JOURNAL

MANHATTAN INSTITUTE EXPANDS

BETH AKERS MAX EDEN TARA-MARIE LYNCH SENIOR FELLOW SENIOR FELLOW DIRECTOR OF MARKETING

Beth Akers is a senior fellow at the Max Eden is a senior fellow at the Manhattan Tara-Marie Lynch joins MI as director Manhattan Institute. Before joining MI, she Institute. Before joining MI, he was program of marketing, bringing with her years of was a fellow in the Brookings Institution’s manager of the education-policy studies experience in measurable digital marketing Center on Children and Families. Akers department at the American Enterprise success. Lynch will be developing, previously held the position of staff Institute. Eden’s research interests include implementing, and managing multichannel economist with the President’s Council of early education, school choice, and (online and offline) marketing strategies to Economic Advisors, where she worked on higher-education reform. He was coeditor, extend the reach of our fellows’ policy research federal student lending policy as well as with Frederick M. Hess, of An Education and ideas. In addition, she will identify and other education and labor issues. She is an Agenda for 2016: Conservative Solutions expand key audiences through brand-building expert on the economics of education, with for Expanding Opportunity (2015). Eden’s and engagement-driven initiatives. Lynch a focus on higher-education policy. She is work has appeared in scholarly and popular has dabbled in political and economic policy the coauthor of Game of Loans: The Rhetoric outlets, such as the Journal of School Choice, research herself, publishing three academic and Reality of Student Debt. Akers received Encyclopedia of Education Economics and theses as a summa cum laude, triple-degree a B.S. in mathematics and economics from Finance, Washington Post, U.S. News & World graduate of Binghamton University. We are SUNY Albany and a Ph.D. in economics from Report, National Review, Claremont Review of pleased to welcome her to our growing team. Columbia University. Books, and The Weekly Standard. He holds a B.A. in history from Yale University. 2016 President’s Year -End Update

43 policy policy of year th and remains and remains and encourage and encourage to this mission. to this mission. In 2017, MI will In 2017, MI will - of public into influence,” into influence,” opportunities to opportunities to “turning intellect “turning intellect Please stay tuned. Please stay In the year ahead, ahead, In the year promote our ideas promote our ideas committed as ever committed as ever areas. There will be areas. There will be we anticipate many anticipate many we mark its 40 events and projects. and projects. events a host of celebratory a host of celebratory reform across a range across a range reform Why Invest in MI? An investment in the Manhattan Institute is a demonstration of belief in the intellectual and moral ideals that our scholars advance: economic choice, individual liberty, the rule of law, free markets, and responsible government. Your contribution also represents a uniquely American approach to social engagement, in which private citizens, foundations, and organizations direct their resources to the causes of their choosing. MI’s trustees, scholars, and staff deeply value this trust, your contribution, and the confidence that it signifies. With your support, MI’s scholars are putting forward fresh ideas about public policies that can help Americans live healthier, more productive, and more fulfilling lives. When you give to MI, your generosity turns intellect into influence.

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Young Leaders Circle The Young Leaders Circle (YLC) welcomes members (membership fee is $250/year) who are in their twenties and thirties to ten evening cocktail parties per year. These events feature guest speakers on a variety of public-policy topics. Donors under 40 who give at the $1,000 level are invited to join the Young Leaders Advisory Committee, which, in addition to the monthly YLC events, holds two private events with Manhattan Institute trustees and fellows. We are proud to report that our program is growing by leaps and bounds. If you know anyone under 40 who might be interested in membership, contact us at [email protected] or 212-599-7000.

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Lawrence Mone, President Vanessa C. Mendoza, Executive Vice President Brian Anderson, Editor, City Journal Michael Barreiro, Vice President, Operations Leigh Harrington, Vice President, Communications & Marketing Howard Husock, Vice President, Research & Publications Troy Senik, Vice President, Policy & Programs

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About the Manhattan Institute The mission of the Manhattan Institute is to develop and disseminate new ideas that foster greater economic choice and individual responsibility.

The Manhattan Institute for Policy Research is a leading voice of free-market ideas, shaping political culture since our founding in 1977. Ideas that have changed the United States for the better—welfare reform, tort reform, proactive policing, and supply-side tax policies, among others—are the heart of MI’s legacy. While continuing with what is tried and true, we are constantly developing new ways of advancing our message in the battle of ideas.

MI Policy Research The Manhattan Institute recruits experts in a range of domestic-policy areas. Fellows write reports and books; convene conferences; testify at government hearings; and publicize their research and ideas through public speaking and constant media engagement, including op-eds, TV and radio appearances, and blogging.

MI’s Work on the Ground To show the efficacy of putting policy prescriptions into practice, MI will often collaborate with cities and public officials. Following the 9/11 terrorist attacks, at the NYPD’s request we launched a policy division to advise the police on the development of a counterterrorism strategy. In Newark, New Jersey, the Institute partnered with Mayor Cory Booker to implement a new approach to prisoner reentry, based on the principle of connecting ex-offenders with paid work immediately upon release. And in 2012–13, MI experts were embedded in the Detroit Police Department, helping the Motor City implement Broken Windows policing (a long-standing focus of the Institute) in order to get a handle on the city’s crime problem.

MI’s Quarterly Magazine, City Journal In 1990, the Institute founded its magazine, City Journal, as an intellectual and journalistic response to New York’s downward spiral and to the illness of the American city generally. Called “arguably America’s best magazine” by economist Thomas Sowell and “the great Fool Killer in the arena of urban policy” by novelist Tom Wolfe, City Journal has articulated and promoted ideas that have driven the urban renaissance of recent decades. According to former New York mayor Rudolph Giuliani, “If there was a charge of plagiarism for political programs, I’d probably be in a lot of trouble, because I think we plagiarized most of them, if not all of them, from the pages of City Journal and the thinking and analysis of the Manhattan Institute.”

MI’s Book Program MI books have a habit of sparking national conversation and reframing the public debate. An early example was Charles Murray’s Losing Ground (1984), which demonstrated empirically that open-ended welfare benefits incentivize self-destructive behavior among the poor and which helped pave the way for landmark federal welfare reform in 1996. The Bottomless Well (2005), by Peter Huber and Mark Mills, was referred to by Bill Gates as “the only book I’ve seen that really explains energy, its history, and what it will be like going forward.” Zappos CEO Tony Hsieh has cited Triumph of the City (2011), by Edward Glaeser, as a key influence in his urban experiment to revitalize downtown Las Vegas. And George Gilder has called Huber’s The Cure in the Code (2013) the “most important policy book of the decade.”

MI and the Next Generation As the perpetuation of the American experiment depends on the next generation, the Institute has developed initiatives to influence the intellectual formation of tomorrow’s leaders, such as the Adam Smith Society, based at business school campuses. In the wake of the financial crisis and in response to the charged rhetoric in the air about capitalism, MI started this new program, modeling it after the Federalist Society at law schools. With a growing number of chapters at MBA programs nationwide and alumni chapters springing up in major cities, the Adam Smith Society is preparing the CEOs, financiers, and entrepreneurs of tomorrow to be intelligent, engaged participants in the debate over the future of the free-enterprise system.