Issue No. 4, Fall 2017

Enterprise Report Restoring Liberty, Opportunity, and Enterprise in America

Free Enterprise’s Future By AEI President Arthur Brooks

For nearly 80 years, AEI has supplied leaders in government, policy, and business with world-class ideas. Our scholars have provided the intellectual foundations for major reforms in areas ranging from welfare policy to military strategy, and we continue to influence the national conversation in ways that will expand the freedom and potential of every individual. But we know it’s not enough to supply policy research that addresses our country’s most pressing problems. Unlike other organizations that deal only in the supply of ideas, AEI is also dedicated to actively cultivating demand for our work. We do this by investing time and resources in the project of forming future leaders, building communities of influential men and women who share our vision for America’s future and are hungry for intellectual formation. In this newsletter, you will read about several of the ways AEI is cultivating leaders at all stages and in all walks of life. And I am confident that all of these men and women come away from their AEI experiences well equipped to advocate for free enterprise throughout their professional lives. “For debate to be productive—for good ideas to get the hearing they deserve— our civil discourse must be refounded in a genuine moral consensus and a spirit of warmheartedness. We need leaders with high standards for empirical rigor and deeply moral principles behind their work.” Arthur Brooks AEI President and Beth and Ravenel Curry On college campuses, our Academic Programs team is doubling down on leadership training Scholar in Free Enterprise and planning events that feature AEI scholars. Having already reached hundreds of universities and thousands of students, our team continues to invest in a new generation of leaders that will be equipped to passionately and persuasively articulate the case for free enterprise—something that is urgently necessary inside academia, as recent events have made clear. Here in Washington, AEI is also investing in intellectual leadership through new programs for mid-career scholars, experts, and practitioners. Our newly launched Jeane Kirkpatrick Fellows and Visiting Scholars program has already brought four young, promising foreign and defense policy scholars to AEI. Likewise, our Emerging Education Policy Scholars Program and Education Policy Academy are helping build diverse coalitions that will fight so that every student, no matter his or her circumstances, can benefit from the best schooling possible. In business, our AEI Enterprise Club members continue to serve as indispensable resources by investing in AEI and growing our global reach among young private-sector leaders. We recently celebrated the launch of a new Enterprise Club chapter in London. And AEI’s growing Leadership Network continues to bring cohorts of small business owners, state policymakers, nonprofit managers, and other local leaders to Washington to hear from AEI scholars and other guest speakers. They leave with not only new ideas to apply in their communities, but also enduring connections to the AEI community going forward. This October, the Leadership Network will also kick off a new Regional Summit series with an inaugural conference in Jacksonville, Florida. World-class policy research is AEI’s core expertise. But this polarized political climate has made something clear: Good ideas are not enough, on their own, to effect the change that our country and our world sorely need. We also need to rehabilitate the competition of ideas itself. For debate to be productive—for good ideas to get the hearing they deserve—our civil discourse must be refounded in a genuine moral consensus and a spirit of warmheartedness. We need leaders with high standards for empirical rigor and deeply moral principles behind their work. That’s why building a better world requires that we invest in both the “supply” and the “demand” sides of our work. Thank you, as always, for your support. You make this kind of outreach and impact possible. My colleagues and I would be happy to talk further with you about AEI’s outreach programs, and as always, we welcome suggestions for all of our programs from your own networks of colleagues and friends. AEI Hosts Ambassador Haley

The Permanent Represen- Ten media crews attended the event, tative to the United Nations Nikki Haley including CBS News, CNN, Fox News, delivered a keynote address at AEI on and NBC News, and Ambassador Haley’s September 5 on the administration’s key statements were covered extensively considerations in assessing Iranian com- in the media, including in the New York pliance with the Joint Comprehensive Times, Washington Post, and Bloomberg. Plan of Action. Her argument suggested More than 5,500 people have that Iran may not be in compliance with watched the livestream video of the the deal. Following her remarks, Ambas- event, which can be viewed online at sador Haley discussed with AEI Senior www.aei.org/events/online- Vice President Danielle Pletka what the the current situation with North Korea event-beyond-the-echo-chamber- United States can do to increase pressure reinforces the importance of countering considerations-on-us-policy-to- on Tehran at the United Nations and how Iran’s aggression. ward-iran/. AEI Brings a Competition of Ideas to Campuses

AEI Academic Programs has a robust University of Michigan, Michigan schedule of scholar events, student lead- State University, Rice University, ership trainings, and policy seminars on Grove City College, Northwestern the calendar for the new academic year, University, DePaul University, and the all aimed toward fostering a true competi- University of Colorado. tion of ideas on college campuses. In fact, the illiberal student protests of Charles z Arthur Brooks will speak at Bowdoin Murray and other conservative speakers College, Concordia College New on campuses in the past academic year York, the University of Washington, AEI’s Ramesh Ponnuru debates Edward Steinfeld have only increased interest in AEI’s work and the University of Michigan on (Brown University) and Neera Tanden (Center for American Progress) at Brown University. and further motivated student leaders to topics including overcoming political bring an open competition of ideas to polarization and how to live life like an second at an East Coast school in their schools. The Institute will capitalize entrepreneurial venture. March. Each summit will include on this momentum in the year ahead. panel discussions featuring AEI In the 2017–18 academic year, more z On October 6–7, more than 100 scholars and leadership and than 370 AEI Executive Council leaders Executive Council members from communications training. (groups of up to six students who coor- across the country attended the dinate AEI outreach on their campuses) Fall Executive Council Leadership z AEI’s Values & Capitalism Program at nearly 100 campuses across the coun- Conference in Washington, DC. (AEI’s outreach program to students try will be organizing events and reach- The students participated in at evangelical colleges) will host ing thousands of college students substantive conversations on public two intensive seminars on the with the moral message of free enter- policy and training on how to serve relationship between entrepre- prise. Highlights of Academic Programs as an active Executive Council leader. neurship and human flourishing, activity in 2017–18 include: one in October at Seattle Pacific z In the spring semester, AEI will University and another in November z In September, Charles Murray spoke host two regional policy summits at Pepperdine University. on the themes of Coming Apart for 80 students each. The first will (Crown Forum, 2012) at Harvard take place at the University of Texas To learn more about Academic University and is scheduled to deliver in February for students at West Programs, visit www.aei.org/ talks on Coming Apart at the Coast schools, and we will host a academic-programs/.

3 Inaugural Class of Jeane Kirkpatrick Fellows and Scholars Joins AEI Foreign and Defense Policy Team

The inaugural class of Jeane Kirkpatrick Jessica Trisko project, titled Rethinking Fellows and Visiting Scholars has joined Darden—Alongside Conservative Foreign AEI’s Foreign and Defense Policy team. Dan Blumenthal and Policy, examining the This newly launched program aims to Gary Schmitt, Trisko historical tensions identify, train, and mentor a new cadre Darden will study the between conservative of thinkers and leaders who believe in effectiveness of both nationalism and conser- fighting for freedom, a strong national military and economic vative internationalism defense, and American leadership in US foreign aid, particularly in regards to and if the Trump phenomenon can be the world. improving governance and human rights absorbed into traditions of conservative The fellows will work alongside AEI conditions in developing countries. She internationalism. Dueck is a professor in resident scholars over two-year terms is concurrently an assistant professor of the Schar School of Policy and Govern- and develop and disseminate their own international affairs with the School of ment at George Mason University. research. Our two new fellows are: International Service at American University, and she is the associate Oriana Skylar Clay R. Fuller—Under director of Bridging the Gap, an initiative Mastro—At AEI, Nicholas Eberstadt’s designed to strengthen relationships Mastro plans to study mentorship, Fuller will between scholars and the foreign policy how Chinese leaders research the survival community. conceptualize “leader- methods of modern ship” and the conditions dictatorships with a The visiting scholars will hold one- under which China focus on corruption year appointments and will collaborate is willing to take on such a role in the and economic policies. He will use data with AEI’s resident scholars and fellows, international system, with a focus on the analytics to study how economic tools, engage in rigorous research, disseminate role of Chinese military power. Mastro is such as special economic zones and their findings, brief policymakers, and an assistant professor of security studies at sovereign wealth funds, can be used host events at the Institute. Our the Edmund A. Walsh School of Foreign to strengthen an authoritarian’s grip on new scholars are: Service at Georgetown University and is power. Fuller completed a Ph.D. in politi- also in the United States Air Force cal science at the University of Colin Dueck—During his year at AEI, Reserve, for which she works as an South Carolina in May. Dueck will embark on a new book Asia-Pacific strategist at the Pentagon. Eric Hanushek Joins AEI as Makin Scholar

Eric Hanushek joined AEI in August to the United States reached the educa- thanks to a generous gift from Gwendolyn serve as the Makin Visiting Scholar for the tional attainment levels of other countries. Van Paasschen, Makin’s wife of 31 years. 2017–18 academic year. He is a leader in He is a distinguished graduate of the The position recognizes Makin’s numer- the development of economic analysis of United States Air Force Academy and ous contributions to research educational issues, and he has authored completed his Ph.D. in economics at the and policy at AEI and as a university numerous highly cited studies on the Massachusetts Institute of Technology. professor, a chief and hedge effects of class size reduction, high-stakes Hanushek is concurrently the Paul and fund principal on Wall Street, and a accountability, the assessment of teacher Jean Hanna Senior Fellow at the Hoover consultant to the US Treasury Depart- quality, and other education-related Institute of . ment, the Congressional Budget Office, topics. As the Makin Visiting Scholar at The Makin Visiting Scholar position and the International Monetary Fund. AEI, Hanushek plans to examine whether is named in honor of late AEI economist or how GDP growth would be affected if John Makin and was created in 2016

4 AEI Building Cadre of Education Policy Leaders

AEI Education is building a diverse cadre Complementing the EPA is the of rising leaders who are committed Emerging Education Policy Scholars to using their skills to advocate for the (EEPS) program, which reaches needs of students. Two major annual early career faculty and predoctoral initiatives—the Emerging Education students in the field of . Policy Scholars Program and the Launched in 2010 as a joint initiative Education Policy Academy—bring of AEI and the Thomas B. Fordham together today’s notable education Institute, the EEPS program brings experts and tomorrow’s education up-and-coming scholars to Washington, leaders to drive education reform DC, for two two-day sessions to meet and promote intellectual leadership with education policy experts, learn in education. These complementary Katharine Stevens, AEI how to engage with DC think tanks programs introduce new leaders into the and advocacy groups, and share and field of education reform and help rising debates, teaching future businessmen, brainstorm new directions for K–12 education researchers learn how to lawyers, and advocates to use their education research. To date there have maximize the impact of their work. skills in service of reforming the educa- been six cohorts of EEPS, comprising The Education Policy Academy (EPA) tion system. Academy classes are more than 100 young scholars. Two takes place each summer, bringing taught by leading scholars and focus participants in EEPS, Mike McShane 20 graduate students across disciplines on topics central to education policy, (cohort two) and Katharine Stevens to AEI for an intensive four-day immer- including school choice, teacher (cohort three), have since joined AEI’s sion into the world of education. By quality, and school finance, and the education team—Stevens as a resident recruiting researchers from a variety of program also includes seminars, scholar leading AEI’s early childhood fields, the EPA broadens the coalition evening speakers, and cohort build- education program and McShane as an of those invested in education reform ing activities. adjunct fellow.

AEI Scholars Tapped by Administration Signatories to letter of support for Hassett’s nomination for Council of Economic Advisers leading 44 from the left and right scholarship on economic, tax, budget- former chairs of the ary, and fiscal topics, and he advised 14 Council Economic Advisers several presidential candidates between former chairmen of AEI appointments. Hassett joins a distin- 2 the Federal Reserve guished line of AEI scholars to chair the CEA, including Arthur Burns (1953–56), “Hassett’s leadership of the CEA Paul McCracken (1969–71), Herbert means that President Donald Stein (1972–74), and Glenn Hubbard Trump and his administration Kevin Hassett, chairman of the Council of Economic Advisers (2001–03). will be getting expert advice and Research Fellow Kevin Corinth also excellent judgment from a widely On September 12, the Senate voted departed AEI at the end of July to join respected economist. I am hopeful that Hassett’s appointment will also to confirm Kevin Hassett, most recently the CEA as a senior economist. While at continue his legacy of engagement AEI’s director of research for domestic AEI, his research focused on homeless- and productive dialogue with anyone policy, as the chairman of the Council ness and poverty, and his work ap- willing to come to the table.” of Economic Advisers (CEA). Over peared in the Huffington Post,New York —Michael Strain, his 20 years at AEI, Hassett made Times, and US News & World Report, John G. Searle Scholar and director of tremendous contributions to among many other publications. Economic Policy Studies

5 What would you like to see Congress Q&AEI with Michael R. Strain and the administration prioritize in tax reform legislation?

Michael R. Strain is the John G. In my view, the top priority is to reduce Searle Scholar and director of the corporate tax rate. The corporate economic policy studies at AEI. tax system is a mess, and reforming His research focuses on labor it properly would increase investment in economics, public finance, and the United States, along with produc- social policy, and his papers have tivity and wages. It’s also important been published in peer-reviewed that we not add a trillion dollars to the academic journals and policy deficit as part of any legislation. journals such as Tax Notes and I would also like to see Congress National Affairs. He is the editor include measures to increase oppor- of The US Labor Market: Questions and Challenges for Public Policy (AEI Press, tunity for low-income Americans. 2016) and the coeditor of Economic Freedom and Human Flourishing: Perspectives You have voiced concern about the from Political Philosophy (AEI Press, 2016). Before joining AEI, Strain worked in the current state of the 2020 US census— Center for Economic Studies at the US Census Bureau and in the macroeconomics something that not many people research group at the Federal Reserve Bank of New York. He writes frequently for are talking about right now. Why popular audiences, and his essays and op-eds have been published in the New should more people be paying York Times, the Atlantic, National Review, and the Weekly Standard, among others. attention to this? He is columnist for Bloomberg View and the Washington Post. It’s important that the 2020 decennial You first came to AEI as a National bolts of monetary policy, current macro- census be accurate. The census plays Research Initiative Fellow. How did economic analysis, and forecasting, all a constitutional role in apportioning that experience help shape your of which are very helpful. At the Census seats in the US House of Representa- career, and how has your work Bureau I learned not only how to use tives, which is reason enough to evolved since that time? microeconomic data for research but prioritize its accuracy. But it’s also also how the data are made. I also My time as a National Research Initiative the case that businesses rely heavily held an administrative position at the Fellow was wonderful. The opportunity on census data for a variety of crucial Census Bureau, which turned out to to spend all my time on academic and decisions. Government and researchers be a valuable professional experience. policy research allowed me to focus need high-quality census data, too. on building my foundation as an AEI Many cities and states have imple- What does your role at AEI help you scholar. I greatly enjoy all aspects of mented or proposed a higher minimum accomplish that has not been possible being an AEI scholar—doing research, wage. What does the research tell you in previous roles? but also engaging with the media, about the impact a higher minimum advising policymakers, public speaking, wage would have on employment and AEI is filled with more defenders of etc.—but the opportunity to build that opportunity for lower-skilled workers? freedom and enterprise than anywhere foundation in research greatly enhanced I’ve previously worked. I think that The motivation for many of these my ability to do the other parts of my job. AEI is better positioned than anywhere proposals is to get local minimum I’ve worked to change the minds of wages up to $15 per hour. In my view Your previous experience includes policymakers and influencers in the this would significantly harm the working in federal government. How direction of freedom, opportunity, employment prospects for lower- did those experiences help inform your and purpose. current role as a researcher at AEI? skilled workers and reduce opportunity by making it much harder for them to To read more of Michael Strain’s They helped me to understand govern- get their start in the labor market. We work, visit www.aei.org/scholar/ ment, which is very important for an have only preliminary evidence on this michael-r-strain/. AEI scholar. I also learned a lot at the very new policy, but the evidence points New York Fed about the nuts and to exactly this.

6 Enterprise Club Yoo Releases Striking Power Expanding Internationally

weaponry challenges our current frame- AEI’s Enterprise Club is growing both work for the rules and morality of war. nationally and internationally, with new While the benefits of robotics, cyber chapters recently launched in Denver and weapons, and space-based communi- London. These new additions bring cations are widely accepted—namely, Enterprise Club membership to more than greater precision and minimized collateral 370 rising leaders across 13 cities. damage—the potential drawbacks and The Enterprise Club is an invitation- legal implications of such technologies only group of 30- to 40-year-old donors have not been considered. In Striking who share an interest in policy, have an Power, Yoo and Rabkin seek to outline a outstanding record of achievement, new legal and moral framework that can and have great potential for future impact. guide our military and policy leaders’ Members have regular opportunities to On September 12, John Yoo, AEI visiting thinking as they enter a new era of warfare. engage with AEI scholars and other leaders scholar and Emanuel S. Heller Professor To view video of the launch event, through receptions, conference calls, small of Law at the University of , visit www.aei.org/events/striking- dinners, and other events. Berkeley, released Striking Power: How power-how-cyber-robots-and-space- Since the Enterprise Club London Cyber, Robots, and Space Weapons weapons-change-the-rules-for-war/. chapter launched last September, we have Change the Rules for War (Encounter Listen to an interview with Yoo and Rabkin held several events for members, including Books, 2017). Coauthored with Jeremy on AEI’s “Banter” podcast here: www. a dinner with Dalibor Rohac on transatlantic Rabkin (George Mason University’s aei.org/multimedia/banter-283- relations and a dinner with Bill Browder Antonin Scalia Law School), the book yoo-and-rabkin-on-striking-power/. of Hermitage Capital. The Denver chapter explores how rapidly modernizing recently held its inaugural reception featuring Director of Domestic Policy Studies Ryan Streeter. Sen. Lee Headlines AEI Event on As the Enterprise Club has grown, members have also stepped into leader- Localism and Human Capital ship roles in the AEI community. A number of members are serving as mentors to AEI’s US Senator Mike Lee (R-UT) keynoted an Executive Council student leaders and AEI public event on July 12 on localism have been featured as guest speakers for and human capital hosted by Ryan Street- student gatherings around the country, er. The event was part of AEI’s larger body sharing details about their career paths, of work aimed at increasing American why engagement with policy is so im- unity and connectedness toward insti- portant, and how to make the most of the tutions of meaning—a major pillar of our college experience. Human Dignity Project. To learn more about Enterprise Club, Sen. Lee recently launched the Social contact Laura Whitehill at laura.whitehill@ Capital Project, which is tasked with aei.org. investigating the nature and importance of social capital and associational life Mike Lee, US senator (R-UT) in a transitioning America. His remarks addressed the increasing lack of trust in discussion moderated by the Center Visit www.aei.org/events/ American civic and governmental institu- for Opportunity Urbanism’s Joel Kotkin localism-and-social-capital- tions, stressing localized decision-making and featuring New America’s Lee sen-mike-lee to view Sen. Lee’s as crucial to restoring a sense of con- Drutman, National Affairs’ Yuval Levin, remarks. nectedness and unity in the American and the Joint Economic Committee’s government. The event featured a panel Scott Winship.

7 AEI to Honor Rabbi Lord Jonathan Sacks Consider Joining AEI’s Annual Dinner and Irving Kristol AEI’s Legacy Society Lecture will be held on Tuesday, October 24, and will honor Rabbi Lord Jonathan Sacks. At AEI, we believe we have a moral Rabbi Sacks is an international reli- obligation to future generations to gious leader, philosopher, award- defend our nation’s founding values winning author, and respected moral of freedom, opportunity, and enter- voice. He was awarded the 2016 prise and safeguard against encroach- Templeton Prize in recognition of ments of a growing state. We hope his “exceptional contributions to Confronting Religious Violence you might consider joining AEI’s affirming life’s spiritual dimension.” (Schocken, 2015). Legacy Society by making a planned A frequent and sought-after contrib- The Irving Kristol Award is bestowed or estate gift to AEI to ensure that we utor to radio, television, and the annually on an individual who has have the resources necessary to carry press in Britain and around the made exceptional intellectual and on our free enterprise mission well into world, Rabbi Sacks is the author of practical contributions to improve the future. more than 30 books, including the government policy, social welfare, or Major ways of making a planned recent bestseller Not in God’s Name: political understanding. gift include will or trust provisions, retirement plan assets and life insur- ance policies, charitable remainder Leadership Network Holding trusts, and charitable lead trusts. For more information, please visit Regional Summit in Jacksonville www.aei.org/donate/planned-giving or contact Vice President of Develop- To directly connect AEI scholarship with ment and Academic Programs the specific challenges local leaders Toby Stock (202.862.5834; face in their communities, AEI is hosting [email protected]). the inaugural AEI Leadership Network Regional Summit in Jacksonville, Florida, on October 17–19. More than 50 local leaders will join us for the summit, which will feature tailored programming addressing the problems facing the southeast United States. Gerard Robinson, AEI Sessions will include Gerard Robinson (former Florida commissioner of educa- Brooks will also lead a session on effec- tion) on increasing opportunity for all stu- tive communications. dents with more effective policy, Nicholas Visit www.aei.org/feature/ Eberstadt on the labor force participation leadership-network/ to learn more crisis, and Angela Rachidi on how placing about the AEI Leadership Network or work requirements on welfare programs recommend a leader to the network. can help lift people out of poverty. Arthur

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