Issue No. 3, Summer 2018

Enterprise Report Restoring Liberty, Opportunity, and Enterprise in America

Engaging with Local Communities By AEI President Arthur Brooks

Each day in my role as president of AEI holds new and exciting challenges, but one of the constants is travel. On the 100 trips I take every year, I visit business groups, local think tanks, college campuses, talk radio programs, and, of course, AEI’s many friends and supporters. I regularly hear from these audiences that the debates in DC do not seem to address the specific challenges facing their communities. While Washington often focuses on the daily wins and losses of politics, the community leaders and students with whom my colleagues and I speak want practical solutions to the problems they witness on a daily basis, such as opioid addiction, economical housing, and unemployment. AEI places a high value on understanding the unique experiences of individual communities across the country, and we believe those experiences should inform our research and policy recommendations. The Institute, of course, has always been dedicated to providing our nation’s leaders with advice grounded in empirical research. But more than ever before, we are also working to ensure that our research takes into account the specific needs and concerns of cities and towns across America. To that end, our scholars are pairing their data-driven research with visits to the nation’s most impactful job-training centers and opioid treatment facilities. They are studying housing patterns at the community level to find innovative solutions for economical housing. They are talking to workers in the field to better understand how workers are experiencing and adapting to the changing labor market. And they are convening state and local leaders to ensure that their research, writing, and policy recommendations reflect the realities of today’s America. Arthur Brooks AEI President and Beth and Ravenel Curry Thank you, as always, for your support. Because of it, AEI’s scholars are able to Scholar in Free Enterprise carry on the critical work of expanding opportunity, fighting for human dignity, and tackling the challenges we face at both the national and local level.

We regularly share this work in congressional testimonies, briefings, reports, and papers, but we are also committed to expanding its impact beyond policy circles in Washington, DC. As you’ll read in this edition of the Enterprise Report, there are a number of innovative ways in which we are getting the message out.

• AEI’s Leadership Network now counts more than 500 local business, policy, and nonprofit leaders in its ranks. These individuals have attended an intensive two-day policy and training seminar with AEI scholars. The Leadership Network recently hosted its largest summit yet, equipping participants with actionable policy ideas for how to expand opportunity and combat the opioid crisis in their communities.

• More than 220 college students from around the country are attending AEI’s Summer Honors Program. This highly selective program engages students across a range of disciplines, such as political philosophy, economics, and foreign policy. Most importantly, it models a true competition of ideas for students, encouraging spirited but friendly debate.

• At our first-ever Podcast Summit, podcast hosts, producers, and guests gathered at AEI’s headquarters to learn how to better share the power of free enterprise with new audiences across the country.

Thank you, as always, for your support. Because of it, AEI’s scholars are able to carry on the critical work of expanding opportunity, fighting for human dignity, and tackling the challenges we face at both the national and local level. I’m grateful to each of you for making that possible.

AEI Hosts Top Students for Summer Honors Program

From May 29 to June 22, top students from college campuses around the country are participating in AEI’s Summer Honors Program. The 2018 cohort of 229 students was selected from our largest-ever application pool of 1,150. The program consists of week- long, in-depth seminars, including “Staying Calm in Unsafe Spaces” with Charles Murray and “The Constitution: Original Meanings and Modern Times” with John Yoo. Speakers include AEI’s Arthur Brooks, Nick Eberstadt, and Robert Doar, as well as Elliott Abrams Summer Honors Program (Council on Foreign Relations) and Cohort Profile Summer Honors Academy Walter Russell Mead (Hudson Institute). Students are also participating in • 3.78 average GPA For the first time this year, 10 site visits, including to the Supreme • 37 percent identify exceptional students were selected Court, Gettysburg National Park, and as moderate or liberal for the Summer Honors Academy a Washington, DC, public charter  • 28 percent identify (SHA), an intensive, monthlong elementary school. as leaning conservative experience that allows the students Following is a typical Summer Honors  • 24 percent identify to take multiple policy courses. Program schedule: as strongly conservative The SHA students will all partici- pate in a foundational course 8:00–9:00 a.m. 2:00–5:00 p.m. with AEI scholar Gary Schmitt In a group of eight students, have Attend seminar on “Democratic titled “Pericles’ Athens: Politics, breakfast with Jenna Kirkpatrick Capitalism: Principles and Practices” Philosophy, and Society of the First Howard, vice president at Lockton with AEI’s Michael Strain. Over the Great Democracy.” The students Companies, to discuss the students’ week, the course explores the most will then participate in one of career paths. consequential economic debates, the courses offered as part of the such as how markets work and tax Summer Honors Program in each 10:00–11:30 a.m. and budget issues, with readings of the three successive weeks. In a group of 20 students, visit the from thinkers including Friedrich SHA students will also have private Council of Economic Advisers (CEA) Hayek, Adam Smith, Karl Marx, and lunches with high-profile speakers, at the Eisenhower Executive Office Deidre McCloskey. conduct a war game designed by Building for a briefing with CEA Chair AEI’s foreign policy scholars, and (and former AEI scholar) Kevin Hassett. 6:30–8:30 p.m. run a policy simulation with AEI Have dinner with AEI’s Danielle scholar Robert Doar. 12:00–2:00 p.m. Pletka and Vikram Singh (Center for Have lunch with Steven Teles American Progress) on a bipartisan (Johns Hopkins University) and approach to US national security. AEI’s James Pethokoukis about Teles’ most recent book on crony capitalism, Visit www.aei.org/spotlight/ The Captured Economy: How the summer-honors-2018/ to learn Powerful Enrich Themselves, Slow more about the 2018 Summer Honors Down Growth, and Increase Inequality Program agenda. (Oxford University Press, 2017).

3 Secretary Mattis, Senator Rubio Attend AEI Podcast Summit

On May 10–11, hosts of the most popular Hoff Sommers recorded an episode conservative podcasts gathered at AEI for of her new podcast, The Femsplainers. the inaugural Podcast Summit, cohosted Arthur Brooks addressed attendees by Ricochet and DonorsTrust. Convening with insights on telling the human story, podcast hosts, producers, advertisers, explaining how better narratives—not just and their audiences for live recordings better data—possess the greatest power with prominent guests, the summit also to persuade, convict, and unite. featured breakout sessions on how to The summit also offered multiple produce and market a podcast and small-group sessions with leaders in the attract advertisers. The summit, hosted podcasting space on effective communi- in our industry-leading communications Secretary of Defense James Mattis cations, advertising, and production tips facilities, highlighted AEI scholars’ and tricks. There were also networking leadership in reaching new audiences (University of California, Berkeley) opportunities with communicators from in this increasingly popular medium. conducted live interviews for each of Cato, Heritage, Brookings, and other Secretary of Defense James Mattis their respective podcasts. organizations. and Sen. Marco Rubio (R-FL) were among AEI’s Jonah Goldberg hosted a live To learn more about AEI’s pod- the high-profile podcast guests. Peter episode of The Remnant, and James cast offerings, subscribe to AEI’s new Robinson (Hoover Institution), Pethokoukis conducted a live interview twice-monthly Podcast Network Avik Roy (Foundation for Research on with Michael Strain and Stan Veuger for newsletter at www.aei.org/banter. Equal Opportunity), and Steve Hayward Political Economy. Additionally, Christina Leadership Network Adds 500th Member

AEI’s Leadership Network (LN)now counts “My own life is the result of our Constitution which more than 500 state-based members allowed the son of enslaved Americans to seize the after holding the largest-ever Leadership opportunity for personal, economic, and political Network Summit at AEI on April 25–27. freedom. The American Enterprise Institute Convening 98 leaders from 23 states for promotes the timeless values that break chains policy, communications, and leadership and create opportunities. training, the summit brought a diverse No one is better poised to engage with all group to hear from AEI scholars on segments of society than AEI. I am honored to issues including American disunity, make it my go-to organization for expert policy reference and leadership. Among hundreds of the opioid crisis, increasing opportun- leaders I’ve interviewed, coached, or hired, few ity for low-income Americans, and Leonardo Smith can connect across socio-economic differences early childhood education. These like Arthur Brooks. As AEI’s 500th Leadership Network member, I am pleased to professionals connect our scholars’ be associated with an exceptional team equipped to meet America’s greatest research to their work in areas across policy challenges.” the country and form a community of —Leonardo Smith, 2018 summit participant thinkers and doers who are well placed to move the needle toward greater childhood poverty to excel in classical For the past four years, Smith has freedom and opportunity for millions music, academics, and aquatics. He was served as Georgia’s state GOP director of Americans. the first in his family to earn a college of voter engagement. In Cobb County, Leonardo Smith, who became the degree. Upon graduation from Virginia he has been active in conservative think 500th LN member after attending our Tech, he joined the university as a faculty tanks and has worked for lower taxes, April summit, is one such leader. Smith is member and later forged a successful business growth, charter schools, and a Virginia native who overcame extreme career in business management. school choice.

4 Point/Counterpoint: AEI Hosts Social Policy Debate Series

AEI is fostering a competition of ideas support assurance program that provides Undersecretary for Food Safety Jerry with a new online point/counterpoint a government guaranteed payment of Mande argued that such a restriction series. Throughout 2018, AEI scholars $150 per month per child to all single would strengthen the program and and outside experts are debating parents regardless of income. AEI’s increase SNAP’s nutritional integrity. The policies intended to reduce poverty and Robert Doar agreed that too many University of Illinois’ Craig Gunderson increase opportunity for low-income nonresident parents are not supporting argued that SNAP recipients are no more Americans. Both sides of a specific issue their children, but he pushed back on likely to be obese than nonparticipants are presented in short point/counterpoint the plan, arguing that the benefit is not and that recipients should be free to arguments to advance discussion and targeted to those with the most need. choose their own grocery items. understanding of these pressing issues. The second debate was on restrict- Visit www.aei.org/spotlight/ The first debate in the series was on ing the purchase of sugary beverages poverty-and-social-policy- child support assurance. The University with Supplemental Nutrition Assistance debate-series-child-support/ of Wisconsin–Madison’s Maria Cancian Program (SNAP) benefits. Former US to read the essays. and Daniel Meyer argued for a child Department of Agriculture Deputy From the Archives: Suicide of the West, New York Times bestseller The Rational Debate Series

Special Report with Bret Baier. He AEI has a long history of hosting debates has also been the featured guest at on critical public policy issues. Between AEI donor receptions across the 1966 and 1971, AEI held the Rational country, including a reception at AEI Debate Series, which convened leading headquarters that more than 130 thinkers to discuss—in a markedly civil people attended. manner—the policy issues of the day. To accompany the book, Goldberg Some of the participating economists released an illustrated guide to human went on to win the Nobel Prize. In total, progress, telling the story of how 17 Nobel Prize–winning economists human civilization progressed to participated in the Rational Debate where it is today and how that progress Series or other public AEI events, debat- is imperiled. ing issues still relevant today, including To read an excerpt or request a full employment and guaranteed jobs, AEI Fellow and Asness Chair in Applied copy of the book, visit www.aei.org/ Social Security, and welfare programs. Liberty Jonah Goldberg’s new book, publication/suicide-of-the Nobel laureates who participated in Suicide of the West: How the Rebirth of -west-book-excerpt/. events at AEI include James Buchanan, Tribalism, Populism, Nationalism, and Angus Deaton, Robert Fogel, Milton Friedman, Paul Samuelson, James Tobin, Identity Politics Is Destroying American In January, AEI established the Asness Democracy (Crown Forum, 2018), and Friedrich von Hayek. Chair in Applied Liberty, made The Rational Debate Series is featured debuted at number four on the New possible thanks to a generous gift York Times bestseller list. The book as part of AEI’s “From the Archives” from AEI Trustee Cliff Asness, with project, which highlights AEI scholars’ reached as high as six on the Amazon Jonah Goldberg as the inaugural rankings in the week following its work on critical public policy issues from occupant of the chair. The purpose of our founding through present day. April 24 release. the Asness Chair is to support an AEI Goldberg has discussed the book’s Visit www.aei.org/publication/ scholar whose work is dedicated to from-the-archives-nobel themes in a wide variety of outlets, reconciling individual freedom with including Comedy Central’s The Daily -prize-winners-at-aei/ to read cultural values that make freedom more about the Rational Debate Series Show, CNN’s The Lead with Jake Tapper, and progress possible. NPR’s Morning Edition, and Fox News’ and Nobel laureates at AEI.

5 Q&AEI with Ken Pollack

Kenneth M. Pollack is a resident scholar at AEI, What is a highlight of your first year where he works on Middle Eastern political-military at AEI? affairs, focusing in particular on Iran, Iraq, Saudi Arabia, and the Gulf countries. Before joining AEI, Am I only allowed just one? I have Pollack was a senior fellow and the former director of a lot! The first thing that struck me since the Brookings Institution’s Saban Center for Middle I’ve been here is how well-run AEI is. East Policy. He served twice at the National Security But if I really am allowed just one, then Council and began his career as a Persian Gulf I will say that it is the intellectual depth of military analyst at the CIA. AEI’s policy work. In my 30 years in Wash- ington, I’ve worked at two other think tanks and the federal government. And You published a six-part blog series on the Middle East and using that to build while I have seen a lot of people doing how to push back against Iranian influ- the leverage to get a follow-on deal to smart policy-relevant work in all of these ence in an evolving Middle East. What is address the flaws in this one. Instead, places, I’ve never been at a place like the broad strategy that you outline? they’ve thrown it out the window without AEI where people care so much about creating any leverage to negotiate a As someone who has supported the the long-term, underlying ideas that lie better one. efforts of Presidents Clinton, Bush ’41, behind their policy proposals. It gives On top of that, the president wants to and Obama to improve relations with AEI’s work a depth and a wider relevance walk away from Syria, isn’t willing to fight Iran, I think it is unfortunate but very clear that you rarely see and makes it valuable for Iraq, and is leaving our Gulf allies to that Iran does not want a better relation- beyond the immediate question that it is flounder in Yemen. That’s pretty much the ship with the United States. Its leadership meant to address. exact opposite of what right looks like. defines us as its mortal enemy and is acting aggressively against us through- You’ve just finished the manuscript for out the Middle East. To my mind, that What worries you most about the future your 10th book, Armies of Sand: demands that we respond with a com- of the Middle East? The Past, Present, and Future of Arab prehensive effort to help our allies stand Military Power, to be published by I have never seen a “good” Middle East up to Iran and prevent them from making Oxford Press in December. What is the in my lifetime, but we haven’t seen one further gains in the region; roll back the book’s thesis? this bad since the Mongol invasions of gains that Tehran has made in Syria, Iraq, the 13th century. There are a series of The book examines why Arab militaries and Yemen; and convince them that reinforcing problems in the region, but it have fought so poorly in wars since retaliating against us and our allies will all starts with the failure of the Arab state 1945. My argument is that Arab leave them worse off than us. system that emerged after World War II. society—its politics, its economics, and Where is the current administration suc- We can’t fix those problems for them, but (especially) its culture—creates incentives ceeding in pushing back against Iran, we can do a lot to enable and encourage for Arab soldiers, officers, and generals and where could they be doing more? them to do so—and pushing back on Iran that may work for their societies but is one of the most important, to give the don’t work at all for the demands of I’m not sure I would say they are succeed- Arab states the space they need to pursue modern combat. I take my discussion ing anywhere. The only place they are serious reform. right up to the wars of Hizballah and really trying is with the nuclear deal, and I Because if the Arab states can’t reform ISIS, demonstrating how their terrorist think that is the wrong place to be doing their states, the problems of the region origins brought together a different kind anything at all right now—certainly not the are going to multiply, and they will affect of fighter operating in a different kind way they have chosen to do it. the rest of the world. We have already of organization that allowed them to The nuclear deal was flawed but very seen the impact of the problems of the perform somewhat better. I also discuss useful in keeping Iran’s nuclear program Middle East in Brexit and the rise of how the dramatic changes in the Arab on ice for another 8–13 years. The smart the far right in Europe. I would prefer not world could reshape their societies move would have been to leave it alone to see what coming decades and transform the Middle East military while countering Iran’s aggression in would bring. balance in the future.

6 New Volume Examines Rising World Powers Rough Seas: AEI Scholars Make Recommendations  “If the term ‘realism’ hadn’t been hijacked, I’d call this book realistic: sober, for Rebuilding the Navy penetrating assessments of the adversaries, dangers, and the remaining changes to salvage American power.” —Elliot Abrams, former deputy assistant to the president and deputy national security adviser

In a newly released edited volume titled advantage of Russian weakness to Rise of the Revisionists: Russia, China, undermine its great-power status. and Iran (AEI Press, 2018), AEI’s Gary Vladimir Putin is determined to use Schmitt and several other distinguished that resentment to resurrect Russia scholars examine how Russia, China, and on the world stage and maintain his Iran challenge the US-led global order in hold on power. three critical regions. In the volume’s five chapters, the authors examine the strategic • “China: The Imperial Legacy” by objectives of the three states and, in turn, Dan Blumenthal. China’s status as In April, AEI scholars Thomas Donnelly America’s potential response. Coming the world’s last imperial power largely and Gary Schmitt, along with Vice Admi- at a time when the United States is facing defines and guides its efforts to ral John W. Miller (ret.), released “Rough inflection points in these regions, the become East Asia’s hegemon and Seas: An AEI Study in Crisis Response for volume combines in-depth historical and return to its previous place at the Tomorrow’s Navy and an Improved strategic analysis with specific recommen- center of the regional order. Navy for the Future.” The report, which dations for policymakers. The chapters are • “Iran: The Shi’ite Imperial Power” evaluates naval requirements for meet- as follows: by Reuel Marc Gerecht. Iran has ing possible crises, is the result of four taken the opportunity to expand its tabletop exercises conducted in the influence across the Near East in the winter of 2017 with more than two face of regional conflict and the percep- dozen former Navy, Department of tion of US retrenchment. The regime is Defense, and national security officials. claiming leadership in the Muslim world Ultimately, the exercises and the report and using the Shi’a and Sunni divide to are designed to stimulate discussion advance its regional ambitions. about the US Navy’s size, basing, equipment, and readiness plans. • “Not a Trap but a Minefield: The report identifies the Navy’s The Thucydidean Challenge to major issues, including the lack of American Foreign Policy” by • “Introduction: The Challenge global presence and capabilities to Walter Russell Mead. Mead argues Ahead” by Gary J. Schmitt. In the deal decisively with Russia and China. that a true realist foreign policy would volume introduction, Schmitt describes It also identifies strategic short-term recognize that competition between the unique geopolitical situation investments and recommendations states is shaped as much by the under- confronting America because of the rise for rebuilding the Navy so it can face lying character of the regimes as by of revisionist powers in three regions future threats to our nation. any other factor. According to Mead, that are crucial to our own peace and To read the report, visit www.aei. coming to terms with this reality is key prosperity: Russia in Europe, China in org/publication/rough-seas to the United States developing sound East Asia, and Iran in the Middle East. -an-aei-study-in-crisis-response- and effective counterstrategies. for-tomorrows-navy-and-an • “Russia: The Kremlin’s Many -improved-navy-for-the-future/. Revisions” by Frederick W. Kagan. Visit www.aei.org/spotlight/ Russia will remain hostile to NATO and rise-of-the-revisionists-introduction/ the European Union, believing that the to read an excerpt of Schmitt’s introduc- transatlantic security order has taken tion or request a copy.

7 AEI to Honor UK Foreign Minister at 2018 Annual Dinner SAVE THE DATE IRVING KRISTOL AWARD The Right Honourable Boris Johnson, & ANNUAL DINNER

current UK secretary of state for foreign HONORING and commonwealth affairs and former mayor of London, will be honored BORIS JOHNSON with AEI’s Irving Kristol Award at the THURSDAY, SEPTEMBER 13, 2018 2018 AEI Annual Dinner at the National NATIONAL BUILDING MUSEUM Building Museum in Washington, DC, WASHINGTON, DC on September 13, 2018. The Irving Kristol Award, named and Antonin Scalia. If you are interested in honor of the longtime AEI senior in purchasing a ticket or sponsoring fellow, is the Institute’s highest honor. a table at the Annual Dinner, please Make a Legacy Previous recipients of the award include contact Alex Swope (202.862.5949; Benjamin Netanyahu, James Q. Wilson, [email protected]). Commitment to AEI

At AEI, we believe we have a moral Brent Orrell, New AEI Visiting Fellow obligation to future generations to defend our nation’s founding values of resettlement, welfare, human services, freedom, opportunity, and enterprise child welfare, and emergency prepared- and safeguard against encroachments ness and response. In his current role of a growing state. With our work, we at ICF, Orrell manages and provides are laying the foundation for the future strategic direction to a portfolio of welfare of the free enterprise movement, and and human services initiatives. These we would be honored if you would include projects supporting government consider joining AEI’s Legacy Society and nonprofit organizations that are by making a planned or estate gift working in the fields of healthy marriage to AEI. This gift would ensure that we and responsible fatherhood education. have the resources necessary to carry Brent Orrell has joined AEI as a visiting President George W. Bush nominated on our mission well into the future. fellow to focus on economic growth, Orrell to serve as assistant secretary of the Major ways of making a planned human capital development, poverty US Department of Labor’s Employment gift include will or trust provisions, alleviation through work, and localism. and Training Administration. As such, retirement plan assets and life insurance He has more than 20 years of experience Orrell oversaw the $10 billion Workforce policies, charitable remainder trusts, working in the legislative and executive Investment Act, which included programs and charitable lead trusts. For more branches of the US government. He such as trade adjustment assistance, information, please visit www.aei.org/ has worked in a variety of policy areas, discretionary and formula grant funding, donate/planned-giving or including workforce and talent develop- youth employment and development, contact Toby Stock (202.862.5834; ment, prisoner reentry, faith-based unemployment insurance, and foreign [email protected]). and community initiatives, refugee labor certification.

Opioid Policy Project AEI recently launched an Opioid Policy Project spotlight webpage that compiles the work of our scholars who focuses on this crisis. Economist Alex Brill, demographer 1789 Massachusetts Avenue, NW Nicholas Eberstadt, journalist Naomi Schaefer Riley, and addiction psychiatrist Sally Washington, DC 20036 Satel are studying the problem from economic, cultural, child welfare, and medical 202.862.5800 | aei.org perspectives. To learn more, visit aei.org/spotlight/opioid-policy-project.

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