Issue No. 2, Summer 2017

Enterprise Report Restoring Liberty, Opportunity, and Enterprise in America

The Dignity Deficit in America By AEI President Arthur Brooks

On April 24, 1964, President Lyndon B. Johnson visited Inez, a small town in Kentucky’s Martin County. Located in the heart of coal country, Inez was plagued by poverty and unemployment. It offered a perfect case study in the despair that hung over countless poor communities in America, from Appalachia to the inner cities. And it was there in Inez where Johnson staged the photo-op that launched his War on Poverty. Most people remember that effort as an all-out fight against material deprivation. Indeed, the policy core of the War on Poverty consisted of new transfer programs— such as Medicaid, Food Stamps, and cash welfare—designed to lift physical living standards for poor Americans. But the program’s architects insisted these material metrics were secondary to a deeper moral purpose. In Johnson’s own words, the real aim of the War on Poverty was “human dignity and decency.” His adviser Sargent Shriver put it this way: “We’re investing in human dignity, not doles.” By these standards, how have we done? To be sure, material conditions for our poor brothers and sisters have improved. Thanks largely to free enterprise and innovation, but with a real assist from the welfare state, being poor is less materially miserable in 2017 than it was in 1964. But unfortunately, while poverty may be less painful, it has not become any more escapable. If anything, at the bottom of the income scale, the job opportunities that would provide a real escape from poverty have fallen even further out of reach. AEI Scholar Nick Eberstadt details this in his 2016 book Men Without Work. Since 1965, the percentage of prime-age men who are jobless has surged from 6 percent to 16 percent. One in six American men age 25–54 has no paying job of any kind. Meanwhile, the church, family, and community institutions that have historically buffered against economic shocks are instead evaporating themselves. The result is a creeping despair that spreads like a social contagion. As recent work by the economists Anne Case and Angus Deaton shows, mortality rates for middle-age, white Americans are on the rise. Notwithstanding medical advances and favorable

Arthur Brooks trends sweeping the globe, this group of Americans is dying progressively younger. Why? AEI President and The biggest culprits are strong signals of despair: chronic liver disease, acute drug and alcohol Beth and Ravenel Curry overdoses, and suicide. Scholar in Free Enterprise We need to redirect American policy and culture to address this urgent crisis. First, we need to set aside bad questions, including how government can better “help” struggling people. This mind-set regards our brothers and sisters in need as human liabilities to sustain at minimal cost. But these millions of Americans are not inconveniences to remediate. They are dignified men and women whose talents, values, and voices America will need in our journey toward social and economic renewal. AEI is dedicating a major new initiative to this mission. The Human Dignity Project is a landmark effort that will span research, outreach, and strategic communications. Our aim is nothing less than refocusing the national dialogue around making every American necessary. Some of the Human Dignity Project’s key pillars include:

(1) New scholarship on education and workforce development, creating more pathways for all Americans to build human capital;

(2) New research on labor markets and family economics, designed to identify obstacles to dignity for poor Americans;

(3) A research effort to better understand and combat America’s opioid addiction crisis;

(4) Targeted study to develop solutions for uniquely vulnerable populations, such as currently and formerly incarcerated Americans; and

(5) Deep intellectual work that aims to reunite our fractured country, on topics from patriotism and civics to social connectedness.

As with all of AEI’s work, the Human Dignity Project will begin with policy research of peerless quality. But it is not simply an academic exercise. We will amplify this research with significant expansions in our ability to lead leaders: policymakers and senior staff here in Washington, students and faculty across elite campuses, and state- and local-level leaders around the country. AEI will also further invest in our abilities to disseminate our scholars’ work through digital, print, and broadcast media. And I will personally launch a new line of creative products, including a major new book project. It will transcend politics and policy and explore the systems, values, and habits that define entrepreneurial living. We plan to invest nearly $10 million in these efforts over the next year and more than $30 million in the next three years; we would be happy to speak with you about opportunities to support this work. As always, thank you for your support of AEI that makes our work possible.

Arthur Brooks Friends of AEI Tapped AEI Scholars Nominated for by the Administration Top Posts in Administration We are proud of the members of AEI’s community who have been asked by the AEI scholars have long been relied on by leaders on both sides of the political administration to serve in various capacities. aisle to offer the best ideas to tackle some of our nation’s biggest policy Former AEI Trustee Elisabeth (Betsy) challenges. We are proud that several of our scholars have been nominated DeVos was confirmed in February by the by the Trump administration for leadership roles in the government. US Senate as our nation’s 11th secretary of education. Secretary DeVos served on AEI’s Board from June 2015 to Scott Gottlieb, M.D., Resident Fellow November 2016. Scott Gottlieb was nominated for Food and Drug AEI National Council Co-Chair Jim Administration commissioner. Much of Scott’s work Donovan has been nominated as deputy at AEI has focused on expanding policy and regulatory secretary of the US Treasury. He currently approaches that preserve physician and patient serves as a managing director at the autonomy and on advancing public health through Goldman Sachs Group, where he is medical innovation and entrepreneurship. responsible for advising many of its largest corporate and individual clients. Kevin A. Hassett, State Farm James Q. Wilson Former AEI National Council member Chair in American Politics and Culture and Linda McMahon was confirmed by the Director of Research for Domestic Policy Senate in February as the administrator Kevin A. Hassett was nominated for chairman of the of the Small Business Administration. Council of Economic Advisers. Over his 20-year tenure Administrator McMahon is the cofounder at AEI, Kevin has conducted a vast body of research and former CEO of World Wrestling on economic, budgetary, and fiscal topics. He also Entertainment. served as senior economic adviser to several Republican Enterprise Club alum Heath Tarbert presidential candidates between appointments at AEI. has been nominated to serve as the assistant secretary of the treasury for Adam Lerrick, Visiting Scholar international markets and development. Adam Lerrick was named deputy undersecretary for Mr. Tarbert is currently a partner at international finance at the Treasury Department. Allen & Overly. At AEI, Adam has focused on international economic AEI Leadership Network alum Seema issues. He is known for his work on international Verma was confirmed as the administrator financial crises, such as in Argentina, where he led of the Centers for Medicare and Medicaid the negotiation team of the largest foreign creditor in Services. She is credited as the architect of restructuring the country’s $100 billion debt. the Healthy Indiana Plan, the nation’s first consumer-directed Medicaid program. Learn more about AEI scholars at aei.org/scholars.

Gerard Robinson Meets with President Trump

AEI Resident Fellow Gerard Robinson joined a meeting in February between African American leaders and President Trump to mark the start of Black History Month and discuss the issues that most affect the African American community. Two members of the AEI Leadership Network, Ja’Ron Smith and Paris Dennard, were also in attendance. Gerard discussed the meeting US President Donald Trump attends an African American History Month and President Trump’s education agenda in an appearance on Fox Business listening session, accompanied by Housing and Urban Development Secretary Ben Carson (C), at the Roosevelt room of the White House in Network’s After the Bell. Washington, DC, February 1, 2017. REUTERS/Carlos Barria

3 AEI Launches New Project to Close the “Dignity Deficit”

AEI recently launched our largest family leave policy. The project will research, outreach, and communications work with AEI’s Open Source Policy initiative in our nearly 80-year history. “While existing programs Center to develop the modeling The Human Dignity Project will produce are making poverty less capability to predict the use and actionable policy solutions and a robust costs of paid leave policies. body of scholarship on issues such as painful, most Americans restructuring our education system want to see poor • Formulating Effective Policies to promote workforce development, to Tackle America’s Opioid encouraging work and strong families, people move up the Addiction Crisis. Sally Satel will tackling America’s increasingly devas- income ladder through launch a research project to help tating opioid crisis, and reforming our understand the roots and spread criminal justice system. full-time employment of the opioid epidemic, explore The Dignity Project is predicated best administrative and therapeutic on the notion that a “dignity deficit” and stable families.” practices, and advance effective in America has been building for half a —Robert Doar policies to combat the crisis. She century. Economic growth is weak, far will assemble an advisory board of too many people are out of the labor highly qualified experts in addiction force and unqualified for existing jobs, nonpartisan collaboration that medicine, epidemiology, treatment and our education system is failing to produced the 2015 report services, payment systems, drug train children for new economic and “Opportunity, Responsibility, development and pharmacology, social realities, leaving many Americans and Security,” Robert Doar and criminal justice, drug policy, and feeling superfluous. To overcome the Ryan Streeter are partnering with pain management. dignity deficit, we must treat people as the Brookings Institution and assets to develop rather than liabilities Opportunity America to diagnose • Creating Opportunities for to manage. the challenges facing the working the Currently and Formerly The project’s forthcoming scholarship class and propose solutions to Incarcerated. Gerard Robinson to help Americans reclaim their sense of help those individuals flourish. will publish a volume on prisoner purpose includes: Among the confirmed participants reentry programs. The volume will are Bruce Reed, the director of the address topics such as how prisons • Analyzing Workforce Training Domestic Policy Council under can rehabilitate and educate the Programs. Ryan Streeter and President Bill Clinton, and Oren incarcerated, what supports can be Andy Smarick are organizing a new Cass, the political director of Mitt provided to the formerly incar- Working Group Series on Vocation Romney’s presidential campaign. cerated so they can navigate the to solve fundamental problems in outside world in their first few days America’s labor force. The working • Assessing Federal Paid Family of freedom, how private enter- group will include policymakers, Leave Policies. Aparna Mathur prise can be leveraged to develop nonprofit executives, business is directing a multiyear project in educational delivery systems inside leaders, and scholars. They will collaboration with the Brookings prisons, and what policy measures work to identify successful work- Institution to engage actively in can give returning citizens access to force training programs, explore the debate regarding the optimal education they currently lack. how such programs are designed, design of a paid family and medical and determine the roles of govern- leave policy for the United States. If you would like to learn more about ment and nongovernmental sectors The project’s diverse working AEI’s research and communications in producing successful programs. group will publish a report initiatives in the Human Dignity Project, assessing federal paid family leave please contact Senior Vice President • Proposing Solutions for the proposals and key parameters and Jason Bertsch at [email protected] or Working Class. Building on the policy decisions for a federal paid 202.862.5873.

4 New Edited Volumes on the Presidency, Congress

Resident Scholar Gary J. Schmitt recently “imperial” the modern presidency is coedited two timely volumes on the in employing authorities that break the presidency and on Congress. In his bounds of law and the Constitution. In role as the director of AEI’s Program on addition to Gary’s chapter titled “Going American Citizenship, Gary has been to War: The Constitutional and Strategic a leading voice in examining questions Roots of the Imperial Presidency,” the related to the nature of our government, volume features essays by other noted the role of Congress and the presidency, presidential scholars, including James national security decision-making, and Ceaser (University of Virginia), Joseph efforts to reinterpret the Constitution. Bessette (Claremont McKenna), and Andrew Rudalevige (Bowdoin College). Is Congress Broken? The Virtues and Wolfensberger of the Wilson Center. Defects of Partisanship and Gridlock Gary’s essay, titled “The Other End (Brookings Institution, March 2017) of Pennsylvania Avenue,” provides focuses on how Congress in the 21st a framework for understanding the century can once again fulfill its proper relationship between the executive functions of representation, deliberation, and legislative branches of government. legislation, and oversight. Coedited To learn more or to order copies with William F. Connelly Jr. (Washington of the volumes, visit aei.org/ and Lee University) and John J. Pitney Jr. publication/book. To learn more (Claremont McKenna College), the about Gary’s recent work, visit The Imperial Presidency and the 10-essay volume includes pieces by aei.org/scholar/gary-j-schmitt. Constitution (Rowman & Littlefield, Jonathan Rauch of the Brookings Insti- March 2017) delves deeply into the tution, Daniel Stid of the William and now perennial question of just how Flora Hewlett Foundation, and Donald

Former AEI President Christopher DeMuth “Think tanks have risen to Awarded Prestigious 2017 Bradley Prize prominence and influence at a time when two much Christopher DeMuth was honored with older institutions—the ones a 2017 Bradley Prize, which recognizes they are closest to—have individuals of extraordinary talent and been in decline. Universities dedication who have made contributions and colleges have succumbed of excellence in areas consistent with the Lynde and Harry Bradley Foundation’s to demands to embrace mission. It is one of the highest honors orthodoxy and suppress conferred on individuals in the world of Congress, economic policy, and open inquiry and dissent. policy and culture. regulatory issues. Government and politics Mr. DeMuth led AEI as its president Mr. DeMuth joins a growing list of have succumbed to demands from 1986 to 2008, served as the DC AEI scholars who have been honored to regiment every aspect of Searle Senior Fellow at AEI from 2009 to with the Bradley Prize. They include society and commerce and 2011, and currently serves as a distin- Charles Murray (2016), Nicholas guished fellow at the Hudson Institute Eberstadt (2012), Michael Barone (2010), ameliorate every difficulty of in Washington, DC. He has written James Q. Wilson (2007), John R. Bolton private life.” on topics such as the Constitution, (2007), and Leon R. Kass (2004). —Christopher DeMuth

5 neurobiological view betrays a superfi- cial appreciation of an enormously Q&AEI with Sally Satel complex human phenomenon. Brain changes occur in the course of addiction, of course, but the important AEI Resident Scholar Sally Satel, M.D., a practicing question is what those changes mean. psychiatrist and lecturer at the Yale University School Is drug abuse beyond a person’s control of Medicine, studies mental health policy, political trends in the same way that the symptoms of in medicine, domestic drug policy, and transplant policy. Alzheimer’s disease or most other Sally Satel is the author of several books; her most recent, neurological conditions are? No. Brainwashed: The Seductive Appeal of Mindless Neuroscience (Basic Books, 2013) with Scott Lilienfeld, It makes much more sense to think was a 2014 finalist for theLos Angeles Times Book Prize about addiction as a process that can in Science. be explained through several lenses at once: the neurobiological, psycho- You work at the intersection of shortchanged in favor of those who logical, behavioral, social, and environ- research, policy, and practice as a need far less intervention. The reasons mental. Focusing on the brain distracts scholar and lecturer and a practicing behind these warped priorities are com- you from the others—and it is on psychiatrist. How does your unique plex, but they are tied up in a rejection of those other levels that treatment and experience affect your work at AEI? organized psychiatry, a distorted under- policy operate. My clinical work with people with mental standing of the causes of severe mental You’ve written about your personal illness and those who are addicted to illness, and victim politics run amok. experience navigating the intersection drugs has been the biggest asset in my You are launching a major new of treatment and policy—in your research. There are too many myths project at AEI on the opioid epidemic. search for a kidney donor. How can surrounding these conditions. Unless What are the project’s major aims? policy be used to increase kidney you understand the nature of these donations and save lives? disorders and behaviors and how to The project aims to identify effective Twenty-two people die every day treat them, policy will suffer. programs in small states and rural areas and bring locales together to share because they could not survive the wait What is the difference between their experiences. I am especially inter- for a kidney, liver, lung, or heart from mental health, mental illness, and ested in novel ways to engage patients the national “list.” The idea is to reward severe mental illness, and why do in treatment and creative diversion people who are willing to save the life of such distinctions matter? programs through the criminal justice a stranger by donating a kidney. The government would reward People with severe mental illness system. The use of incentives paired healthy, informed individuals willing to (schizophrenia, bipolar illness, etc.) with anti-addiction medications should donate a kidney. Rewards could take require the most intensive services. be especially promising, but this needs the form of contributions to the donor’s They are more likely than people with to be tested. retirement fund, tuition vouchers, lifetime other psychiatric problems to interact The project will also document health insurance (perhaps with a cap on with law enforcement. (Rikers Island the evolution of the opioid crisis, espe- its value), contributions to a charity of the and other city jails contain more psychi- cially the unintended consequences of donor’s choice, or loan forgiveness. My atric patients than any state hospital.) various ongoing strategies, including the AEI colleague Alan Viard and I just wrote If they refuse medication because, as a crackdown on painkiller prescribing, the a detailed paper on how a refundable manifestation of their illness, they don’t aggressive promotion of various anti- tax credit could work. Analysts have acknowledge being ill, there needs to addiction meds, and how synthetic opi- determined that an incentive regime be civil remedies. In short, these are oids affect the epidemic’s progression. that encourages kidney donations individuals who need a lot of attention— Is drug addiction a brain disease? and thereby reduces expenditures on fortunately, when they get it, the majority dialysis would likely save the government can function in the community. I do not think that is a productive way $10 billion per year. The problem at both the federal to think about addiction. For one thing, and state level is that the needs of this it implies that addiction is a totally To learn more about Sally Satel, visit profoundly ill population have been involuntary state; second, the aei.org/scholar/sally-satel.

6 AEI Leadership Network Holds Spring Summit

The summit’s purpose is to convene a personally, professionally, and ideologically diverse group of leaders for an honest and open discussion on increasing opportunity by focusing on areas such as poverty alleviation, education reform, and the free enterprise system. The spring agenda featured AEI scholars Charles Murray, Robert 2017 Spring Leadership Network Class Doar, Aparna Mathur, Michael Strain, and Stan Veuger, as well as a training Seventy leaders representing business, that reaches leaders from across the session in effective communications nonprofits, state-based think tanks, country representing nonprofit and techniques with Arthur Brooks and a grassroots organizations, and the community organizations, small professional media trainer. media gathered at AEI for our fifth business, and state and local To recommend someone for annual Leadership Network Summit government. To date, more than future Leadership Network summits, on April 26–29. AEI’s Leadership 320 distinguished leaders are part please contact Meredith Schultz Network is an exclusive program of the Leadership Network. ([email protected]).

International Leaders Speak at “Thank you to [AEI] for giving me AEI on Key Transatlantic Issues the opportunity to talk about the importance of productivity. I think the new AEI building is actually AEI recently hosted a number of Schneider of the Institute of a very fitting venue to have that prominent foreign policymakers to International Finance. (April 3) discuss issues of prime importance to discussion. . . . [First,] because America and our allies. • The Right Honorable Iain of the intellectual leadership of Duncan Smith, Member of Arthur Brooks and his team on • Christine Lagarde, the managing Parliament and former UK secretary many economic issues. . . . director of the International Mon- of state for work and pensions, [And second], it has to do with etary Fund (IMF), visited AEI for a discussed the lessons learned from your new address: 1789 Massa- the successful reform of the welfare conversation with Arthur Brooks chusetts Avenue. . . . In 1789 the and Desmond Lachman about the system in the UK. AEI’s Robert Doar US Constitution came into force, global productivity slowdown and and Lawrence Mead participated reminding everyone to this day the policies the IMF will pursue to in a panel discussion with Duncan that the government exists to place the global economy on a Smith and Richard Reeves of the faster growth path. (April 3) Brookings Institution. (April 4) serve its citizens.” —Christine Lagarde • Polish Deputy Prime Minister • Belgian Finance Minister Mateusz Morawiecki discussed Johan Van Overtveldt joined To view video of any of these events, how current populist trends are Stan Veuger and Dalibor Rohac to please visit AEI’s YouTube page at affecting Poland and his vision talk about the lingering effects of www.youtube.com/user/AEIVideos for improving Poland’s economy. the 2008 financial crisis and the or listen to the newly launched AEI AEI’s Dalibor Rohac moderated key role Belgium plays in both the Events podcast: aei.org/tag/ the conversation between European Union and NATO. aei-events-podcast/. AEI’s Stan Veuger and Ondrej (April 20)

7 AEI Board Welcomes Dick DeVos Save the Date AEI is pleased to Market. He was the Republican candi- announce the appoint- date for governor of Michigan in 2006. Each year, AEI hosts an annual ment of Dick DeVos He is the author of Rediscovering dinner to celebrate intellectual to the AEI Board of American Values: The Foundations freedom, a competition of Trustees. During his of Our Freedom for the 21st Century ideas, and a better life for all career, Mr. DeVos has (Dutton/Penguin, 1997), a New people. At this event, the worked in a variety York Times bestseller. Irving Kristol Award is bestowed of executive positions at Amway, Mr. DeVos is a two-time national upon a person who champions the NBA’s Orlando Magic, and the champion sailor, a qualified jet aircraft these ideals. Windquest Group, where he currently and helicopter pilot, and a graduate serves as president. of Northwood University. He has been IRVING KRISTOL AWARD He has led a wide range of commu- married to the former Betsy Prince for & ANNUAL DINNER

nity initiatives, from education-focused 37 years, and they have four children HONORING projects, such as the Education Freedom and six grandchildren. Fund and the West Michigan Aviation AEI is deeply grateful for Mr. DeVos’ RABBI LORD JONATHAN SACKS Academy, to downtown revitalization leadership and commitment to AEI and regional health care improvements, and its mission. For a complete list of TUESDAY, OCTOBER 24, 2017 aei.org/about/ NATIONAL BUILDING MUSEUM including an arena, a convention center, AEI’s trustees, visit WASHINGTON, DC and the Grand Rapids Downtown board-of-trustees/. Recipients of the The End of an Era (Really) Irving Kristol Award 2016 Robert P. George 2015 Benjamin Netanyahu 2014 Eugene Fama 2013 Paul Ryan 2012 Leon Kass 2011 Martin Feldstein 2010 David Petraeus 2009 Charles Murray 2008 John Howard 2007 Bernard Lewis 2006 David Hackett Fischer 2005 Mario Vargas Llosa 2004 Charles Krauthammer 2003 Allan Meltzer

An era has officially ended at 1150 Seventeenth Street, NW, in Washington, DC. AEI’s former headquarters building, which the Institute leased for 45 years, has been torn down to make way for a new office structure. AEI opened the building as the first tenant in 1971, and we were the last to leave in August 2016.

1789 Massachusetts Avenue, NW Washington, DC 20036 202.862.5800 | aei.org

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