A DEFENDER OF FREEDOM, OPPORTUNITY & ENTERPRISE

The American Enterprise Institute is a community of scholars, staff, and supporters committed to expanding liberty, increasing individual opportunity, and strengthening free enterprise. AEI pursues these unchanging ideals through independent thinking, open debate, reasoned argument, and the highest standards of fact-based research. Without regard for politics or prevailing fashion, we dedicate our work to a more prosperous, safer, and more democratic nation and world.

Located in Washington, DC, AEI is a nonpartisan, nonprofit, 501(c)(3) educational organization. The Institute does not take institutional positions on any issues. We are supported by private donations from individuals, foundations, and corporations. AEI does not accept government funding and does not perform contract research. For more information about AEI, visit our website, www.AEI.org.

AEI SCHOLARS TELEVISION AND AND STAFF RADIO APPEARANCES 225 2,465

CONGRESSIONAL TESTIMONIES OP-EDS IN MAJOR IN THE 113TH CONGRESS PRINT MEDIA (JANUARY 3, 2013 – JANUARY 3, 2015) 3,385 89

FOLLOWERS ON AEI'S SOCIAL SUMMER INTERNSHIP MEDIA ACCOUNTS APPLICATIONS YOUTUBE, TWITTER, AND FACEBOOK 6,794 243,800

DONORS FY 2015 ANNUAL REVENUE 1,380 $54.6M

*Numbers are for calendar year 2015 (unless otherwise noted) and are as of November 2015. DEBATING POVERTY

On May 12, Arthur Brooks participated in a panel on poverty with President Obama at Georgetown University. The panel, which also featured Harvard political scientist Robert Putnam and was moderated by ’s E. J. Dionne, debated the best ways to address chronic poverty. Robert Doar and W. Bradford Wilcox participated in a separate panel at the same event. The summit earned widespread media coverage, including by the Washington Post, , , and National Public Radio.

2016 ELECTION

AEI scholars organized predebate forums at the sites of Republican and Democratic US presidential debates in Cleveland, Las Vegas, and Boulder. They discussed the need for a conservative message that speaks to voters’ hearts and minds, the country’s demographic shifts, and the economic challenges facing the nation. IRAN NUCLEAR DEAL

In the month following the announcement of the Iran nuclear deal on July 14, , Michael Rubin, Matthew McInnis, Marc Thiessen, Frederick Kagan, and gave more than 50 radio and 30 television interviews on the outlines of the “comprehensive” nuclear deal with Iran. Additionally, in well over 50 op-eds and blogs posts, the team warned that the terms of the deal are likely to enable rather than halt Iran’s nuclear weapons development. Kagan launched a new mini-website on AEI’s Critical Threats Project’s Iran Tracker site to clarify the agreement’s complex language and to provide additional information (www.irantracker.org). CONTENTS

ECONOMIC POLICY STUDIES 02

POVERTY STUDIES 04

HEALTH POLICY STUDIES 07

EDUCATION POLICY STUDIES 08

SOCIETY AND CULTURE 10

POLITICS AND PUBLIC OPINION 11

FOREIGN AND DEFENSE POLICY STUDIES 12

OUTREACH AND COMMUNICATIONS 14

/ IV /

MESSAGE FROM THE CHAIRMAN AND PRESIDENT

programs, we have more than 5,300 student envoys on more than 600 campuses in our network. AEI is also developing young business leaders across the nation, empowering them to help spread our ideas and improve public policy.

Meanwhile, AEI’s in-house media team is bringing our free enterprise ideas to new audiences. Our scholars continue to dominate the opinion pages of the country’s most read publications and make thousands of television and radio President Arthur C. Brooks and Chairman Tully M. Friedman appearances on the nation’s most influential programs. On the digital “The competition of ideas is debates on a wide range of public front, our AEIdeas blog remains a fundamental to a free society.” policy issues, including economics, leading destination for analysis that health care, education, politics and combines policy, politics, and news. William J. Baroody Sr., one of public opinion, and foreign and Our popularity on social media sites AEI’s early presidents, coined this defense policy. Moreover, we have such as Facebook, Twitter, and phrase in the 1960s. At the time, the added new scholars and fellows, YouTube is growing rapidly. message was subversive. Baroody including in crucial new areas such believed that ideas, like economies, as poverty alleviation. To carry out this work, we depend must not be controlled by central on you, our steadfast community of planners and government elites. At the same time, we have massively supporters, who agree that investing Rather, American vibrancy required broadened our communications in ideas is vital for the future of bottom-up intellectual diversity and presence to ensure that our our world. Thank you for trusting a true competition of ideas that scholars’ ideas have the maximum us with your resources in the fight included independent institutions possible impact. Across all AEI’s for our shared values. In addition such as AEI. research areas, we are actively to a record amount of funds to injecting our work into the most support our work this past year, our History has vindicated Baroody’s important policy debates of the day generous community also helped us vision of America—and of AEI. and disseminating that work to the raise more than $99 million toward We have never wavered from leaders who are best placed to act. our capital campaign goal. our mission to promote vigorous We have expanded our outreach to debate and deliver the best ideas policymakers on both sides of the We hope you are proud of the work to policymakers, business leaders, aisle, and AEI scholars continue to you have made possible over the journalists, and students. We do testify more often before Congress past year. We are deeply optimistic this to protect liberty and expand than any peer organization. about what we can achieve together opportunity and enterprise in in the months and years ahead. America and around the world. We are also cultivating the next generation of free enterprise leaders. The past year—AEI’s 78th fighting AEI is working to make our core Tully M. Friedman for these timeless principles—has ideas as prevalent on campuses Chairman been the most active in our history. and business communities as they As you will see in these pages, we are on Capitol Hill. Three years Arthur C. Brooks have played a leading role in key after launching our academic President

/ 1 / ECONOMIC POLICY STUDIES ACCELERATING ECONOMIC RECOVERY

Part of AEI’s core mission is the preservation and promotion of free market economies in the and around the world. AEI’s Economic Policy team consists of leading scholars who are researching the most crucial issues challenging our economy today and proposing a range of innovative solutions designed to reform America’s systems and accelerate its economic recovery. AEI scholars study the national budget, monetary policy, tax and entitlement reform, financial markets regulation, and international trade and finance.

z Peter Wallison wrote a second z Kevin Hassett, with coauthor book on the financial crisis,Hidden Alan Auerbach, wrote an incisive in Plain Sight: What Really Caused critique of the data, theory, and the World’s Worst Financial Crisis policy conclusions in Thomas and Why It Could Happen Again Piketty’s prominent book Capital (Encounter Books, January 2015). in the Twenty-First Century. The Wallison was interviewed by paper, which was published in the dozens of media outlets about American Economic Review in May, the book—including , was presented at the American CNN, and CNBC. Economic Association conference in January and has been cited by outlets including Forbes, Tax Notes, and PBS.

WEALTH BUILDING HOME LOAN

In 2014, Edward Pinto and Stephen Oliner created the Wealth Building Home Loan (WBHL), a new approach for banks to provide homebuyers a more reliable and effective means of building wealth while maintaining buying power similar to a 30-year loan. The Neighborhood Assistance Corporation of America (NACA), in conjunction with the Bank of America, has decided to incorporate the WBHL concept into its low-income lending program in NACA’s 40-plus offices nationwide.

/ 2 / NEW SCHOLARS

Benedic Ippolito joined AEI as a research fellow to focus on the economics of health care policy, with a special focus on the behavior of health care providers. He has been investigating how changes in financial incentives influence hospital care and how alternative compensation models influence the behavior of physicians and the way they treat patients.

Vincent Reinhart rejoined AEI as z In March, AEI’s Open Source a visiting scholar after stepping Policy Center, led by Matt Jensen, down as Morgan Stanley’s chief released to beta users the first-ever US economist. Reinhart is a former open-source static scoring model director of the Federal Reserve for US tax policy analysis. This Board’s Division of Monetary Affairs, model and its online interface will where he worked on domestic and allow users to analyze the effects of international aspects of US monetary policies for themselves. policy at the Fed for more than two decades. z In May, Joseph Antos, Andrew Biggs, Alex Brill, and Alan Viard published a paper titled Tax and Wendell L. Willkie II joined AEI Spending Reform for Fiscal Stability as a visiting fellow to focus on the and Economic Growth for the governance of America’s public Peterson Foundation’s Solutions companies, the responsibilities Initiative, which Viard presented of corporate boards, and the on a bipartisan panel at the 2015 significance of shareholder activism Fiscal Summit. The paper proposed and engagement. Willkie has had a a plan to fix America’s debt and distinguished career in government, restore long-term fiscal stability to having served in various positions at the country. the White House, US Department of Education, and US Department z Desmond Lachman, Adam of Commerce. Lerrick, and Vincent Reinhart were active in shaping the debates on the Greek debt crisis, holding Weifeng Zhong joined AEI as public events, publishing numerous a research fellow, focusing on op-eds, and appearing on television macroeconomics and political and radio. Lerrick and Reinhart economy. Zhong’s current research also spent time in Greece over the focuses on the Chinese economy summer talking to officials about and how forms of government the crisis. relate to economic policies across countries. He was previously a research and teaching assistant at the Kellogg School of Management at Northwestern University.

/ 3 / POVERTY STUDIES

SEEING PEOPLE AS ASSETS, NOT LIABILITIES

Twelve million more Americans live in poverty today than did in 2000. Work rates for men with low levels of education are collapsing. Nonmarital births are at elevated levels, and racial gaps in poverty persist. These are the issues that AEI’s Poverty Studies program aims to address, believing that it is only through free enterprise that we can stimulate true prosperity and innovative thinking—as opposed to simply treating poverty. AEI’s team of leading academics and practitioners is dedicated to fostering new ideas for fighting poverty and improving government programs to help more low-income Americans move up, advancing those ideas in the public dialogue, and connecting those ideas to decision makers. All of the program’s work takes a human capital approach to poverty alleviation, understanding that poor people are not liabilities to be managed but rather assets to develop.

z Nicholas Eberstadt produced featuring Arthur Brooks on “How several articles and op-eds about Conservatives Can Help the Poor.” Americans’ flight from work and the impact that has on the modern z In June, Angela Rachidi penned welfare state. Eberstadt’s work on a policy brief examining various the decline in marriage and the earned income tax credit expansion falling birth rate appeared in the proposals. Her frequent blog posts Wall Street Journal in February. on social services issues have been read and praised by top House z On February 23, NBC News ran the Committee staffers. profile piece “MeetArthur Brooks, the Republican Party’s Poverty z Kevin Corinth released two Guru.” The article profiled AEI’s work papers on homelessness in the on poverty issues and impact on the AEI Economic Perspectives policy messaging of the 2016 presidential series: Street Homelessness: candidates. Shortly after, MSNBC A Disappearing Act? (June) ran a segment on AEI’s leading and What Should We Do about role in reshaping the conservative Homeless Families? Comments on approach to poverty alleviation, and the Family Options Study (August). in October, CNN produced a video

/ 4 / NEW SCHOLARS RESTORING THE AMERICAN DREAM Maura Corrigan joined AEI as a visiting fellow to focus on issues related to child welfare, child Robert Doar serves on the executive support, food assistance, and committee of the AEI-Brookings Working disability. Before AEI, Corrigan Group, an effort by a bipartisan group worked as director of the Michigan of top scholars and policy intellectuals Department of Human Services SEEING PEOPLE to identify actionable and politically where she was responsible for viable policy solutions that address administering Michigan’s public issues of poverty and lack of opportunity assistance programs for low-income in America. Members include AEI’s and vulnerable Michigan children AS ASSETS, NOT and families. Michael Strain and Lawrence Mead. The group’s effort has resulted in Opportunity, Responsibility, and Security: LIABILITIES A Consensus Plan for Reducing Poverty Lawrence Mead joined AEI as a and Restoring the American Dream, a visiting scholar to study American major consensus document published social welfare programs. He is also in December with proposals focusing a professor of politics and public on work, family, and education. policy at . Known as one of the theoretical architects of welfare reform in the 1990s, Mead has written several influential books (including Expanding Work Programs for Poor Men, AEI Press, 2011), in which he demonstrates that mandatory work requirements are essential to sound welfare policy. z Over the summer, Robert Doar, Angela Rachidi, and Maura Corrigan submitted a statement to Angela Rachidi joined AEI as the House Committee on Ways and a research fellow to work on the Means on the Discussion Draft to effects of public policy and existing Reauthorize Temporary Assistance support programs on low-income for Needy Families. They analyzed families. Rachidi was previously the merits and drawbacks of the a deputy commissioner for policy committee’s proposal and crafted research and evaluation at the recommendations to improve the Human Resources Administration in draft. Their statement was widely New York City, studying programs circulated among relevant staff. such as Temporary Assistance for Needy Families, the Supplemental z W. Bradford Wilcox, along with Nutrition Assistance Program, and economists Joseph Price (BYU) and workforce development programs. Robert Lerman (Urban Institute), released a new report exploring the extent to which family structure affects economic growth at the state level. The study, which was released at an AEI event keynoted by Sen. Ben Sasse (R-NE), received considerable attention in the public debate, including favorable articles in the Washington Post, Bloomberg, and many others.

/ 5 / The Conservative Heart makes the case for why conservative THE principles should be at the center of our poverty-fighting efforts. Arthur is one of the best minds on these issues, and CONSERVATIVE he demonstrates why it’s so important that we engage in our communities and learn from those who are on the front lines HEART of fighting poverty. —Speaker of the House Paul Ryan (R–WI)

Brooks doesn’t want conservatives to abandon the wonkish policy arguments. Indeed, the institute he runs is dedicated to developing them. But he fears that if conservatives lead with them, few people will listen. His closing chapter, called ‘The Seven Habits of Highly Effective Conservatives,’ offers a recipe for how conservative politicians can revise their rhetoric to undermine the left’s monopoly on compassion and empathy. He wants conservatives to speak more in moral terms, to be seen fighting for people rather than against policies, to spend more time engaging with moderates and liberals, and to embrace the persona of a happy warrior. —N. Gregory Mankiw, New York Times Book Review, July 28

media outlets nationwide, including MSNBC, Fox News, NBC News, NPR, and PBS. Arthur also appeared on NBC’s Meet the Press the Sunday after the book’s release to discuss the book’s themes.

In addition, AEI provided galleys of the book to dozens of long-lead publications, including , Wall Street Journal, and Washington Post, all of which reviewed the book. The book was Arthur Brooks’s latest book, reviewed 23 times and featured The Conservative Heart: How to 75 times in print and online outlets. Build a Fairer, Happier, and More Prosperous America, was released These efforts surrounding the by HarperCollins on July 14. book’s launch led to its debut in the top 10 of the New York In the lead up to its publication, AEI implemented a robust, multifaceted Times, Washington Post, Wall marketing campaign. Street Journal, Publishers Weekly, and Chicago Tribune Our media team booked more than best-seller lists. 100 radio, television, and online interviews for Arthur in top-rated

/ 6 / HEALTH POLICY STUDIES PROPOSING FREE MARKET HEALTH CARE ALTERNATIVES

AEI’s Health Policy Studies program has been a leader in the debates KING V. BURWELL on health care policy, promoting free market alternatives to the federal government’s massive new role in the sector and encouraging robust Thomas Miller was involved in the competition that empowers individuals, not bureaucrats. Through landmark King v. Burwell case (which empirical research and analysis, members of AEI’s health team decided the fate of the Affordable (which includes practicing physicians, attorneys, academics, and Care Act) from its conception, former policymakers) are helping to advance policy reforms that meeting with several state-level policy increase consumer choice, engender competition and innovation leaders, and was frequently quoted in editorials in leading outlets such in the marketplace, improve the corporate tax system, and stream- as the New York Times regarding line regulation. the Supreme Court ACA decisions. He commented on C-SPAN from outside the Supreme Court with z Joseph Antos published papers z James Capretta, Joseph Antos, his predictions for and reactions to on health care competition and Ramesh Ponnuru, and Thomas oral arguments. He also regularly market-driven innovation in several Miller, with fellow contributors at briefed Senate Republican legislative academic journals over the course the Peter G. Peterson Foundation, directors on ACA replacement of the year, including JAAMC: released a comprehensive reform options for the 114th Congress. Academic Medicine and the Journal proposal in December for a new of the American Society on Aging. American health agenda. The goal of this compendium is to z Thomas Stossel published his develop a pragmatic, market- book, Pharmaphobia: How the based reform plan for the nation’s Conflict of Interest Myth Undermines health system and major health American Medical Innovation entitlement programs. (Rowman & Littlefield, April 2015). Stossel reviews the history of conflict z Scott Gottlieb analyzed of interest arguments in medicine developments in federal policy and explains why interactions and Food and Drug Administration among companies, physicians, regulation and their impacts on and medical researchers are not innovation, medical care, and public conflicts but instead prerequisites health and has been identifying for ensuring efficient medical key areas in which the ACA can be innovation. He held a book briefing altered to help eventually establish a on Capitol Hill; wrote related market-based health care system. op-eds in the popular press; and had a series of television and radio appearances to promote the book’s ideas, including NPR’s “On Point.”

/ 7 / EDUCATION POLICY STUDIES

BUILDING A CULTURE OF EDUCATIONAL ENTREPRENEURSHIP

AEI’s Education Policy Studies program seeks to increase the opportunity of every American student by building a culture of educational entre- preneurship to profoundly improve teaching and learning. Through serious discussions and first-rate research that seek to rise above the political partisanship and policy fads so common in education today, the program has become a leader in the scholarship of reform and a broker of relationships among influential education reformers. As a result, AEI has become a destination for policy experts and practitioners alike who seek to address America’s biggest education challenges and drive fundamental change.

z Kevin James coauthored a white z In June, AEI Education released paper with New America’s Alexander An Education Agenda for 2016: Holt on Income Share Agreements Conservative Solutions for (ISAs) and briefed Rep. Todd Expanding Opportunity, a book of Young’s (R-IN) office on measures to eight essays by AEI scholars and provide legal clarity to ISA providers. other experts setting an education On July 29, Rep. Young introduced platform that a conservative the Investing in Student Access Act, administration could pursue in office. which drew from ideas in James’s AEI hosted a dinner with policy white paper as well as Andrew advisers from several Republican Kelly’s work on the issue. Following presidential campaigns to distribute the introduction of the bill, AEI and discuss the book. hosted a private working group that convened more than 50 individuals z AEI’s Center on Higher Education from a variety of backgrounds. Reform (CHER), led by Andrew In late August, former Indiana Kelly, commissioned six new Governor Mitch Daniels had an papers that explore competency- op-ed in the Washington Post based education (CBE). CBE flips on ISAs, citing AEI scholars as traditional higher education on its architects and supporters of head; instead of awarding credit the idea. to students based on seat time, it grants credit once students display mastery of course material. CHER’s project laid thorough groundwork for future research.

/ 8 / THE CAGE-BUSTING TEACHER

Frederick Hess released The Cage-Busting Teacher (Harvard Education Press, April 2015) to explain how teachers can engage policymakers on K–12 issues, call out mediocrity in the teaching profession, and grapple with poor school leadership or professional development. The book received great acclaim from reform-minded teacher groups and praise from the presidents of the two largest teachers’ unions. Hess wrote a number of related pieces for educator and reform-oriented publications and spoke to 22 gatherings in 12 states about the book.

AEI worked with Hess to build a web presence for the book’s ideas (www.aei.org/feature/cage-busting-teacher). In advance of the book’s official release, Hess’s six-video series featuring stories of innovative leadership from teachers around the country garnered almost 60,000 views online within one month. The web page also features distilled points from the book, teacher resources, and a list of his cage-busting events.

z Katharine Stevens published her first monograph on the history of NEW SCHOLARS early education in America. Titled Renewing Childhood's Promise: Nat Malkus joined AEI as a The History and Future of Federal research fellow, focusing on Early Care and Education Policy applying quantitative analysis (November 2015), the report to questions on school finance, explains how policymakers have lost charter schools, school choice, their way and offers an innovative and the future of standardized new proposal to offer vouchers testing. Before joining AEI, Malkus for Head Start funds. Stevens also was a senior researcher at the wrote an op-ed in the Los Angeles American Institutes for Research. Times criticizing a bill to establish universal pre-K in California as it was sitting on Governor Jerry Brown’s desk for approval. The op-ed drew Gerard Robinson joined AEI much attention, and Governor Brown as a resident fellow. He focuses ended up vetoing the bill. on school choice programs, the challenges of reforming K–12, z Now in its seventh year, AEI’s innovation in for-profit educational K–12 Future of American Education institutions, the role of community Working Group convened once colleges and Historically Black again, gathering many of the nation’s Colleges and Universities in leading reform-minded academics, adult advancement, and the educators, and entrepreneurs to importance of parental and student discuss the latest research and responsibility. He previously served cutting-edge innovation in K–12 as commissioner of education for education. AEI’s parallel working Florida, secretary of education for group to think about postsecondary the Commonwealth of Virginia, and education, launched in 2009, also president of the Black Alliance for met again to identify emerging Educational Options. research priorities, including administrative accountability, innovation, and transparency. Both working groups serve as incubators for new projects, partnerships, and lines of inquiry and innovation.

/ 9 / SOCIETY AND CULTURE ADVANCING AN UNDERSTANDING OF AMERICAN VALUES

AEI scholars are tackling the challenge of maintaining a culture where virtue flourishes in tandem with freedom and material progress. Our scholars are advancing a clear understanding of American culture and values and exploring how that understanding should in turn inform US public policy. These are not the narrow cultural values that have so often divided Americans and poisoned our national politics. Rather, they are the overarching beliefs that inform our understanding of what it is to be an American—human liberty, individual opportunity, and free enterprise. These values have undergirded AEI’s endeavors just as they have inspired generations of Americans.

z Charles Murray’s latest book, z Christina Hoff Sommers has By the People: Rebuilding Liberty created more than 40 “Factual without Permission (Crown, May Feminist” video blogs, which have 2015), offers a hopeful message that garnered 4 million total views. rebuilding our traditional freedoms She is at the epicenter of some can be done by “we, the people,” hot-button issues, including male using America’s unique civil society underachievement, sexual assault to put government back in its on college campuses, and equal proper box. AEI promoted the book pay for equal work. Her online extensively nationwide, with Murray educational videos for Prager participating in interviews on Fareed University have also each attracted Zakaria’s GPS (CNN), John Stossel’s more than half a million views. We the People (Fox), and Wall Street Journal’s “Opinion Journal.” z Sally Satel provided commentary on a wide variety of issues that few conservatives address, such as prison reentry and criminal justice reform, the importance of e-cigarettes in smoking cessation, incentives for organ donation, trends in and responses to drug addiction, and the treatment of the mentally ill. In September, she held a conference on reducing incarceration and crime with bipartisan reformers Reps. Jim Sensenbrenner (R-WI) and Bobby Scott (D-VA).

/ 10 / POLITICS AND PUBLIC OPINION ADVANCING AN UNDERSTANDING OF ANALYZING OUR AMERICAN VALUES POLITICAL CULTURE

AEI is home to several prominent analysts of trends in politics and public opinion whose research is informed by the understanding that freedom and prosperity depend on healthy social and political institutions. The freedom that Americans enjoy is defined not only by laws that limit the IS THE AMERICAN reach of government but also by a political culture that gives life to the laws and to the principles they embody. AEI’s work aims to inspire DREAM ALIVE? a greater understanding of and appreciation for America’s guiding principles, enduring documents, and civic character. In December 2014, Karlyn Bowman released an ebook, z Tim Carney published an AEI a compendium of essential political Is the American Dream Alive? paper on reforms that members of data on every state, governor, and Examining Americans’ Attitudes. Congress could consider to start congressional delegation. Barone This AEI Public Opinion Study dismantling policies that favor was one of the original authors of is the most comprehensive narrow interests over general ones. this volume, which debuted in 1972. collection of survey data from Entitled An Anti-Corporate Welfare, major pollsters on the American Anti-Cronyism Agenda for the 114th z In May, Ramesh Ponnuru and dream. The study found that Congress (November 2014), the coauthor Reihan Salam penned the definition of the American paper highlights the work of 10 AEI “A Constitutionalist Agenda for dream to most Americans has scholars and was used during the GOP” for remained constant over the AEI’s briefings for new members Online, in which they suggested years: education, freedom, and of Congress. ideas to strengthen federalism homeownership. Overall, the and the separation of powers. In study found that Americans still z AEI’s Program on American it, they discuss Medicaid reform, believe the dream is attainable, Citizenship, led by Gary Schmitt, adoption of the REINS Act to assess despite increased pessimism is creating a comprehensive, regulatory costs, efforts to control spurred in part by the weakened accessible, and serious e-curriculum independent funding streams US economy. on the Constitution for students that give government agencies and teachers by telling its story excessive latitude, and letting states through the prism of great American go their own ways on marijuana. statesmen. The project produced a series of videos, study guides, z W. Bradford Wilcox published and supplemental materials on the a coauthored study titled, Red constitutional questions that rose to Families vs. Blue Families: Which prominence during the Lincoln era. Are Happier? (Institute for Family Studies, August 2015). The data z Michael Barone started a weekly showed that on average, more video series for the Washington conservative counties across the Examiner on the 2016 presidential country have more marriage, less campaign. He also wrote one of the nonmarital childbearing, and more lead essays in the new edition of family stability for their children than the Almanac of American Politics, do more liberal counties. / 11 / FOREIGN AND DEFENSE POLICY STUDIES

PROMOTING AMERICAN GLOBAL LEADERSHIP

AEI’s Foreign and Defense Policy Studies Program has established itself as one of the premier defense, security, and regional studies programs in Washington, DC, that is fighting for freedom, a strong national defense, and American leadership around the world. Our program is educating current leaders and a new generation about how to best manage today’s threats and tomorrow’s challenges and believes that it is in America’s best interests to make the case for freedom and free enterprise overseas and that America is a force for good in the world.

z Dan Blumenthal and Derek z Leon Aron published an edited Scissors codirected a major volume titled Putin’s Russia: How It research project resulting in Rose, How It Is Maintained, and How their February coedited report It Might End (AEI, May 2015), which Too Much Energy? Asia at 2030. includes nine essays by leading The report concludes that over independent Russian scholars on the next 15 years, the US shale the idea that the end of President revolution and an end to the Chinese Vladimir Putin’s reign could be energy demand shock will be the fast approaching. On May 14, the two most important factors shaping authors released the volume at a global energy markets. AEI’s public AEI event; never before have Michael Mazza was among the so many top Russian scholars from contributors to the report. a variety of fields gathered in the United States.

z Director of the Critical Threats z J. Matthew McInnis published a Project Frederick Kagan’s major paper in May, Iran’s Strategic coauthored April report with the Thinking: Origins and Evolution, Norse Corporation’s Tommy the first in a series of reports on Stiansen, The Growing Cyberthreat Iranian strategy and decision from Iran, is the first to provide making. McInnis is challenging the overwhelming evidence that conventional wisdom about the cyberattacks emanating from Iran sources of Iran’s conduct, making and targeting US, European, and clear that Iran is playing a long Western interests are increasing at game in the region, looking not to an alarming rate. shock neighbors into retaliation but to gradually establish regional dominance, and that Tehran’s preference for asymmetrical proxy warfare undermines stability in the region.

/ 12 / z Derek Scissors launched the Chinese Global Investment Tracker NEW SCHOLARS (CGIT) on AEI.org with his latest biannual update in July. AEI and ’s CGIT is the only comprehensive public data set Kirsten Madison joined AEI as a on Chinese outward investments resident fellow and deputy director and engineering contracts of of Foreign and Defense Policy $100 million or more. Global Studies. She has worked on policy investors, academics, journalists, issues from homeland security to business consultants, and US Latin America in various senior government analysts are using the leadership posts at the White CGIT to gauge the strength of the House, US Department of State, Chinese economy. The CGIT has US Department of Homeland been cited by the New York Times Security, and US Senate Committee and CNBC, among other outlets. on Foreign Relations. z Katherine Zimmerman published a paper in September outlining a Matt Mayer joined AEI as a visiting strategy to defeat al Qaeda in the fellow, focusing on homeland Arabian Peninsula. In December, security, counterterrorism, domestic Frederick Kagan, Mary Habeck, preparedness and response, and Thomas Donnelly, and Zimmerman, immigration issues. Mayer serves along with Heritage’s James as president of Opportunity Ohio Carafano, Georgetown’s Bruce and has worked in public policy and Hoffman, RAND’s Seth Jones, the politics at both the state and federal Institute for the Study of War’s levels, including as a senior official Kim Kagan, and Johns Hopkins’s at the US Department of Homeland Thomas Mahnken published a Security and the deputy director white paper with policy proposals to for the Department of Regulatory defeat al Qaeda and ISIS. Agencies in Colorado. z In October, the Marilyn Ware Dalibor Rohac joined AEI as Center for Security Studies released a research fellow. He studies To Rebuild America’s Military, European political and economic a major report that defines the trends, including the post- strategy, forces, and budgets Communist transitions and necessary to protect American backsliding of countries in the interests at home and abroad former Soviet bloc. Before joining through the next administration and AEI, Rohac was affiliated with the the coming decades. Jim Talent, Cato Institute’s Center for Global Gary Schmitt, Mackenzie Eaglen, Liberty and Prosperity, the London- and Thomas Donnelly have been based Legatum Institute, and the briefing US presidential candidates’ Center for the New Europe foreign policy teams on the report’s in Brussels. conclusions. z In December, the American Jim Talent joined AEI as a senior Internationalism Project (a bipartisan fellow and director of the Marilyn working group of top academics and Ware Center’s National Security policy experts led by AEI Fellow and 2020 Project. Talent has been active former Senator Jon Kyl and Senator in public policy for the past 30 years, Joseph Lieberman) released its including representing in report Why American Leadership both the US Senate and US House of Still Matters, which examines matters Representatives. While serving in the of security, prosperity, and freedom US Senate, he was a member of the and aims to craft a new bipartisan Senate Armed Services Committee consensus to define America’s and chairman of the Subcommittee global role. This volume is helping on Seapower for four years. to direct US presidential candidates’ attention to the importance of American internationalism.

/ 13 / OUTREACH AND COMMUNICATIONS

AEI AS CONVENER In 2015, AEI hosted 132 public events or private working groups at FEBRUARY our headquarters, on Capitol Hill, and in select cities nationwide. Many of these events attracted capacity crowds composed of a diverse z Frederick Hess discussed school group of business professionals, students, journalists, academics, and reform and Teach for America’s vision for the future with TFA’s government and military leaders and earned prime media coverage. co-CEO Elisa Villanueva Beard. AEI is respected by groups on both sides of the political aisle for (February 11) bringing together people with divergent points of view for its panel discussions and private working groups. The following are highlights z AEI and the Center for of our events over the past year. American Progress hosted USAID Administrator Rajiv Shah, who reflected on the lessons he has JANUARY learned during his five years on the job. Senators Chris Coons (D-DE) z Jim Talent hosted newly minted and Jeff Fortenberry (R-NE) offered House Armed Services Committee opening remarks. (February 12) Chairman Mac Thornberry (R-TX) to coincide with the State of the z Frederick Kagan hosted at AEI Union. In this well-attended event, Chairman of the House Homeland also covered on C-SPAN and CNN, Security Committee Michael McCaul Chairman Thornberry laid out in (R-TX), who discussed his strategy detail his agenda for the 114th for a renewed global effort to Congress and praised the work of defeat extremist groups and their AEI’s Marilyn Ware Center team. dangerous ideology. (February 12) (January 20)

z Jeffrey Eisenach hosted Federal MARCH Communications Commissioner Mike O’Rielly to discuss the z Rep. John Delaney (D-MD) challenges the FCC will face as it presented his American Infra- moves into 2015. The event took structure Fund proposal; a place on the same day as two panel of experts including Alex congressional net neutrality hearings Brill commented on the bill in a on Capitol Hill. (January 21) discussion moderated by Alex Pollock. (March 3) z Senate Finance Committee Chairman Orrin Hatch (R-UT) gave z Iain Duncan Smith, UK a keynote address at AEI outlining Department for Work and Pensions his trade policy agenda for the 114th secretary of state, discussed the Congress. (January 30) UK welfare reform effort with Rep. Todd Young (R-IN) and a panel of experts, moderated by Robert Doar. (March 3)

/ 14 / Mac Thornberry and Jim Talent Elisa Villanueva Beard

Rajiv Shah Sen. Chris Coons

Frederick Kagan and Michael McCaul Rep. John Delaney

/ 15 / Iain Duncan Smith Robert Doar Dana Perino Gen. Keith Alexander

Charles Murray Michael Smith

Eric Schmidt Jean Case

/ 16 / Arun Jaitley Sen. Lamar Alexander z AEI welcomed Eric Schmidt, MAY z Sadanand Dhume hosted Indian executive chairman of Google, to Finance Minister Arun Jaitley to discuss how innovation acts as z Arthur Brooks participated in a discuss economic reforms currently a force for social good. James panel on how to address chronic underway in India and his vision to Glassman moderated the discussion poverty with President Obama at put the Indian economy on track for between Schmidt and Arthur Brooks. Georgetown University. The panel double-digit growth. When meeting (March 18) also featured Harvard political with Jaitley in India to secure this scientist Robert Putnam and was visit to the Institute, Dhume had moderated by the Washington Post’s the opportunity to meet with Prime APRIL E. J. Dionne. The summit earned Minister Narendra Modi himself. wide media coverage, including (June 19) z Frederick Kagan released his by the Washington Post, the Wall major report (written in collaboration Street Journal, the New Yorker, and z AEI hosted three of the most with Norse Corporation) analyzing National Public Radio. (May 12) influential social scientists of a Iran’s cyber activities at a public generation: AEI’s own Charles AEI event at which Gen. Keith z Leon Aron hosted nine leading Murray and ’s Alexander delivered the keynote Russian independent scholars for Robert Putnam and William Julius address. David Sanger published an event examining the political, Wilson in a debate moderated by an exclusive on the report in the economic, and social crises facing Robert Doar on the implications for New York Times, and the report was Russia today and how the Putin American children of recent trends mentioned in outlets such as the regime has responded. Nearly showing increasing inequality Hill, Wall Street Journal, the 150 people gathered for this between rich and poor Americans. Washington Examiner, and the unprecedented event in person, A capacity crowd of nearly 300 Christian Science Monitor. more than 4,000 viewed the video attended, the event was covered (April 17) live or after the event, and it was live on C-SPAN, and AEI’s YouTube covered by media crews from Voice video of the event has garnered z Former White House Press of America and Russia’s RTR TV. more than 3,500 views. (June 22) Secretary Dana Perino sat down (May 14) for a discussion at AEI on her new book, And the Good News Is . . .: z At the direction of Mackenzie JULY Lessons and Advice from the Bright Eaglen, a bipartisan group of DC’s Side, with fellow former White House leading national security scholars z Sen. Lamar Alexander (R-TN), Press Secretary Mike McCurry from and members of Congress came chairman of the Senate Committee the Clinton administration. Nearly together on Capitol Hill to discuss on Health, Education, Labor, and 250 people attended this event. necessary and overdue structural Pensions, delivered a keynote (April 23) defense reforms. CNN filmed the address on higher education reform, event, which was standing room only followed by a discussion led by z The Case Foundation’s Jean with 220 attendees from the defense Andrew Kelly and Kevin James Case and Arthur Brooks discussed industry and policy community, the addressing the opportunities for and forging new paths for public-private Pentagon, and Capitol Hill. Ahead obstacles to change. Sen. Alexander partnerships, promoting social of the event, scholars from 15 think noted that many of the ideas he has entrepreneurship, and fostering the tanks signed an open letter to been promoting came from AEI’s next generation of philanthropic Defense Secretary Ash Carter and Education team. (July 16) leaders. (April 24) the leaders of key congressional defense committees, urging the z Chairman of the House Financial z The week after riots in Baltimore, Pentagon and Congress to pursue Services Committee Jeb Hensarling AEI hosted an important discussion these reforms. Eaglen, Thomas (R-TX) and a panel of experts of the economic and cultural factors Donnelly, and Roger Zakheim were including Peter Wallison and Alex associated with lack of opportunity among the signatories. (May 14) Pollock discussed the need for for black men and of the ways in financial regulation reform on the fifth which public policy and culture can anniversary of the Dodd-Frank Act. be engaged to make things better. JUNE The event was featured in ’s The event featured a panel including “Morning Money” newsletter two who directs the days in a row, and C-SPAN covered Michael Smith, z Mackenzie Eaglen hosted White House’s My Brother’s Keeper it live. (July 21) Secretary of the Navy program. The event was covered Ray Mabus for a discussion on the future of live on C-SPAN. (April 29) the Navy and Marine Corps. More than 100 people attended the event, and nearly two dozen press articles resulted from the discussion. (June 2)

/ 17 / z Danielle Pletka and Michael Rubin z Mackenzie Eaglen hosted to discuss the demographic hosted a two-panel discussion Secretary of the Army John challenges both political parties on the religious basis of Islamist McHugh for a discussion about the face. The bipartisan panel included terrorism. Experts from organizations US Army’s challenges in readiness, AEI’s Karlyn Bowman and Norman including the Zephyr Institute, modernization, and end strength. Ornstein, the Center for American , Institute of Shia C-SPAN and Voice of America Progress’s Ruy Texeira, and Studies, American Islamic Congress, covered the event. (September 15) Brookings’s Robert Lang, who are Hudson Institute, and Gallup collaborating on a major project participated as panelists. (July 21) on the subject. They released the OCTOBER project’s first report in February, States of Change: The Demographic AUGUST z More than 70 state-based leaders Evolution of the American Electorate, from across the country gathered 1974–2060. (October 13) z Arthur Brooks, Chairman of the at AEI for our Leadership Network z Republican National Committee Summit. Over the course of three AEI and the Consensus for Ed Gillespie, and Republican days, participants engaged in Development Reform hosted a pollster Kristen Soltis Anderson honest and open debate across joint event on the fundamental discussed with moderator Marc a range of policy issues with AEI role of economic growth and Thiessen the importance of and scholars, participated in interactive entrepreneurism to a robust global need for a conservative message leadership exercises, and competed strategy, featuring a discussion with that speaks to voters’ hearts and in an "elevator pitch" competition, Chairman of the Senate Foreign minds at a public event in Cleveland, making the case for free enterprise Relations Committee Sen. Bob Ohio, the day before the first in 60 seconds. (September 17–19) Corker (R-TN), two expert panels, Republican Party US presidential and closing remarks by Chairman debate. (August 5) z University of Illinois at Chicago of the House Foreign Affairs Committee (R-CA). Distinguished Professor Deirdre Rep. Ed Royce (October 20) McCloskey, Boston College Political SEPTEMBER Science Department Chair Susan Shell, and Ethics and Public Policy z Former Vice President Richard Center Hertog Fellow Yuval Levin NOVEMBER Cheney gave a major address gathered for a discussion before a on the consequences of the Iran capacity crowd with Michael Strain z AEI held its second annual nuclear deal to the security and and Stan Veuger on the relationship symposium with His Holiness the interests of the United States and between economic freedom and Dalai Lama in Dharamsala, India. its allies in the Middle East. well-being. (October 1) During this private two-day event, (September 8) participants explored one of today’s z Jim Talent sat down with Sen. Tom most pressing global challenges: z AEI and the Center for American Cotton (R-AR) to discuss what the the search for human happiness in Progress cohosted a conference to next administration needs to do to a world where value is increasingly explore the transformation in New rebuild America’s military, guided defined in purely material terms. Orleans schools since Hurricane by a new report from AEI’s Marilyn (November 4–5) Katrina in 2005. Panelists included Ware Center for Security Studies. a range of notable scholars (October 6) z Israeli Prime Minister Benjamin and education policymakers Netanyahu received the Irving representing the US Department of z Leon Aron hosted Vladimir Kara- Kristol Award at AEI’s Annual Dinner Education, the Eli and Edythe Broad Murza for a conversation about in Washington, DC, and discussed Foundation, the American Federation political oppression and corruption with Danielle Pletka US-Israel of Teachers, the American Institutes in Russia and Putin’s foreign policy relations and the growing challenges for Research, Teach for America, in Ukraine and Syria. Kara-Murza, a facing Israel. (November 9) and the Louisiana Recovery School victim of suspected foul play from District. (September 16) the Putin regime, is a prodemocracy z AEI hosted Wall Street Journal activist, coordinator of Mikhail columnist Peggy Noonan for a z Katherine Zimmerman discussed Khodorkovsky’s civic group Open conversation with CBS News’s her new report recommending Russia, and close friend and political John Dickerson about her new a strategy to defeat al Qaeda in associate of assassinated opposition book, The Time of Our Lives (Twelve, Yemen with a panel that included leader Boris Nemtsov. (October 9) November 2015), which chronicles Rep. Will Hurd (R-TX), a former her career in journalism, the Reagan CIA officer in Yemen, and a z AEI and Brookings Mountain West White House, and the political arena. conversation with Gen. hosted an event in Las Vegas prior (November 18) (ret.) on the fight against al Qaeda. to the Democratic presidential (September 10) candidate debate that evening

/ 18 / AEI event photography by Tenzin Choejor, Aaron Clamage, Peter Holden, Sylvia Johnson, Mike Morgan, and Eliot VanOtteren. Rep. Jeb Hensarling His Holiness the Dalai Lama

Rep. J. Randy Forbes Benjamin Netanyahu

Sen. Tom Cotton Benjamin Netanyahu and Danielle Pletka

/ 19 / Richard Cheney Peggy Noonan AEI AS COMMUNICATOR

AEI’S COMMUNICATIONS z AEI scholars have continued to z Our communications team is AND OUTREACH EFFORTS dominate the op-ed pages of expanding our web presence across major publications, publishing a host of digital platforms, continuing MAGNIFY THE IMPACT more than 3,380 op-eds in 2015 to drive traffic to AEI content. Our OF OUR RESEARCH, in outlets such as the Wall Street redesigned AEI.org site offers a Journal, Washington Post, and New flexible and appealing platform for SHAPING THE NATIONAL York Times. Thirty-four AEI scholars featuring AEI scholars’ work, and CONVERSATION ON now contribute regular op-eds to we created a number of interactive IMPORTANT PUBLIC 27 different outlets. web pages and infographics to help effectively communicate our POLICY ISSUES. z AEI scholars produced nine books scholars' work to broader audiences. in 2015, including popular volumes from z Our blog, AEIdeas (www.aei-ideas. WE UTILIZE PRINT, Arthur Brooks, Charles Murray, and Frederick Hess. org), continues to be a leading BROADCAST, AND DIGITAL destination for analysis that crosses MEDIA AS WELL AS z Our scholars continue to contri- policy, politics, and news. Under the bute behind the scenes through direction of James Pethokoukis, TARGETED OUTREACH TO the hundreds of background AEI’s blog has become the go-to BRING OUR SCHOLARS’ conversations they hold with source for pro-market commentary IDEAS TO MILLIONS journalists and producers each among top-tier media outlets who year, offering them an opportunity frequently cite AEIdeas. Over the OF AMERICANS. to deeply influence the national past year, Pethokoukis has authored discourse and promote the case for nearly 650 blog posts on AEIdeas. free enterprise on yet another level. z Our popularity on social media z AEI scholars made more than 2,460 sites like Facebook, Twitter, and television and radio appearances in YouTube is growing, the latter by 2015, including regular appearances nearly 50 percent over the past year on the nation’s most influential tele- thanks to our AEI “Top Three” videos vision programs, like NBC’s Meet and Christina Hoff Sommers’ the Press, CBS’s Face the Nation, “Factual Feminist” series. and CNN’s State of the Union. AEI scholars now appear, on average, z AEI launched or redesigned more than twice per day on Fox several e-newsletters this year, News and Fox Business and at least including a new weekend email every other day on CNBC, CNN, product delivered to more than MSNBC, and Bloomberg TV. Our 30,000 inboxes every Saturday high-definition ReadyCam studio morning. It features some of the at AEI has helped news stations most timely and important work view AEI as a go-to partner to bring from AEI. To sign up to receive leading scholarship and analysis to any of AEI’s e-newsletters, visit their programs. www.aei.org/newsletters.

/ 20 / / 21 / AEI AS INFLUENCER AEI HAS MADE A CONCERTED z New Member Orientations conference by Cathy McMorris EFFORT TO DISSEMINATE AEI played a crucial educational Rodgers (R-WA), and the other role in the wake of the 2014 midterm was cited by Chairman John Kline ITS SCHOLARSHIP TO THOSE elections, helping to lead three (R-MN) in a meeting he convened BEST PLACED TO ACT, THUS different policy orientations for new with outside organizations. members of Congress. EXPANDING ITS OUTREACH z Higher Education Reform TO POLICYMAKERS AND THEIR z Trade Promotion Authority Andrew Kelly has been recognized STAFFS ON BOTH SIDES OF Derek Scissors was a go-to expert as the intellectual architect for on trade promotion authority, several promising new policy ideas THE POLITICAL AISLE. being interviewed for background for higher education reform put information by members of forward by major political figures. In Congress. The House Ways and his contribution to the YG Network’s AEI SCHOLARS TESTIFY Means Committee circulated Room to Grow volume last year, BEFORE CONGRESSIONAL Scissors’s April AEIdeas blog Kelly outlined a proposal to reform COMMITTEES MORE post, “Trade Promotion Authority, the college accreditation system. finally,” as a prime example of the Slate’s Jordan Weissmann noted that OFTEN THAN ANY PEER conservative argument in support these ideas were carried through to ORGANIZATION, WITH A of free trade, and Scissors was legislation introduced by Sen. Mike frequently called to Capitol Hill to Lee (R-UT). TOTAL OF 89 TESTIMONIES brief congressional leaders. BEFORE THE 113TH z Acquisition Reform CONGRESS AND 39 z The Elementary and Secondary Many of AEI’s ideas on acquisition Education Act Reauthorization reform, especially those of former TESTIMONIES THROUGH Frederick Hess has played a leading visiting fellow William Greenwalt, can MID-NOVEMBER BEFORE role since 2004 in critiquing the No be found in Senate Armed Services THE 114TH CONGRESS. Child Left Behind (NCLB) Act and Committee Chairman John McCain’s offering reforms that would decrease (R-AZ) defense authorization bill bureaucracy while increasing being considered in conference. transparency and innovation. The In June, Mackenzie Eaglen 2015 Student Success Act and published a chart of Greenwalt’s the Every Child Achieves Act, work on acquisition reform to show put forward by the House and AEI’s progress in affecting actual Senate, respectively, both closely legislation and areas for continued track Hess’s vision for NCLB improvement. reauthorization. On the day the House’s bill was brought to the floor, AEI scholars published two op-eds in National Review Online. One was tweeted by then–House Speaker John Boehner (R-OH) and emailed to the entire House GOP

/ 22 / AEI AS EDUCATOR AEI’s Academic Programs is defending and promoting free enterprise and American leadership in the world on college campuses across America. We are encouraging a real competition of ideas and substantive, civil debate on campuses, targeting not just the self-identified true believers but also persuadable and apathetic students who are not exposed to smart, sophisticated thinkers who share AEI’s mission and ethos.

We count more than 5,300 students in the AEI network, representing more than 600 campuses across the AEI’s internship program recruits approximately 50 students country. Our 282 student Executive each semester who spend four months working at our office on Council members are taking a substantive projects under the direction of a scholar or senior leadership role in helping AEI staff member. The Institute’s internship program is remarkably educate their peers on campus competitive; for the Summer 2015 semester, we received 6,794 on free enterprise principles. applications representing 715 schools across the country and around the world. We placed 75 interns representing 51 schools— We are also building our network of an acceptance rate of just 2.2 percent—and with an average GPA faculty and administrators (nearly of 3.69. Over the past 10 years, more than 50 former interns have 380 to date) who share our belief become full-time employees at AEI, dedicating their careers to the that the competition of ideas is pursuit of human liberty and flourishing. fundamental to institutions of higher learning. Professors are using AEI resources (including our new online learning modules) in their topics such as poverty, welfare of 457 applicants) representing classrooms; during the 2014–15 reform, higher education reform, 78 colleges and universities. AEI academic year, 26 professors on and America's role in the world and also hosted 115 students for our 20 campuses adopted AEI’s mini- are bringing student groups to AEI's inaugural Summer Ideas Summit books in a classroom or reading headquarters in Washington for and 142 students for our Values group. These books present a conversations with AEI scholars. & Capitalism Summer Conference range of public policy topics to a weekends. Students learned from lay audience from a free enterprise Our signature student event is our AEI scholars and heard from well- perspective. annual Summer Honors Program. known DC insiders, policymakers, In June, AEI hosted three terms of journalists, and business leaders AEI scholars are also traveling to the program with a total of more and enjoyed networking and campuses for conversations on than 130 college students (out career-coaching events.

/ 23 / AEI AS COMMUNITY AEI is enormously grateful for its A wide range of foundations share 1,380 individual, foundation, and AEI’s core principles, and foundation corporate donors who share our founders, directors, board members, values and stand with us to support and staff regularly join fellow and defend the moral imperatives of members of the AEI community for freedom and free enterprise here in regional events as well as briefings America and abroad. and special events at AEI. 2015 events and seminars featuring AEI scholars We are also thankful for our growing Support from the private sector—the network of state-based leaders who engine of America’s freedom and are helping to disseminate AEI's prosperity—is a vote in support of scholarship across the country, AEI’s mission to encourage a policy as well as our student leaders at and business climate that stimulates colleges and universities who are economic growth, dynamism, making the case for free enterprise and expanded opportunity for all. on their campuses. Thanks to the AEI’s Corporate Program offers z AEI BOARD OF TRUSTEES generous intellectual, moral, and several avenues of engagement AEI’s Board of Trustees has grown financial support of AEI's community, for companies committed to better to 30 leaders in finance, industry, academia, and public policy from we are having an outsized impact on public policy. around the nation. We welcomed the policy debates. two trustees this year: John Hurley Importantly, AEI does not undertake from San Francisco and Elisabeth AEI’s community has a broad range contract research nor accept DeVos from Grand Rapids, MI. of opportunities to engage with AEI government funding. If you are scholars in their hometowns. Over interested in learning more about z AEI NATIONAL COUNCIL AEI’s National Council is a coalition the past year, we have organized joining our community, please of supporters who share a deep more than 150 events across the visit www.aei.org/donate. commitment to strengthening the country, with many of our donors free enterprise system. As unofficial AEI ambassadors, National Council and friends of the Institute hosting If you are interested in joining members help grow our community AEI scholars for events ranging AEI’s state-based leadership by introducing friends and collea- from intimate roundtable policy network, please contact gues around the nation to AEI. discussions to major public forums. [email protected]. There were 178 public members of the National Council at the end of November 2015, an increase Individual donors can join AEI’s of more than 20 percent from the Donor Leadership Program at year before. Our National Council members represent 31 states, the various levels of support, ranging United Kingdom, and Taiwan. from gifts of $250 to more than $50,000 in annual support, and donations can also be made in the form of securities, stocks, matching gifts, and bequests.

/ 24 / z AEI STUDENT EXECUTIVE COUNCIL Our 282 student Executive Council members at 77 schools are helping us educate their peers on campus through a variety of activities (confe- rences, debates, op-eds for their student paper, or book clubs) and 2015 events and seminars featuring AEI scholars are hosting leadership dinners with AEI scholars or business leaders from the AEI community. These student leaders attend leadership events at AEI’s headquarters in Washington where they hear from our scholars on issues of public policy and receive career advice.

z AEI ALUMNI PROGRAM z AEI PROGRAM COMMITTEES z AEI ENTERPRISE CLUB z AEI30 AEI’s Alumni Program connects In 2015, AEI launched program AEI’s Enterprise Club is an AEI30 is AEI’s selected cohort of former scholars, fellows, staff, committees among our National invitation-only group of 30–40- young leaders in business, finance, research assistants, interns, and Council members. These affinity year-old professionals who are and entrepreneurship who are summer program students. After groups serve as forums for specific selected based on depth of inte- interested in serious discussions starting the program two years policy discussions and efforts llectual interest in policy, record of on the most significant challenges ago, we now have a network of (Foreign Policy, Education, achievement, and potential for facing our country. The program more than 350 members. In July Academic Programs, and Values & future impact. In just four years, started in September 2014 with 2015, Charles Murray spoke to a Capitalism). In June, Foreign Policy the Enterprise Club has grown to a New York City chapter that has group of 90 AEI alumni gathered Program Committee members 311 members in 12 cities across grown to 48 members. We have at AEI’s headquarters about his Debbie and David Roberts hosted the nation. The Dallas Enterprise regular breakfasts in New York latest book, By the People. Danielle Pletka and Jim Talent at Club chapter has grown by 24 featuring prominent business their home in New York City for a members in the past year, and the leaders such as Dan Loeb, AEI z AEI WORLD FORUM discussion on the current state of group hosted events in 2015 with National Council cochair and CEO Sea Island, GA affairs in the Middle East and AEI Arthur Brooks, General T. Michael of Third Point LLC; David Roberts, AEI’s World Forum, our marquee defense scholars’ major initiatives Moseley, Charles Murray, and AEI National Council cochair and event held each year in March, for the months ahead. Benjamin Zycher. COO of Angelo, Gordon & Co; and convenes dozens of congressional Rob Kapito, founder, president, and leaders, governors, and executive z REGIONAL COUNCIL EVENTS z AEI Leadership Network director of BlackRock. The program branch officials, as well as major AEI’s Regional Councils are Members of AEI's Leadership plans to continue growing its NYC opinion leaders, foundation leaders, comprised of influential business Network, which has now grown membership and then expand to and top executives from the world’s leaders, entrepreneurs, and to more than 120 leaders who other cities. corporations and financial firms. professionals who work with AEI to represent a diverse range of Attendees participate in a robust promote public policy that restores nonprofits; community service idea exchange on global economics, growth and prosperity. We currently groups; business organizations; foreign and defense policy, culture, count 16 chapters in cities across and city, state, and local govern- and politics during the weekend the country. Our scholars frequently ments, are helping to disseminate gathering. The past two years, we travel to meet with these supporters AEI’s scholarship and are impac- have also included a small group of throughout the year for intimate ting their communities for freedom, top leaders from our Enterprise Club gatherings over serious policy opportunity, and free enterprise. for a series of policy discussions. discussions. For example, Gerard Seventy of these leaders gathe­red Robinson spoke about education in September for our annual Summit reform at the national and local levels in Washington, DC. in Boston, Nashville, and Seattle, among other cities.

/ 25 / IN MEMORIAM

Walter Berns Carolyn Weaver Mackay Walter Berns passed away on On August 26, Carolyn Weaver January 10 at the age of 95. His Mackay passed away. She was a association with AEI began in the late resident scholar and director of social 1970s and lasted more than three security and pension studies at AEI decades. At AEI, his published works from 1987 to 2000 and served as included Making Patriots (2002), After editor of Regulation magazine from the People Vote (2001), and Taking 1986 to 1988. Prior to joining AEI, the Constitution Seriously (1987). All Mackay was a senior research fellow his books had major impact on vitally at the at Stanford important national debates. Lincoln University, chief professional staff at Two Hundred (2009), a favorite member on social security for the of his colleagues, offers a masterful US Senate Committee on Finance, look at the impact of the president and senior adviser to the 1983 he admired most. Berns was a National Commission on Social towering intellectual figure on the Security Reform (“Greenspan Panel”). US Constitution and wrote prolifically She also served on several federal for both scholarly and popular advisory councils dealing with Social audiences, taught hundreds of Security and disability policy and students at six universities, served as wrote numerous books, articles, a delegate to the UN Commission on and editorials. Human Rights, and won the National Humanities Medal. He was also a veteran of WWII.

/ 26 / John H. Makin Fred Thompson Ben J. Wattenberg On March 30, AEI mourned the loss Former AEI visiting fellow Fred On June 28, AEI mourned the loss of of John H. Makin, who had been part Thompson passed away on Ben Wattenberg, who joined AEI of the AEI family since 1984, when November 1 at the age of 73. He in 1977 to study US politics and he first joined as a scholar. Over was a clear and principled thinker demography, one of a handful of his career, he moved in and out of who specialized at AEI in national Democrats whom William J. Baroody residence at AEI—advising the US security and intelligence and was a Sr. brought to the Institute around Treasury Department, Congressional man of wide interests and talents, as that time. Wattenberg drew national Budget Office, and International reflected in his career as an attorney, attention in 1970 with the publication Monetary Fund; teaching; and politician, lobbyist, and actor. He of his coauthored book with AEI serving as a principal at the hedge served his country as a US senator adjunct colleague Richard M. fund Caxton Associates. He rejoined representing Tennessee, as chairman Scammon, The Real Majority, a best- AEI full time in 2012 as a senior of the International Security Advisory selling analysis of US politics. Over member of the economics team to Board at the US Department of the course of his career, Wattenberg study the US economy, monetary State, as a member of the US-China was appointed to various committees policy, financial markets, corporate Economic and Security Review and commissions by Presidents taxation, and banking. He also wrote Commission, and as a member of Carter, Reagan, and George H. frequently about Japanese, Chinese, the Council on Foreign Relations. W. Bush and penned nearly 1,000 and European economic issues, In 1973, he was appointed as minority columns as well as a number of other and wrote AEI's monthly Economic counsel to assist the Republican books, including The Birth Dearth Outlook, which paired insightful senators on the Senate Watergate (1987) and The First Measured research with current economic Committee. His sonorous voice that Century (2000). Wattenberg was a topics. Along with his work, his lively many know so well from his roles in passionate commentator, engaging wit and good humor made him truly movies, television, and commercials, in the public debates across a variety loved at AEI. as well as his wry humor, will surely of issues. He hosted a number of be missed. PBS television specials as well as the weekly program Think Tank with Ben Wattenberg, which ran for 15 years.

/ 27 / Thank you to the members of AEI’s community who generously supported AEI’s Campaign for Free Enterprise and American Progress.

Together, we have raised more than $99 million for the campaign, which will extend the reach and impact of AEI’s work by making possible new research programs and communications enhancements and by helping to underwrite the Institute’s long-term financial stability. We look forward to sharing our new home with you in 2016. Our headquarters will be located at 1789 Massachusetts Avenue, NW, in Washington, DC.

/ 28 / AEI AS RESPONSIBLE STEWARD

AEI’s audited financial performance for the fiscal year ended on June 30, 2015, is provided in accordance with GAAP accounting conventions. 2015 AEI Operating Revenue 2015 AEI Expenses ($54.6 million) ($38.7 million) The Institute raised $19.9 million Managementfrom individuals, 5% $23.9 million from Conferences and Corporations 16% foundations, and $8.8 millionEconomic from Policy Other Revenue 4% Administration 5% Studies 27% corporations. The sum of these fundraising activities, along with Fundraising 9% conference and miscellaneous revenue of $2 million, brought the Social and Campus Outreach 6%Institute’s annual operating revenuesPolitical Studies 12% Individuals 36% Foundations 44% to $54.6 million. Investment gains totaling $0.6 million and Capital Conferences 6% Campaign commitments totaling $27.2 million are excludedForeign from andthe Defense Communications 13% operating revenue shown.Policy Studies 16%

Expenses for the year totaled $38.7 million—81 percent of these Fiscal year activity is for the period July 1, 2014, through June 30,expenses 2015. were for programs, 2015 AEI Operating Revenue 2015 AEI Expenses ($38.7 million) 10 percent for management and ($54.6 million) administration, and 9 percent

Management 5% for fundraising. AEI allocates Conferences and Corporations 16% Economic Policy communication expenses to Other Revenue 4% Administration 5% Studies 27% programs; communication expenses are shown prior to Fundraising 9% such allocation.

Social and AEI is enormously grateful to its Campus Outreach 6% Political Studies 12% Individuals 36% Foundations 44% community of investors for making our scholarly research and outreach Conferences 6% initiatives possible. We hope you Foreign and Defense are proud of the work that you have Communications 13% Policy Studies 16% supported to advance freedom, opportunity, and enterprise in America and around the world.

Fiscal year activity is for the period July 1, 2014, through June 30, 2015. Fiscal year activity is for the period July 1, 2014, through June 30, 2015.

/ 29 / BOARD OF TRUSTEES GEORGE L. PRIEST ELIOT A. COHEN Yale Law School Paul H. Nitze School of Advanced International Studies TULLY M. FRIEDMAN, Chairman KEVIN B. ROLLINS Johns Hopkins University Chairman and CEO CEO, Retired Friedman Fleischer & Lowe, LLC Dell, Inc. EUGENE F. FAMA Robert R. McCormick Distinguished Service DANIEL A. D’ANIELLO, Vice Chairman MATTHEW K. ROSE Professor of Finance Chairman and Co-Founder Executive Chairman Booth School of Business The Carlyle Group BNSF Railway Company

CLIFFORD S. ASNESS EDWARD B. RUST JR. MARTIN FELDSTEIN Managing and Founding Principal Chairman and CEO George F. Baker Professor of Economics AQR Capital Management State Farm Insurance Companies Harvard University

GORDON M. BINDER D. GIDEON SEARLE AARON L. FRIEDBERG Managing Director Managing Partner Professor of Politics and International Affairs Coastview Capital, LLC The Serafin Group, LLC

ARTHUR C. BROOKS MEL SEMBLER ROBERT P. GEORGE President and Beth and Ravenel Curry Founder and Chairman McCormick Professor of Jurisprudence Chair in Free Enterprise The Sembler Company Director, James Madison Program American Enterprise Institute in American Ideals and Institutions WILSON H. TAYLOR Princeton University THE HONORABLE Chairman Emeritus RICHARD B. CHENEY Cigna Corporation ERIC A. HANUSHEK Paul and Jean Hanna Senior Fellow PETER H. COORS WILLIAM H. WALTON Hoover Institution Vice Chairman of the Board Managing Member Stanford University Molson Coors Brewing Company Rockpoint Group, LLC R. GLENN HUBBARD HARLAN CROW MARILYN WARE Dean and Russell L. Carson Professor Chairman and CEO of Finance and Economics Chairman, Retired Crow Holdings Columbia Business School American Water Works RAVENEL B. CURRY III WALTER RUSSELL MEAD Chief Investment Officer James Clarke Chace Professor of Foreign Eagle Capital Management, LLC EMERITUS TRUSTEES Affairs and the Humanities Bard College ELISABETH (BETSY) DEVOS RICHARD B. MADDEN ROBERT H. MALOTT JOHN L. PALMER JOHN V. FARACI University Professor and Dean Emeritus Chairman PAUL F. OREFFICE Maxwell School of Citizenship International Paper and Public Affairs HENRY WENDT Syracuse University CHRISTOPHER B. GALVIN Chairman MARK PAULY Harrison Street Capital, LLC OFFICERS Bendheim Professor, Professor of ARTHUR C. BROOKS Health Care Management RAYMOND V. GILMARTIN President and Beth and Ravenel Curry Wharton School at the University of Harvard Business School Chair in Free Enterprise Pennsylvania

HARVEY GOLUB DAVID GERSON SAM PELTZMAN Chairman and CEO, Retired Executive Vice President Ralph and Dorothy Keller Distinguished American Express Company Service Professor of Economics Booth School of Business Chairman, Miller Buckfire JASON BERTSCH University of Chicago Senior Vice President, Development

ROBERT F. GREENHILL and Communications Founder and Chairman JEREMY A. RABKIN Professor of Law Greenhill & Co., Inc. DANIELLE PLETKA George Mason University School of Law Senior Vice President, Foreign and FRANK J. HANNA Defense Policy Studies Hanna Capital, LLC HARVEY S. ROSEN John L. Weinberg Professor of Economics TOBY STOCK and Business Policy JOHN K. HURLEY Vice President, Development and Princeton University Founder and Managing Partner Academic Programs Cavalry Asset Management RICHARD J. ZECKHAUSER Frank Plumpton Ramsey Professor of SETH A. KLARMAN COUNCIL OF ACADEMIC President and CEO Political Economy The Baupost Group, LLC ADVISERS Kennedy School of Government Harvard University GEORGE L. PRIEST, CHAIRMAN BRUCE KOVNER Edward J. Phelps Professor of Chairman Law and Economics Caxton Alternative Management, LP Yale Law School MARC S. LIPSCHULTZ Partner ALAN J. AUERBACH Kohlberg Kravis Roberts Robert D. Burch Professor of Economics and Law JOHN A. LUKE JR. University of California, Berkeley Chairman and CEO MeadWestvaco Corporation RESEARCH STAFF JEFFREY EISENACH NAT MALKUS DAVID SCHOENBROD Director, Center for Internet, Research Fellow Visiting Scholar JOSEPH ANTOS Communications, and Technology Wilson H. Taylor Scholar in Health Policy; Visiting Scholar APARNA MATHUR DEREK M. SCISSORS Care and Retirement Policy; Resident Resident Scholar Resident Scholar Scholar R. RICHARD GEDDES Visiting Scholar MATT MAYER SITA SLAVOV LEON ARON Visiting Fellow Visiting Scholar Director, Russian Studies; JAMES K. GLASSMAN Resident Scholar Visiting Fellow MICHAEL MAZZA VINCENT H. SMITH Research Fellow Director, Agriculture Studies; MICHAEL AUSLIN Visiting Scholar Resident Scholar Fellow J. MATTHEW MCINNIS Resident Fellow CHRISTINA HOFF SOMMERS CLAUDE BARFIELD SCOTT GOTTLIEB, MD Resident Scholar Resident Scholar Resident Fellow LARRY MEAD Visiting Scholar KATHARINE B. STEVENS MICHAEL BARONE PHIL GRAMM Research Fellow Resident Fellow Visiting Scholar THOMAS P. MILLER Resident Fellow THOMAS P. STOSSEL, MD ROGER BATE MARY HABECK Visiting Scholar Visiting Scholar Visiting Scholar CHARLES MURRAY W. H. Brady Scholar MICHAEL R. STRAIN ERIC BELASCO KEVIN A. HASSETT Deputy Director, Economic Policy Visiting Scholar Director, Economic Policy Studies; ROGER F. NORIEGA Studies; Resident Scholar State Farm James Q. Wilson Chair in Fellow ANDREW G. BIGGS American Politics and Culture PHILLIP SWAGEL Resident Scholar STEPHEN D. OLINER Visiting Scholar ROBERT B. HELMS Codirector, AEI’s International Center EDWARD BLUM Resident Scholar on Housing Finance; Resident Scholar JIM TALENT Visiting Fellow Director, Marilyn Ware Center’s FREDERICK M. HESS NORMAN J. ORNSTEIN National Security 2020 Project; DAN BLUMENTHAL Director, Education Policy Studies; Resident Scholar Senior Fellow Director, Asian Studies; Resident Resident Scholar Fellow MARK J. PERRY SHANE TEWS R. GLENN HUBBARD Scholar Visiting Fellow JOHN R. BOLTON Visiting Scholar Senior Fellow JAMES PETHOKOUKIS MARC A. THIESSEN WILLIAM INGLEE Editor, AEIdeas Blog; Resident Fellow KARLYN BOWMAN Visiting Fellow DeWitt Wallace Fellow Research Coordinator; Senior Fellow STAN A. VEUGER BENEDIC IPPOLITO TOMAS PHILIPSON Resident Scholar ALEX BRILL Research Fellow Visiting Scholar Research Fellow ALAN D. VIARD KEVIN JAMES EDWARD J. PINTO Resident Scholar JAMES C. CAPRETTA Research Fellow Codirector, AEI’s International Visiting Fellow Center on Housing Finance; PETER J. WALLISON MATTHEW H. JENSEN Resident Fellow Arthur F. Burns Fellow in Financial TIMOTHY P. CARNEY Managing Director, Open Source Policy Studies; Resident Fellow Visiting Fellow Policy Center ALEX J. POLLOCK Resident Fellow W. BRADFORD WILCOX LYNNE V. CHENEY FREDERICK W. KAGAN Visiting Scholar Senior Fellow Director, AEI Critical Threats Project; RAMESH PONNURU Christopher DeMuth Chair; Visiting Fellow WENDELL L. WILLKIE II EDWARD CONARD Resident Scholar Visiting Fellow Visiting Fellow ANGELA RACHIDI LEON R. KASS, MD Research Fellow KEVIN CORINTH Madden-Jewett Chair; Resident Visiting Scholar Research Fellow Scholar VINCENT R. REINHART Visiting Scholar JOHN YOO MAURA CORRIGAN ANDREW P. KELLY Visiting Scholar Visiting Fellow Director, Center on Higher GERARD ROBINSON Education Reform; Resident Scholar Resident Fellow ROGER I. ZAKHEIM SADANAND DHUME Visiting Fellow Resident Fellow PAUL H. KUPIEC DALIBOR ROHAC Resident Scholar Research Fellow WEIFENG ZHONG ROBERT DOAR Research Fellow Morgridge Fellow in Poverty Studies; JON KYL MICHAEL RUBIN Resident Fellow Visiting Fellow Resident Scholar KATHERINE ZIMMERMAN Research Fellow THOMAS DONNELLY DESMOND LACHMAN SALLY SATEL, MD Codirector, Marilyn Ware Center for Resident Fellow Resident Scholar JOEL M. ZINBERG, MD Security Studies; Resident Fellow Visiting Scholar ADAM LERRICK GARY J. SCHMITT MACKENZIE EAGLEN Visiting Scholar Codirector, Marilyn Ware Center BENJAMIN ZYCHER Resident Fellow for Security Studies; Director, John G. Searle Chair; PHILLIP LOHAUS Program on American Citizenship; Resident Scholar NICHOLAS EBERSTADT Research Fellow Resident Scholar Henry Wendt Scholar in Political Economy KIRSTEN MADISON MARK SCHNEIDER Deputy Director, Foreign and Visiting Scholar Defense Policy Studies; Resident Fellow MARTIN COHEN* MARTIN GARCIA Executive Chairman Cohen & Steers MARK D. GIBSON NATIONAL COUNCIL Executive Managing Director DAVID COULTER HFF, L.P. Vice Chairman Members of AEI's National Council Warburg Pincus RONALD J. GIDWITZ are business and community leaders Principal from across the country who are JOE CRAFT AND KELLY KNIGHT* GCG Partners committed to AEI's success and serve SUSAN CROWN AND WILLIAM KUNKLER HENRY GORDON as ambassadors for AEI, providing MARY LOU AND JOHN DASBURG us with advice, insight, and guidance C. BOYDEN GRAY Founding Partner as we look to reach out to new F. JOSEPH DAUGHERTY, MD* Boyden Gray & Associates friends around the country. Please PAUL L. ("LEW") DAVIES III JUDSON AND JOYCE GREEN* contact Toby Stock, vice president of AND PILAR H. DAVIES development and academic programs Managing Principal HEATHER AND PAUL G. HAAGA* ([email protected]; 202.862.5834), The Cambria Group KIP HAGOPIAN if you are interested in learning more ANTHONY J. DE NICOLA about the National Council. Co-President STEVEN T. HALVERSON Welsh, Carson, Anderson & Stowe JON D. HAMMES* MICHAEL A. DELANEY Hammes Company Managing Partner Court Square Capital Partners KENNETH H. AND YVONNE S. HANNAN* Colonial Navigation Co. Inc. BILL ACHTMEYER* KIMBERLY O. DENNIS* Chairman and Managing Partner President JAMES L. HASKEL The Parthenon Group Searle Freedom Trust JIMMY AND DEE HASLAM JAY ADAIR* MICHAEL DOAR ERWIN AULIS* JAMES H. DONOVAN* KERRY MURPHY HEALEY Managing Director JOHN D. BAKER Goldman Sachs SEAN HEALEY Chairman and Chief Executive Officer THILO BEST* MARK DORMAN Affiliated Managers Group, Inc. Principal Managing Director Bayshore Retirement Partners Endeavor Capital DAVID G. HERRO*

BAYARD BOYLE JR.* RICHARD DRIEHAUS* THOMAS HILLMAN Chairman Boyle Investment Group KURT DUDAS ED AND HELEN HINTZ* Ehrenkranz Partners Hintz Capital Management CURTIS F. BRADBURY JR. Chief Operating Officer ROBERT A. ECKERT KEN HIRSH Stephens Mattel, Inc. H. LEE S. HOBSON* GEOFFREY AND MELISSA CHRISTOPHER F. EGAN* Highside Capital Management BRADSHAW-MACK LEWIS M. EISENBERG ROBERT B. AND JANET A. HOFFMAN* DOUGLAS AND ANGELA BRALY Kohlberg Kravis Roberts Double V Trust Funds The Braly Group, LLC MARTIN C. ELTRICH* JOHN W. HOLMAN III BENNIE AND STEPHANIE BRAY Partner Managing Director AEA Investors Eagle Capital Management, LLC ARTURO BRILLEMBOURG AND HILDA OCHOA-BRILLEMBOURG JOHN EVANGELAKOS AL AND KATHY HUBBARD Sullivan & Cromwell, LLP KEN BROAD STANLEY S. HUBBARD CHRISTIAN A. FELIPE* Chairman and Chief Executive Officer ERIC CANTOR* Hubbard Broadcasting, Inc. Former House Majority Leader SEAN M. FIELER* Vice Chairman, Moelis & Company General Partner MARTIN P. HUGHES* Equinox Partners, LP MARK CARLIN* TOD AND SUSAN HULLIN Executive Vice President DONALD V. FITES Lockton Insurance Brokers, Inc. PAUL J. ISAAC* MORTON FLEISCHER Arbiter Partners JAMES D. CARREKER Chairman, STORE Capital Corporation JDC Holdings RICHARD M. JAFFEE SPENCER FLEISCHER RUSSELL L. CARSON* SHELLY AND MICHAEL KASSEN General Partner EDWARD C. FORST Welsh, Carson, Anderson & Stowe RICHARD A. KAYNE MICHAEL J. FOURTICQ SR.* Chief Executive Officer ROBERT H. CASTELLINI* Hancock Park Associates Kayne Anderson Capital Advisors, Inc. Chairman Castellini Company TROY AND ELIZABETH FOWLER* MICHAEL L. KEISER* Board of Directors Co-Founder JOHN K. CASTLE Triad Foundation Recycled Paper Greetings, Inc Chairman and Chief Executive Officer Castle Harlan, Inc. SAM AND MARILYN FOX* RANDY P. KENDRICK Founder NANCY AND GARY CHARTRAND* Harbour Group JOHN KINGSTON

ARMEANE AND MARY CHOKSI* JOEL AND STELLA FREEDMAN* YVETTE AND LOU KLOBUCHAR PETER B. CLARK JOSH FRIEDMAN SUE KOFFEL J. CHRISTOPHER KOJIMA JAMES F. MOONEY* ROBERT P. RYAN Managing Director Partner Elliott Management Corporation Goldman, Sachs & Co. The Baupost Group, LLC NATHAN E. SAINT-AMAND, MD*

AMY KORENVAES* JOHN AND CARRIE MORGRIDGE* MUNEER SATTER* President Morgridge Foundation Founder Harlan and Amy Korenvaes Family Foundation Satter Investment Management, LLC MR. AND MRS. ROBERT S. MURLEY HARLAN B. KORENVAES* PAUL AND JUNE SCHORR Korenvaes Capital Management ALEX NAVAB* Kohlberg Kravis Roberts DAN SCHULTEJANN STEPHEN M. KOTRAN PATRICK AND CHARLENE NEAL* Chief Executive Officer Sullivan & Cromwell, LLP Automation-X Corporation Neal Communities WILLIAM KOURAKOS ROBERT H. NIEHAUS JAMES M. SENEFF Perella Weinberg Partners Executive Chairman GCP Capital Partners LLC CNL Financial Group, Inc. RODGER R. KROUSE* PETER NOLAN* Co-Chief Executive Officer ROGER T. SERVISON Sun Capital Partners, Inc. PHILIP AND JUDY NUSSBAUM* Fidelity Investments JOHN AND KARIN KUKRAL* LOU OBERNDORF STEVEN SHAFRAN KEN LANGONE DAN O’KEEFE* STEVEN SHAPIRO BILL LAVERACK* GoldenTree Asset Management Laverack Capital Partners RICHARD R. ONG Managing Director JEFFREY L. SILVERMAN HOWARD H. LEACH Eagle Capital Management, LLC Chairman and Co-Founder President Agman Partners Leach Capital, LLC DUANE AND SUSAN OTTENSTROER W. ROSS SINGLETARY II PHILIP LEBHERZ CRAIG OVERLANDER Managing Partner Chairman Chief Executive Officer Arcus Capital Partners Lebherz Insurance Services, Inc. Société Générale Americas DAVID SMICK SYLVIE LÉGÈRE AND TODD RICKETTS* SARAH AND ROSS PEROT JR.* Chairman & CEO Johnson Smick International, Inc.. RICHARD H. LENNY* DAN AND KELLIE PETERS* The Lovett & Ruth Peters Foundation LINDA AND BILL STAVROPOULOS ALEC LITOWITZ* STEVEN PRICE* ROBERT K. STEEL* DANIEL S. LOEB* Chairman and Chief Executive Officer Chief Executive Officer Townsquare Media, Inc. MARC STERN Third Point LLC MAYARI PRITZKER BARRY S. STERNLICHT BOB LOWE President Chairman and Chief Executive Officer Robert and Mayari Pritzker Family Foundation Starwood Capital Group D. SCOTT LUTTRELL Chairman and Chief Executive Officer PHILIP J. PURCELL* SHELDON M. STONE LCM Group, Inc. ANDY PUZDER* THOMAS P. STOSSEL AND BARRY L. MACLEAN* KERRY MAGUIRE President and Chief Executive Officer ALLEN AND KELLI QUESTROM* MacLean-Fogg Company DONALD AND SUSAN STURM JAMES C. RAHN* Sturm Financial Group RICHARD MAGNUSON President MICHAEL SULLIVAN* Kern Family Foundation MICHAEL E. MARTINO* Point72 Asset Management Co-Founder ANNE AND ROB RAYMOND* Mason Capital Management GENE SYKES IVOR MASSEY JR. GEOFFREY S. REHNERT* STEVEN TANANBAUM Triad LC Co-Chief Executive Officer Audax Group ROB TAYLOR M. HOLT MASSEY DAVID K. REYES RYAN TAYLOR ROBERT AND MARY MCCORMACK* J. JOE RICKETTS* CARL THOMA* ROSS MCKNIGHT Managing Partner Chairman of the Board RICHARD J. RIORDAN* Thoma Bravo, LLC Olney Bancshares of Texas, Inc. DAVID N. ROBERTS* DICK UIHLEIN* HARRY T. MCMAHON Senior Managing Director CEO Executive Vice Chairman Angelo, Gordon & Co. Uline Bank of America Merrill Lynch THOMAS S. ROBERTS GWENDOLYN VAN PAASSCHEN LINDA MCMAHON* Managing Director Principal and former Chief Executive Officer Summit Partners JOHN AND CAROL WALTER* World Wrestling Entertainment RICHARD AND ALLISON ROEDER* RAY AND HEATHER WASHBURNE* JOANIE AND DON MCNAMARA Charter Holdings ROBERT ROSENKRANZ* KENNETH B. MEHLMAN Chairman BUD WATTS Member & Global Head of Public Affairs Delphi Financial Group Kohlberg Kravis Roberts GARY L. WILSON JOHN W. AND JEANNE M. ROWE* Pacific Partners DANIEL N. MEZZALINGUA* Acquisitions Analyst ROBERT ROWLING JEFF WYLER FTO Chief Executive Officer PETER S. RUMMELL* Jeff Wyler Automotive Family GREG MILLER* Chief Executive Officer Larry H. & Gail Miller Family Foundation Rummell Company LLC SCOTT ZAJAC * Denotes National Council Co-Chair AMERICAN ENTERPRISE INSTITUTE 1150 Seventeenth Street, NW, Washington, DC 20036 / 34 / 202.862.5800 | www.aei.org