Issue No. 5, Fall 2015, vol. 2

Enterprise Report Restoring Liberty, Opportunity, and Enterprise in America

Rallying Happy WarriorsBy AEI President Arthur Brooks

Lately you have probably been bracing yourself for the usual negative polit-ical discourse, including attack ads on television and radio, one-upmanship in debates, and cynicism from political commentators and policymakers—just another election year in America. But what if this didn’t have to be the case? Is negativity the only way to win?

We at AEI don’t think so. As I have tried to explain in my writing and in speaking with policymakers and reporters, I believe that a superior, more effective approach is to distinguish oneself as the happy warrior who is fighting for people, not just against programs and things.

What America needs, especially today, is leadership with a positive vision that sees opportunity where challenges exist, views our most vulnerable citizens as assets to develop and not liabilities to manage, and appreciates and cele-brates that the United States is still a great nation with unlimited potential.

This fall and in the year ahead, my colleagues and I will be happily rallying to supply the big ideas needed to help all Americans flourish, to keep our nation safe, and to spread our blessings around the world. A few examples of this work (as described in the pages of this edition of the Enterprise Report) include:

• Scholars in AEI’s Marilyn Ware Center for Security Studies recently released a major report detailing what is required to advance American interests and those of our allies and to promote flourishing around the globe. Historically, one of our nation’s closest allies has been Israel, and AEI honored Prime Minister Benjamin Netanyahu at AEI’s Annual Dinner earlier this month with the Irving Kristol Award.

• New AEI scholars such as Gerard Robinson (featured in this edition of our Q&AEI) are helping to bolster our work in key areas such as education policy and are offering tangible policy reform suggestions through our “5 Questions” blog series (www.aei.org/feature/5-questions-series/).

• AEI’s Political Studies team is analyzing broader trends among the American people and what they portend for this election and the future of our country. Karlyn Bowman is leading a major project in collaboration with the Center for American Progress and Brookings Institution on the impact of America’s demographic changes.

To communicate these ideas broadly, we will call on AEI’s growing Leadership Network—a diverse group of happy warriors from across the country who share the belief that the opportunity gap in the United States must be addressed and that AEI is a source of important ideas on how to do so.

There is perhaps no greater happy warrior than His Holiness the Dalai Lama, who welcomed a small group of AEI friends, American business leaders, and entrepreneurs from the Dharavi slums in Mumbai to his compound in Dharamsala, India, for a conversation in which he taught us that the formula for a happy, meaningful life is to appreciate abun-dance while avoiding attachment. This symposium was an important opportunity to foster new ideas to help understand the relationship between human freedom and dignity, opportunity, and happiness.

Stay tuned for more from AEI on how we can create a culture of leaders carrying the message of optimism and service to others. AEI’s work, as always, is only possible thanks to the support of our donors who are investing in our scholars and research programs, commu-nications and outreach capabilities, and the future of the free enterprise movement through visionary investments—such as the Jacobs Endowment (featured on page 7), which has helped fund the work of some of AEI’s top young researchers.

My colleagues and I are enormously grateful to you—our fellow happy warriors—who are working to unite Americans behind our optimistic vision for our country and world. With you by our side, I meet the upcoming election year not with cynicism but with a renewed optimism for our country and what’s ahead.

Arthur BrooksAEI President and Beth and Ravenel Curry Scholar in Free Enterprise

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Scholars in AEI’s Marilyn Ware Center for Security Studies (MWCSS) published a new report in October titled To Rebuild America’s Military, which outlines the minimum strategy, forces, and budgets required to advance American interests and promote flourishing around the world. It was released at a public event fea-turing a conversation between AEI’s Jim Talent and Sen. Tom Cotton (R-AR).

The report contains a quantitative assessment of the nuclear, land, air, maritime, missile defense, special operations, space, and cyber capabilities demanded by a three-

theater standard. It also identifies the needed programs and technol- ogies for research, development, and procurement.

This report is a blueprint for the next US president, who must begin

to rebuild America’s military. Since the end of the Cold War, the US military has been deployed 51 times, yet no president has made serious or substantial investments in the US armed forces. AEI’s defense scholars are using this report as a basis for numerous briefings with policymak-ers and defense officials.

You can read the full report—as well as a summary of key points, an infographic depicting an ideal three-theater construct, and the video of the public release event—online at www.aei.org/publication/ to-rebuild-americas-military/.

MWCSS Releases Major New Defense Report

Israeli Prime Minister Benjamin Netanyahu was honored at AEI’s Annual Dinner on November 9, with the Irving Kristol Award, AEI’s highest honor.

More than 2,000 people gathered at the National Building Museum in Washington, DC, for Prime Minister Netanyahu’s conversation with

AEI Senior Vice President for Foreign and Defense Policy Studies Danielle Pletka. In his remarks, the prime minister discussed Israel’s shared values with the United States and offered his insight on US- Israel relations and the growing challenges facing Israel, including regional turmoil, the rise of religious

“I would not at all diminish the importance of this alliance.

I think it is pivotal for the future of the world.”

—Prime Minister Netanyahu

extremism, and the impact of the Syrian crisis.

The Irving Kristol Award is given to individuals who have made extraordinary intellectual or political contributions to improve government policy, social welfare, or political understanding.

AEI is very grateful for the mem-bers of its community who financially supported the dinner. To view a video of Prime Minister Netanyahu’s remarks and a video on the ethos of AEI, please visit www.aei.org/feature/ 2015-annual-dinner/.

Israeli Prime Minister Receives AEI Irving Kristol Award

Israeli Prime Minister Benjamin Netanyahu and AEI’s Danielle Pletka.

Sen. Tom Cotton (R-AR) and AEI’s Jim Talent.

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On October 13, the day that the Democratic presidential candi-dates took the stage in Las Vegas for their first primary debate of the 2016 election, AEI and Brookings Mountain West hosted a predebate event in Las Vegas to discuss the demographic chal-lenges both political parties face. The bipartisan panel included AEI Senior Fellow Karlyn Bowman, AEI Resident Scholar Norm Ornstein, the Center for American Progress’s Ruy Texeira, and the Brookings Institution’s Robert Lang. The panelists discussed the rapidly changing demographics in America, their significance, and the possibilities for political success.

The conversation previewed data from AEI’s joint project with the Center for American Progress and the Brookings Institution titled “States of Change.” The project aims to document and analyze the challenges to democracy posed by the rapid demographic evolution

from the 1970s to 2060, to project the racial-ethnic composition of every state to 2060, and to promote a wide-ranging and bipartisan discus-sion of America’s demographic future and what it portends for the nation’s political parties and policy.

The project’s first report, States of Change: The Demographic Evolution of the American Electorate, 1974–2060, was released in February and outlines 10 broad trends that suggest the scale of our country’s transfor-mation and the scope of its future challenges.

Election 2016AEI Scholars Drawing Candidates’ Attention to Key Issues

What Do America’s Changing Demographics Portend for Politics and Policy?

AEI and Brookings Mountain West event panel.

To help presidential candidates crystallize their thinking on the issues of the day, AEI has launched a “5 Questions” series on our blog, AEIdeas, in which each blog post outlines five questions on one of the many major challenges a new president can expect to face at home or abroad. The answers to these questions will elucidate candidates’ views and might even help them and their advisers craft strategies to prepare for day one of the new administration.

Recent posts have included five questions every presidential candidate should answer on judicial and executive powers, poverty, school choice, higher education, Syria, China, nuclear deterrence, Southeast Asia, special operations forces, and Afghanistan. To read the posts, visit www.aei.org/feature/5-questions-series/.

AEI Launches New Series in Advance of Presidential Election

Tune In to AEI Banter on iTunes

Banter is AEI’s weekly podcast series, during which hosts Janine Nichols and Spencer Moore talk with leading thinkers and political commentators on a wide range of topics. True to its name, Banter keeps the conversation entertaining and insightful for anyone with an interest in politics and policy.

The series recently celebrated its 200th episode, during which the hosts selected some of their favorite interview highlights from episodes past. Covering topics such as UK politics, criminal justice, smartphones, and Charles Murray’s advice for his 20-something self, the episode featured 10 guests whose insights should not be missed.

To listen to Banter, visit www.aei.org/tag/aei-banter/ or subscribe to the series on iTunes.

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This fall, AEI hosted more than 70 leaders from across the country for the second Leadership Network Summit in Washington, DC. These leaders were hand-selected by the AEI team and represented a diverse range of personal, professional, and ideological backgrounds.

Hailing from across the country, they represented nonprofits; community service groups; business organiza- tions; and city, state, and local govern-ments. This diverse group was brought together by the shared beliefs that the United States has a persistent oppor- tunity gap that must be addressed and that AEI is a source of important work on this issue.

From panel discussions led by AEI scholars to group discussions and site visits, these leaders engaged on topics including poverty alleviation, education reform, and the power of free enterprise. The three-day event challenged participants to think more deeply and broadly about how their personal and professional endeavors can positively impact the opportunity gap in their communities.

While in DC, the Leadership Network heard from AEI scholars Michael Barone, Karlyn Bowman, Arthur Brooks, Tim Carney, Robert Doar, Gerard Robinson, and Michael Strain about a variety of policy topics. The summit also included practical training on effective messaging and communications and an elevator pitch competition for Leadership Network members, which involved 60-second pitches on free enterprise, education, or poverty from 20 of our most talented members.

To recommend community, business, or nonprofit leaders for

this group, please contact Managing Director of Development and Strate-gic Initiatives Rachel Ayerst Manfredi (202.862.7187; rmanfredi@aei.org).

“The summit strengthened and further informed my existing convictions. It has also forced me to spend a lot of time reflecting about how I can help promote free enterprise and opportunity through my own work and what kind of career path I really want to follow.”

—– Leadership Network member

Feedback from our Leadership Network Summit was encouraging:

• 83 percent said they have a better understanding of or can better articulate the princi-ples of freedom, opportunity, and free enterprise after participating in this summit.

• 87 percent said that after attending the summit they are more likely to try to promote free enterprise in their community.

• 92 percent said that after attending the summit they are more likely to get involved and stay in touch with AEI in the future.

AEI 2015 Leadership Network Class.

Growing a Network of Free Enterprise AdvocatesAEI Expands Its Leadership Network

Winners of the AEI elevator pitch competition with judges Veronique Rodman, Arthur Brooks, and Paris Dennard.

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with Gerard Robinson

You have a range of experience in the education sector. What were your biggest challenges in the positions you have held?

As a fifth grade teacher, my biggest challenge was marshaling the attention of precocious students. This grade is particularly important developmentally because students are still in awe of learning, yet they want to be cool. Academically, I engaged students through projects, field trips to museums and colleges, and guest speakers.

My biggest challenge as president of two nonprofit organizations was convincing philanthropists and politi-cians to invest in educational endeav-ors that would outlive the lifecycle of a grant or an election.

As a state education leader, my biggest challenge was not succumb- ing to alarms over new legislation. Reforming education is a mindset. And when a reform mindset begins chipping away at calcified beliefs, it becomes tough to stay the course, particularly if doing so affects poll numbers or causes intraparty heartburn.

What does your role as a fellow at AEI allow you to accomplish that hasn’t been possible in your previous roles?

AEI affords me the opportunity to design a road map for human prosper-ity using education’s role in our civil society. For me, maintaining a healthy civil society requires many hands on deck: government, businesses, faith-based institutions, nonprofit organiza-tions, schools, and engaged citizens. Given AEI’s focus on liberty, individual opportunity, and free enterprise, designing an American future that stim-ulates prosperity for a broader segment of the population is something I take on with great interest. Few jobs in America offer this freedom of intellectual inquiry.

You talk about breaking the cycle of poverty nationally by breaking the poverty of opportunity locally. What do you mean by this?

When I worked as a box boy and cashier at a local grocery store in the mid-1980s, my boss told me: “Hard work does not guarantee success. It only minimizes the probability that you

will be fired for not doing your job.” I believe working smarter—not neces-sarily harder—is essential to success in our knowledge economy. Nevertheless, I know a lot of people whose financial and social well-being have not dramat-ically improved over the years despite working hard every day.

One of the reasons for this is the poverty of opportunity. A government policy that blocks poor and working- class students from accessing good schools is an example of the poverty of opportunity. Research shows that a quality education is one factor that helps break the cycle of poverty. We must break the poverty of opportunity within our local systems of education to break the cycle of poverty nationally.

What are some examples of communities that are finding real education reform solutions?

Communities that incorporate a multi- stakeholder approach to education are several steps ahead of communities that do not. Thanks to a 2010 law, the University of Virginia’s education and engineering schools, in partnership with the Charlottesville and Albemarle school systems, created the nation’s first lab school focused on advanced man-ufacturing technologies. Middle school students—many qualifying for free and reduced-price lunch—are learning STEM subjects in innovative ways.This model has attracted middle-class families back into the public school system, and it has fostered a stronger partnership between middle schools and institutions of higher education.

Communities that do not embrace a multistakeholder approach will find it more difficult to reform schools. Reform necessitates support outside of class-rooms. Teachers, principals, and school boards should not do it alone.

In July, Gerard Robinson joined AEI’s education team as a resident fellow. He focuses on school choice programs, the challenges of reforming K–12 educa-tion, innovation in for-profit educational institutions, the role of community colleges and Historically Black Colleges and Universities in adult advancement, and the importance of parental and student responsibility. Robinson previously served as commissioner of edu-cation for the State of Florida, secretary of education

for the Commonwealth of Virginia, and president of the Black Alliance for Edu-cational Options. In September, he was selected as one of the 100 Outstanding African American Leaders for 2015 by African Leadership Magazine.

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The Jacobs Associates Program at AEI came to a close over the summer, end-ing a $2.65 million, 15-year endow-ment gift but leaving an immeasurable impact and legacy behind—a legacy that we hope is a fitting tribute to the endowment’s founder, the late Joseph J. Jacobs.

“My colleagues and I are very grateful for the bold vision and leader-ship of Joe Jacobs, who not only made an incredible amount of research at AEI possible among our young scholars but whose support also helped inject into the debates the ‘compassionate conservatism’ that Dr. Jacobs worked to advance throughout his life,” said AEI President Arthur Brooks.

Over the past six years, the Jacobs Endowment supported the research activities of a rotating group of 11 young researchers at AEI who focused on education or social welfare policy issues. Eight of the associates have since gone on to impressive careers impacting public policy through their work in nonprofits, business, aca-demia, and law, and three have further cemented their role as scholars at the forefront of today’s policy debates here at AEI: Resident Scholar and Director of AEI’s Center on Higher Education Andrew Kelly, Resident Scholar Aparna Mathur, and Research Fellow Kevin James.

The Jacobs Endowment was founded in 2000 through a gift and subsequent bequest from Jacobs to AEI. These funds established the

Joseph J. and Violet Jacobs Chair in Social Welfare Studies at AEI. Douglas Besharov held the chair for nearly nine years, researching state welfare and Medicaid policy reforms; private and community efforts to restore social and economic fabric of inner- city communities; and the effective- ness of federal nutrition, rehabilitation, and vocational training programs, among other issues. In 2009, the endowment began to support the Jacobs Associates Program.

In his work as an entrepreneur, philanthropist, and thinker, Jacobs engaged in a rigorous and honest evaluation of ideas and embodied AEI’s ideals of freedom, opportunity, and enterprise. The son of Lebanese immigrants, he founded Jacobs Engineering as a one-man consult-ing firm in 1947 and over the next half-century built it into one of the largest and most respected engineering firms in the world.

As a philanthropist, Jacobs provided ongoing support to various intellectual and social pursuits across the country—work that continues through the Jacobs Family Foundation and the Jacobs Center for Neighborhood Innovation in San Diego, California. He authored two books: The Compassionate Conservative: Assuming Responsibility and Respecting Human Dignity (1996) and Anatomy of an Entrepre-neur (1991).

ANDREW P. KELLY Resident Scholar and Director, Center on Higher Education Reform

Jacobs Endowment Makes Long-Term Impact on Education and Social Welfare Policy

KEVIN J. JAMESResearch Fellow, Center on Higher Education Reform

APARNA MATHURResident Scholar

If you are interested in making an endowment or planned gift to AEI or if you would like further information on the type of programs at AEI that you could support, please contact Senior Vice President of Development Jason Bertsch (202.862.5873; jbertsch@aei.org).

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Over two days in early November, members of AEI’s community gathered in Dharamsala, India, for AEI’s second annual symposium with His Holiness the Dalai Lama. During this event, par-ticipants explored one of today’s most pressing global challenges: the search for human happiness in a world where value is increasingly defined in purely material terms.

The event drew together Western and Eastern traditions to ask questions of vital importance: How can the idea of “abundance without attachment” enter the consciousness of political leaders, businesspeople, and ordinary citizens? How should the developing world balance the celebration of economic growth with its ultimate

spiritual insufficiency? How should this idea reshape the way we measure true prosperity?

Entrepreneurs from the Dharavi slums in Mumbai and American and Indian entrepreneurs, business leaders, and AEI scholars participated in this memorable symposium and also immersed themselves in the city of Dharamsala, Tibetan Buddhist culture, and the monastic community.

During the days surrounding the symposium, AEI also began filming its forthcoming documentary on the social science and ancient wisdom that teaches viewers the secrets of happi-ness. We look forward to updating you on our progress and sharing our work with you as it becomes available.

“Abundance without Attachment” Second Annual Symposium with His Holiness the Dalai Lama

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The American Enterprise Institute is a community of scholars and supporters committed to expanding liberty, increasing individual opportunity, and strengthening free enterprise. AEI’s work is made possible only by the financial backing of those who share our values and support our aims.

To learn more about AEI’s scholars and their work, visit www.aei.org.

To find out how you can invest in our scholars’ work, visit www.aei.org/support.

Make a Legacy Commitment to AEI

Please consider joining AEI’s Legacy Society by making a planned or estate gift to AEI. Planned giving offers many choices and tax benefits for donors and their beneficiaries, while also providing substantial current or future support for AEI. Major ways of making a planned gift include:

• Will or trust provisions;

• Retirement plan assets and life insurance policies;

• Charitable remainder trusts; and

• Charitable lead trusts.

For more information, please visit www.aei.org/donate/planned-giving or contact Jason Bertsch (202.862.5873; jbertsch@aei.org), Toby Stock (202.862.5834; toby.stock@aei .org), or Nicole Ruman Skinner (202.862.7189; nskinner@aei.org).

AEI’s Arthur Brooks talking with His Holiness the Dalai Lama in Dharamsala, India.