talk

CELEBRATING A CENTENNIAL

of thE

a q u a r t e rly p u b l i c at i o n o f t h e h o o v e r in s t i t u t i o n , s ta n f o r d u ni v e r s i t y

tower
summer 2012

What would Milton (Friedman) say?

inside
From the directors desk Page 2 Advancing the national debate Page 3 The world according to Harvey Mansfield Page 4 Hail, the free market! Page 5

Faced with the many policy issues arising in the often polarized, unruly, and chaotic marketplace that characterizes current US economic policy, what would the late great Milton Friedman say?
That was the theme of Hoovers April Retreat (www.hoover.org/news/115481) celebrating the centennial of the birth of Hoovers distinguished, Nobel Prizewinning free-market economist. In a two-and-a-half day retreat attended by some 320 Hoover supporters, a dozen heirs to the Friedman legacy explored as many shades of economic policy, with each ultimately reaching the same broad-strokes conclusion: that Milton would say that less is more:

John Taylor awarded prestigious Hayek Prize Page 7 Leadership Forum launched Page 10 In memoriam Page 11 Research fellow Kiron Skinner appointed to Pennsylvania state commission Page 11

Less government spending Less intervention Less uncertainty

Or, to say it another way, more is more:

More freedom More choice More rules-based policy

Reminiscing about the personal inspiration, mentorship, and scholarship they received at the knee of the renowned proponent of private enterprise, senior fellows talks were interspersed with video continued on page 8

ideas defining a free society

FROM THE

directors desk
A caravan. Its a group of travelers journeying together through deserts or hostile territory. Hoover recently launched its virtual Caravan (www.advancingafreesociety.org/category/the-caravan/), anticipated as a periodic online symposium on the contemporary dilemmas of the greater Middle East. Its maiden migration examines the ordeal of Syria, now a full year into a terrible struggle between a dictatorial regime and a rebellion determined to overthrow it; a second Caravan conference ponders whether the Afghan war can be won. On The Caravan you can read a range of opinions and preferences on whats to become of this headline-grabbing, often notorious region from scholars and statesmen alike: Fouad Ajami, Asli Aydintasbas, Russell Berman, Reuel Gerecht, Charles Hill, Nibras Kazimi, Habib Malik, Abbas Milani, Camille Pacastaing, Itamar Rabinovich, Joel Rayburn, and Josh Teitelbaum. The Caravan draws on the membership of Hoovers Herbert and Jane Dwight Working Group on Islamism and the International Order and on colleagues elsewhere who work the same political and cultural landscape. Fouad Ajami and Charles Hill cochair the project from which this effort originated, and I am pleased to add my own active engagement. The Caravan promises a free and candid exchange of opinions. With contention aplenty in the geographical area under study, we anticipate a proliferation of topics of debate, one leading to the next, over time providing deep insight into one of the worlds most troubled spots. Although the scholars who post here will not always agree, they will aim to engage us with topics of urgency and importance. Caravans are full of life, passion, and animated companionship. Hoovers virtual Caravan will be no different. What can be done about Syria? By all indications, President Assads demise does not seem imminent. Sadly for the civilian population of Syria, the internal strife there is most likely going to fester, with a rise over time in innocent casualties. Take a read. Youll be glad you did.

John Raisian Tad and Dianne Taube Director

Hoover Institution

Eric Hanushek, Hanna Senior Fellow and a member of the Koret Task Force on K-12 Education, offered expert testimony to the US Congress on public education reform measures.

HOOVER IN WASHINGTON

Advancing the national debate

When Mr. Smith went to Washington in the classic 1939 film, it was to advance the ideals of American democracy. When the Hoover Institution goes to Washington today, its to advance ideas defining a free society.
Hoovers Public Affairs group capitalizes on the Washington infrastructurethe seat of federal government, the news media, social media, and policy communityto advance our fellows research and scholarship. We distribute books, arrange meetings with interested policy makers, and collaborate with Washington-based think tanks to amplify Hoover views. Hoovers Washington staff personally delivers our scholars books to members of Congress and their respective committees and staffs; we build relationships with East Coast media and policy makers; and we collaborate with other thought leaders and think tanks to bring Hoover ideas to broader, informed publics. The Washington-based group arranges for fellows to provide policy briefings on Capitol Hill, including, for example, a briefing the Koret Task Force on K12 Education recently provided to the House Committee on Education and the Workforce on the task forces recent publication, Choice and Federalism. In the past year our fellows have testified nearly twice a month on Capitol Hillsome twenty times in all. The US Congress Joint Economic continued on page 6
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The world according to Harvey Mansfield

Political philosopher harvey C. Mansfield, the Carol G. Simon Senior fellow at hoover and the William R. Kenan Jr. Professor of Government at harvard University, was in residence at hoover recently to confer with colleagues on the Boyd and Jill Smith task force on Virtues of a free Society. a recipient of the 2011 Bradley Prize,
photo courtesy american enterprise institute

Professor Mansfield has held Guggenheim and national Endowment for the humanities fellowships, has been a fellow at the national humanities Center, and in 2004 received the national humanities Medal. he took time out to discuss conservatism, its relationship to the Republican Party and Republican politicians, and the enduring virtues on which our liberty depends.

on ConSERVatiSM
Its important to distinguish between Republicans and conservatives. The two are not the same. Republicans look for the best terms on which they can win the next election; conservatives are willing to lose the next election and win after that. I call myself a conservative Republican because I like to win sooner rather than later. Conservatism is a reactive movement. It starts from something it doesnt like. It was born in response to the French Revolution and today takes as its foil progressive liberalism. Conservatism seeks what needs to be done to stop things or at least slow them down. The goal is a return to a previous time when things were better. The goal is going back or, at least, going slow.

on ValUES VERSUS ViRtUES

Values are arbitrarily chosen, whereas virtues have definition. Virtues are closer to reason than values are. Liberals confuse rights with the exercise of rights. For example, the government protects a right of free speech, but it shouldnt tell people how to exercise it, with certain exceptions such as inciting violence. But liberals want to define hate speech and offensive speech so as to prohibit certain exercises of speech, and they try to indoctrinate and intimidate people to make them politically correct. Its as if the only free speech is speech they approve of. In rejecting conventionbecause its traditional or based on authoritythe liberals have let us claim virtue. continued on page 7
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Hoover Institution

Hail, the free market!

The Hoover Institution remembered senior fellow Milton Friedman on the occasion of his hundredth birthday this spring with a conference devoted to his life, learning, and legacy. TV journalist John Stossel delivered pre-dinner remarks.

Top row (left to right) Bob Brink, overseers Vic Trione and Ambassador Barbara Barrett; Connie Mitchell; fellows Abraham D. Sofaer and Abbas Milani. Center row (left to right) TV journalist John Stossel, Fred and Deborah Concklin; Chuck Thornton and Scott Brittingham; Peter Gerber and Miriam Goldberg, senior fellow Tom Moore, TV journalist John Stossel. Bottom row (left to right) Jean Wren; research fellow Kori Schake, Gabrielle Davis and overseer Jamie Carroll; overseer Walter Hussman.

advancing the national debate

(continued from page 3)

Committee invited some Hoover economists to analyze the Sound Dollar Act and then invited them back to testify formally. Additionally, the House Committee on Foreign Affairs recently invited Hoover research fellow Kori Schake to brief key staff on the findings from her recent book, State of Disrepair: Fixing the Culture and Practices of the State Department. More and more Hoover fellows are called on and cited by key policy makers and thought leaders. During the past year, for example, House Speaker John Boehner, House majority leader Eric Cantor, and House budget committee chairman Paul Ryan have invoked Hoover research and scholarship in their speeches, on their websites, in their blogs, and in press releases. Senator John McCain recently tweeted to his 1.7 million Twitter followers that senior fellow Fouad Ajamis Washington Post piece on the Arab Spring was a must read. Since the historic passage of the 2010 health care legislation, Hoover fellows Scott Atlas, MD, David Davenport, Richard Epstein, Michael McConnell, and Ed Meese have been on the frontlines discussing the issues, questioning the laws constitutionality, and spurring the debate forward with new ideas. When the US Supreme Court decided to hear arguments on the landmark case, Politicoan influential beltway publicationput together a special section that featured Scott Atlas as a contributor, along with Health and Human Services secretary Kathleen Sebelius and Pam Bond, one of the state attorneys general challenging the new law. Also in Washington, Hoover partners with other think tanks to extend its reach and amplify its voice. In recent months, for example, we partnered with the Brookings Institution on a conference focusing on energy and defense issues that drew officials from the US Departments of Defense and Energy. We also partnered with the Heritage Foundation to showcase John Taylors book First Principles, which drew a number of key media, Hill staffers, economic experts, and scholars. Hoover Clubs highlight renowned Hoover

fellows and their most recently published books, drawing attendance by the press corps, congressional staff members, and policy experts. Recent clubs have featured Hoover Press books by senior fellows Amy Zegart, Scott Atlas, and Peter Berkowitz. A new pilot initiative will bring fellows to Washington on a monthly basis for events ranging from briefings and receptions to dinners. Our fellows analytic and thoughtful research takes a long-term, big-picture approach to public policy. Although there is much work ahead, Hoover fellows continue to move policy discussions forward with fresh ideas on todays most pressing questions. With an expanded presence on both coasts, Hoover delivers ideas defining a free society to interested policy makers, publics, and media. Like Senator Smith in the classic movie, Hoover aims to support our great nation by providing a scholarly basis for sound public policy.

Hoover fellows David Davenport and Scott Atlas have been on the front lines of the national health care debate as President Obamas proposed new law is challenged in the US Supreme Court.

Hoover Institution

the world according to harvey Mansfield

(continued from page 4)

on aMERiCaS fUtURE
Democrats established entitlements to provide social security against the risk that people would not save enough voluntarily to provide for their retirement. This was security against our citizens lack of the virtue of thrift. A big choice lies ahead for America, in which the entitlements we have voted for ourselves now threaten us as if they were our unchosen fate. They are called entitlements because they were supposed to have been chosen for good, past recall, and thus put beyond politics. What you are entitled to will no longer be subject to dispute. Now it appears we cannot pay for them, and not just arguably but indisputably. Democrats, who first proposed them, are beginning to agree on this point with Republicans, who at first opposed them. A controllable government needs to be both limited and energetic: limited to benefits that do not make dependents of our people and energetic when it must act. With this goal we can reasonably look to Americas future with hope.

John Taylor awarded prestigious Hayek Prize

ew Yorks Manhattan Institute has awarded its prestigious Hayek Prize to Hoovers John Taylor, George P. Shultz Senior Fellow in Economics, for his

book First Principles: Five Keys to Restoring Americas Prosperity.

The prize honors the book that best reflects the vision of economist and Nobel laureate Friedrich Hayek, who advocated for economic and individual liberty. John Taylor has long advanced bold reforms that apply our nations timeless principles to the challenges of today, said US House Budget Committee chairman Paul Ryan. Taylors latest contribution to the national debate could not come at a more important moment. First Principles is an important guide for policy makers and the citizens we serve, as Americans work together to restore the promise and prosperity of this exceptional nation. In this book, Taylor offers solutions to the current economic crisis that involve returning to Americas founding principles. He argues that to restore prosperity America should return to economic and political freedoma predictable policy framework, rule of law, strong incentives, reliance on markets, limited government. He demonstrates that when we embrace these first principles, the economy prospers. When we abandon them, the economy falters. In a masterful sweep through history he identifies those key policy makers who stuck to, ignored, or compromised on the principles, drawing lessons from the mistakes and the successes.

ideas defining a free society

What would Milton (friedman) say?

(continued from page 1)

clips of Friedman, demonstrating his adage that the basic principles we believe in are going to stay the same for the next thousand years, as research fellow Russell Roberts quoted Hoovers most-quoted scholar. Illustrating the late scholars generous spirit, his scholarly contributions, his role as a public intellectual, and his influence on the Hoover Institution, senior fellow Michael Boskin recalled his pleasant surprise at receiving a detailed, seven-page, handwritten reflection on the undergraduate honors thesis a young Boskin sent to Friedman on a lark while attending another university! Boskin went on to credit Friedman with five major policy contributions with living legacies at Hoover:

The flat taxnow pursued by senior fellows Robert Hall and Alvin Rabushka The negative income taxnow studied by Michael Boskin and Martin Anderson The all-volunteer armynow federal policy School choice and school vouchersadvocated by Eric Hanushek, Caroline Hoxby, and the Koret Task Force on K-12 Education Money supply growth rulenow most closely associated with John Taylor and known as the Taylor Rule

Distinguished fellow George Shultz, who met Friedman years ago when both were professors at the University of Chicago, called his colleague very generous, always available, supporting, arguing, giving me the courage of my convictions. It was always great to have Milton on your side, he said. He always had good ideas, and he could articulate them in a way that was persuasive and helpful. Friedman ground his theories in fact, Shultz said, so, on the occasion of Friedmans ninetieth birthday, Shultz wrote a little song for him, A Fact without a Theory, which he performed to the great delight of all the guests. Other highlights of the retreat included a special presentation by television journalist John Stossel entitled No, They Cant: Why Government Failsbut Individuals Succeed; a wide-ranging conversation between senior fellow Condoleezza Rice and research fellow Peter Robinson; and a live taping of The John Batchelor Show (www.facebook.com/pages/Hoover-Institution/30 0992409852?sk=photos) on the economy in crisis, featuring Hoover fellows Boskin, Roberts, and Taylor moderated by Batchelor and Mary Kissel, editorial director of The Wall Street Journal. Milton Friedman was a cheerful man, and when he criticized (economist John Maynard) Keynes, he was cheerful, radio host Batchelor recalled. He was always kind and generous, Taylor said. He answered every e-mail. He was genuinely concerned about people.
Radio host John Batchelor taped his show live from Hoover; Distinguished fellow George Shultz reminisced about his friend and colleague Milton Friedman; Stephenson Senior Fellow Condoleezza Rice and research fellow Peter Robinson held a wide-ranging discussion of public policy.

Hoover Institution

April retreat program

John Stossel, fox news No, They Cant: Why Government Fails but Individuals Succeed Michael Boskin, senior fellow Russell Roberts, research fellow John taylor, George P. Shultz Senior fellow in Economics nicholas Wapshott, author, Keynes/Hayek: The Clash That Defined Modern Economics

Michael Boskin, senior fellow Beyond Remarkable: Milton Friedman as Scholar and Public Intellectual

Panel Discussion with the 201112 national Security affairs fellows Eric hanushek, Paul and Jean hanna Senior fellow Has the Time Come for School Choice? The American Military: Todays Circumstances and Tomorrows Challenges thomas henriksen, senior fellow, moderator John Cogan, leonard and Shirley Ely Senior fellow A Tale of Two Budgets: Obama versus Ryan Mark Cassayre, US Department of State lieutenant Colonel Michael Chandler, US army lieutenant Commander Manuel hernandez, US navy lieutenant Colonel John howard, US air force Colonel (select) Matteo Martemucci, US air force lieutenant Colonel Joseph Russo, US Marines

the honorable George P. Shultz, thomas W. and Susan B. ford Distinguished fellow Reminiscences on Milton Friedman

A Conversation between Condoleezza Rice, thomas and Barbara Stephenson Senior fellow, and Peter Robinson, research fellow

Victor Davis hanson, Martin and illie anderson Senior fellow The American Ways of War

fouad ajami, senior fellow The Arabs and Freedoms Ride: To Ride or to Walk? Russell Roberts, research fellow Milton Friedman on the Crisis Stephen haber, Peter and helen Bing Senior fellow Where Does Democracy Thrive? Climate, Technology, and the Evolution of Political Institutions Edward lazear, Morris arnold and nona Jean Cox Senior fellow Taxes and Economic Growth Michael McConnell, senior fellow Health Care in the Courts Caroline hoxby, senior fellow How Government Policy Is Creating Winner and Loser Generationsor What Young People Ought to Be Protesting

live taping of The John Batchelor Radio Show An Economy in Crisis: Looking to Historic Figures to Save the Present John Batchelor and Mary Kissel, cohosts

John taylor, George P. Shultz Senior fellow in Economics Government Policy and the Delayed Recovery

ideas defining a free society

Leadership Forum launched

Following on the heels of a successful pilot project, Hoovers Leadership Forum has formally launched, with New Jersey Governor Chris Christie, Newark Mayor Cory Booker, and House Speaker John Boehner among the first policy makers to stop by for a consult.

Following on the heels of a successful pilot project, Hoovers Leadership Forum has formally launched, with New Jersey Governor Chris Christie, Newark Mayor Cory Booker, and House Speaker John Boehner among the first policy makers to stop by for a consult. Seeded with pilot support from overseer Dr. Gail Jaquish and Steve Kenninger, the Leadership Forum is designed to engage in more direct outreach to current and aspiring political leaders, creating oneor two-day visits to Hoover that offer pragmatic and thoughtful ideas to benefit the course of public policy. We target governors, members of Congress, members of the administration, mayors and candidates for elected officeboth Republican and Democrat. Visits often culminate in a public address to which key Hoover stakeholders and the press are invited. The topical focus on pragmatic and thoughtful ideas to benefit the course of public policy dictates which Hoover fellows will participate in the intimate roundtable discussions, with policy makers calling on Hoover expertise in such areas as economic recovery, health care and entitlement reform, and national security, to name a few. As an unanticipated side benefit, fellows hear each others ideas, strengthening

relationships among them and benefitting the Institution as a whole. Other recent visitors have included House majority leader Eric Cantor, US Army General HR McMaster, and Congressman Dan Lipinski. The Leadership Forum also encompasses topical workshops involving high-ranking staff and municipal government leaders. For example, a workshop on state and municipal fiscal default brought together experts from the fields of public policy, economics, finance, law, and state and local politics to consult about the nature of the problem, the current legal structures, and the possibility of legislative or other reform to avert the need for federal bailouts. Participants rated it one of the highest quality programs they had ever attended, for both quality of content and quality of fellow participants. Also being considered as part of the Leadership Forum down the line are summer boot camps for key legislative stafferschiefs of staff, deputy chiefs of staff, and directors of communication, for example to learn from Hoover scholars about public policy options that could advance our national interests.

Left: New Jersey Governor Chris Christie visited Hoover as part of the Leadership Forum. Right: Director John Raisian and Edward Lazear, the Morris Arnold and Nona Jean Cox Senior Fellow, flank US Senator Rob Portman of Ohio, who visited Hoover as part of the Leadership Forum.

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Hoover Institution

In memoriam: Hoover overseer Donald P. Kennedy

Research fellow Kiron Skinner appointed to Pennsylvania state commission

Hoover overseer Donald P. Kennedy, who grew his family business into one of the worlds largest title insurance companies and helped transform the title insurance industry, has died. He was 93. A Stanford graduate and member of the 1939 golf team that won an NCAA Division I Championship, Kennedy served in the US Navy during World War II and then earned a law degree from the University of Southern California. He joined the family firm, Orange County Title, now First American Financial, and held the position of chairman emeritus until 2010, when First American spun off into two separate publiclytraded companies.

W. Glenn Campbell Hoover Research Fellow Kiron Skinner has been named to the Governors Advisory Commission on African American Affairs for the State of Pennsylvania. Pennsylvania Governor Tom Corbett selected Skinner as well as seventeen other distinguished leaders to serve on the new commission, representing Pennsylvanias 1.4 million African American citizens. The commission advises and makes recommendations to the governor on policies, procedures, legislation, and regulations that affect Pennsylvanias African American community, articulating and addressing the communitys unique needs and issues of concern. As a political scientist and historian of

During his distinguished career, Kennedy received numerous honors. Orange Coast Magazine named him Man of the Century; he was inducted into the California Building Industry Association Hall of Fame; and he received the Real Estate Sumigarden Award from the University of California at Irvine. A past president of the California Land Title Association and the American Land Title Association, Kennedy was deeply involved in community affairs, serving as vice chairman of the Board of Trustees of Chapman University and as a member of Stanford Universitys Athletics Board. He had served on Hoovers Board of Overseers since 2006.

the American experience, I am honored to bring my academic perspective to Governor Corbetts commission on African Americans in Pennsylvania, Skinner said. The history of African Americans in Pennsylvania reflects a diverse and unique blend of cultural, social and economic influences which have had and continue to have a beneficial impact on life in the commonwealth, Corbett said in making the appointments.

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ational Security Affairs

Fellow Lieutenant Commander

Manuel Hernandez, US Navy, welcomed 23 students from Mountain View High School to Hoover, to encourage them to work hard and go to college. Stephenson Senior Fellow Condoleezza Rice came by to offer special inspiration to the ninth graders, all learning English as a second language.

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