Cato Institute: Annual Report 2007

8/14/2019 Cato Institute: Annual Report 2007

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We must make the buildingof a freesocietyonce more anintellectual adventure, a deed

of courage. If we can regain that

belief in the power of ideas whichwas the mark of liberalism at itsbest, the battle is not lost.

F. A. HAYEK


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The first principles on which the American federalrepublic was founded were not made from wholecloth. Rather, they were the logical result of manycenturies of evolution in thinking about individ-

ual rights and civil society. A major reason for the success of theUnited States during its first 150 years was a culture that cher-ished individual rights and civil society, fearful that the accu-mulation of unchecked power by government leads inevitablyto tyranny.

That changed in the early 20th century with the populariza-tion of Progressive ideology, the fundamental premise of whichis that government be used to make society better, both athome and abroad, unimpeded by the restraints necessary to pre-serve individual liberty.

This ideology cedes virtually unchecked powers to the feder-al government, despite clear constitutional restrictions on thatpower. Our educational system and media reflect the influenceof Progressive thinking. Deference to and dependence on anever-expanding leviathan state is the result.

The Cato Institute was founded in 1977 with the missionof spreading the ideas that made the American experiment infreedom the most successful in history. The 2007 Annual Report chronicles the efforts of Catos scholars to promote and ex-pand this culture of liberty both at home and abroad, usingauthoritative research and practical proposals across the spec-trum of public policy.

ACulture that CherishIndividual Rights


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2 C A T O I N S T I T U T E 2 0 0 7 A N N U A L R E P O R T

M E S S A G E F R O M T H E P R E S I D E N T A N D T H E

The Cato Institutes 31st annual report hitsthe presses smack in the middle of a heat-ed presidential campaign in which three

major party candidates remain in the hunt. Bythe time you read this there may well be only two,but no matter. What strikes us as odd about thenature of the campaign in 2008 is the underlyingmantra of all three candi-dates that somehow themost noble thing individualAmericans can do is to sub-sume their personal interestto some greater good asdefined by the federal gov-ernment. Consider: Sen. Barack Obama con-stantly speaks of the needfor Americans to come to-gether again behind a com-mon purpose. Sen. John McCain askspeople to join him if they

believe in a national pur-pose that is greater than ourindividual interests. Sen. Hillary Clinton says,I think that in a life or ina country youve got to havesome goals.

Well. The question thatcomes to mind is, Why? Why should we all getbehind a common purpose or a national purpose or

a national goal? People flocked to America preciselybecause here, at last, was a nation thatdidnt havenational goals. It was created by people specificallyfor the purpose of protecting an individuals rightto life, liberty, and the pursuit of happinessand tootherwise leave us alone.

When neoconservatives (who are very much infavor of national goals to create national great-

ness) speak of American exceptionalism, they arereferring to our overwhelming military power inthe worldto our potential to shape the destinyof other nations. But that was never what Ameri-ca was supposed to be about. The true Americanexceptionalism is our focus on individualism.

Does this make us a nation of atomistic individ-ualists? Hardly. One of themost sophisticated socialobservers ever to walk theearth, Alexis de Tocqueville,on his extended visit toAmerica in the first part of the 19th century, was fas-cinated by the desire of Americans to work togeth-erto join churches, guilds,charitable organizations, bus-iness associations, neighbor-hood groups, and on andon. The point is not thatwe dont want to work to-

gether, but thatwe will makethe determination of howand why we work together,not political leaders. Asfor atomistic individualists,theres plenty of room foryou, too.

In Capitalism and Free-dom our late, great friend Milton Friedman wrotethat neither half of JFKs ask not what your coun-

try can do for you; ask what you can do foryour country, expressed a relation between the citi-zen and his government that is worthy of the idealsof free men in a free society. As Friedman put it:

To the free man, the country is the collectionof individuals who compose it, not some-thing over and above them. He is proud of

EDWARDH. CRANEPRESIDENT ANDCEO


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3C A T O I N S T I T U T E W W W . C A T O . O R G

a common heritage and loyal to commontraditions. But he regards government as ameans, an instrumentality, neither a grantorof favors and gifts, nor a master or god to beblindly worshipped and served. He recog-nizes no national goal except as it is the con-sensus of the goals that the citizens severallyserve. He recognizes no national purposeexcept as it is the consensus of the purposesfor which the citizens sev-erally strive.

We have always said thatthe essence of America isa respect for the dignity of the individual and that it isaxiomatic that such dignityis enhanced to the extentindividuals have more con-trol over their own lives. Inthe year ahead of us perhapsno domestic policy issue willput that axiom to the testmore than the debate over

health care. Getting third-party players, particularlygovernment, out of the pic-ture is a key. Health SavingsAccounts are a step in thatdirection. Government-man-dated individual health careinsurance is not, and welament the fact that some of our free marketfriends seem to be promoting that concept, which

will, over the long run, cement government controlover health care delivery. In which case, get ready tostand in line.

This annual report outlines a productive pro-gram of promoting liberty in a wide range of policyareas. We continue to be particularly proud of ourinternational work and would encourage you togo to our homepage at www.cato.org and click on

Cato International to see the remarkable workof our Center for Promotion of Human Rights.Vice president and senior fellow Tom Palmer andhis colleagues have created libertarian platformsranging from Arabic to Russian to Chinese. Also,Ian Vsquez and his colleagues have ramped upthe work of our Center for Global Liberty and Pros-perity. They played a critical role in making Catoaware of the heroic efforts of the 2008 awardee of

the Milton Friedman Prizefor Advancing Liberty, YonGoicoechea of Venezulea.Yon has mobilized millionsof young people throughoutLatin America to reject pop-ulism and embrace free mar-kets and open societies.

As Cato expandswenow have a $24 millionbudget, thanks to the greatgenerosity of Cato Sponsorsthroughout the nationwe have found it necessaryto lease 6,800 square feet

of office space about ablock and a half west of our headquarters building.Tom Palmer and his teamwill be the first to moveover to the new facilities.Eventually, we hope toexpand our headquarters

building, and were in negotiations with a neigh-bor for that purpose.

We are proud to be a part of an organizationdedicated to the founding principles of this greatnation. Cato remains one of the most frequentlycited think tanks in America. Our information-richwebsite attracts about 40,000 visits each weekday,and our podcasts and other online programscontinue their rapid growth. We thank each of youwho make the pursuit of Catos mission possible.

WILLIAMA. NISKANENCHAIRMAN


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P R O M O T I N G C O N S T I T U T I O N A L R I G H T SPA G E 6Our civil liberties are too precious to go undefended.

D O W N S I Z I N G G O V E R N M E N T PA G E 1 0Limited government with limited tax revenues is the best defense of liberty.

P R O M O T I N G C H O I C E PA G E 1 4Cato health and education scholars show how freedom of choice is the best solution.

S L A S H I N G S U B S I D I E S PA G E 1 8Supply and demand, not subsidies, should determine the fate of American industry.

R O U T I N G T H E G O V E R N M E N T P L A N N E R SPA G E 2 2Always and every time, spontaneous order trumps top-down planning.

F R E E I N G T H E W O R L D PA G E 2 6Nations worldwide are embracing free markets, private property, rule of lawand themany benefits that they bring.

P R O M O T I N G P E A C E PA G E 3 0Goods, services, capital, and culture should cross bordersnot armies.

Rooted in the classical liberal tradition, the Cato Institutesresearch program today is as radical as the Founders vision was in 1776. In 200

the Cato Institute delivered authoritative research and practical policy proposa

T H E I S S U E S


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across a range of public policy issues, broadening the bounds of the debate whilechampioning the timeless values of individual liberty, limited government, free

markets, and peace.

WORKING TOWARD A NEW CULTURE OF LIBERTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 34

CATO WEBSITES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 36

EDUCATION TOWARD A CULTURE OF LIBERTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 38

CATO PUBLICATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 39

CATO BOOKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 40CATO STAFF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 42

FELLOWS AND ADJUNCT SCHOLARS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 44

FINANCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 46

I NSTITUTI ONAL SUPPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 47

CATO CLUB 200. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 48

BOARD OF DIRECTORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I N S I D E B ACK COV ER


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The Second Amendment refersexplicitly to the right of the people,

not the rights of states or the militia.

The Second Amendment refersexplicitly to the right of the people,

not the rights of states or the militia. ROBERT A. LEVY,Senior Fellow in Constitutional Studies ROBERT A. LEVY,Senior Fellow in Constitutional Studies


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The Supreme Court has not considered theSecond Amendment for nearly 70 years.Since then, the ability to defend ones home

and family has been repeatedly trampled on, with some jurisdictions going so far as to completely ban hand-guns and other firearms. Cato senior fellow Robert A.

Levy has spearheaded District of Columbia v. Heller, a casenow before the Supreme Court that challenges D.C.scomplete handgun ban.

Levy has successfully guided the case through theDistrict and Appeals Court levels and continues toserve as co-counsel. In a ground-breaking decision in March, theU.S. Court of Appeals for theDistrict of Columbia Circuit over-

turned D.C.s longstanding gunban. In November, the SupremeCourt agreed to hear Heller.

D.C. v. Heller looks to be themost prominent case of the 2007--2008 Supreme Court term, one of the most importantBill of Rights cases in a generation, and likely the mostimportant gun case ever.

H abeas corpus has come under severe at-tack during the war on terror, with manyprisoners of war being detained indefinite-ly at Guantanamo Bay and elsewhere with no chargesfiled against them. In August, Timothy Lynch, who asdirector of Catos Project on Criminal Justice has previ-ously filed briefs in the cases of Salim Ahmed Hamdan(2006), Jose Padilla (2004), and Yaser Esam Hamdi(2004), filed an amicus brief in Boumediene v. Bush, the

latest in a string of habeas corpus cases before theSupreme Court.

In his brief in Boumediene, Lynch strongly urgedthe Court to defend habeas in the face of attempts tobypass it on grounds of expediency, writing that itis imperative that this Court eschew a deferential

posture and stand, in the words of James Madison,as an impenetrable bulwark against every assumptionof power in the Legislative or Executive.

Cato adjunct scholar Richard A. Epstein issued astatement to the Senate Judiciary Committee, saying

that retaining habeas corpus ispart of a vital effort to remainfaithful to our Constitutionaltraditions when they matter

most, in times of trouble.

When Congress pas-sed the McCain-Feingold Act in

2002, which bans mentioning candidates in politicalads approaching an election, it violated our right tofree speech. In 2004, Wisconsin Right to Life airedadvertising that mentioned Sen. Russ Feingold (D-WI)

in the months leading up to his reelection, and theensuing legal battle brought the law before theSupreme Court. The Cato Institute filed an amicusbrief supporting Wisconsin Right to Life. In June, theCourt crafted a broad exception to advertising limits oncampaign ads. Chief Justice John Robertss skepticismof campaign finance regulation was evident in his opin-ion, which concluded, Enough is enough.

John Samples is the director of Catos Center for

W HETHER APPEARING IN PRINT OR TELEVISION MEDIA , TESTIFYING BEFORE LEGISLATORSOR SUBMITTING BRIEFS TO THE SUPREME COURT , CATO SCHOLARS ARE CONSTANTLY WORKINGTO ENSURE THAT INDIVIDUALS REMAIN FREE . CATO S WIDER EDUCATIONAL EFFORTS ARE AIMED

AT REJUVENATING A CULTURE THAT CHERISHES AND DEFENDS CONSTITUTIONALRIGHTS .

I believe there are moreinstances of the abridgmentof freedoms of the people bygradual and silent encroach-ment of those in power than

by violent and suddenusurpations.

{ P R O M O T I N G C O N S T I T U T I O N A L R I G H T S}

JAMES MADISON


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Hate crimes legislation will take ourlaw too close to the notion of thought

crimes. The law enforcement apparatusof the state will be delving into the ac-cused's life and thoughts in order toshow that he or she was motivatedby bigotry,TIMOTHY LYNCH,director ofCatos Project on Criminal Justice, tolda congressional committee in April. Lynchtestified against proposed newfederal hate crimes legislation.

The REAL ID Act is a dead letter. All thatremains is for Congress to declare it so,Cato director of information policy studiesJIM HARPERtold the Senate Judiciary Com-mittee, testifying in May. Here Harper(left) talks informally with ranking memberSEN. ARLEN SPECTER (R-PA).

Representative Government and the author of The Fallacy of Campaign Finance Reform. In an August Capitol Hill Briefing, Samples said that many of the adsduring the 1990s that were the target of McCain-Feingold would no longerbe subject to regulation following the Supreme Court decision. He nonethe-less called for a complete repeal of McCain-Feingold. Samples was joined byRep. Mike Pence (R-IN), a former plaintiff in a past McCain-Feingold case,

McConnell v. Federal Election Commission.

In 2005, Congress passed the REAL ID Act, which effectively turns driv-ers licenses into National ID cards. REAL ID was tacked onto an appro-priations bill to fund the wars in Iraq and Afghanistan, meaning there

was little discussion or debate over the provision, but Jim Harper, director of information policy studies, worked tirelessly in 2007 to change that. InJanuary, he testified at the first-ever hearing on REAL ID, and in May, he tes-tified in the Senate Judiciary Committees second-ever hearing on REAL ID,arguing that determined terrorists will always be able to get fraudulent docu-ments despite the act. Harper also testified, gave speeches, and participated inpanel discussions in nine states. His work energized opposition to REAL IDat the state level. Ten states passed legislation objecting to the bill and sevenstates specifically barred implementation.

Hate crime laws, which mandate enhanced punishments forcrimes against particular groups of people, have grown in-creasingly popular with legislators. In April, Timothy Lynch

testified before Congress on the Hate Crimes Prevention Act of 2007,arguing that it represented a serious overstep by federal authorities. All of the crimes covered by the act are already illegal at the state and local levels,where crime is most effectively handled.


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The new censors are themost adept practitioners of postmodern cant,double-think

and newspeak, echoing Orwell. JANICE ROGERS BROWN

(Top) Cato Institute is responsiblefor an extraordinary amount of thenational understanding of the issuessurrounding McCain-Feingold,REP.MIKE PENCE (R-IN)(top left) stated at anAugust Cato Capitol Hill Briefing.JOHNSAMPLES,director of Catos Center forRepresentative Government, is atright. (Bottom) At the Cato Institutewe suggest that James Madisons

view was that in wide areas of lifeindividuals are entitled to be freebecause they are born free, Catosvice president for legal affairsROGERPILONstated in welcoming remarks atCatos 6th Annual Constitution DayConference in September.

U.S. Circuit Court of Appeals Judge, delivering the B. Kenneth Simon Lectureat the 6th Annual Constitution Day Conference.

CLINT BOLICKcalls for an activist judici-ary that defends constitutional liber-ties against executive and legislative

abuses in Davids Hammer.


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DANIEL MITCHELL,Senior Fellow

Whats good tax policy?Your rates should be low.You shouldnt double tax. There

shouldnt be anyloopholesfor government to use tomanipulate behavior.

Whats good tax policy?Your rates should be low.You shouldnt double tax. There

shouldnt be anyloopholesfor government to use tomanipulate behavior.

DANIEL MITCHELL,Senior Fellow


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11

Chris Edwards, director of tax policy studies,stood alone against an IRS crackdown ontaxpayers in order to close the tax gap at

a February hearing of the House Budget Committee.The crackdown was predictably supported by tworepresentatives of the IRS itself and one from theDepartment of the Treasury.

The United States currently has the second-high-est corporate tax rate in the developed world. In aDecember issue of Tax Notes, Edwards invoked theLaffer curve and proposed a robust cut of federal cor-porate tax rates from their cur-rent level of 35 percent down to15 percent. Edwards also pro-posed ending the dreaded Alter-native Minimum Tax at a Dec-ember Capitol Hill Briefing,The Simplified Tax: A BoldPlan to End the AMT and Over-haul the Income Tax, where hewas joined by senior fellow Dan Mitchell and Rep.Paul Ryan (R-WI).

Edwards took a skeptical look at the growth of federal spending for state and local government pro-grams in Federal Aid to the States: Historical Causeof Government Growth and Bureaucracy, issued inMay. He concluded that Congress should reconsid-er the need for aid and begin terminating activitiesthat could be better performed by state and local gov-ernments and the private sector.

The basic requirement for intelligent decision-making is to hear arguments and evidencefrom both sides of an issue. In a 2007 Cato

study, Budgeting in Neverland: Irrational Policymak-ing in the U.S. Congress and What Can Be Done aboutIt, political scientist James L. Payne wrote that in manyinstances Congress never hears from those opposed todoling out huge sums of money on particular federalprograms. Instead, it mostly hears from the special inter-est group representatives who stand to benefit from theallocation and the federal program administrators

whose careers depend on makingthose programs appear effective.Its not surprising then that Catoscholars, through their media ap-pearances and participation in pub-lic debates, often find themselvesthe only voices calling for limitedgovernment and free markets.

Cato scholars continue to lead the way inopposing the use of tax money to subsidizefavored corporations. In a May policy analy-

sis, The Corporate Welfare State: How the FederalGovernment Subsidizes U.S. Businesses, director of budget studies Stephen Slivinski pointed out that in theprevious year, $92 billion was given to private sector enti-ties by the federal government. Slivinski proposed a mil-itary-base-closing-style commission to make recom-mendations for ending corprate welfare programs.

REDUCING THE SIZE OF GOVERNMENT AND PROMOTING ECONOMIC GROWTH GO HAND -IN -HAND . A VITAL PART OF THIS EFFORT IS ACHIEVING LOWER , FLATTER , SIMPLER TAXES , AND

PROTECTING INDIVIDUALS AGAINST ABUSE BY TAX AUTHORITIES .

. . . a wise and frugalgovernment, which shall restrain

men from injuring one another,which shall leave them otherwisefree to regulate their own pursuitsof industry and improvement, andshall not take from the mouth of

labor the bread it has earned.

C A T O I N S T I T U T E W W W . C A T O . O R G

{ D O W N S I Z I N G G O V E R N M E N T}

THOMAS JEFFERSON


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Barry Goldwater:Life,Liberty,andLegacyCATO BOOK FORUM JULY 2007H O N O RI N G TH E N EW ED IT IO N O FThe Conscience of a Conservative

Cato president ED CRANEholds up an AuH2O Goldwater bumper sticker from the1964 presidential campaign. When I was16 or 17, I read The Conscience of a Conservative, and it got me interested inpolitics, Crane recalled, adding that itbecame a major influence in shaping hispolitical views.

It took several runs at HBO beforethey agreed to broadcast CC GOLDWATERSdocumentary film about the life of hergrandfather, Mr. Conservative: Goldwater on Goldwater. In the end, it did quite wellfor them, she said, so well that HBO will likely broadcast the film again during2008. Goldwater presented highlightsfrom the film at the forum.

LEE EDWARDS(left) of the HeritageFoundation joinedCC GOLDWATERand Catopresident ED CRANEfor a panel discussionat the forum. Edwards commented, Goldwater w as both a libertarian and atraditional conservative. Crane observed, The thing that was so great to me aboutGoldwater was that he stood up in opposi-tion to a regime that FDR had created, aregime that was so opposed to the wayAmerica had always been.

Throughouthistory,government

has proved tobe the chief instrument

for thwartingmans liberty.

in The Conscience of a Conservative BARRY GOLDWATER


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REP. PAUL RYAN (R-WI),discusses his pro-posed Taxpayer Choice Act, repealingthe Alternative M inimum Tax and replac-ing it with a simplified minimum tax, at a

December Cato Capitol Hill Briefing.

The mantle of fiscal conservatism is up for grabs. Neither party has it right now,REP.JOHN CAMPBELL (R-CA)declared at a Cato Capitol Hill Briefing on the federal budget inFebruary. Campbell (left) is pictured here with Cato senior fellowDANIEL MITCHELL.

Rather than increase odioustax-gathering activities,we should

instead reform the tax codeto reduce marginal rates and

eliminate special preferences. CHRIS EDWARDS, Director of Tax Policy Studies


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Now that the results are in, onlyobstinacy and foolishness wouldlead us to continue throwing money

at No Child Left Behind.

Now that the results are in, onlyobstinacy and foolishness wouldlead us to continue throwing money

at No Child Left Behind. ANDREW COULSON, Director of the Center for Educational Freedom ANDREW COULSON, Director of the Center for Educational Freedom


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In The Public Education Tax Credit, Cato poli-cy analyst Adam B. Schaeffer offers an alternativeto Americas failed policy of top-down control of

schools: school choice. Schaeffer points in particularto the benefits of nonrefundable education tax credits,as opposed to school vouchers.

No Child Left Behind was President Bushs am-bitious attempt to do something about the dismalstate of public schooling. Its been something: theNo Child Left Behind Act marked the largest ex-pansion of federal involvementin education in history. The pro-gram has been a total disaster:after five years American stu-dents scores in math and readinghave actually fallen. In the CatoPolicy Analysis End It, DontMend It: What to Do withNo Child Left Behind, AndrewCoulson and Neal McCluskey of Catos Center forEducational Freedom point out that NCLBs goalof forcing schools to meet high standards has beencompletely overcome by public choice problems.

NCLB actually encourages public schools to keepstandards as low as possible while providing the veneerof tough accountability. NCLB presents a clear exam-ple of government planning gone awry; the plansdemands on the states have encouraged them to raisetheir test scores the easiest way possible, by dumbing

down the tests.In a JulyWall Street Journal op-ed, No Standards

Left Behind, McCluskey called for us to step awayfrom centralized education and toward market-driven, choice-based solutions where schools wouldbe forced to respond to competitive pressures. At aSeptember Capitol Hill Briefing Rep. Scott Garrett(R-NJ) spoke about his LEARN Act, which wouldallow states to opt out of NCLB without facingfinancial repercussions.

The assumption thatgovernment should pro-vide universal health

coverage pervades the policydebate today. In 2007, Catoscholars explained why subject-ing health care to ever-expan-ding government involvement

is the wrong approach. Often standing alone whenconservative critics ceded ground, Cato scholarsargued that consumer choice and competition re-main the keys to a healthier U.S. medical system.

In May, Michael MooresSicko, a critique of the U.S.health care system paired with plaudits for govern-ment-provided health care, was released amid greatfanfare. Cato health scholars Michael D. Tanner andMichael F. Cannon, who attended the Washington,D.C., premiere, unleashed a torrent of analysis and

AMERICA S GOVERNMENT SCHOOLS HAVE LONG FALLEN SHORT OF EDUCATING

CHILDREN . EDUCATION REMAINS ONE OF THE ONLY SERVICES IN AMERICA THAT HASGROWN CONSIDERABLY MORE EXPENSIVE OVER TIME WHILE PROVIDING A PRODUCT

THAT BY ALL ACCOUNTS HAS STAGNATED IN QUALITY .

With Americanschool children repeatedlycoming in at or near the

bottom in internationaltests, why do elected officialsact as if what the schoolsneed is more money and

more time?

{ P R O M O T I N G C H O I C E}

THOMAS SOWELL


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(Top) No Child Left Behind is based onpremises that are fundamentally flawed,ANDREW COULSON,director of Catos Centerfor Educational Freedom, wrote in aSeptember Policy Analysis. (Center) Theoutcome of No Child Left Behind has beenless than desired, REP. SCOTT GARRETT(R-NJ)stated at a September Cato CapitolHill Briefing. (Bottom) A better strategy forproviding health care would use deregula-tion to make private health insurance moreaffordable, Catos director of health policystudies MICHAEL CANNONwrote in theNovember USA Today magazine.

commentary pointing out, among other facts glossed over in the film,that 800,000 Canadians and 850,000 Britons remain on waiting lists formedical procedures.

In June, Michael Cannon started the Anti-Universal Coverage Club.Hosted on Cato@Liberty, the purpose of the club is to illustrate that manyprominent policy analysts and scholars do not agree with theideal of universal coverage at all costs. The Anti-Universal Coverage Club hasattracted Tom Saving, former Medicare trustee; Andrew Sullivan of the

Atlantic; the editorial board of National Review; FreedomWorks; Americansfor Prosperity; the American Conservative Union; and numerous state-based think tanks.

In 2007, advocates of government-managed coverage ratcheted up theircampaign at the state level. Many proposals emulated the Massachusettsplan pushed through by former governor Mitt Romney. Many of thesestate plans were actively supported by conservative organizations. Cannonand Tanner emerged as leading critics of the proposals, testifying before andmeeting with state legislatures. In one likely record-setting day in Kansas,Michael D. Tanner testified before three different legislative committees andthe state task force on health care reform, and held numerous meetings withthe governors staff and legislative leadership.

In 2007, Cato held its first State Health Care Summit in Chicago.Representatives from 27 state-based think tanks attended.

In December, Cato held Health Care University on Capitol Hill, a week-long series of lectures targeted at legislators that provided a comprehensiveoverview of health care issues. Topics ranged from the basic economics of health care to ineffective government health programs to how to reduce therole of government in health care.

One of the more promising developments in health care policy last year wasPresident Bushs proposal to replace the federal governments open-ended taxexclusion for employer-sponsored health insurance with a standard deductionfor health insurance. Presumptive Republican presidential nominee JohnMcCain also advocates changing the tax code to equalize the treatment of employer-provided and individually purchased health insurance. Doing sowould enable the consumers of health care to exercise more control over theirpolicies and would de-link employment and insurance, increasing the por-tability of health insurance. The notion of de-linking health insurance andemployment has been a major theme of Cato booksCrisis of Abundance:

Rethinking How We Pay for Health Care (2006) and Healthy Competition: Whats Holding Back Health Care and How to Free It (2007, 2nd edition).


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SALLIE JAMES,Trade Policy Analyst SALLIE JAMES,Trade Policy Analyst

U.S. farm policy isinequitable, inefficient,distortionary, expensiveand damaging to

our trade interests.

U.S. farm policy isinequitable, inefficient,distortionary, expensive,and damaging to

our trade interests.


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The agriculture industry has been the benefici-ary of myriad subsidies since the 1930s. Ina study released in April, Cato scholars Sallie

James and Daniel T. Griswold ran the numbers andfound that U.S. agricultural policy has imposed $1.7

trillion in opportunity costs on American consumersover the last 20 years. With the Farm Bill up for reau-thorization, Cato scholars proposed a one-time buyoutof farmers by the federal government in return for anend to those subsidies.

Federal dairy programs have cartelized much of theindustry, protecting entrenchedproducers from competition andraising prices for consumers. Chris

Edwards examined dairy policy ina July study, finding that it impos-es an effective 26 percent tax onconsumers while directly costingan estimated $600 million to tax-payers over the next decade. Thedairy programs stifle innovation by restricting themarket to those who work within the subsidy system, re-moving incentives to respond to consumers tastes by de-

veloping new products or altering production patterns.U.S. sugar prices are typically more than twice

those found on the world market. The GovernmentAccounting Office estimates that sugar subsidiesamount to $1.2 billion annually in direct and indirectcosts. These subsidies benefit an agricultural industrythat employs just 61,000 people, and about one mil-lion more employed in food industries that use sugar.

Even the distribution of the sugar programs hand-outs is lopsided. Chris Edwards pointed out in a Junestudy that 1 percent of sugar growers receive a whop-ping 42 percent of government benefits.

C ongress has called for replacing 20 percentof gasoline consumption with ethanol, whilelavishing not-so-modest subsidies on theethanol industry. But ethanol is no solution toAmericas energy security woes, real or imagined.The lead article in the 2007 Fall edition of Catos

Regulation magazine pointed outthat even if every single ear of corn now grown in the United

States were devoted to ethanol, itwould replace only 3.5 percent of American gasoline requirements.

In the International Herald Tri-bune, Indur Goklany, author of theCato bookThe Improving State of

the World, points out that Americas increasing subsidiesto biofuels are driving up prices for food productsworldwide, erasing many of the gains that capitalism

has brought to the poor and undernourished.Cato senior fellow Jerry Taylor ventured deep

into corn country to debate the value of ethanolat the University of Nebraska before 2,400 peo-ple and four other sites watching by simulcast.The Daily Nebraskan reported afterward that cornethanols image as an energy savior has taken adeserved beating.

SUBSIDIES PROP UP INEFFICIENT INDUSTRIES , CREATE A MARKET FOR GOVERNMENTLOBBYISTS , AND PAVE THE WAY FOR EVERY INDUSTRY UNDER THE SUN TO GO BEGGING FOR

SPECIAL TREATMENT . SCHOLARS AT CATO HAVE BEEN CRITICIZING GOVERNMENT SUBSIDIESSINCE THE CATO INSTITUTE S FOUNDING IN 1977, AND 2007 WAS NO EXCEPTION .

Government

doesnt solveproblems;it subsidizes

them.

{ S L A S H I N G S U B S I D I E S}

RONALD REAGAN


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At a May Capitol Hill Briefing Global Warming: Some ConvenientFacts, Cato senior fellowPAT MICHAELS(right), a climatologist, stated: Anyonewho says the planet is warming at an

increasing rate is dead wrong. The rateis constant. Addressing the economicsof climate change, Cato Senior FellowJERRYTAYLOR(left) asked, What impactwill warming have on the U.S. econo-my? Even at rates higher than can bereasonably projected, There w ill bevirtually no effect from warming.

JOSEPH CAGGIANO(left) of Chevron EnergyTechnology Company and DAVID K.BELLMANof American Electric Powerdebated the findings of a National Pet-roleum Council report titled "Facing theHard Truths about Energy at a NovemberCato Policy Forum. Caggiano and Bellmanhelped assemble the report.

Czech President VCLAV KLAUS(secondfrom left) is greeted by Cato chairmanWILLIAM NISKANEN(center), vice presidentfor academic affairsJAMES DORN(thirdfrom right) and executive vice presidentDAVID BOAZ(second from right) at a MarchCato Policy Forum. Klaus warned anoverflow audience in the F. A. HayekAuditorium that environmentalism onlypretends to deal with environmentalprotection, with a hidden agenda of radically reorganizing human societyalong collectivist lines.

There willbe virtuallyno effect onthe economyfrom globalwarming. JERRY TAYLOR


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Benefits to consumersand taxpayers fromremoval of price supportswould be enormous.

SALLIE JAMES,

Willingness to pay market prices willsecure all the energy a nation couldpossibly wish for during peacetime,Cato senior fellow andRegulation editor

PETER VAN DOREN,pictured here, andCato senior fellow Jerry Taylor wrotein an article forLimes: The Italian Journal of Geopolitics in November.During 2007 Van Doren and Taylorauthored several articles and a policyanalysis dealing with energy issuesfrom a free market perspective.

We need to remind people of whats at stake financially, whats at stake in terms of mar-ket incentives. Anytime we provide subsidies, such as we do to agriculture, we distort themarket. SEN. JOHN SUNUNU (R-NH),stated at a Cato Capitol Hill Briefing in May.

During a May Capitol Hill Briefing, Freeing the Farm.


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Governments would do better to set a fewrules of the game and let market enterprisesrespond to what people really want rather than

try to push people into conforming toplanners visions and phony consensuses.

Governments would do better to set a fewrules of the game and let market enterprisesrespond to what people really want rather than

try to push people into conforming toplanners visions and phony consensuses.

DAVID BOAZ, Executive Vice President DAVID BOAZ, Executive Vice President


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Since joining the Cato Institute as a senior fel-low in February 2007, Randal OToole haslaunched a comprehensive critique of govern-

ment planning. In September, the Cato Institute pub-lished OToolesThe Best-Laid Plans: How Government Planning Harms Your Quality of Life, Your Pocketbook, and

Your Future. In the book, OToole reveals how govern-ment attempts to do long-range, comprehensivesmart growth planning inevit-ably do more harm than good.

OToole can be credited withhelping save taxpayers millions of dollars. His efforts helped kill, orat least scale back, streetcar pro-posals in Columbus, Madison,Scottsdale, and other cities. Op-ponents of a Seattle light-rail planused OTooles analysis to stop a light-rail project, andthe Congressional Research Service borrowed his rec-ommendations for reform of federal transit programs.

The Sarbanes-Oxley Act, the governments re-sponse to the Enron scandal, was put in placeto reassure investors and make corporations

more transparent. The law has proven extremely costly,

especially to smaller firms. In January, Cato ChairmanWilliam A. Niskanen wrote that these costs have ledsome small companies to go private, hardly a victory forpublic oversight.

Meanwhile, the entrepreneurial spirit of executivesis under attack by the onerous restrictions of the bill.In the Fall 2007 issue of Regulation, law professorsCraig S. Lerner and Moin A. Yahya contend that

Sarbanes-Oxley has led to a flightof honest, talented executivesinto private equity, while risk-averse bean counters and dis-honest swashbucklers remain.

Regulation revisited Sarbanes-Oxley in the Winter 2007--2008issue, with a call from Howard H.Chang and David S. Evans of Uni-

versity College to roll back Sarbanes-Oxley and otherlegislation that has created a climate of fear amonghonest corporate executives. In the wake of Enron, thegovernments attempts at reforming corporate gover-nance have had the opposite of the intended effect. Thetime has come to reduce the governments role andallow executives to do their jobs without fear of beingimprisoned for undertaking a risky business venture.

GOVERNMENT PLANNING IS OFTEN PORTRAYED AS A PANACEA TO ALL OF SOCIETY SAILMENTS . BUT THE PLANNERS INTRUDE ON OUR ABILITY TO MAKE THE DECISIONS THAT WE

ARE MORE QUALIFIED TO MAKE . G OVERNMENT PLANS HAVE A LONG HISTORY OF UNINTENDEDCONSEQUENCES , DRIVING UP HOUSING COSTS , CREATING RATHER THAN ALLEVIATINGCONGESTION ON OUR ROADWAYS , HAMPERING INNOVATION , AND EVEN DRIVING TOP

MANAGERIAL TALENT OUT OF PUBLICLY TRADED COMPANIES .

{ R O U T I N G T H E G O V E R N M E N T P L A N N E R S}

The economic miracle

that has been the United Stateswas not produced by socializedenterprises, by government-union-industry cartels or by

centralized economic plann ing.It was produced by privateenterprises in a profit-and-

loss system.MILTON FRIEDMAN


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The Best-Laid Plans: How Government Planning HarmsYour Quality of Life, Your Pocketbook, and Your Future.Reviewing the book, Alan Cooperman wrote intheWashington Post Book World: OToole presentsan across-the-board indictment of governmentplanning. Whether zoning suburbs, designingrail systems or determining how much timber tocut in national forests, he says, federal, state, andlocal planners are trying to simplify dizzyinglycomplex problems.

Catos Regulation magazine features well-researched articles detailing effectsof government regulations on business and the economy. Sarbanes-Oxleycame under particularly intense scrutiny in 2007.


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Most government plans are sofull of fabrications and unsupportableassumptions that they arent worth the

paper they are printed on. RANDAL OTOOLE,Senior Fellow

Assaults on freedom come from allsides these days. The right and theleft, the military-industrial complexand the teachers unions, the envi-ronmentalists and the family-valuescrow d, they all have an agenda toimpose on us through government,Cato executive vice president DAVIDBOAZwrites in his bookThe Politics of Freedom. The anthology is a col-lection of Boazs writings spanninga 30-year period and a w ide arrayof policy issues.


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Every person creates in his

own image, and its impossiblefor an unfree person to createa free society.

Every person creates in his

own image, and its impossiblefor an unfree person to createa free society. ANDREI ILLARIONOV,Senior Fellow ANDREI ILLARIONOV,Senior Fellow


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The good news is chronicled inThe ImprovingState of the World: Why Were Living Longer,

Healthier, More Comfortable Lives on a Cleaner

Planet, a 2007 book from the Cato Institute by Indur

M. Goklany. As nations grow wealthier, their quality of life rises. Economic growth allows an increasingly larg-er group of people to live ever-improving lives in an ever-cleaner environment.

On July 4, 2007, the Cato Institute launchedthe Global Freedom Initiative. The Glo-bal Freedom Initiative

combines original research into

the conditions of freedom, therule of law, prosperity, and peace,with the active promotion of thevalues, principles, and policiesof liberty.

C

atos Arabic languageplatform, Misbahalhurriyya.org, or Lamp of Liberty, edited by Jordanian economist Fadi

Haddadin, is working to bring the ideas of freedom toan area of the world so far sorely lacking in it. In 2007Lamp of Liberty translated and syndicated 598 piecesthroughout the Arabic-speaking world. Cato scholarsSteve Hanke, Richard Rahn, and Alan Reynolds sawmany of their articles syndicated in Jordan, Bahrain,Kuwait, Qatar, Iraq, Oman, Saudi Arabia, Morocco, Su-dan, Tunisia, Yemen, Lebanon, Palestine, Syria, Libya,United Arab Emirates, and Algeria.

As 2007 drew to a close ElCato.org celebratedits tenth anniversary. Edited by Gabriela Caldern,ElCato.org has built a reputation throughout theSpanish-speaking world for up-to-date and insight-

ful analysis.In 2007, ElCato.org launched Libremente.org, a

blog devoted to counteracting destructive Latin Ameri-can policy proposals immediately as they arise.Contributors include distinguished senior fellowJos Piera, architect of Chiles successful socialsecurity privatization.

Several scholars affiliatedwith Cato pen columns regularly

throughout Latin America. Theyinclude Alberto Benegas Lynch( La Nacin, Argentinas most sig-nificant newspaper); Carlos Ball( El Tiempo, Colombias most sig-nificant newspaper); and Gab-riela Caldern ( El Universo, Ecua-

dors most significant newspaper).Cato.ru, Catos Russian language platform, issued

several books in Russian in 2007:Toward a Limited State,by Leszek Balcerowicz, In Defense of Global Capitalism bysenior fellow Johan Norberg,The Constitution of Libertyby F. A. Hayek, and Reviving the Invisible Hand, by Catosenior fellow Deepak Lal. Cato.ru held an essay contestorganized around the theme of Global Capitalismand Personal Freedom.

The Center for Promotion of Human Rightslaunched six additional foreign language platforms in

THE WORLD IS BECOMING RADICALLY FREER AND MORE PROSPEROUS . SINCE 1950, THEWORLD POPULATION HAS SOARED BY MORE THAN 150 PERCENT . M EANWHILE , THE FOOD SUPPLY

HAS GROWN SO MUCH THAT GLOBAL FOOD PRICES HAVE FALLEN FULLY 75 PERCENT . CHRONICUNDERNOURISHMENT IN POOR COUNTRIES HAS BEEN SLASHED FROM 37 PERCENT TO 17 PER -

CENT IN THAT TIME SPAN . INFANT MORTALITY HAS DECLINED , LIFE EXPECTANCY HAS INCREASED ,EDUCATIONAL ACHIEVEMENT HAS CLIMBED , AND CHILD LABOR RATES HAVE BEEN REDUCED .

Wealth andcurrency shouldbe allowed toflow as freely

as water.

{ F R E E I N G T H E W O R L D}

SIMA QIAN (145--85 B.C.)


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2007. These include Cheragheazadi.org (Persian), Chiraiazadi.org(Kurdish), Tiandaocn.org (Chinese), Unmondelibre.org (French, empha-sis on Francophone Africans), Ordemlivre.org (Portuguese), andAfricanliberty.org (English and Swahili). The Center also translated sixbooks, ranging from BastiatsThe Law to Hayeks Road to Serfdom, in 10different languages.

For many people, Catos websites present their first opportunity to readthe great works of classical liberal thought in their own language.

During 2007, Cato held seminars in Asia, Africa, and Eurasia, tobring the ideas of liberty, rule of law, and freedom of trade andtravel to areas that recently have had little experience of them.

In April, the Center for Promotion of Human Rights held a conference inMorocco for Francophone students interested in how to propogate liberalideas in Africa. This followed up on a successful conference for bloggers thatwas held in Egypt and organized by the Center.

In the heart of Ghanas historical capital of Accra lies Ashesi University,which in August played host to the seminar Inspiring African Transforma-tion. Students drawn from throughout the English-speaking African worldattended. Kenyan documentary filmmaker June Arunga spoke on how hermedium can be used to spotlight government corruption and to spearheadthe push for reform.

The Center held a seminar in Beijing focusing on Chinas remarkabletransformation from a nation governed by the rule of men, to one that iswith notable exceptionsgoverned by the rule of law.

The Center for Promotion of Human Rights also conducted a Septemberseminar in Alushta, Crimea. Speakers included Andrei Illarionov, former eco-nomic adviser to Vladimir Putin and now a senior fellow at the Cato Institute;Cato senior fellow Johan Norberg, author of In Defense of Global Capitalism,recently issued in Russian by Cato.ru; Tom G. Palmer, Catos vice presidentfor international programs and director of the Center for Promotion of Human Rights; and Georgian state minister Kakha Bendukidze.

The flat tax is sweeping the globe. Cato scholar Daniel Mitchellhas been a leading advocate of flat tax reforms. He chronicledThe Global Flat Tax Revolution in the July-August edition of

Cato Policy Report, and updated the revolutions progress on Catos blog,Cato@Liberty. This movement picked up speed as 9 new nations have adopt-ed a flat tax in the last year, bringing the total number of jurisdictions withflat tax regimes to 24. In theWall Street Journal Europe, Mitchell wrote about

(Top) Senegal president ABDOULAYE WADEtold a September Cato Policy Forum that, I believe in the benefits of competition,and pointed to a 6% annual growth ratesince he took office in 2001 and initiatedpro-market reforms. (Center) Cato seniorfellowANDREI ILLARIONOVand Cato.ru editorANNA KRASINSKAYAat a September Catoconference in Alushta, Ukraine. (Bottom) Today we have an economy that is grow-ing at 7% annually; four years ago wewere at 3% annually, Egyptian ministerof financeYOUSSEF BOUTROS GHALIstatedat a Cato Policy Forum in April, pointing tothe success of Egyptian market reforms.


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the rapid economic growth rate of flat-tax nations, where businesses are mov-ing out of the shadows of the black market and into the light of legitimateenterprise. In an AsianWall Street Journal op-ed Mitchell said that in an increas-ingly globalizing world, businessesjust like capital, goods, and servicesareincreasingly refusing to be shackled by high taxes and growth-dampeninggovernment regulations. The geese that lay the golden eggs [can] escape toother jurisdictions.

Last November Cato held its 25th Annual Monetary Conference,Monetary Arrangements in the 21st Century. James A. Dorn,Catos vice president for academic affairs, has coordinated the

Monetary Conference for all 25 years. Federal Reserve chairman BenBernanke delivered the keynote address. Other speakers included Yi Gang,assistant governor of the Peoples Bank of China; Anna J. Schwartz, coauthorwith Milton Friedman of A Monetary History of the United States; AntonioMartino, member of Italian parliament; Steve Hanke, Cato senior fellow andmonetary reform adviser to many governments; Miranda Xafa of the IMF;and Eddie Yue, deputy chief executive of the Hong Kong Monetary Authority.

Good communications are a prerequisiteif central banks are to maintain the demo-cratic legitimacy and independence thatare essential to sound monetary policymak-

ing, said Federal Reserve chairman BENBERNANKEin his keynote speech at Catos25th Annual Monetary Conference in Nov-ember. Bernanke chose Cato as the venueto announce an overhaul in the way in whichthe Fed communicates with Congress andthe public.

Catos F. A. Hayek Auditorium w as filled tocapacity during the 25TH ANNUAL MONETARCONFERENCEin November. The conferencehas become the forum for presenting new

work on the intersection of monetary eco-nomics and monetary politics, said St. LouisFederal Reserve president William Poole.

Peru has become a keycountry inLatin Americas ideological battle

between the modernizers and thepopulists. Peru has stuck to the far-reaching market reforms it made in

the early to mid-1990s. Its paying off.

IAN VSQUEZ, Director, Center for Global Liberty and Prosperity


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Since the first war drums in early 2002, Catoforeign policy scholars warned against theinvasion of Iraq. In 2007 they remain princi-

pled opponents of the ongoing occupation, pointingout the considerable cost in blood and treasure of thewar effort.

It costs about $8 billion per month to maintain thewar in Iraq, but the true costs go well beyond that.Christopher Preble, director of foreign policy studies,in an opinion piece with Lawrence J. Korb, former as-sistant secretary of defense under President Reagan,pointed out how stop-loss ordersare acting as a backdoor draft, pre-venting many troops whose tourshave expired from returning home.

In 2007 Ted Galen Carpenter,vice president for defense andforeign policy studies at the CatoInstitute, released an importantstudy, Escaping the Trap: Whythe United States Must Leave Iraq. Carpenter pointedout that the U.S. military occupation of Iraq has nowlasted longer than U.S. involvement in World War II.More American lives have been lost than during

the terrorist attacks of September 11. His call for amonths, not years timetable to exit Iraq formed thebasis of a March Cato policy forum featuringCarpenter, Steven Simon of the Council on ForeignRelations, and retired Lt. Gen. William Odom.

At a July Cato Capitol Hill Briefing scholar Chris-topher A. Preble and Sen. Chuck Hagel (R-NE) dis-cussed the next steps in Iraq. Hagel said that Congressis not meddling in military affairs when it attempts to

influence the administration to change course in Iraq;rather it is fulfilling its constitutional duty. Congressought to force the executive to take a realistic look atthe situation in Iraq.

Conventional wisdom holds that success in Iraqcould have been achieved had there been more troops,

a different executive, greater cooperation among U.S.government agencies, or a better counterinsurgencydoctrine. In a November piece in the National Interest,Christopher A. Preble said the consensus view is wrongand dangerous. The most important lesson from

the war in Iraq is that whilethe military can conquer foreignnations, it does not allow us torun them or instill democracy.

The Iraq war should give Ameri-can policymakers a newfoundappreciation for the limits onwhat can be achieved throughmilitary intervention.

C

ato scholars devoted considerable time andenergy during the past year warning of theperils of a possible war with Iran.

On the heels of Carpenters study Irans NuclearProgram: Americas Policy Options, and associatedirector Justin Logans study, How to Deal with Iran:Options for Today and the Future, Cato foreign poli-cy scholars embarked on a 16-city speaking tour warn-ing against an Iran incursion. Ted Galen Carpenter,Christopher A. Preble, Justin Logan, and Leon Hadarurged audiences in Dallas, Chicago, Atlanta, SanFrancisco, and Seattle that of the options available to

AMID THE TROUBLING BACKDROP OF THE ONGOING OCCUPATION OF IRAQ AND TALK OF OPENINGA NEW FRONT IN THE M IDDLE EAST, CATO SCHOLARS OFFERED COMMENTARY AND ADVANCED

POLICY PROPOSALS STRESSING THE IMPORTANCE OF PEACE . CATO TRADE ANALYSTS STRESSED THEIMPORTANCE OF COOPERATION AND FREETRADE IN PROMOTING PEACE .

{ P R O M O T I N G P E A C E}

Therenever was

a goodwar orbad peace.BENJAMIN FRANKLIN


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policymakerssanctions, subversion, air strikes, deterrencea grand bar-gain remains the best one. A grand bargain would exchange normaldiplomatic and economic relations with Iran for on-demand internation-al inspections of its nuclear sites.

The enthusiasm shown by the leading candidates for president inboth parties for continued military intervention runs counter tothe publics strong desire for a dramatic change of course. In a

November piece in the National Interest, Christopher A. Preble said it was onlylogical that Americans, fatigued by the war in Iraq, would seek a new nation-al security strategy, one not predicated on America playing the role of globalsheriff.

Military intervention should be used as a last resort only. Catoscholars instead propose a principled policy of noninterventionand free trade. In particular, Cato scholars focus on removing

artificial barriers to the movement of goods, services, capital, and peopleacross international borders.

Over the last year Cato scholars have advocated a host of reforms forour trade policy that would help deliver higher quality goods to Americans atlower cost, while allowing others around the world to reap the rewards of increased trade.

In congressional testimony in February, Daniel T. Griswold, director of theCenter for Trade Policy Studies, engaged in a spirited debate with Sen. ByronDorgan (D-ND) in a hearing on Overseas Sweatshop Abuses, Their Impacton U.S. Workers, and the Need for Anti-Sweatshop Legislation. Griswoldasserted that job loss due to trade is a natural, healthy feature of a dynamicmarket economy, similar to what is caused by the introduction of new tech-nology. In testimony before the House Small Business Committee in June,Griswold noted that one-third of U.S. exports to China are produced by smalland medium-sized businesses. If Congress really wants to help Americansmall businesses, it ought to cut barriers to trade.

Reports of the death of U.S. manufacturing have been greatly exaggerat-ed. In an August analysis, Daniel J. Ikenson, associate director of the Centerfor Trade Policy Studies, pointed out that the sector has experienced robustand sustained output, revenue, and profit growth since 2002. Meanwhile theUnited States remains the most prolific manufacturer in the world, produc-ing about two and half times the output of Chinese factories in 2006.Ikensons analysis helped undermine the justification for numerous protec-tionist pieces of legislation during the 110th Congress.

(Top) Taiwans belief in an ambiguous U. S.security commitment has contributed tofailure to adequately fund its own defense,

Catos associate director of foreign policystudies JUSTIN LOGANadvised at an OctoberCato Capitol Hill Briefing. (Center)TEDCARPENTER,Catos vice president for de-fense and foreign policy studies, wrotein a February Policy Analysis that stayingin Iraq is a fatally flawed policy that hasalready cost more than 3,000 Americanlives. (Bottom) Catos director of foreignpolicy studiesCHRISTOPHER PREBLEmakesthe case for rational international rela-tions to students at Northwestern University.


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In June, Cato held a Capitol Hill Briefing discussing Americas longstand-ing trade embargo against Cuba. There, two Congressmen of very differentpolitical persuasions, Rep. Jeff Flake (R-AZ) and Rep. Charles Rangel (D-NY),agreed that the half-century policy damaged the interests of both Cuban andAmerican citizens.

Foreign policycannot be driven

by divine mission.We must explore all

other options beforewe get to conflict. SEN. CHUCK HAGEL (R-NE)

Reports of the death of U.S. manufac-turing have been greatly exaggerated.Since the depth of the manufacturingrecession in 2002, the sector as a whole

has experienced robust and sustainedoutput, revenue, and profit growth,wrote DANIEL IKENSON,associate directorof Catos Center for Trade Policy Studies,in an August Trade Policy Analysis.

We should reject the protectionist and defeatist arguments that portray the U.S. economyin general and American manufacturing companies in particular as victims of global com-petition. Nothing could be further from the truth, director of Catos Center for Trade PolicyStudies DANIEL GRISWOLDadvised Congress, testifying before a House committee in June.

at a July Cato Capitol Hill Briefing


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To create a culture of liberty, spreading the truth is indispensablethereality that freedom is the ethical and practical venue to solve human

problems, and the certainty that ever-expanding government is the precursor to tyranny.The truth will not win out on its own: it requires dedicated men and women

as its advocates. Cato scholars and staff, with the essential support of more tha15,000 individual Sponsors, spread this knowledge as widely as possible, helpinto lay the foundation for a new culture of liberty in the 21st century.

On the following pages are some of the highlights of Catos work in 2007 to reach out to an ever-wider audi-ence to promote a culture of liberty.

W O R K I N G T O WA R D A N E W C U LT U R E

MAJOR TELEVISION 429 439MAJOR RADIO 364 362MAJOR OP-EDS 358 507MAJOR LETTERSTO EDITOR 19 18MAJOR PRINT ARTICLES 2261 214EDITORIAL MENTIONS n/a 44**Cato began tracking editorial mentions in 2007.

PROMOTING THE CULTURE OF LIN THE MEDIA

2 0 0 6 2 0 0 7D.C. resident and Cato vicepresident for internationalprograms TOM PALMERwasinterviewed by local andnational media following aMarch ruling inParker v.District of Columbia.The D.C.Circuit Court of Appeals over-turned a 30-year-old handgunban in the case, now knownas D.C. v. Heller,as a violationof the Second Amendment.The case is now on appeal tothe U.S. Supreme Court w itha ruling expected in June.


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NewspapersSome of Catos top op-eds in 2007 wereWilliamNiskanen on repealing Sarbanes-Oxley, New York Times,January 3;Robert Levy on the DC gun ban being

overturned,Washington Post, March 12;Ted Carpen-ter, Taiwans defense irresponsibility, Asian Wall Street

Journal, April 23;Roger Pilon on drug importation,Wall Street Journal, May 7;Edward Crane, Is Hillarya Neocon?Financial Times, July 11;Neal McCluskeyon No Child Left Behind,Wall Street Journal, July27; Ian Vsquez on government failure in Peru,Wall Street Journal, August 20;Robert Levy on theSupreme Court taking its first Second Amendmentcase in 68 years, Los Angeles Times, November 14;Andrei Illarionov on Secretary Rices endorsementof Dmitri Medvedev,Washington Post, December 14.

Television and RadioMajor television appearances by Cato scholars during2007 includedDaniel T. Griswold, PBS, Nightly Bus-iness Report, the U.S. auto industry and the Japaneseyen, March 5;Tom Palmer, NBC, NBC Nightly

News with Brian Williams, the D.C. gun law, March 9;Patrick Michaels, Fox News,Special Report with Brit

Hume, Global warming, March 21;Jerry Taylor,ABC,20/20, Ethanol and energy policy, May 4;BrinkLindsey, Comedy Central,The Daily Show with Jon

Stewart, on Lindseys bookThe Age of Abundance, May17;Michael Tanner, CBS Evening News, on the Firstbaby boomer retiring, October 15;Ian Vsquez,Univision, Venezuelas referendum, December 3.

Major radio appearances during 2007 includedBrink Lindsey, Dennis Miller Radio Show, on The Ageof Abundance, May 3;Robert Levy, C-SPAN, D.C. gunlaw, June 2;Ian Vsquez, NPR, Marketplace, Hugo

Chavez oil revenues, July 31.


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In 2007, the Cato.org website received almost 13 million visits, up 28 percenfrom 2006 and up approximately 60 percent from 2005. After nearly a yeaof research, design, and testing, Catos new website was launched in Nov

ember 2007. Incorporating the most innovative web features and online technologies available, www.cato.org provides users with streamlined, unparalleleaccess to a continually growing wealth of material. Further, Catos website nowmaximizes the use of multimedia technologiesincluding acclaimed podcastvideocasts, audio files, and video archives.

C AT O W E B S I T E S


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Foreign Language WebsitesPossibly the mostinternationally diverse among U.S. publicpolicy organizations, Catos foreign languagewebsites now include Elcato.org (Spanish);Cato.ru (Russian), Mibahalhurriya.org (Lampof Liberty in Arabic); Cheragheazadi.org(Lamp of Liberty in Farsi); Chiraiazadi.org(Lamp of Liberty in Kurdish); Tiandaocn.org(Natural Order in Chinese); Unmondelibre.

org (One Free World in French); Ordemlivre.org (Free Order in Portuguese). Additionally,Africanliberty.org is in both English andSwahili.

PodcastsCato Daily Podcasts have provedto be extremely popular. There were nearly1.7 million downloads of podcasts in 2007,and monthly downloads continue to trend up.Every weekday, a Cato scholar or other impor-tant friend of liberty reaches thousands of indi-viduals directly through podcasts, available atCato.org and also through iTunes.

VideocastsCato Weekly Video is a short high-light from the myriad events hosted by theCato Institute, viewable on the Cato Institutes

web page and as a video podcast. Recentfeatured speakers include Reason magazineeditor in chief Matt Welch; authorMichaelShermer, Federal Reserve chairmanBenBernanke, and economistTyler Cowen.


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Cato ForumsCatos public forums, regularly presentedin its F. A. Hayek Auditorium, have become a well-known institution in Washington. Here are just a fewpeople who spoke at Catos forums in 2007:PresidentAbdoulaye Wade of Senegal;President Vaclav Klausof the Czech Republic;Youssef Boutros Ghali, ministerof finance, Egypt;David Brooks of the New York Times;andCC Goldwater. Nearly every event is recorded andcan be viewed on the Cato websites Events Archive atwww.cato.org/archive.html.

Cato City SeminarsCato City Seminars were held inNew York, Boston, Chicago and San Francisco during

2007 and attended by a total of nearly 2,000 individuals.The six seminars featured nationally and internationallyknown friends of liberty, includingAyaan Hirsi Alion her acclaimed memoir Infidel; syndicated columnistRobert Novak; authorP. J. ORourke; Sen. ChuckHagel (R-NE); andSen. John Sununu (R-NH).

Cato UniversityCato University 2007, The GraduateSchool of Liberty, was held July 2227 in RanchoBernardo, California. With more than 160 attendees, the

seminar focused on liberty, privacy, freedom, individualrights, law, history, and philosophy. The events energy andenduring popularity continues to derive from the excep-tional roster of speakers, and from the one-of-a-kindopportunities it provides participants for back-and-forthdebates, discussions and shared personal perspectives.

Cato ConferencesMore than 1,000 individuals attend-ed Catos major conferences in 2007. Federal ReserveChairmanBenjamin Bernanke delivered a major poli-cy address at the 25th Annual Monetary PolicyConference.Judge Janice Rogers Brown of the U.S.Court of Appeals for the D.C. Circuit delivered the B.Kenneth Simon Lecture at the 6th Annual ConstitutionDay Symposium.

Hill BriefingsHill Briefings provide Cato scholarsthe opportunity to make liberty-centered policy pro-posals directly to members of Congress and key con-gressional staffers. Notable speakers at Hill events in2007 includedKatherine Baicker, member, Council of

Economic Advisers;Rep. John Campbell (R-CA); Rep.Phil English (R-PA); Rep. Charles Rangel (D-NY)Rep. Jeff Flake (R-AZ); Cal Dooley , president andCEO, Grocery Manufacturers/Food Products Associa-tion;Sen. Judd Gregg (R-NH); Rep. Mike Pence (R-IN); Rep. Scott Garrett (R-NJ); and Rep. Paul Ryan,(R-WI).

Cato Congressional and State Legislative Cato scholars testified 11 times before Congress in2007, and 8 times before various state legislatures,bringing the benefits of their principled scholarshipdirectly to the nations lawmakers.

The Cato Institutes Young Leaders ProgEverysemester and each summer, the Cato InstituteInternship Program recruits and trains a new team of interns to conduct research, report on congressionalhearings and other conferences, and help with policyforums and events. Each year more than 2,000 collegestudents and recent graduates apply for 66 internpositions (22 per semester). Catos 2007 interns camefrom colleges and universities throughout the UnitedStates, and from Azerbaijan, Brazil, Czech Republic,Dominican Republic, Republic of Georgia, Germany,Guatemala, Mexico, Norway, Poland, Russia, Taiwan,and Venezuela.

E D U C AT I O N T O WA R D A C U LT U R E O


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Issued quarterly, Regulations in-depth examinationsof regulatory policies focus intense light on theiroften unseen intricacies and impact on our lives andlivelihoods.

Each of the years threeCato Journals amasses a verita-ble Whos Who of writers and analysts to dissect press-ing economic topics.

Each monthlyCatoAudio CD provides subscribers withone-of-a-kind highlights from forums, speeches, de-bates, and conferences, along with presentations anddiscussions recorded exclusively for listeners.

Six times annually,Cato Policy Report presents majorpolicy analysis by leading scholars, as well as newsabout the Institute.

Catos Letter, published quarterly, showcases importantspeeches and presentations made at Cato events byInstitute scholars and other experts.

The Cato Institutes official blogCato@Liberty offersinsight and commentary on the news of the day.

Cato Unbound, Catos monthly online forum, is a state-of-the-art virtual trading floor in the intellectual mar-

ketplace, specializing in the exchange of big ideas.

C A T O P U B L I C A T I O N S


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C A T O B O O K STHE POLITICS OF FREEDOM: TAKING ON THE LEFT,THE RIGHT, AND THREATS TO OUR LIBERTIES by David BoazIf you are interested in why the roots of Americanfreedom conflict so greatly with the American politicalscene of today, open this book and read. KURTRUSSELL

THE BEST-LAID PLANS: HOW GOVERNMENT PLANNINGHARMS YOUR QUALITY OF LIFE, YOUR POCKETBOOK, ANDYOUR FUTURE by Randal OTooleOToole presents anacross-the-board indictment of government planning.ALANCOOPERMAN, Washington Post Book World

SCHOOL CHOICE: THE FINDINGS by Herbert J. WalbergSchool Choice: The Findings is a great weapon to havein a debate on school choice. Walberg provides readerswith empirical ammunition to fight for school choice.JILLIANMETZ, School Reform News

THE ANTITRUST RELIGION by Edwin S. RockefellerIf antitrust is a religion, Edwin Rockefeller has longbeen one of its high priests, so his thoughtful and

pointed observations demand the serious attention of anyone interested in competition law. R. HEWITTPATE,former assistant U. S. attorney general for antitrust

THE AGE OF ABUNDANCE: HOW PROSPERITY TAMERICAS POLITICS AND CULTURE by Brink (Published by Collins) Lindsey is an economic thinker who, like JohnMaynard Keynes, has a flair for lapidary summations.Lindseys measured cheerfulness is, like his scintillatingbook, reasonable. GEORGEF. WILL, New York Times

Book Review

THE IMPROVING STATE OF THE WORLD: WHYLONGER, HEALTHIER, MORE COMFORTABLE LPLANET by Indur GoklanyGoklanys essential message inhis book is that the world over, more people are already,

or are fast becoming, more blessed than theyve ever beenby a considerable margin. RICHARDGWYN, Toronto Star

CATO SUPREME COURT REVIEW edited by MaIn view of so many Americans alarming lack of knowl-edge of why we are Americans, theCato Supreme Court

Review is essential reading. NATHENTOFF, Village Voice

DAVIDS HAMMER: THE CASE FOR AN ACTIV

by Clint BolickTranscending ideological boundaries,Bolick makes a compelling case that anyone who caresabout civil liberties must stand up for legal recourse


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C AT O P O L I C Y S T U D I E

Cato policy studies make use of meticulouslyresearched and verified data to support policyproposals centered on individual and econom-ic liberty.

During 2007, Cato issued 53 policy studies.Among others were Environmentalism andOther Challenges of the Current Era,by VclavKlaus, president of the Czech Republic, April 20;Troubling Signs for South African Democracyunder the ANC, by Marian L. Tupy, April 25;Federal Aid to the States: Historical Cause of Government Growth and Bureaucracy, by ChrisEdwards, May 22; Dont Increase FederalGasoline TaxesAbolish Them, by Jerry Taylorand Peter Van Doren, August 7; The Freedom toSpend Your Own Money on Medical Care: A Com-mon Casualty of Universal Coverage, by KentMasterson Brown, October 15; Fifteen Years of Transformation in the Post-Communist World,by Oleh Havrylyshyn, November 7.

when the government violates our rights.NADINESTROSSEN, president, American CivilLiberties Union

ECONOMIC FREEDOM OF THE WORLD: 2007 ANNUALREPORT by James Gwartney and Robert Lawson(Co-published with the Fraser Institute.) The conclu-sion is abundantly clear: the freer the economy,the higher the growth and the richer the people.Review of prior edition inThe Economist

HEALTHY COMPETITION: WHATS HOLDING BACK HEALTHCARE AND HOW TO FREE IT by Michael F. Cannon andMichael D. TannerCannon and Tanner offerproposals that would further tap the power of markets to make health care more valuable andmore affordable. GEORGEP. SHULTZ, formerU. S. secretary of state

LEVIATHAN ON THE RIGHT: HOW BIG-GOVERNMENTCONSERVATISM BROUGHT DOWN THE REPUBLICAN

REVOLUTION by Michael D. TannerLeviathan on the Right is a powerful argument that todays brandof conservatism is fundamentally different fromthat advocated by Barry Goldwater and RonaldReagan. CC Goldwater, executive producer,

Mr. Conservative: Goldwater on Goldwater

FEDS IN THE CLASSROOM: HOW BIG GOVERNMENTCORRUPTS, CRIPPLES, AND COMPROMISES AMERICANEDUCATION by Neal P. McCluskey(Published by

Rowman & Littlefield). The overriding value of Neal McCluskeys work is that it shows that mostfederal educational programs are overwhelminglyuseless, if not counterproductive. MYRONLIEBERMAN, chairman, Education Policy Institute


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EXECUTIVEEDWARDH. CRANEPresident and CEO

DAVID BOAZ Executive Vice President

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Manager, Student Programs

ANDREDUNSTONVance Security Company, Security Guard

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Director

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COULSON

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CENTER FORGLOBAL LIBERTYAND PROSPERITYSWAMINATHANS.ANKLESARIAAIYAR

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Editor, Chiraiazadi.org and Managing Editor, Cheragheazadi.org

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CENTER FORREPRESENTATIVEGOVERNMENTJOHNSAMPLES

Director

CENTER FORTRADE POLICYSTUDIESDANIELT. GRISWOLD

Director

DANIELJ. IKENSON Associate Director

SALLIEJAMESPolicy Analyst

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DEFENSE ANDFOREIGN POLICYSTUDIESTEDGALENCARPENTERVice President for Defense and Foreign Policy Studies

BENJAMINH. FRIEDMAN Research Fellow in Defense and Homeland Security Studies

MALOUINNOCENTForeign Policy Analyst

JUSTINLOGAN Associate Director, Foreign Policy Studies

IONUTPOPESCU Research-Administrative Assistant

CHRISTOPHERA. PREBLE Director, Foreign Policy Studies

DEVELOPMENTLESLEYALBANESEVice President

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C A T O S T A F F



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GOVERNMENTAFFAIRS

BRANDON

ARNOLD

Director

KURTCOUCHMAN Manager of Government Affairs

HEALTH ANDWELFARE STUDIESMICHAELF. CANNON

Director, Health Policy Studies

TRAPPERK. MICHAEL Research Assistant

JAGADEESHGOKHALESenior Fellow

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NATURALRESOURCE STUDIESPATRICKJ. MICHAELSSenior Fellow

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PUBLICATIONSPATBULLOCKProduction Designer

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DAVID LAMPOPublications Director

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ZACHARYDAVID SKAGGSStaff Writer

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REGULATIONTHOMASA. FIREY

Managing Editor,

Regulation Magazine

PETERVANDORENSenior fellow and Editor, RegulationMagazine

RESEARCHAND ACADEMICAFFAIRSJAMESA. DORNVice President for Academic Affairsand Editor, Cato Journal

JASONKUZNICKI Research Fellow

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RANDALOTOOLESenior Fellow

WILLWILKINSON Research Fellow and Managing Editor,Cato Unbound

TAX ANDBUDGET STUDIESCHRISEDWARDS

Director, Tax Policy Studies

ELIZABETHKARASMEIGHANPolicy Analyst DANIELJ. MITCHELLSenior Fellow

MICHAELNEWVisiting Fellow

JEFFPATCHFellow

ALANREYNOLDSSenior Fellow

TELECOMMUNICATIONSAND INFORMATIONPOLICY STUDIESJIMHARPER

Director of Information Policy Studies

JAMESPLUMMER Research Assistant

WEB ANDMIS SERVICESVIRGINIAANDERSON

Director of Internet Services

JORGEARTEAGA Manager of Audio Visual Services

SCOTTGAMMON Data Entry Clerk

BRIANHAYNESWORTH Audio Visual Assistant

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KIERANSMITH Data Entry Clerk

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A N N U A L R E P O R TKELLYANNECREAZZOS. D. YANADAVIS

MAIMAKLEDJON MEYERSCLAUDIARINGELZACHARYDAVID SKAGGS


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FELLOWSF. A. HAYEK(1899-1992)

Distinguished Senior Fellow

JAMESM. BUCHANAN Distinguished Senior Fellow

JOSPIERA Distinguished Senior Fellow

EARLC. RAVENAL Distinguished Senior Fellow in ForeignPolicy Studies

RANDYE. BARNETTSenior Fellow

LAWRENCEGASMANSenior Fellow in Foreign Policy Studies

LEONT. HADAR Research Fellow in Foreign Policy Studies

RONALDHAMOWYFellow in Social Thought

STEVEH. HANKESenior Fellow

JOHNHASNASSenior Fellow

PENNJILLETTE Mencken Research Fellow

STANLEYKOBER Research Fellow in Foreign Policy Studies

DAVID KOPEL Associate Policy Analyst

CHRISTOPHERLAYNE Research Fellow in Foreign Policy Studies

JEFFREYMILYOSenior Fellow

GERALDP. ODRISCOLLJR.Senior Fellow

P. J. OROURKE Mencken Research Fellow

JIMPOWELLSenior Fellow

RICHARDRAHNSenior Fellow

RONALDD. ROTUNDASenior Fellow in Constitutional Studies

WILLIAMRUGER Research Fellow in Foreign Policy Studies

TELLER Mencken Research Fellow

CATHYYOUNG Research Associate

ADJUNCT SCHOLARSTERRYL. ANDERSONProperty and Environment ResearchCenter

RONALDA. BAILEY Reason

CHARLESW. BAIRDCalifornia State University at Hayward

CARLOSBALL Agencia Interamericana de

Prensa Econmica

PATRICKBASHAMThe Democracy Institute

TOMW. BELLUniversity of San Diego School of Law

LORENZOBERNALDODEQUIRSFreemarket International Consulting

DONALDJ. BOUDREAUXGeorge Mason University

ROBERTL. BRADLEYJR. Institute for Energy Research

REUVENBRENNER McGill University

ROBERTCORN-REVEREPartner, Davis Wright Tremaine LLP

TYLERCOWENGeorge Mason University

W. MICHAELCOXFederal Reserve Bank of Dallas

CLYDEWAYNECREWSJR.Competitive Enterprise Institute

JARETTB. DECKERPublic Company AccountingOversight Board

VERONIQUE DERUGY Mercatus Center

KEVINDOWD Nottingham University Business School

ALANEBENSTEINSanta Barbara, California

BERTELY Ely and Company, Inc.

CATHERINEENGLANDGeorge Mason University

RICHARDA. EPSTEINUniversity of Chicago Law School

MARILYNR. FLOWERS Ball State University

ENRIQUEGHERSI Lima, Peru

RICHARDL. GORDONPennsylvania State University

MICHAELGOUGH Bethesda, Maryland

MARIEGRYPHON Manhattan Institute

JAMESD. GWARTNEYFlorida State University

SCOTTE. HARRINGTONUniversity of Pennsylvania,The Wharton School

THOMASHAZLETTGeorge Mason University School of Law

ROBERTHIGGSCovington, Louisiana

EDWARDL. HUDGINSThe Objectivist Center

DAVID A. HYMANUniversity of Illinois College of Law

DAVID ISENBERGWashington, D.C.

KAYH. JONES Zephyr Consulting

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DANIELB. KLEINGeorge Mason University

ARNOLDKLING Economist and Author

DEEPAKK. LALUniversity of California at Los Angeles

DWIGHTR. LEEUniversity of Georgia

STAN LIEBOWITZUniversity of Texas at Dallas

JONATHANR. MACEYYale Law School

TIBORMACHANChapman University

HENRYG. MANNEUniversity of Chicago Law School

RICHARDB. MCKENZIEUniversity of California at I rvine

DAVID I. MEISELMANVirginia Polytechnic Institute

ROBERTJ. MICHAELSCalifornia State University at Fullerton

CASSANDRACHRONESMOORECompetitive Enterprise Institute

THOMASGALEMOORE Hoover Institution

F E L L O W S A N DA D J U N C T S C H O L A R S


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46

F I N A N C E S

C A T O I N S T I T U T E 2 0 0 7 A N N U A L R E P O R T

The unaudited financial infor-mation below indicatesa verysuccessful year for the Cato In-

stitute.Individuals continue to be thebackbone of the institute, with 77.4%of revenue coming from that group.The balance sheet shows net assets of $29.2 million, which represents a $5.4million increase from fiscal year 2007.

Catos fiscal year runs April 1 throughMarch 31.

F I S C A L Y E A R 2 0 0 8 I N C O M EINDIVIDUALS . . . . . . . . . . . . . . . . . . . . . . . .$18,613,000

FOUNDATIONS . . . . . . . . . . . . . . . . . . . . . . .$3,181,000

CORPORATIONS . . . . . . . . . . . . . . . . . . . . . . .$389,000PROGRAM REVENUE . . . . . . . . . . . . . . . . . . .$949,000

O THER INCOME . . . . . . . . . . . . . . . . . . . . . . .$931,000

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$24,063,000

A S S E T S A N D L I A B I L I T I E S

CASH AND EQUIVALENTS . . . . . . . . . .$22,268,000NET FIXED ASSETS . . . . . . . . . . . . . . . . . .$6,194,000

O THER ASSETS . . . . . . . . . . . . . . . . . . . . . .$2,226,000

LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . .($1,501,000)

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$29,187,000

FI S CAL YEAR 2 0 0 8 I N COM

FI S CAL YEAR 2 0 0 8 EXP EN

FOUNDATIONS - 13%

INDIVIDUALS - 77%

PROGRAM EXPENSES - 75%

CORPORATE - 2%

PROGRAM & O THER INCOME - 8%

MANAGEMENT & G ENERAL EXPENSES - 15%

DEVELOPMENT - 10%


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I N S T I T U T I O N A LS U P P O R T

FOUNDATION SPONSORS* ANONYMOUS - 2

A. G ARY ANDERSON F AMILY FOUNDATION

R OSE -M ARIE AND J ACK R. ANDERSONFOUNDATION

ACHELIS & BODMAN FOUNDATIONS

FRED AND R OBYN AMIS FOUNDATION

ANSCHUTZ FOUNDATION

ARMSTRONG FOUNDATION

ASSURANT H EALTH FOUNDATION

THE ATLANTIC PHILANTHROPIES

ATLAS ECONOMIC R ESEARCH FOUNDATION

B ARNEY F AMILY FOUNDATION

BETTY & D ANIEL BLOOMFIELD FUND

L YNDE AND H ARRY BRADLEY FOUNDATION

B & E C OLLINS FOUNDATION

BROWN FOUNDATION

C ARNEGIE CORPORATION OF N EW Y ORK

C ASTLE R OCK FOUNDATION

C ATERPILLAR FOUNDATION

CHASE FOUNDATION OF V IRGINIA

C IOCCA CHARITABLE FUND

CIGNA F OUNDATION

CORTOPASSI INSTITUTE

D ANIELS FUND

W ILLIAM H. D ONNER FOUNDATION

Cato Institute: Annual Report 2007

Documents

Transcript of Cato Institute: Annual Report 2007