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CEI Planet - July-August 2012

CEI Planet - July-August 2012

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Published by: Competitive Enterprise Institute on Sep 24, 2012
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Competitive enterprise institute volume 25, number 4 July/August 2012
 Also inside:
 Marketing Free Markets,
  Fl. s, J..................2
CEI Annual Dinner 
. . . . . . . . . . . . . . . . . . .7t g,  ba, a  u ......10ma m ...................11en........................12
stArt oF dArknessFor AmeriCA’sshining Cities
>>page 6 >>page 4 
by rep. pAul ryAn
L
et me start with the good news and the bad news, and I will state the bad news
rst. The bad news is our country is on thecusp. It is pretty much at that proverbialfork in the road—that if we stay on our current path, we will quickly become anation in debt, in doubt, and in decline.But the good news is at least we havetime to decide not to go down that path.The good news is that it is not too lateto turn this around and get back to theAmerican idea. We have got a clear choiceof two futures ahead of us.In Wisconsin, we have gone straightto our citizens. We have treated them likeadults. We have told them the problemsthat we see in our state and in our federalgovernment. And we are asking them for  permission to give us the ability to x thismess before it gets out of our control.And when you take a look at this proverbial choice of two futures in frontof us, we are basically relitigating theEnlightenment. It is between naturalrights where our rights come fromnature, where they come to us naturally before government, where they are oursautomatically.Or this new idea, the Progressive theoryof government-granted rights, that thegovernment now gives us new, positiverights. It is an opportunity society versusa welfare state. It is Adam Smith and JohnLocke versus Jean-Jacques Rousseau andHegel and all the rest.This is a ght we know pretty wellwhere I come from. It is a ght that iscoming to a crescendo here. It is a ghtwhere we actually look at whether we believe in the rule of law or the rule of man.And that is a ght where the CompetitiveEnterprise Institute, under Fred Smith’slong leadership, has been indispensible.What CEI has done has helpedshine a bright light on that darker partof government. They have put a face tothe faceless bureaucracy.
Ten Thousand Commandments
does a fantastic job of highlighting that hidden tax among us, thatof the regulatory state—that notion thatCongress can pass big, vague laws, andthen delegate the power to an unelected bureaucracy—a permanent bureaucracy of highly trained technocrats—and they canharmonize our lives and organize society.CEI has quantied the cost of theseregulations: $1.7 trillion a year. Small businesses face a little more than $10,000 incosts per employee.
(continued on page 3)
38 studios And the“giFt ClAuse”obAmA’s seCret Anti-immigrAtionCAmpAign
>>page 8 
Featured articles 
to sve ielf, amec Mu reun o he amecn ide 
Rep. Paul Ryan (R-Wisc.) delivers
the Keynote Address at CEI’s
2012 Annual Dinner 
 
C
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pubh 
 
Fred L. Smith, Jr.
eo 
Marc Scribner
eoa dco 
Ivan Osorio
Cobug eo 
 Nicole Ciandella
th Cei pa ouc by h Comve iu,a o-mak ubc gouca o f am govm.Cei  a o-aa, o-of ogazaocooa h dc of Coumba a caf by hirs a a 501 (c)(3)chay. Cei uo cobuofom fouao,cooao avua fo uo. Acmay b ov hy aabu o Cei.pho:(202) 331-1010Fax:(202) 331-0640e-ma:fo@c.og
issn#: 1086-3036
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C
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COMPETITIVE
ENTERPRISE
INSTITUTE
WWW
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CEI
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ORG
A
t our annual dinner, wecelebrated the world of marketing, communications,advertising—concepts centralto the TV series “Mad Men.” But, while the MadMen are brilliant at marketing products, they rarelyseek—and are even more rarely asked—to market thefree market system that makes their world, and ours, possible. But we at CEI do.In the private world, Mad Men are adept at targetingtheir ads to us as consumers. But the Mad Men haverarely been asked to target us as
citizens
, to frame
narratives that would link the business world to our  political values.The result? We love our cars but we too oftenchampion greater regulation of automobility. We likeclean dishes but we supportgovernment bans on phosphates. We love theInternet but accept politicalrestrictions on information-sharing.Business has askedMad Men to do onlyhalf the job. That wasnot so important whengovernment was small, buttoday we are paying dearlyfor this neglect. What makes this particularly sad isthat business did communicate to us as consumers
and 
 
citizens merely decades ago. GE brought “good thingsto life.” AT&T suggested we “reach out and touchsomeone.” DuPont promised “better living throughchemistry.” And Dinah Shore regaled us with, “See theUSA in your Chevrolet!”That earlier generation of business leadersrecognized that ads could and should serve a dual purpose: 1) build brand reputation to increase sales; and2) build corporate legitimacy to reduce vulnerability to political predation.Then companies were proud, believing they beneted consumers, but also that they advanced thediverse values of our citizenry. And they said so!Today, sadly, few do.They concede that our products are safer but nottotally safe. Our production processes are vastlycleaner but not clean. Our workers are better off but notrich. Essentially, the message is “We’re not as bad asyou think we are!”The BPs of the world adopt Sunower logos and praise the “use less energy” slogans of their critics.Hotels once talked of their comfortable beds. Now they brag about not washing their sheets. Corporate annualreports once emphasized prots and innovation. Nowthey are lled with apologetic statements about their shortfalls in meeting “stakeholder” demands.But, of course, one cannot apologize one’s way torespect. The result? The private sphere has steadilyshrunk vis-à-vis the political sphere.In today’s world, “sin” products are assaulted atwill—tobacco yesterday, soft drinks and fast foodtoday, and God knows what tomorrow. Cars aredesigned by engineers, butfor bureaucrats, as are our light bulbs and appliances.Innovations are viewedas inherently dangerousunder the “PrecautionaryPrinciple.”Activists attack  business along manyfronts, including via fauxshareholders who pushagreements to cripplemanagement, cyber-bullying rms into defunding their allies, mandating disclosure rules that strip businessesof their privacy, and enacting campaign laws to restrictcorporate freedom of speech.All these attacks have but one purpose: drive marketvoices from the marketplace of ideas. Capitalism is atrisk and we at CEI take the challenge of re-legitimizingour free enterprise system seriously.We at CEI look forward to a day when CEOs willrequest their Don Drapers to take on this legitimizationchallenge. They won’t nd it easy. But business meetscomparable challenges of this sort in the private world.They could do so also in the political world. And we believe that challenge is not so mad at all.
 Marketing Free Markets
By Fred L. Smith, Jr.
>>a Message FroM the president
Capitalism is at risk and weat CEI take the challengeof re-legitimizing our freeenterprise system seriously.
 
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 ADVANCING LIBERTY FROM THE ECONOMY TO ECOLOGY
Ryan,
continued from page 1
CEI has been on the beachhead of taking on theseamazing regulatory power grabs, by going after Dodd-Frank and Obamacare.I want to simply say to CEI: Thank you for ghting for free enterprise and freedom.As I mentioned, this whole thing is coming toa big crescendo. If you want to look at how thismovie ends, look across the Atlantic and see whatis going on in Europe. And then look at the twotipping points that we are on the cusp of hittingourselves.On the one hand, we have the tipping point of debt. This is pretty easy to quantify. Our gross debtis as big as our economy. We know that sooner or later, we are not going to be able to control our entire debt situation. Sooner or later interest ratesare going to leave us and we will not be able tocontrol our own scal future. Sooner or later thedebt will take our economy to a point where wego beyond just managing our decline and having alost decade.But the more insidious tipping point is onewhere we become a net majority of takers versusmakers in America. Where we trade in the notionof an opportunity society of limited governmentand economic freedom with a safety net, andexchange it for a European-style, cradle-to-gravewelfare state.We have not reached these tipping points yet.But if we keep staying on this path that we are on,we will get there.You cannot wean yourself unless you rstadmit you have a problem. We must purgeourselves of this notion of crony capitalism andcorporate welfare, and get back to economicliberty and clear and transparent rules for everybody.If we get these focused principles right— reapply the founding principles, x our entitlementtime bomb, clean up our tax code, have a realenergy policy where we actually get to use our own energy that we have in this country, and tamethe regulatory state by just reading what CEI putsout—we will return to the American idea.
 Rep. Paul Ryan (R-Wisc.) is Chairman of the House Budget Committee. Rep. Ryan delivered thekeynote address at the 2012 CEI Annual Dinner and Gala, from which this article is adapted.
 
My gcy
I need to provide for my loved ones. But like my family, I want CEI to carry on for generationsto come. What can I do? 
It’s easy to do both. Talk to usabout your options, like… 
Designating yourretirement plan 
Leaving a life insurancepolicy 
Making a bequest through your will 
Making a gift now, andreceiving income for life 
And much moreAny of these options could helpyou now and provide for yourfamily in the future. Some youcan even put into place todaywithout losing any income.
This publication is intended to provide general gift planning information. Our
organization is not qualiied to provide speciic legal, tax or investment advice, and
this publication should not be looked to or relied upon as a source for such advice.
Consult with your own legal and inancial advisors before making any gift.
Want to learn more?
Contact Al Canata at acanata@cei.orgor (202) 331-1010
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