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CEI Planet - March-April 2012

CEI Planet - March-April 2012

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Published by: Competitive Enterprise Institute on May 03, 2012
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Competitive enterprise institute volume 25, number 2 marCh/april 2012
Featured articles 
 also inside:
Civil Rights or Dues: The Truth Behind theUAW Protests of H.B. 56
 2Chemical Law Is Not Broken, Doesn’t NeedTo Be “Fixed”
, y ag lg 4t G,  b,   ugy 10m m 11en12
lewis: one lawfor me, another for thee
>>page 8 >>page 6 
s most of you know, I founded theCompetitive Enterprise Institute in1984 and have been President for almost30 years now. My goal has always been
to nd a more positive answer to the
challenge Joseph Schumpeter laiddown in his essay, “Can CapitalismSurvive?” CEI’s core mission was— 
and is—to nd ways to advance
economic liberty, to ensure thatcapitalism will survive.While I plan to never retire
from this ght, I have decided
to begin the formal search for asuccessor. I love this work andremain healthy (save my knees).However, I want to ensure thatCEI’s work continues well beyond my tenure.Of course, heading CEI ishardly an ordinary job.
 Free Market Think Tank  President wanted: Long hours; Low pay; Enthusiasm for challenging statists; Stubbornrefusal to appease; In-depthknowledge of our political economy and ability to apply itsinsights to current and emerging issues; Demonstrated ability to herd acreative but diverse band of CEI cats; Ability to play a leadership role in thebroader free market movement; and,most essentially, Capacity to expand the logistical support needed for CEI to grow and thrive.
Let me outline the succession plan, therole that CEI has played—and will continueto play—in the freedom movement, and
nally, my post-presidency plans.
Over the past year, I have interviewedleaders of policy groups that have gonethrough, or are anticipating, successionin the near term. I also have reviewed theliterature on corporate transitions. I quicklyrealized that there are no road maps in this process. Each organization must tailor its plan
to meet its specic needs. CEI, I believe, has
 paved a good path toward that goal.We have enlisted the help of Claire Kittle,Executive Director of Talent Market,
(continued on page 3)
Mssag from h Prsdn: th Fuur of cei 
 YounG: no tobroCColi mandate, Yes to healthinsuranCemandate?murraY: new irsrule benefits onlYforeiGn diCtators
>>page 5 
Fred L. Smith, Jr.
Marc Scribner
Editorial Director 
Ivan Osorio
Contributing Editor 
 Nicole Ciandella
The CEI Planetis produced by the CompetitiveEnterprise Institute,a pro-market publicinterest groupdedicated to freeenterprise andlimited government.CEI is a non-partisan, non-profit organizationincorporated inthe District of Columbia and isclassified by theIRS as a 501 (c)(3)charity. CEI reliesupon contributionsfrom foundations,corporations andindividuals for itssupport. Articlesmay be reprintedprovided they areattributed to CEI.Phone:(202) 331-1010Fax:(202) 331-0640E-mail:info@cei.org
ISSN#: 1086-3036
bY f vinCent vernuCCio and alex nowrasteh
n March, the United AutoWorkers (UAW) bussed
out-of-state activists into
Alabama to protest whatthey describe as several car 
companies’ insufciently
strong opposition to the state’s
new anti-immigration law (H.B.56). The UAW is using H.B. 56
as a political club to force foreigncar manufacturers to take away thesecret ballot.
UAW President Bob King wrote in
The Detroit News
that his union was “marching for justiceand calling on Alabama businesses and major foreigninvestors—such as Daimler, Hyundai and Honda—to
support repeal of H.B. 56.”Besides being underhanded, there is a lot of irony
in the UAW’s campaign. First, while King talks about“justice,” his union is trying to take a fundamental rightaway from Alabama workers: the secret ballot. King istargeting these companies because the UAW has beenunable to organize workers at their plants through thenormal secret ballot process.
Second, the UAW is trying to pin blame for H.B. 56
on companies that had nothing to do with its passage.The UAW claims it is targeting a law hostile toforeigners by going after some foreign car companies
that never even supported H.B. 56.
Third, the UAW is blaming the victim. Daimler andHonda executives have been detained or ticketed under the law’s enforcement provisions. Last November,
a German Mercedes-Benz executive visiting the
automaker’s plant in Tuscaloosa was arrested by police
for failing to have proper identication during a trafc
stop. Only 12 days later, a Honda executive—one of roughly 100 Japanese managers and executives inAlabama at any given time—was ticketed for running
afoul of H.B. 56.
Last year the UAW launched a sophisticated public
relations campaign to tarnish foreign-owned car 
companies to pressure them into unionizing.
Attacking H.B. 56 is just camouaging the UAW’s
own effort to deprive American workers of the secret ballot. The UAW is coordinating this attack strategywith allied organizations in order to
camouage its self-interest. (This
is why UAW is teaming up withgroups such as the Center for Community Change, theCenter for American Progress, NAACP, and the SouthernPoverty Law Center.)As part of its publicrelations campaign (known as acorporate campaign) against theautomakers, UAW unveiled itsPrinciples for Fair Union Elections.Chief among the Principles isreplacing the secret ballot in unionizationelections with a process known as card check,whereby union organizers collect employee signatureson union cards out in the open, thus exposing workers
to strong-arm tactics and intimidation.
Companies that seek to protect their workers’ privacy by refusing to agree to the Principles becometargets of the UAW’s attacks. Last year, King said thatif a company resists his union’s organizing efforts, theUAW “will launch a global campaign to brand thatcompany a human rights violator.” Now the UAW isexpanding its attacks to brand companies as civil rightsviolators, including those that did not openly oppose
H.B. 56.
If the UAW seems desperate in its tactics, thatis because it is. The union’s total membership hasdropped to 377,000, down from a high of about1.5 million in 1979. Since 2004, its membershiphas precipitously declined by 42 percent. As Kinghimself has bluntly stated, “If we don’t organize these
transnationals, I don’t think there’s a long-term future
for the UAW—I really don’t.”
The UAW’s real goal is to add more dues-paying
members to their ranks. For this, it is cynically using
H.B. 56 as a weapon in its assault on the car companies
it is targeting. Alabamans—and the nation’s car  buyers—should not fall for such a transparent ploy.
 F. Vincent Vernuccio ( 
 ) is Labor  Policy Counsel in CEI’s Center for Economic Freedom,where Alex Nowrasteh ( 
 ) is a policy analyst. A version of this article originallyappeared in
The Alabama Political Reporter.
civil righs o des: the th Behin he uaW Poess of H.B. 56 
who specializes in executive searcheswithin the free market movement. Our Executive Search Committee comprisesa handful of current and former CEI staff members and a few noteworthy other friends who are dedicated to advancingour mission. This group will help us vet
candidates before we turn to CEI’s Board
of Directors, who will choose among the
nalists.Once the Board selects a candidate,
that person and I will work in tandem for a transitional period, acquainting him or her with CEI’s operations and meetingwith many of you to outline our plans andto seek your input on future priorities andopportunities.After the transition, in order to allowthe new President to fully assume the
leadership role, I plan a six-month national
and international outreach venture, toexplore ways of expanding the global freemarket alliance and moving it in a moreactivist direction. Following that, I look forward to returning to celebrate CEI’s30th anniversary in 2014 as the Director of CEI’s Center for Advancing Capitalism, anew role that will give me an opportunityto pursue my current policy interests.
A successful candidate will need tounderstand and embrace CEI’s uniquemarket niche. I founded CEI to addresswhat I saw as an unexplored opportunity.My prior coalition work alongsideenvironmental groups gave me anappreciation for their ability to move policy ideas into reality. That ability, Icame to believe, stems to a large extentfrom the way organizations on the left arestructured.
Most left-of-center groups were
organized vertically around a core set of 
issues. Most right-of-center groups, on
the other hand, specialized in one task level—scholarly research, grassrootsactivism, or litigation, for example—whileleaving other tasks to different groups.We had excellent think tanks, as well asmedia, litigation, and advocacy groups, but no “full service” operation combiningall skill sets under one roof. That verticalissue management approach became CEI’smodus operandi.In the 28 years since CEI’s founding,
I believe we’ve lled an important niche
with our vertically integrated approach andour focus on regulation. Our regulatorystate is the keystone achievement of theProgressives, who vigorously promoted policies based on their belief that we coulddepoliticize politics by using “experts”freed from constitutional accountabilityto better advance the public good.Today’s regulatory leviathan is the result.
CEI’s ght to bring transparency and
accountability to this process has becomeincreasingly critical, as federal and state bureaucracies have grown ever larger.We both plan strategically for long battles and strike at tactical targets of opportunity. For issues that are “frozen”— where prospects for reform are slight
and the road ahead difcult—we lay the
groundwork by developing the intellectual
ammunition for the ght ahead. When anissue becomes “uid,” we move quickly to
enter the fray—to deploy that intellectual
ammunition on the battleeld.
For all the progress we’ve made, we
still have a lot of work to do. Left-liberals
continue to market their bad ideas better than we market our good ones. We havetoo few strategic allies in the businessworld. And, even as free market policyorganizations proliferate in America, statistadvocates around the world operate almostunchallenged. Thus, just as I sought toadvance neglected opportunities with theformation of CEI, I will work on these
challenges post-succession as Director of 
CEI’s Center for Advancing Capitalism.The goals of the Center for AdvancingCapitalism are based on my evaluation of how to counter the threats to economicliberty foreseen by Schumpeter. Hisanalysis presumed that intellectuals would
nd statism in their class interest, while
 business leaders would fail to adequatelydefend themselves. These claims have proven largely true. However, Schumpeter failed to realize that some intellectualswould resist that statist virus. This immunegroup now constitutes a healthy—even if still small—movement.
But free market policy organizations
need business allies, and the assault onentrepreneurial America gives us ever greater opportunities to enlist them.My goal is to help create an effectivecounterreformation force to balance the
now-dominant statist alliance of rent-seeking economic groups, power-grabbing politicians, and anti-business ideologues.
A second focus of the Center for Advancing Capitalism will be to explorecreative ways of communicating the virtuesand the values of markets, capitalism,and entrepreneurship—a critical step tolegitimize economic liberty. Capitalismhas made the world freer, safer, and fairer.Communicating this clearly to liberals andconservatives will be our goal.
My rst effort to advance thesegoals post-succession will be a series of short-term “residencies” at allied policy
groups. I hope to identify a cadre of policyleaders, entrepreneurial businessmen,and politicians who can form the core of a global activist movement to implementeconomic liberal reforms. That work willcontinue when I return to CEI.
We all wish we could nd a silver bullet
that could vanquish Leviathan forever, butthat happy prospect is not imminent. CEI’sactivist policy orientation remains highlyrelevant and as important now as the day
I founded the organization. I am condentthat our Search Committee and Board of Directors will nd a strong, principled, and
respected President to lead the organizationin its mission to promote a freer, more prosperous world.I want to thank you for being a loyalsupporter and ally of CEI’s work and of our movement. Now, more than ever, I hope wecan count on you to continue your supportas we prepare for a new era.
Sincerely,Fred L. Smith, Jr.
Te Future of CEI,
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