The American Enterprise Institute: A Pillar of Conservative Thought
Delving into the history, policy research, and intellectual influence of AEI on American public discourse and global policy.
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Introducing AEI
Core Identity and Mission
The American Enterprise Institute for Public Policy Research, commonly known as AEI, is a prominent center-right think tank established in Washington, D.C. Founded in 1938, its primary mission involves conducting rigorous research across various domains, including government, politics, economics, and social welfare. As an independent nonprofit organization, AEI's operations are sustained primarily through contributions from foundations, corporations, and individual donors.
Guiding Principles and Reach
AEI consistently advocates for core conservative principles, emphasizing the vitality of private enterprise, the necessity of limited government intervention, and the benefits of democratic capitalism. The institute is governed by a dedicated 29-member Board of Trustees, ensuring strategic oversight and adherence to its foundational values. With approximately 185 associated authors, AEI maintains a broad intellectual reach, contributing significantly to policy debates and public discourse.
Leadership at the Helm
Since July 1, 2019, Robert Doar has served as the president of AEI, guiding the institute's research agenda and strategic direction. His leadership continues the legacy of previous presidents, including Arthur C. Brooks (2009-2019) and Christopher DeMuth (1986-2008), who each played pivotal roles in shaping AEI's influence and intellectual output over several decades.
Historical Trajectory
The Formative Years (1938–1954)
AEI originated as the American Enterprise Association (AEA) in 1938, founded by a consortium of New York businessmen led by Lewis H. Brown. Initially, AEA focused on preparing and distributing legislative analyses to Congress, fostering early relationships with influential figures like Melvin Laird and Gerald Ford. Following Brown's death in 1951, the association experienced a period of dormancy until a group of young policymakers, including William J. Baroody Sr., revitalized its mission in 1952.
The Baroody Era (1954–1980)
Under William J. Baroody Sr.'s leadership, first as executive vice president and then as president, AEA significantly expanded its financial base and refined its research focus. In 1962, it was formally renamed the American Enterprise Institute for Public Policy Research (AEI) to clarify its academic, non-partisan intent. Despite facing IRS scrutiny after Baroody Sr.'s involvement in the 1964 Goldwater campaign, AEI continued to grow, recruiting prominent resident scholars and neoconservative intellectuals, including Jeane Kirkpatrick and Irving Kristol. By 1980, AEI's budget had surged to $8 million with a staff of 125.
DeMuth and Bush Administrations (1986–2008)
Christopher DeMuth's 22-year presidency saw AEI navigate financial challenges to achieve substantial revenue growth, from $10 million to $18.9 million. During this period, the institute deepened its conservative alignment and forged close ties with the George W. Bush administration. Over 20 AEI staff members, including Dick Cheney and John R. Bolton, served in key policy roles. AEI became particularly associated with advocating for the Iraq War and later provided a strategic framework for the 2007 troop surge in Iraq.
Modern Transitions (2008–Present)
Arthur C. Brooks succeeded DeMuth in 2008, leading AEI through the late-2000s recession with a more aggressive stance against Obama administration policies, while also championing "compassionate conservatism." A notable internal event was the termination of resident fellow David Frum in 2010, following his critical blog post "Waterloo" regarding the Republican Party's approach to the Affordable Care Act, which was widely speculated to be due to donor pressure. Robert Doar assumed the presidency in 2019, continuing AEI's engagement in critical policy debates, including leading a delegation to Taiwan in 2023.
Key Leaders
Current Officers (2025)
AEI's operational and intellectual direction is guided by a dedicated team of officers. As of 2025, these include:
- Robert Doar: President
- Jason Bertsch
- John Cusey
- Kazuki Ko
- Katheryne Walker
- Kori Schake
- Yuval Levin
- Michael R. Strain
- Matthew Continetti
This team ensures the institute's research and outreach efforts align with its mission of promoting conservative principles.
Council of Academic Advisers
The Council of Academic Advisers plays a crucial role in maintaining AEI's academic rigor and intellectual standards. This council is responsible for selecting the annual recipient of the prestigious Irving Kristol Award, honoring individuals who have made significant contributions to public policy and conservative thought. Notable members of the council include:
- Alan J. Auerbach
- Eliot A. Cohen
- Eugene Fama
- Aaron Friedberg
- Robert P. George
- Eric A. Hanushek
- Walter Russell Mead
- Mark V. Pauly
- R. Glenn Hubbard
- Sam Peltzman
- Harvey S. Rosen
- Jeremy A. Rabkin
- Richard Zeckhauser
Board of Trustees
Governance and Influence
AEI's Board of Trustees provides strategic oversight and ensures the institute's long-term stability and adherence to its mission. The board is currently chaired by Daniel A. D'Aniello. As of 2025, the board comprises a distinguished group of leaders from various sectors, including finance, industry, and public service. Their collective expertise and commitment are vital to AEI's continued impact on public policy.
Political Stance & Impact
Network Affiliations
AEI is an active participant in broader conservative and free-market networks. It is a member of the Atlas Network, a global association of free-market think tanks, and holds an associate membership in the State Policy Network, which connects conservative and libertarian organizations across the United States. These affiliations underscore AEI's commitment to advancing market-oriented and limited-government policies at both national and international levels.
Ideological Core
In the 2000s, AEI emerged as the most prominent think tank associated with American neoconservatism. This ideological alignment is deeply rooted, with Irving Kristol, considered a founding father of neoconservatism, having been a senior fellow at AEI, and the institute honoring his legacy with the annual Irving Kristol Award. Paul Ryan, a significant figure in conservative politics, has lauded AEI as one of the "beachheads of the modern conservative movement," highlighting its foundational role in shaping contemporary conservative thought. Furthermore, AEI maintains close ties with pro-Brexit politicians within the British Conservative Party, hosting figures such as Sajid Javid, Michael Gove, Boris Johnson, and Liz Truss at its World Forum and other events.
Collaborative Engagements
While often characterized as a right-leaning counterpart to the left-leaning Brookings Institution, AEI has a history of significant collaboration with Brookings. From 1998 to 2008, they co-sponsored the AEI-Brookings Joint Center for Regulatory Studies. In 2006, they launched the AEI-Brookings Election Reform Project, demonstrating a shared commitment to addressing critical national issues. A notable joint effort in 2015 resulted in a co-authored report titled "Opportunity, Responsibility, and Security: A Consensus Plan for Reducing Poverty and Restoring the American Dream," showcasing their capacity for bipartisan policy development.
Influence and Recognition
AEI's intellectual contributions and policy influence are widely recognized. The 2011 Global Go To Think Tank Index Report, compiled by the University of Pennsylvania's Think Tanks and Civil Societies Program, ranked AEI as number 17 among the "Top Thirty Worldwide Think Tanks" and number 10 among the "Top Fifty United States Think Tanks." By 2019, the American Enterprise Institute also led in YouTube subscribers among free-market groups, indicating its effectiveness in digital outreach and public engagement.
Research Programs
Diverse Policy Areas
AEI's extensive research is systematically organized into seven broad categories, reflecting its comprehensive approach to public policy. These areas include economic policy studies, foreign and defense policy studies, health care policy studies, political and public opinion studies, social and cultural studies, education, and poverty studies. Prior to 2008, the institute's work was structured into three main divisions: economics, foreign policy, and politics and social policy, demonstrating an evolution in its organizational framework to address contemporary challenges more effectively.
Economic Policy
Core Economic Focus
Economic policy remains at the heart of AEI's research, a legacy from its origins as the American Enterprise Association. The overarching goal is to deepen the understanding of free economies—how they operate, how to leverage their strengths, how to foster robust private enterprise, and how to effectively address economic challenges. Michael R. Strain currently directs economic policy studies at AEI. In the early 21st century, AEI scholars consistently advocated for conservative approaches to economic downturns, particularly emphasizing the role of significant tax cuts as a stimulus measure.
The 2008 Financial Crisis
During the 2008 financial crisis, AEI scholars, notably Peter J. Wallison, claimed to have foreseen the involvement of housing government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. Wallison had warned since the late 1990s that their public-private status exposed taxpayers to increased risk, advocating for their full privatization. AEI hosted a series of conferences featuring commentators discussing the unfolding crisis. However, this narrative has been heavily disputed. Investigative journalist Jane Mayer, in her book "Dark Money" (2016), argued that AEI took a "lead role" in crafting a revisionist account, shifting blame from the financial sector to government programs assisting low-income homebuyers. Multiple studies, including those from Harvard and the U.S. Government Accountability Office, did not support AEI's conclusions, suggesting an intentional effort to promote deregulation by discrediting government intervention.
Tax and Fiscal Policy
AEI's expertise in tax and fiscal policy is spearheaded by Kevin Hassett and Alan D. Viard, with contributions from Alex Brill, R. Glenn Hubbard, and Aparna Mathur. Their research spans critical areas such as income distribution, transition costs, marginal tax rates, and international taxation of corporate income. Specific policy analyses have included the Pension Protection Act of 2006, dynamic scoring, and the effects of taxation on investment, savings, and entrepreneurial activity. Their working papers, such as Hassett and Mathur's work on the responsiveness of wages to corporate taxation, have been cited by influential publications like The Economist and The Wall Street Journal.
Regulatory & Market Studies
From 1998 to 2008, AEI co-sponsored the AEI-Brookings Joint Center for Regulatory Studies, directed by Robert W. Hahn. This center facilitated conferences, papers, and books on regulatory decision-making and the impact of federal regulations on various stakeholders. It also hosted an annual Distinguished Lecture series, featuring prominent figures such as William Baumol, Supreme Court Justice Stephen Breyer, and Richard Posner. AEI's Financial Markets Program further delves into banking, insurance, securities regulation, accounting reform, corporate governance, and consumer finance, reflecting a broad engagement with the regulatory landscape.
Energy & Climate Policy
Climate Change Controversy
AEI's work on climate change has been a subject of considerable discussion and controversy. Several AEI staff and fellows have expressed skepticism regarding the Intergovernmental Panel on Climate Change (IPCC), the leading international body for assessing climate science. AEI's approach emphasizes the need to design environmental policies that not only protect nature but also safeguard democratic institutions and human liberty. This perspective aligns with a broader conservative turn towards anti-environmentalism in the 1980s, where corporations funded think tanks like AEI to question scientific consensus and advocate for deregulation, arguing that environmental dangers were unproven.
Funding and Allegations
In February 2007, reports, notably from The Guardian, alleged that AEI offered scientists $10,000 plus expenses to dispute the IPCC Fourth Assessment Report, drawing criticism as potential bribery. The letters reportedly sought essays exploring limitations of climate models. The Guardian also reported that AEI received $1.6 million from ExxonMobil, with former ExxonMobil CEO Lee R. Raymond serving as vice-chairman of AEI's board. This claim was disputed by The Wall Street Journal, which stated that AEI does not lobby, did not offer money to scientists to question global warming, and that its climate research funding did not originate from Exxon. Despite these disputes, the allegations were repeated by other media outlets, fueling ongoing debate.
Carbon Policy Alternatives
Despite some skepticism towards climate science, AEI scholars have also engaged with policy solutions. In 2007, Kenneth P. Green, Kevin Hassett, and Steven F. Hayward published a report promoting carbon taxation as a superior alternative to cap-and-trade regimes. They argued that a carbon tax would create market incentives to reduce carbon-intensive energy use and encourage energy efficiencies. N. Gregory Mankiw, an AEI visiting scholar, echoed this sentiment in The New York Times, stating that "when you tax something, you normally get less of it." Nick Schulz, AEI's editor-in-chief of The American, also endorsed a carbon tax over cap-and-trade in 2009, highlighting its potential to drive emissions reductions and new technologies.
Persistent Skepticism
Several AEI scholars have consistently voiced skepticism regarding the severity and causes of climate change. Steven Hayward described efforts to reduce global warming as "based on exaggerations and conjecture rather than science." Kenneth Green dismissed greenhouse gas emission reduction efforts as a "positively silly idea" and endorsed Michael Crichton's novel State of Fear for its portrayal of climate science. Former AEI president Christopher DeMuth acknowledged recent warming but questioned its cause, criticizing the IPCC for allegedly overlooking dissenting scientific views. James Glassman, another fellow, supported Senator Jim Inhofe's view that global warming is a "hoax" and also cited Crichton's novel. Joel Schwartz, an AEI visiting fellow, argued that the pattern of climate change is inconsistent with the greenhouse effect being the main cause. Roger Bate, an AEI fellow, stated in 2013 that "evidence of climate impact is still hard to prove."
Foreign & Defense Policy
Global Strategy
AEI's foreign and defense policy studies are centered on promoting political and economic freedom, alongside American interests, across the globe. The institute's researchers consistently advocate for a robust U.S. stance against perceived threats, which have historically included the Soviet Union during the Cold War, Saddam Hussein's Iraq, the People's Republic of China, North Korea, Iran, Syria, Venezuela, Russia, and various terrorist or militant groups. Concurrently, AEI promotes strengthening U.S. alliances with countries whose interests and values align with America's, such as Israel, Taiwan, India, Australia, Japan, Mexico, Colombia, the Philippines, the United Kingdom, and emerging post-Communist states like Poland.
Neoconservative Influence
The foreign and defense policy department, directed by Danielle Pletka, is particularly associated with neoconservatism within AEI. In 2002, Vanity Fair described it as the "intellectual command post of the neoconservative campaign for regime change in Iraq." Prominent neoconservative figures like Richard Perle, Gary Schmitt, and Paul Wolfowitz have been associated with AEI. In 2008, rumors of a "purge" of neoconservatives, including Joshua Muravchik and Michael Ledeen, circulated, possibly signaling a shift away from their dominance, though Muravchik later attributed it to personality and management conflicts.
Security & The "Surge"
In late 2006, as the security situation in Iraq deteriorated, Frederick W. Kagan of AEI's Iraq Planning Group published "Choosing Victory: A Plan for Success in Iraq." This report advocated for a strategic shift focusing on "clearing and holding" neighborhoods, securing the population, and a significant troop escalation, alongside renewed emphasis on reconstruction and economic development. Kagan and General Jack Keane briefed President Bush and Vice President Cheney on this plan, which largely informed the 2007 Iraq War troop surge. AEI's defense policy researchers, including Schmitt and Thomas Donnelly, also analyze the U.S. military's size, structure, and partnerships with allies like NATO.
Regional Studies
AEI conducts specialized area studies to provide in-depth regional analysis. Its Asia studies program, directed by Dan Blumenthal, examines the rise of China, Taiwan's security, Japan's military transformation, the threat of a nuclear North Korea, and regional alliances' impact on U.S. relations. Blumenthal and his team have advocated for military support for Taiwan. The Tocqueville on China Project explores the civic culture of post-Mao China to inform policymakers. Leon Aron's work forms the core of the Russia program, which views Russia as posing "strategic challenges for the West." Mark Falcoff, a former Latinamericanist, focused on the Southern Cone, Panama, and Cuba, notably warning about Cuba's trajectory after Fidel Castro's rule.
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References
References
- Arin, Kubilay Yado (2013): Think Tanks, the Brain Trusts of US Foreign Policy. Wiesbaden: VS Springer.
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