American Enterprise Institute for Public Policy Research

Identification Conservative think tank

Also Known As AEI; American Enterprise Association

Date Established in 1943

The American Enterprise Institute, the first conservative American think tank, espoused free market principles during the New Deal and World War II, when such ideals seemed outdated. At the same time, however, the think tank reflected the apprehensions of many Americans about rapid government expansion.

The American Enterprise Institute for Public Policy Research (AEI), originally called the American Enterprise Association, began its official life in 1943 as the first conservative think tank, promoting the ideals of the free market and limited government. Its founders, including business executive Lewis H. Brown and economic writer Henry Hazlitt, long distrusted the growing centralization of the American economy; the acceleration of this trend during World War II prompted the AEI to challenge New Deal policies. The AEI’s early studies focused on the economic consequences of proposed legislation or policies such as the Bretton Woods system. Though the think tank’s efforts were well intentioned, these modest studies had little impact during the 1940’s.

Impact

The AEI would become more influential, particularly under the directorship of William J. Baroody, beginning in 1954. The scope, quantity, and quality of its research grew, attracting luminaries such as economistMilton Friedman, future president Gerald R. Ford, and neoconservative intellectual Irving Kristol. The organization officially changed its name to the American Enterprise Institute in 1962.

Bibliography

Nash, George H. The Conservative Intellectual Movement in America Since 1945. Wilmington, Del.: Intercollegiate Studies Institute, 1996.

Wiarda, Howard J. Conservative Brain Trust: The Rise, Fall, and Rise Again of the American Enterprise Institute. Lanham, Md.: Lexington Books, 2009.