The Cato Institute

The Cato Institute is a libertarian think tank and political organization. It receives most of its funding from conservative groups but also from several left-wing organizations. The Cato Institute most often advocates for the advancement of conservative political policy. This includes the removal of labor laws and environmental regulations, as well as the end of antitrust laws and other restrictions on the free market. However, the Cato Institute has also embraced several prominent left-wing political movements, such as the end of federal drug prohibition and the demilitarization of American police forces.

Background

The Cato Institute was founded in 1974 as the Charles Koch Foundation, Inc. It was intended to serve as a private, nonprofit research organization dedicated to the study of public policy. From its earliest days, the organization worked to advance libertarianism in American society and government. Its founding members included the oil industry mogul Charles Koch and prominent libertarian Edward Crane. Though Crane had hoped to start a conservative think tank, he lacked the funding to do so. Koch stood to benefit substantially from the advancement of a conservative political organization and was able to use his fortune to form the Cato Institute.

Initially, the two worked together within the organization, using the American media and a variety of other methods to influence American governmental policy. However, over the coming decades, the leaders’ plans began to diverge. Tensions between Koch and Crane came to a head during the early 1990s when Koch removed himself from the Cato Institute’s board of directors. However, Koch continued to provide substantial funding to the Cato Institute. Koch also retained 25 percent of the organization’s total shares. For these reasons, Koch remained an influential part of the organization.

During the early 2010s, following the death of Cato Institute chairperson William Niskanen, Koch attempted to reassert control over the organization. He filed a lawsuit, suing the Cato Institute and alleging that Niskanen’s shares could not be transferred to his widow. This would allow Koch, when working with his brother and Cato Institute board member David Koch, to exert control over the organization.

The Cato Institute reached a voluntary settlement stipulating that Crane retire as both a president and board member within six months. Additionally, while David Koch would be allowed to remain on the board of directors, Charles Koch would not. Instead, a self-perpetuating board of directors would fill its new vacancies and continue to promote the Cato Institute’s policy goals.

Overview

In the twenty-first century, the Cato Institute remained a libertarian think tank and political organization. It was a nonprofit organization, securing its funding through donors and conservative economic organizations. These include the Lynde and Harry Bradley Foundation, the Charles G. Koch Charitable Foundation, and the Donors Capital Fund. Notably, the Cato Institute also received funding from several left-leaning organizations that benefit from conservative economic policies, such as Google, Facebook, and the Walton Family Foundation.

The Cato Institute is a continuous supporter of free-market capitalism. It has worked for the repeal of many federal economic regulations, arguing that the market should be allowed to self-regulate and that the federal government should not restrict businesses as part of its monetary policy. Notably, the Cato Institute opposes antitrust laws, arguing that such restrictions are outdated and harm both businesses and consumers. Additionally, the Cato Institute continues to oppose environmental regulations for both businesses and individuals. Because of this, it wishes to abolish or reduce the authority of the Food and Drug Administration (FDA).

The Cato Institute also works to repeal most labor laws. It opposes unions, minimum wage laws, and much of the Americans with Disabilities Act (ADA). It also opposes health and safety regulations, arguing that employers and employees should be free to negotiate in all aspects of their relationships. In the past, the Cato Institute has proposed that all health and safety regulations be forced to pass a cost-benefit analysis before full implementation.

In some instances, the Cato Institute has broken with traditional conservative policy while remaining true to its libertarian ideals. Most notably, the Cato Institute has opposed all federal drug restrictions, instead advocating for the decriminalization of all drug use. This includes the repeal of the Controlled Substances Act of 1970, the end of mandatory minimum sentences for drug crimes, and the full abolishment of the Drug Enforcement Agency (DEA). The Cato Institute has argued that drug policy should be an issue that is primarily handled at the state level, and the federal government’s drug prohibition has failed to stop the spread of dangerous narcotics and funneled money into criminal organizations.

The Cato Institute has also pushed to reduce the power of police organizations, publishing reports in favor of enacting left-wing civil rights policies. The organization has advocated for the end of qualified immunity for police officers, which would allow individual police officers to be held liable for mistakes and crimes committed while working. Additionally, the Cato Institute has argued that police officers often behave unethically during the interrogation process to coerce confessions and that such practices should be penalized.

Through the advancement of these policies, the Cato Institute has become one of the most influential and best-known think tanks in the United States. It is credited with making conservative financial policies a prominent part of American political debates and continuously publishing research in favor of libertarian policies. Additionally, the Cato Institute was closely tied with the administration of President George W. Bush and credited with the president’s push to partially privatize Social Security.

Bibliography

“About.” Cato Institute, www.cato.org/about. Accessed 12 Jan. 2025.

“Cato Institute.” C-SPAN, www.c-span.org/organization/?6247/Cato-Institute. Accessed 12 Jan. 2025.

“Cato Institute.” Influence Watch, www.influencewatch.org/non-profit/cato-institute. Accessed 12 Jan. 2025.

“CATO Institute.” Library of Congress, www.loc.gov/item/lcwaN0002384. Accessed 12 Jan. 2025.

McDuffee, Allen. “Koch Brothers, Cato Institute Announce Terms of Settlement.” The Washington Post, 25 June 2012, www.washingtonpost.com/blogs/think-tanked/post/koch-brothers-cato-institute-announce-terms-of-settlement/2012/06/25/gJQAQEJJ2V‗blog.html. Accessed 12 Jan. 2025.

“Mission, Vision, and Principles.” Cato Institute, www.cato.org/about/mission-vision-principles. Accessed 12 Jan. 2025.

Moyer, Jane. “The Kochs vs. Cato.” The New Yorker, 1 Mar. 2012, www.newyorker.com/news/news-desk/the-kochs-vs-cato. Accessed 12 Jan. 2025.