# Strengthening the Foundations of Freedom June 20, 2023 • Study ![Constitution close-up](/sites/cato.org/files/styles/aside_3x/public/2023-05/constitution%20%281%29.jpg?itok=5yF605la) # Strengthening the Foundations of Freedom June 20, 2023 • Study “The worst thing that can happen to a good cause is, not to be skillfully attacked, but to be ineptly defended.” –Frédéric Bastiat *By staying true to our principles, the Cato Institute sets itself apart as a reasonable, trustworthy, and nonpartisan voice in the most pressing policy debates.* In 2022, Cato experts worked with federal and state policymakers across the ideological spectrum to offer policy recommendations that increase liberty for all Americans. #### New Talent: Raising Our Voice ![Portrait of Chad Davis.](/sites/cato.org/files/styles/aside_mobile/public/2023-05/Chad-Davis-Transparent-Frame.png?itok=FrAVs0FK) Prioritizing investments in our outreach to policymakers was a critical focus in 2022. Chad Davis joined Cato as vice president for government affairs to lead these efforts. Davis has previously served as a staffer for the U.S. Senate Banking Committee and the Federal Reserve Board, adviser to the director at the Federal Housing Finance Agency, and deputy to the chairman for external affairs at the FDIC. His broad range of experience will help Cato build on the success of our outreach team and its work educating policymakers on liberty-based solutions to the most pressing issues facing our society. ## Handbooks for Reform The Cato Institute does more than just critique policies we don’t like—we also offer ideas for expanding liberty that policymakers can immediately put into action. With the arrival of a new Congress in 2023, we were poised to offer our policy recommendations to more lawmakers than ever before. ![3D Render of the Cato Handbook for Policymakers](/sites/cato.org/files/styles/aside_mobile/public/2023-05/policymaker_handbook.jpg?itok=J2N8o7Hu) ##### Cato Handbook for Policymakers The ninth edition of the ***Cato Handbook for Policymakers*** sets the standard in Washington for reducing the power of the federal and state governments, offering policy recommendations in each of its 77 chapters and blueprints for promoting individual liberty, free markets, and peace. As noted in the *Washington Post,* *Cato’s Handbook* is a “soup-to-nuts agenda to reduce spending, kill programs, terminate whole agencies and dramatically restrict the power of the federal government.” “For newly elected Members of Congress dedicated to the cause of capitalism and freedom, there is simply no more important read than the Cato Handbook for Policymakers.” Jeb Hensarling Former Member of Congress and Chair of the House Financial Services Committee ![3D render of Empowering the New American Worker](/sites/cato.org/files/styles/aside_mobile/public/2023-05/empowering-new-american-worker.jpg?itok=d22-Wi9D) ##### Empowering the New American Worker For too many policymakers, government intervention in the economy has been the default “pro-worker” approach. In response, Scott Lincicome, director of general economics and the Herbert A. Stiefel Center for Trade Policy Studies, teamed up with 13 other Cato scholars to compile the comprehensive book ***Empowering the New American Worker: Market-Based Solutions for Today’s Workforce.*** The book details how current policies have hurt workers and outlines free-market reforms that would help Americans save money, earn higher wages, and access more opportunities. “Elected officials often proclaim themselves to be champions of labor. But the policies they propose, be they progressives advocating giveaways or national populists advocating trade restrictions, will do little to help average workers. You’ll find a better set of policies in a new Cato Institute book entitled Empowering the New American Worker.” John Hood President of the John William Pope Foundation, John Locke Foundation board member ![3D Render of the Sound Financial Policy Handbook](/sites/cato.org/files/styles/aside_mobile/public/2023-05/sound_financial_policy.jpg?itok=835UECmM) ##### Sound Financial Policy ***Sound Financial Policy: Principled Recommendations for the 118th Congress*** is the result of extensive work by the Center for Monetary and Financial Alternatives, written for policymakers who want to improve financial markets. This policy guide provides many practical solutions to reduce excessive government regulation and involvement in financial markets, with recommendations covering sound fiscal and monetary policy; protecting financial privacy; increasing competition and innovation in the financial sector; environmental, social, and governance (ESG) policy; and more. All three books have been distributed to every congressional office, and they will form the basis for extensive outreach led by Chad Davis, who plans to add more staff to his team to help increase adoption of libertarian policies in Congress and across the states. ## Formula for a Crisis The U.S. baby formula crisis was an intolerable, government-inflicted problem and a clear affirmation of everything we know to be true about markets and excessive regulations. Our experts helped ensure some relief for American families by educating policymakers and the public on how prolonged shortages were driven by protectionism and overregulation, and they paved the way for temporary tariff relief in the FORMULA Act. Vice president of Cato’s Herbert A. Stiefel Center for Trade Policy Studies Scott Lincicome, along with policy analyst Gabriella Beaumont‐​Smith, offered solutions that would bring families immediate relief while educating the public about the government policies that caused the crisis. Although the suspended tariffs returned in 2023, both Lincicome and Beaumont-Smith are continuing to make the case for permanent reforms—including the removal of tariffs, needless import regulations, and government monopolies of certain industries—to prevent future crises. ![Notice on an almost empty shelf at Target that Kendamil will start to arrive in a few weeks](/sites/cato.org/files/styles/aside_3x/public/2023-07/kendamil_notice%20%281%29.png?itok=dlVsOBxw) During the crisis, Scott Lincicome testified before the Senate Judiciary Committee on how government policies created the infant formula shortage. Tariffs, needless import regulations, and exclusive contracting practices led to market concentrations and product shortages while preventing quick market adjustment in response to economic shocks. “There shouldn’t be tariffs on baby formulas at all. We should be supporting a free market and free trade so that Americans have as many options for baby formula as they want.” Gabriella Beaumont-Smith Emily Ekins partnered with Scott Lincicome to author an op-ed in the *Wall Street Journal* about import restrictions of European baby formula during a national baby formula shortage. ![](../sites/cato.org/files/2023-05/dispatch_0.png) ![](../sites/cato.org/files/2023-05/wsj_seizing_1.png) ![](../sites/cato.org/files/2023-05/wsj_bottled.png) ![](../sites/cato.org/files/2023-05/times%20%281%29.png) Several days later, the Food and Drug Administration approved the British Kendamil formula brand to be sold with “enforcement discretion,” allowing it to be sold in the United States. ## Free Movement of Peaceful People Our current immigration system is confusingly complex, imposing senseless quotas that can leave many immigrants waiting in line for decades, or even a lifetime. Regardless of which party is in power, this complexity remains an issue that Cato seeks to improve with innovative ideas to reform the legal immigration system. Vice president of economics and social policy studies Alex Nowrasteh continues to be a highly respected voice on immigration policy. In 2022 his research was cited by MSNBC, the *Wall Street Journal*, and Boston Public Radio, among others, and he was interviewed or featured on panels by C‑SPAN, the American Enterprise Institute, and the Brookings Institution. In early 2021, associate director of immigration studies David J. Bier published a policy analysis on H‑2B visas and called on Congress and the Biden administration to reform the H‑2B program to make it easier to hire and retain guest workers. Shortly thereafter, the Department of Homeland Security (DHS) and the Department of Labor (DOL) increased the cap on H‑2B visas by 22,000 additional visas. In December 2022, the DHS and DOL again increased the previous cap, by an additional 64,716 visas for 2023. Cato research on immigration and crime was cited multiple times in a DHS rule to preserve the Deferred Action for Childhood Arrivals policy, preventing the removal of noncitizens who grew up in the United States with legal status as the children of skilled workers on visas. ## 30 Years of Critiquing State Fiscal Policy Every two years since 1992, the Cato Institute has released a new edition of its *Fiscal Policy Report Card on America’s Governors*, which uses statistical data to grade governors from A to F on their taxing and spending records. The report brings national attention to governors who are implementing sound fiscal policy and demonstrating that the Cato vision of limited government is both practical and popular when put into practice in their states, while also highlighting governors who caused economic damage through overtaxing and overspending. The 2022 report, written by Chris Edwards and former economics research associate Ilana Blumsack, includes data since 2020 and discusses the wave of more than 20 states that have cut income tax rates in that time. Iowa governor Kim Reynolds attained the highest score for keeping a tight clamp on state spending and signing into law major income tax reforms. | GRADE | TOOK OFFICE: LEGISLATURE: | |---|---| Five governors received an A grade in our Fiscal Policy Report Card on America’s Governors: Chris Sununu of New Hampshire, Pete Ricketts of Nebraska, Brad Little of Idaho, Doug Ducey of Arizona, and Kim Reynolds of Iowa. Eight governors received the lowest grade of F: Tim Walz of Minnesota, Tom Wolf of Pennsylvania, J. B. Pritzker of Illinois, Gretchen Whitmer of Michigan, Phil Murphy of New Jersey, Kate Brown of Oregon, Gavin Newsom of California, and Jay Inslee of Washington. The report’s evaluations have been proudly touted by governors that scored well, including Reynolds during the Iowa Press debate on PBS and former Arizona governor Doug Ducey on Fox Business Network’s program *Kudlow*. Dozens of journalists across the country have cited the 2022 report. ## Testimonies With the addition of new hires to our government outreach team and our continued invest- ment in raising our voice on the Hill, Cato’s experts will play an even larger role in offering liberty-based solutions to policymakers and their staffs on the most pressing issues facing our country. Sound Off “I’ve been looking at supply chains for the last 2+ years \[…\] and I haven’t seen an industry this fragile.” Scott Lincicome “We would be losing \[…\] the possibility to maintain American dominance \[…\]” Jennifer Schulp “Letting these supply-and-demand forces take hold without further subsidizing them is the **only way** to let them come back down.” Norbert Michel “What does that say, then, in the future? \[…\] ‘We should just expect if we take out debt, that it’ll be forgiven.’” Neal McCluskey ## Taking it to the States In 2022, Cato’s government affairs team met with more than 300 state legislators on issues ranging from health care and insurance to occupational licensing and land-use regulations. #### New Talent: Raising the States ![Portrait of Mark Joffe.](/sites/cato.org/files/styles/aside_mobile/public/2023-05/Mark-Joffe-Transparent-Frame_1.png?itok=r0GSFo1M) Cato’s influence in the states grows with every addition of new state policy experts. Marc Joffe, federalism and state policy analyst, joined the team after stints with Moody’s Analytics and the Reason Foundation. His writings on state policy issues appear frequently in local media and national publications such as the *Wall Street Journal, National Review,* the *Orange County Register, the Mercury News* (San Jose), *Carolina Journal*, and more. Senior fellow Dr. Jeffrey Singer—a practicing surgeon in Arizona—is leading efforts to encourage a federalist approach to health policy, allowing states to test out innovative solutions to reduce harm from opioids and increase access to mental health treatments. Singer is frequently invited to testify in state senate hearings and regularly engages with state policymakers on ways to prioritize harm reduction for drug users and to reduce barriers to treatment for patients. His research helped pave the way for psychologists to prescribe medications to mental health patients in Colorado and opened the door for similar reforms in Utah, Hawaii, Arizona, and Pennsylvania. Singer advised former Arizona senator Nancy Bart and her staff while they worked on issues related to the opioid crisis. In June, then governor of Arizona Doug Ducey signed a bill introduced by Senator Barto, requiring law enforcement to obtain a search warrant before accessing the state’s prescription drug monitoring program database. ## Congressional Fellowship Program In line with Cato’s mission to provide an influential voice for liberty in the nation’s capital, the Institute convened two series of seminars in 2022 as part of Cato’s Congressional Fellowship Program. More than 50 congressional staffers from both parties participated. The program was open to all Capitol Hill policy staff and consisted of weekly networking receptions and discussions with Cato experts. The summer programming focused on international relations and covered topics including trends in global freedom, U.S. foreign policy, and the benefits of free trade, with the goal of helping staffers understand an American foreign policy of peace, commerce, and honest friendship, as described in President Thomas Jefferson’s first inaugural address. In the fall, sessions covered the philosophical roots and practical applications of constitutional law from a libertarian perspective. Discussions focused on separation of powers, the role of the judiciary and recent developments at the Supreme Court, and the First Amendment and free speech, among other topics. ![Congressional Fellowship Dinner (Transparent)](/sites/cato.org/files/styles/aside_3x/public/2023-05/WEB-Transparent_Enhanced_2022-07-21-Cato-Institute-Congressional-Fellows-DC-RCD-46-denoise-enhance-faceai-copy_0.png?itok=eCHAwbdN) The value in the Congressional Fellowship Program is not only in the important policy and philosophy lessons imparted, but also in the “fellowship” between Republican and Democratic policymakers. Through these gatherings, congressional staffers forge relationships, both with Cato and with each other. In an increasingly polarized Washington, DC, few programs provide this sort of opportunity for cross‐​partisan and cross‐​ideological connections. “Great speakers, good topics, and informative discussions. I loved the diversity of the participants and will recommend Cato events to colleagues.” ![Image from the Congressional Fellowship Program.](/sites/cato.org/files/styles/pubs_2x/public/2023-05/WEB_2022-07-21-Cato%20Institute-Congressional%20Fellows-DC-RCD-48%20copy.jpg?itok=tBbkcTEZ) ![Image from the Congressional Fellowship Program.](/sites/cato.org/files/styles/pubs_2x/public/2023-05/WEB_2022-07-21-Cato%20Institute-Congressional%20Fellows-DC-RCD-182%20copy.jpg?itok=mRoyMc6f) ![Image from the Congressional Fellowship Program.](/sites/cato.org/files/styles/pubs_2x/public/2023-05/WEB_2022-07-21-Cato%20Institute-Congressional%20Fellows-DC-RCD-139%20copy.jpg?itok=hik6VP4H) ![Image from the Congressional Fellowship Program.](/sites/cato.org/files/styles/pubs_2x/public/2023-05/WEB_2022-07-21-Cato%20Institute-Congressional%20Fellows-DC-RCD-188%20copy.jpg?itok=Woy9pqu0) ![Image from the Congressional Fellowship Program.](/sites/cato.org/files/styles/pubs_2x/public/2023-05/WEB_2022-07-21-Cato%20Institute-Congressional%20Fellows-DC-RCD-313%20copy.jpg?itok=cfrZyBQw) ![Image from the Congressional Fellowship Program.](/sites/cato.org/files/styles/pubs_2x/public/2023-05/WEB_2022-07-21-Cato%20Institute-Congressional%20Fellows-DC-RCD-331%20copy.jpg?itok=DXMq0YuW) #### Previous Chapter [Preserving the American Dream](/study/preserving-american-dream) #### Next Chapter [Raising Liberty’s Voice](/study/raising-libertys-voice) #### Reading List October 26, 2022 ##### [Sound Financial Policy](/sound-financial-policy) By [Norbert J. Michel](https://www.cato.org/people/norbert-michel), [Jennifer J. Schulp](https://www.cato.org/people/jennifer-j-schulp), [George Selgin](https://www.cato.org/people/george-selgin), [Nicholas Anthony](https://www.cato.org/people/nicholas-anthony), & [Jack Solowey](https://www.cato.org/people/jack-solowey) December 15, 2022 ##### [Empowering the New American Worker](/empowering-new-american-worker) By [Scott Lincicome](https://www.cato.org/people/scott-lincicome), [Jeffrey Miron](https://www.cato.org/people/jeffrey-miron), [Ryan Bourne](https://www.cato.org/people/ryan-bourne), [Neal McCluskey](https://www.cato.org/people/neal-mccluskey), [Chris Edwards](https://www.cato.org/people/chris-edwards), [Michael D. Tanner](https://www.cato.org/people/michael-d-tanner), [Colin Grabow](https://www.cato.org/people/colin-grabow), [Vanessa Brown Calder](https://www.cato.org/people/vanessa-calder), [Norbert J. Michel](https://www.cato.org/people/norbert-michel), [Michael F. Cannon](https://www.cato.org/people/michael-f-cannon), [Jeffrey A. Singer](https://www.cato.org/people/jeffrey-singer), Pedro Aldighieri, [Gabriella Beaumont-Smith](https://www.cato.org/people/gabriella-beaumont-smith), Ilana Blumsack, & Brad Subramaniam December 16, 2022 ##### [Cops Practicing Medicine](/study/cops-practicing-medicine) By [Jeffrey A. Singer](https://www.cato.org/people/jeffrey-singer) and [Trevor Burrus](https://www.cato.org/people/trevor-burrus) October 12, 2022 ##### [Fiscal Policy Report Card on America’s Governors 2022](/white-paper/fiscal-policy-report-card-americas-governors-2022) By [Chris Edwards](https://www.cato.org/people/chris-edwards) and Ilana Blumsack [![Cato 2022 Handbook for Policymakers cover image](/sites/cato.org/files/styles/serial_cover_phone/public/2022-11/2022_handbook_cover_final.png?itok=9gFib5q4)](https://www.cato.org/books/cato-handbook-policymakers) ##### [Cato Handbook for Policymakers](/books/cato-handbook-policymakers) 9th Edition ![AR 22 - Render for Promo Block](/sites/cato.org/files/styles/promo_block_book_cover_1x/public/2023-08/ar-render-final.jpg?itok=eYs_hmBB) Download the Full Annual Report [Download PDF](https://www.cato.org/sites/cato.org/files/2024-04/2022-Cato-Annual-Report.pdf)