85-594: The Cato Institute is an American libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Ed Crane , Murray Rothbard , and Charles Koch , chairman of the board and chief executive officer of Koch Industries . Cato was established to focus on public advocacy , media exposure, and societal influence. Cato advocates for a limited governmental role in domestic and foreign affairs and strong protection of civil liberties , including support for lowering or abolishing most taxes, opposition to
170-551: A filibuster . On a second vote to confirm, the 30 dissents came from 11 Democrats, 18 Republicans and one independent. Bernanke was succeeded as chair of the Federal Reserve by Janet Yellen , the first woman to hold the position. Yellen was nominated on October 9, 2013, by President Obama and confirmed by the United States Senate on January 6, 2014. Bernanke has been subjected to criticism concerning
255-728: A budget of $ 23 million in 2012. In 2015, Cato's revenue exceeded $ 37 million, and the organization had 124 employees on staff. In 2024, its revenue was reported at more than $ 71 million. Various Cato Institute programs were favorably ranked in a survey on think tanks published by the University of Pennsylvania in 2012. The Cato Institute publishes policy studies, briefing papers, periodicals, and books. Journals and periodicals include Cato Journal (since 1981), Regulation magazine (acquired in 1990), Cato's Letter , Cato Supreme Court Review , Cato Policy Report , Cato published Inquiry Magazine from 1977 to 1982 (before transferring it to
340-484: A constitutional right to same-sex marriage. Cato does not formally oppose capital punishment ; however, they have frequently criticized the practice. Cato scholars have written about the issues of the environment, including global warming, environmental regulation, and energy policy. According to social scientists Riley Dunlap and Aaron McCright the Cato Institute is one of the "particularly crucial elements of
425-837: A four-year term as chairman (after having been nominated by President Bush in late 2005). By virtue of the chairmanship, he sat on the Financial Stability Oversight Board that oversees the Troubled Asset Relief Program . He also served as chairman of the Federal Open Market Committee, the System's principal monetary policy making body. His first months as chairman of the Federal Reserve System were marked by difficulties communicating with
510-533: A mild downturn, banks are likely to significantly cut back lending and other risky ventures. This further hurts the economy, creating a vicious cycle and potentially turning a mild recession into a major depression. Economist Brad DeLong , who had previously advocated his own theory for the Great Depression, notes that the 2007–2008 financial crisis raised the pertinence of Bernanke's theory. In 2002, following coverage of concerns about deflation in
595-563: A result, Cato advocates the United States should be an example of democracy and human rights, not their armed vindicator abroad, claiming it has a rich history, from George Washington to Cold War realists like George Kennan . Cato scholars aim to restore this view, with a principled and restrained foreign policy recommendation, to keep the nation out of most foreign conflicts and be cheaper, more ethical, and less destructive of civil liberties. Cato scholars have consistently called for
680-402: A second term. However, Bernanke was confirmed for a second term as chairman on January 28, 2010, by a 70–30 vote of the full Senate, the narrowest margin, at the time, for any occupant of the position. (For the roll-call vote, see Obama confirmations, 2010 .) The Senate first voted 77–23 to end debate, Bernanke winning more than the 60 approval votes needed to overcome the possibility of
765-556: A senior adviser. In the same month it was revealed that Bernanke would also join PIMCO as a senior advisor. In his 2015 book, The Courage to Act , Bernanke revealed that he was no longer a Republican, having "lost patience with Republicans' susceptibility to the know-nothing-ism of the far right. ... I view myself now as a moderate independent, and I think that's where I'll stay." Bernanke published in 2022 his latest book titled 21st Century Monetary Policy: The Federal Reserve from
850-420: A speech delivered on April 7, 2010, he warned that the U.S. must soon develop a "credible" plan to address the pending funding crisis faced by "entitlement programs such as Social Security and Medicare" or "in the longer run we will have neither financial stability nor healthy economic growth." Bernanke said that formulation of such a plan would help the economy in the near term, even if actual implementation of
935-532: A statement made by Milton Friedman about using a " helicopter drop " of money into the economy to fight deflation. Bernanke's critics have since referred to him as "Helicopter Ben" or to his "helicopter printing press." In a footnote to his speech, Bernanke noted that "people know that inflation erodes the real value of the government's debt and, therefore, that it is in the interest of the government to create some inflation." For example, while Greenspan publicly supported President Clinton's deficit reduction plan and
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#17327826982041020-530: A teenager, Bernanke worked construction on a hospital and waited tables at a restaurant at nearby South of the Border , which was a roadside attraction, amusement park, and fireworks retailer near his hometown in Hamer, South Carolina , before leaving for college. To support himself throughout college, he continued to work during the summers at South of the Border. As a teenager in the 1960s, Bernanke helped roll
1105-795: Is a temporary problem. This disconnect is dangerous." Upon the revelation of the Quince pseudonym during the Starr v. United States trial, The New York Times created a cocktail inspired by Mr. Bernanke's chosen alias: the "Rye & Quince." Bernanke has given several lectures at the London School of Economics on monetary theory and policy. He has written two textbooks: an intermediate-level macroeconomics textbook coauthored with Andrew Abel (and also Dean Croushore in later editions) and an introductory textbook, covering both microeconomics and macroeconomics, coauthored with Robert H. Frank . Bernanke
1190-516: Is against affirmative action . It has also called for total abolition of the welfare state , and has argued that it should be replaced with reduced business regulations to create more jobs, and argues that private charities are fully capable of replacing it. Cato has also opposed antitrust laws. Cato is an opponent of campaign finance reform , arguing that government is the ultimate form of potential corruption and that such laws undermine democracy by undermining competitive elections. Cato also supports
1275-425: Is opposed to expanding overtime regulations, arguing that it will benefit some employees in the short term, while costing jobs or lowering wages of others, and have no meaningful long-term impact. It opposes child labor prohibitions, opposes public sector unions , and supports right-to-work laws . It opposes universal health care , arguing that it is harmful to patients and an intrusion onto individual liberty. It
1360-478: The 2007–2008 financial crisis . The crisis in 2008 also made Ben Bernanke create a pseudonym, Edward Quince. According to the Wall Street Journal, the false name was evidence in a class-action lawsuit against the government by shareholders of AIG, which had been given a Fed-backed bailout when it was near collapse. One of Mr. Quince's emails reads, "We think they are days from failure. They think it
1445-410: The 2007–2008 financial crisis . According to The New York Times , Bernanke "has been attacked for failing to foresee the financial crisis, for bailing out Wall Street, and, most recently, for injecting an additional $ 600 billion into the banking system to give the slow recovery a boost." In a letter to Congress from then- New York State Attorney General Andrew Cuomo dated April 23, 2009, Bernanke
1530-509: The 2008 U.S. presidential election , Cato scholars criticized both major-party candidates, John McCain and Barack Obama . Cato has criticized President Obama's stances on policy issues such as fiscal stimulus , healthcare reform , foreign policy , and drug-related matters, while supporting his stance on the repeal of Don't Ask, Don't Tell and the DREAM Act . American libertarian Too Many Requests If you report this error to
1615-768: The Ayn Rand Institute (ARI) improved with the nomination of Cato's new president John A. Allison IV in 2012. He is a former ARI board member and is reported to be an "ardent devotee" of Rand who has promoted reading her books to colleges nationwide. In March 2015, Allison retired as president, remaining on the board; he was succeeded by Peter Goettler. The Cato Institute advocates policies that advance "individual liberty , limited government , free markets , and peace ". They are libertarian in their policy positions, typically advocating diminished government intervention in domestic, social, and economic policies and decreased military and political intervention worldwide. Cato
1700-522: The Bernanke doctrine . As a member of the board of governors of the Federal Reserve System on February 20, 2004, Bernanke gave a speech in which he postulated that we are in a new era called the Great Moderation , where modern macroeconomic policy has decreased the volatility of the business cycle to the point that it should no longer be a central issue in economics. In June 2005, Bernanke
1785-488: The Bush tax cuts , Bernanke, when questioned about taxation policy, said that it was none of his business, his exclusive remit being monetary policy, and said that fiscal policy and wider society related issues were what politicians were for and got elected for. But Bernanke has been identified by The Wall Street Journal and a close colleague as a "libertarian-Republican" in the mold of Alan Greenspan. In 2005 Bernanke coined
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#17327826982041870-742: The Daily Kos proposed the term " Libertarian Democrat " to describe his particular liberal position, suggesting that libertarians should be allies of the Democratic Party. Replying, Cato's vice president for research Brink Lindsey agreed that libertarians and liberals should view each other as natural ideological allies, and noted continuing differences between mainstream liberal views on economic policy and Cato's " Jeffersonian philosophy ". Some Cato scholars disagree with conservatives on neo-conservative foreign policy, albeit that this has not always been uniform. The relationship between Cato and
1955-538: The Department of Economics . He chaired that department from 1996 until September 2002, when he went on public service leave. He resigned his position at Princeton July 1, 2005. Bernanke served as a member of the Board of Governors of the Federal Reserve System from 2002 to 2005. In one of his first speeches as a governor, entitled "Deflation: Making Sure It Doesn't Happen Here", he outlined what has been referred to as
2040-669: The Federal Reserve system and the Affordable Care Act , the privatization of numerous government agencies and programs including Social Security and the United States Postal Service , demilitarization of the police, open borders and adhering to a non-interventionist foreign policy. According to the 2019 Global Go to Think Tank Index Report (revised June 2020, Think Tanks and Civil Societies Program , University of Pennsylvania ), Cato
2125-752: The Great Depression . Bernanke was born in Augusta, Georgia , and was raised on East Jefferson Street in Dillon, South Carolina . His father Philip was a pharmacist and part-time theater manager. His mother Edna was an elementary school teacher. Bernanke has two younger siblings. His brother, Seth, is a lawyer in Charlotte, North Carolina . His sister, Sharon, is a longtime administrator at Berklee College of Music in Boston. The Bernankes were one of
2210-930: The Libertarian Review Foundation ) Literature of Liberty (from 1978 to 1979 before transferring it to the Institute for Humane Studies , which ended its publication in 1982). Cato also co-publishes the annual Human Freedom Index with the Fraser Institute , and is the co-publisher with Fraser of the U.S. edition of the Economic Freedom of the World annual report. In addition to maintaining its own website in English and Spanish, Cato maintains websites focused on particular topics: The Cato Institute hosts conferences throughout
2295-576: The Torah scrolls in his local synagogue. Although he keeps his beliefs private, his friend Mark Gertler , chairman of New York University's economics department, says they are "embedded in who he (Bernanke) is." Once Bernanke was at Harvard for his freshman year, fellow Dillon native Kenneth Manning took him to Brookline for Rosh Hashanah services. Bernanke was educated at East Elementary, J.V. Martin Junior High, and Dillon High School , where he
2380-538: The federal funds rate below what it had done. For example, Larry Summers , later named Director of the White House's National Economic Council under President Obama, wrote in the Financial Times on November 26, 2007—in a column in which he argued that recession was likely—that "maintaining demand must be the over-arching macro-economic priority. That means the Federal Reserve System has to get ahead of
2465-488: The "national interest". Christopher Preble has said that the "scare campaign" to protect military spending from cuts under the Budget Control Act of 2011 has backfired. Cato's foreign and defense policies are guided by the view that the United States is relatively secure and so should engage the world, trade freely, and work with other countries on common concerns—but avoid trying to dominate it militarily. As
2550-524: The 14th chairman of the Federal Reserve from 2006 to 2014. After leaving the Federal Reserve, he was appointed a distinguished fellow at the Brookings Institution . During his tenure as chairman, Bernanke oversaw the Federal Reserve 's response to the 2007–2008 financial crisis , for which he was named the 2009 Time Person of the Year . Before becoming Federal Reserve chairman, Bernanke
2635-495: The AIG bailout". Republican Senator Jim Bunning of Kentucky said on CNBC that he had seen documents which show that Bernanke overruled recommendations from his staff in bailing out AIG. The columnist says this raises questions as to whether or not the decision to bail out AIG was necessary. Senators from both parties who support Bernanke say his actions averted worse problems and outweighed whatever responsibility this may have created for
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2720-563: The Cato Institute by the board. That same year, Cato relocated to Washington, D.C. , settling initially in a historic house on Capitol Hill . The institute moved to its current location on Massachusetts Avenue in 1993. In 2009, Cato Institute was ranked the fifth-ranked think tank in the world in a study of think tanks by James G. McGann, at the University of Pennsylvania , based on a criterion of excellence in "producing rigorous and relevant research, publications and programs in one or more substantive areas of research". The Cato Institute had
2805-443: The Federal Reserve. Bernanke focused less on the role of the Federal Reserve and more on the role of private banks and financial institutions. Bernanke found that the financial disruptions of 1930–33 reduced the efficiency of the credit allocation process; and that the resulting higher cost and reduced availability of credit acted to depress aggregate demand, identifying an effect he called the financial accelerator . When faced with
2890-548: The Federal Reserve. I would like to say to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again." Bernanke has cited Milton Friedman and Anna Schwartz in his decision to lower interest rates to zero. Anna Schwartz, however, was highly critical of Bernanke and wrote an opinion piece in The New York Times advising Obama against his reappointment as chairman of
2975-639: The Great Inflation to COVID-19, where he assesses the successes as well as failures of the Federal Reserve since its inception. The book received a positive review from the New York Times saying the "book is intended to help future generations of economic policymakers, and it probably will." Bernanke favors reducing the U.S. budget deficit , particularly by reforming the Social Security and Medicare entitlement programs . During
3060-803: The Kurds in the north and the Shiites in the south." But in 2002 Carpenter wrote, "the United States should not shrink from confronting al-Qaeda in its Pakistani lair," a position echoed in the institute's policy recommendations for the 108th Congress. Cato's director of foreign policy studies, Christopher Preble, argues in The Power Problem: How American Military Dominance Makes Us Less Safe, Less Prosperous, and Less Free , that America's position as an unrivaled superpower tempts policymakers to constantly overreach and to redefine ever more broadly
3145-399: The U.S. edition of the Economic Freedom of the World annual report (1996–). Cato argues that most Americans are immigrants or descended from immigrants who sought opportunity and freedom on American shores, and they believe that this continues today with immigrants continuing to become Americans, making the United States a wealthier, freer, and safer country. Cato's research indicates that
3230-600: The United States Constitution to prohibit same-sex marriage ; the amendment failed in both houses of Congress. A 2006 Cato report by Radley Balko strongly criticized U.S. drug policy and the perceived growing militarization of U.S. law enforcement. A 2006 study criticized the Digital Millennium Copyright Act . Cato supports same-sex marriage and filed an amicus brief in the case of Obergefell v. Hodges supporting
3315-448: The United States from Przemyśl , Poland , and arrived at Ellis Island , aged 30, on June 30, 1921, with his wife Pauline, aged 25. On the ship's manifest, Jonas's occupation is listed as "clerk" and Pauline's as "doctor med". The family moved to Dillon from New York in the 1940s. Bernanke's mother gave up her job as a schoolteacher when her son was born and worked at the family drugstore. Ben Bernanke also worked there sometimes. As
3400-493: The Wikimedia System Administrators, please include the details below. Request from 172.68.168.236 via cp1112 cp1112, Varnish XID 944560805 Upstream caches: cp1112 int Error: 429, Too Many Requests at Thu, 28 Nov 2024 08:31:38 GMT Ben Bernanke Ben Shalom Bernanke ( / b ər ˈ n æ ŋ k i / bər- NANG -kee ; born December 13, 1953) is an American economist who served as
3485-742: The abandonment of the Republican energy bill, arguing that it had become little more than a gravy train for Washington, D.C., lobbyists. Again in 2005, Cato scholar Jerry Taylor teamed up with Daniel Becker of the Sierra Club to attack the Republican Energy Bill as a give-away to corporate interests. In 2003, Cato filed an amicus brief in support of the Supreme Court's decision in Lawrence v. Texas , which struck down
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3570-474: The arguments offered to justify the 2003 invasion of Iraq. One of the war's earliest critics, Carpenter wrote in January 2002: "Ousting Saddam would make Washington responsible for Iraq's political future and entangle the United States in an endless nation-building mission beset by intractable problems." Carpenter also predicted: "Most notably there is the issue posed by two persistent regional secession movements:
3655-604: The board and the management [of Bank of America]." In further testimony, Bernanke said the Fed did nothing illegal or unethical in its efforts to convince Bank of America not to end the merger. Lewis told the panel that authorities expressed "strong views" but said he would not characterize their stance as improper. According to a January 26, 2010, column in The Huffington Post , a whistleblower has disclosed documents providing " 'troubling details' of Bernanke's role in
3740-526: The business news, Bernanke gave a speech about the topic. In that speech, he mentioned that the government in a fiat money system owns the physical means of creating money and to maintain market liquidity . Control of the money supply implies that the government can always avoid deflation by simply issuing more money. He said, "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost." He referred to
3825-533: The contemporary vibrancy of the ideas of freedom. According to Cato's mission statement, the Jeffersonian philosophy that animates Cato's work has increasingly come to be called 'libertarianism' or 'market liberalism.' It combines an appreciation for entrepreneurship, the market process, and lower taxes with strict respect for civil liberties and skepticism about the benefits of both the welfare state and foreign military adventurism. In 2006, Markos Moulitsas of
3910-562: The created money to buy financial assets from banks and from the government. On August 25, 2009, President Obama announced he would nominate Bernanke to a second term as chairman of the Federal Reserve. In a short statement on Martha's Vineyard, with Bernanke standing at his side, Obama said Bernanke's background, temperament, courage and creativity helped to prevent another Great Depression in 2008. When Senate Banking Committee hearings on his nomination began on December 3, 2009, several senators from both parties indicated they would not support
3995-402: The credit market and stagnation in investment spending. In addition to stressed credit markets, the failing gold standard also played a crucial role. After World War 1 most countries had their currencies tied to gold as well as fixed exchange rates, however, post-war animosity between many European nations led to non-cooperation regarding the gold standard. Consequently, the gold standard failed in
4080-529: The current US immigration system excludes the most peaceful and healthy immigrants, and urges policymakers to expand and deregulate legal immigration. Further, Cato supports open borders . Cato scholars were critical of George W. Bush 's Republican administration (2001–2009) on several issues, including education, and excessive government spending . On other issues, they supported Bush administration initiatives, most notably health care, Social Security , global warming , tax policy , and immigration . During
4165-565: The curve and recognize—as the market already has—that levels of the Federal Funds rate that were neutral when the financial system was working normally are quite contractionary today." David Leonhardt of The New York Times wrote, on January 30, 2008, that "Dr. Bernanke's forecasts have been too sunny over the last six months. [On] the other hand, his forecast was a lot better than Wall Street's in mid-2006. Back then, he resisted calls for further interest rate increases because he thought
4250-413: The denial machine", that rejects global warming . PolitiFact.com and Scientific American have called Cato's work on global warming "false" and based on " data selection ". A December 2003 Cato panel included Patrick Michaels , Robert Balling and John Christy . Michaels, Balling and Christy agreed that global warming is related at least some degree to human activity but that many scientists and
4335-482: The dominant monetarist theory of the Great Depression was Milton Friedman's view that it had been largely caused by the Federal Reserve 's having reduced the money supply and has on several occasions argued that one of the biggest mistakes made during the period was to raise interest rates too early. In a speech on Milton Friedman's ninetieth birthday (November 8, 2002), Bernanke said: "Let me end my talk by abusing slightly my status as an official representative of
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#17327826982044420-493: The economy might be weakening." In a speech at the American Economics Association conference in January 2014, Bernanke reflected on his tenure as chairman of the Federal Reserve. He expressed his hope that economic growth was building momentum and stated that he was confident that the central bank would be able to withdraw its support smoothly. In an October 2014 speech, Bernanke disclosed that he
4505-593: The few Jewish families in Dillon and attended Ohav Shalom, a local synagogue; Bernanke learned Hebrew as a child from his maternal grandfather, Harold Friedman, a professional hazzan (cantor), shochet , and Hebrew teacher. Bernanke's father and uncle owned and managed a drugstore they purchased from Bernanke's paternal grandfather, Jonas Bernanke. Jonas Bernanke was born in Boryslav , Austria-Hungary (today part of Ukraine ), on January 23, 1891. He immigrated to
4590-635: The former president's calls for larger ethanol subsidies. With regard to the "Takings Clause" of the United States Constitution and environmental protection, libertarians associated with Cato contended in 2003 that the Constitution is not adequate to guarantee the protection of private property rights. In 2019, Cato closed its "Center for the Study of Science", which E&E News characterized as "a program that for years sought to raise uncertainty about climate science" after its head Pat Michaels had left
4675-580: The future chief executive officer of Goldman Sachs , Lloyd Blankfein , and graduated Phi Beta Kappa with an A.B. degree, and later with an A.M. in economics summa cum laude in 1975. He received a Ph.D. degree in economics from the Massachusetts Institute of Technology in 1979 after completing and defending his dissertation, Long-Term Commitments, Dynamic Optimization, and the Business Cycle . Bernanke's thesis adviser
4760-400: The individual right to liberty. He argues that, as the term "liberalism" became increasingly associated with government intervention in the economy and social welfare programs, some classical liberals abandoned the old term and began to call themselves “ libertarians ”. Officially, Cato admits that the term “classical liberal” comes close to the mark of labeling its position, but fails to capture
4845-633: The influence of macroeconomic (monetary and fiscal) policy. Bernanke then served as chairman of President George W. Bush 's Council of Economic Advisers before President Bush nominated him to succeed Alan Greenspan as chairman of the United States Federal Reserve . His first term began on February 1, 2006. Bernanke was confirmed for a second term as chairman on January 28, 2010, after being renominated by President Barack Obama , who later referred to him as "the epitome of calm." His second term ended on January 31, 2014, when he
4930-417: The institute over disagreements, along with his collaborator Ryan Maue, a meteorologist. By that time, the Cato Institute was also no longer affiliated with its former distinguished fellow Richard Lindzen , another denier of the scientific consensus on climate change . Cato's scholars seek to advance policies and support institutions in developing and developed countries that protect human rights and extend
5015-536: The media have overstated the danger. The Cato Institute has also criticized political attempts to stop global warming as expensive and ineffective. Cato scholars have been critical of the Bush administration 's views on energy policy. In 2003, Cato scholars Jerry Taylor and Peter Van Doren said the Republican Energy Bill was "hundreds of pages of corporate welfare, symbolic gestures, empty promises, and pork-barrel projects". They also spoke out against
5100-546: The media. An advocate of more transparent Fed policy and clearer statements than Greenspan had made, he had to back away from his initial idea of stating clearer inflation goals as such statements tended to affect the stock market. Maria Bartiromo disclosed on CNBC comments from their private conversation at the White House Correspondents' Association Dinner . She reported that Bernanke said investors had misinterpreted his comments as indicating that he
5185-802: The merger by invoking the " Material Adverse Change " (MAC) clause, Paulson immediately called Lewis to a meeting in Washington. At the meeting, which allegedly took place on December 21, 2008, Paulson told Lewis that he and the board would be replaced if they invoked the MAC clause and additionally not to reveal the extent of the losses to shareholders. Paulson stated to Cuomo's office that he was directed by Bernanke to threaten Lewis in this manner. Congressional hearings into these allegations were conducted on June 25, 2009, with Bernanke testifying that he did not bully Lewis. Under intense questioning by members of Congress, Bernanke said, "I never said anything about firing
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#17327826982045270-977: The organization to lose nearly $ 1 million in funding), President Bill Clinton 's interventions in Haiti and Kosovo , President George W. Bush's 2003 invasion of Iraq , and President Barack Obama's 2011 military intervention in Libya . As a response to the September 11 attacks , Cato scholars supported the removal of al Qaeda and the Taliban regime from power , but are against an indefinite and open-ended military occupation of Afghanistan. Cato scholars criticized U.S. involvement in Saudi Arabian-led intervention in Yemen . Ted Galen Carpenter, Cato's vice president for defense and foreign policy studies, criticized many of
5355-701: The plan might have to wait until the economic outlook improves. His remarks were most likely intended for the federal government's executive and legislative branches, since entitlement reform is a fiscal exercise that will be accomplished by the Congress and the President rather than a monetary task falling within the implementation powers of the Federal Reserve. Bernanke also pointed out that deficit reduction will necessarily consist of either raising taxes, cutting entitlement payments and other government spending , or some combination of both. In 2022 Bernanke
5440-481: The practice of public officials funneling taxpayer money, usually via targeted budgetary spending, to politically connected corporate interests. Cato has published strong criticisms of the 1998 settlement which many U.S. states signed with the tobacco industry . Cato president Ed Crane and Sierra Club executive director Carl Pope co-wrote a 2002 op-ed piece in The Washington Post calling for
5525-527: The privatization of many government services and institutions, including NASA , Social Security , the United States Postal Service , the Transportation Security Administration , public schooling , public transportation systems, and public broadcasting . The institute opposes minimum wage laws, saying that they violate the freedom of contract and thus private property rights, and increase unemployment. The institute
5610-588: The purpose of employment in the U.S. In 2004, the institute published a paper arguing in favor of "drug reimportation". In 2006, the Cato Institute published a study proposing a Balanced Budget Veto Amendment to the United States Constitution . In 2006, Cato published a Policy Analysis criticising the Federal Marriage Amendment as unnecessary, anti-federalist, and anti-democratic. The amendment would have changed
5695-405: The range of personal choices. In particular, Cato's research explores the central role that freedom in its various dimensions—economic, civil, and personal—plays in human progress and in solving some of the world's most pressing problems, including global poverty. To this end Cato co-publishes the annual Human Freedom Index (2015–) with the Fraser Institute and is the co-publisher with Fraser of
5780-627: The remaining state laws that made private, non-commercial homosexual relations between consenting adults illegal. Cato cited the 14th Amendment , among other things, as the source of their support for the ruling. The amicus brief was cited in Justice Kennedy's majority opinion for the Court. In 2004, Cato scholar Daniel Griswold wrote in support of President George W. Bush's failed proposal to grant temporary work visas to otherwise undocumented laborers which would have granted limited residency for
5865-466: The repeal of Don't Ask Don't Tell and laws restricting consensual sexual activity. The Cato Institute officially resists being labeled as part of the conservative movement because "'conservative' smacks of an unwillingness to change, of a desire to preserve the status quo". Cato has strong ties to the political philosophy of classical liberalism . According to executive vice president David Boaz , libertarians are classical liberals who strongly emphasize
5950-499: The repeal of the Federal Election Campaign Act . Cato is a fierce foe of the war on drugs , arguing that consenting adults have the right to put any substance they wish to in their bodies and that drug prohibition drives mass incarceration while fueling violent competition between gangs and failing to prevent drug abuse. Cato has published numerous studies criticizing what it calls " corporate welfare ",
6035-488: The term saving glut , the idea that relatively high level of worldwide savings was holding down interest rates and financing the current account deficits of the United States. (Alternative reasons include relatively low worldwide investment coupled with low U.S. savings.) As the recession began in 2007, many economists urged Bernanke (and the rest of the Federal Open Market Committee ) to lower
6120-666: The year. Topics include monetary policy, the U.S. Constitution, poverty and social welfare, technology and privacy, financial regulation, and civic culture. Speakers at past Cato Institute conferences have included Federal Reserve Chairmen Alan Greenspan and Ben Bernanke , Federal Reserve Vice Chairman Richard Clarida , International Monetary Fund Managing Director Rodrigo de Rato , Czech Republic President Václav Klaus , and Avanti Financial Group Founder and CEO Caitlin Long. Many Cato scholars have advocated support for civil liberties, liberal immigration policies, drug liberalization, and
6205-569: Was "dovish" on inflation. He was sharply criticized for making public statements about Fed direction, which he said was a "lapse in judgment." As the Great Recession deepened, Bernanke oversaw some unorthodox measures. Under his guidance, the Fed lowered its funds interest rate from 5.25% to 0.0% within less than a year. When this was considered insufficient to abate the liquidity crisis , the Fed initiated quantitative easing , creating $ 1.3 trillion from November 2008 to June 2010 and using
6290-467: Was a member of the Board of Governors of the Federal Reserve System , proposed the Bernanke doctrine , and first discussed " the Great Moderation "—the theory that traditional business cycles have declined in volatility in recent decades through structural changes that have occurred in the international economy, particularly increases in the economic stability of developing nations, diminishing
6375-520: Was a tenured professor at Princeton University and chaired the Department of Economics there from 1996 to September 2002, when he went on public service leave. Bernanke was awarded the 2022 Nobel Memorial Prize in Economic Sciences , jointly with Douglas Diamond and Philip H. Dybvig , "for research on banks and financial crises", more specifically for his analysis of the Great Depression . From August 5, 2002, until June 21, 2005, he
6460-680: Was awarded the Nobel Memorial Prize in Economic Sciences along with Philip H. Dybvig and Douglas Diamond . Their research suggested that the Great Depression was caused by a variety of factors including credit market stress and a failing gold standard. With a rising External Finance Premium lenders and borrowers were both inclined to protect their financial health due to stressed credit markets. Lenders began tightening credit standards and avoiding risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders and borrowers resulted in further stress on
6545-930: Was cited by columnist Ezra Klein as nonpartisan, saying that it is "the foremost advocate for small-government principles in American life" and it "advocates those principles when Democrats are in power, and when Republicans are in power"; and Eric Lichtblau called Cato "one of the country's most widely cited research organizations." Nina Eastman reported in 1995 that "on any given day, House Majority Whip Tom DeLay of Texas might be visiting for lunch. Or Cato staffers might be plotting strategy with House Majority Leader Dick Armey , another Texan, and his staff." Cato's non-interventionist foreign policy views, and strong support for civil liberties, have frequently led Cato scholars to criticize those in power, both Republican and Democratic. Cato scholars opposed President George H. W. Bush 's 1991 Gulf War operations (a position which caused
6630-518: Was class valedictorian and played saxophone in the marching band . Since Dillon High School did not offer calculus at the time, Bernanke taught it to himself. Bernanke scored 1590 out of 1600 on the SAT and was a National Merit Scholar . He also was a contestant in the 1965 National Spelling Bee . Bernanke entered Harvard College in 1971, where he lived in Winthrop House , as did
6715-402: Was mentioned along with former Treasury Secretary Henry Paulson in allegations of fraud concerning the acquisition of Merrill Lynch by Bank of America . The letter alleged that the extent of the losses at Merrill Lynch was not disclosed to Bank of America by Bernanke and Paulson. When Ken Lewis , the chief executive officer of Bank of America, informed Paulson that Bank of America was exiting
6800-482: Was named chairman of President George W. Bush's Council of Economic Advisers and resigned as Fed governor. The appointment was largely viewed as a test run to ascertain if Bernanke could be Bush's pick to succeed Greenspan as Fed chairman the next year. He held the post until January 2006. On February 1, 2006, Bernanke began a fourteen-year term as a member of the Federal Reserve Board of Governors and
6885-466: Was number 20 in the "Top Think Tanks Worldwide" and number 13 in the "Top Think Tanks in the United States". The institute was founded in January 1977 in San Francisco , California; named at the suggestion of cofounder Rothbard after Cato's Letters , a series of British essays penned in the early 18th century by John Trenchard and Thomas Gordon . In 1981, Murray Rothbard was removed from
6970-433: Was succeeded by Janet Yellen on February 3, 2014. Bernanke wrote about his time as chairman of the Federal Reserve in his 2015 book, The Courage to Act , in which he revealed that the world's economy came close to collapse in 2007 and 2008. Bernanke asserts that it was only the novel efforts of the Fed (cooperating with other US agencies and agencies of other governments) that prevented an economic catastrophe greater than
7055-697: Was the Director of the Monetary Economics Program of the National Bureau of Economic Research and the editor of the American Economic Review . He is among the 50 most published economists in the world according to IDEAS/RePEc . Bernanke is particularly interested in the economic and political causes of the Great Depression , on which he has published numerous academic journal articles. Before Bernanke's work,
7140-545: Was the future governor of the Bank of Israel , Stanley Fischer , and his readers included Irwin S. Bernstein, Rüdiger Dornbusch , Robert Solow , and Peter Diamond of MIT and Dale Jorgenson of Harvard. Bernanke taught at the Stanford Graduate School of Business from 1979 until 1985, was a visiting professor at New York University and went on to become a tenured professor at Princeton University in
7225-599: Was unsuccessful in efforts to refinance his home. He suggested that lenders "may have gone a little bit too far on mortgage credit conditions". Since February 2014, Bernanke has been employed as a Distinguished Fellow in Residence with the Economic Studies Program at the Brookings Institution . On April 16, 2015, it was announced publicly that Bernanke will work with Citadel , the $ 25 billion hedge fund founded by billionaire Kenneth C. Griffin , as
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