Globalisation:Cato Institute

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History

The Cato institute is a ‘public policy research organization - think tank’ which was founded in 1977 by Edward H. Crane (President and founder) and Charles Koch (Executive Vice President of Koch Industries) [1] [2]. The name Cato Institute was based on the early 18th-century British essays written by John Trenchard and Thomas Gordon under the alias of Cato, where the series of essays were in support of freedom of speech and political liberty These very principles such as: ‘Individual liberty, limited government, free markets and peace’ form the basis of the Cato Institute’s values today [3].

Ideology, Mission and Aims

‘The mission of the Cato Institute is to increase the understanding of public policies based on the principles of limited government, free markets and individual liberty’ [4]. The research conducted in order to achieve these fundamental principles - described as being ‘nonpartisan and independent’- are conducted by many respected scholars and analyst whose work has been published in mainstream media such as: ‘The Wall Street Journal and the Washington post [5] [6] [7]. In terms of Aims, the Cato institute are in pursuit of more lenient approach towards policy regarding environmental issues.

People

Directors

    • Edward H. Crane, President, Cato Institute
    • David H. Koch, Executive Vice President, Koch Industries, Inc
    • Robert A. Levy, Chairman, Cato Institute
    • John C. Malone, Chairman, Liberty Media Corporation
    • William A. Niskanen, Chairman Emeritus and Distinguished Senior Economist, Cato Institute
    • K. Tucker Andersen, Senior Consultant, Cumberland Associates LLC
    • Ethelmae C. Humphreys, Chairman, Tamko Roofing Products, Inc
    • Jeffrey S. Yass, Managing Director, Susquehanna International Group, LLP
    • Frank Bond, Chairman, The Foundation Group;
    • David H. Padden, President, Padden & Company
    • Lewis E. Randall, Board Member, E*Trade Financial
    • Donald G. Smith, President, Donald Smith & Co., Inc.
    • Fred Young, Former Owner, Young Radiator Company
    • Richard J. Dennis, President, Dennis Trading Group
    • Howard S. Rich, Chairman, Americans for Limited Government
  • [8]


The Cato institute is lead by a board of directors, including some key players such as: Founder and President of Cato institute Edward H.Crane; Robert A. Levy (Chairman of the board, Cato Institute); John C. Malone, Chairman Liberty Media Corporation; and David H. Koch (Executive Vice President of Koch Industries).

David Koch - Oil Industry

David Koch once told the National Journal: "My overall concept is to minimize the role of government and to maximize the role of private economy and to maximize personal freedoms." [9].

From this quotation,David Koch’s beliefs are in line with the Cato Institute, where he is in support of lower corporate as well as personal taxation through privatisation of social security, and deregulation of industries by the government - especially regarding environmental policy. It has also been stated by the Research Centre for Public Integrity that between 1986-1993 the Koch family gave $11 million to the Cato Institute. Koch industries operate three oil refineries based in Alaska, Texas and Minnesota with revenues estimated to be around $100 billion [10]. Interestingly, the Political Economy Research Institute drew up a list of 100 toxic air polluters in March 2010: based on their data Koch Industries was ranked 10th [11]. In another case, Koch Industries was sued by the government in 1995 and 1997 over a reported 300 oil spills at pipelines which were owned and operated by the company. The lawsuits included stringent penalties - from $71 million to $214 million- placed on the company for dumping an estimated three million gallons of oil into lakes and streams in six states [12]. The implication of the past events regarding Koch Industries and David Koch’s close affiliation with the Cato Institute may be lined with personal interests on David Koch’s behalf rather than the common interest of accomplishing individual liberty, free markets and peace.

John C. Malone and Rupert Murdoch - Media Industry

Interestingly, in Autumn of 1997 Rupert Murdoch, President and CEO of News Corporation joined the Cato Institute Board of Directors, where he was described by president of the Institute Edward H Crane as “one of the most successful entrepreneurs in the world, a strong advocate of the free market and a committed civil libertarian” [13] . To loosely sum up Murdoch’s perspective on how business should be conducted Murdoch stated: "I start from a simple principle: in every area of economic activity in which competition is attainable, it is much to be preferred to monopoly." The relationship between Murdoch and fellow board member John C Malone (then president and CEO of Tele-Communications Inc, the largest U.S. Cable operator) had been fostered over the years as both media titans had engaged in many profitable media dealings regarding satellite television, cable TV and program distribution. It was also reported that both Murdoch and Malone helped to run think tanks like the Cato Institute to “actively promote the deregulation of the television and telephone industries" [14] . Some of the main issues that Cato advocated were the privatization of the Internet and communications systems [15]. An example of the libertarian perspective taken was highlighted in 1997, when the Federal Communications Commission’s (FCC) regulation was that TV Stations must air at least 3 hours of educational and informational programmes per week. The Cato Institute’s response to this rule was that it extended “government control over the content of broadcasting and endangered the First Amendment.” REF: Communications Daily February 26, 1997, Wednesday.

One contrary aspect of Cato’s interest in the deregulation of Media networks in America is that Murdoch’s News Corporation profit from federal giveaways where they are able to hold licences worth millions of Dollars [16] . Similarly, Cable TV corporations such as TCI (Fronted by Malone) are able to expand their services, and in turn their profits, under the protection of federal regulations which limits the power of license fees to be set at a local level [17] . What can be taken away from these findings is that both Murdoch and Malone rely on financial and legislative support from the federal government in order to achieve the aim of media monopolisation upon which Murdoch bases his principles within business.

It can therefore be concluded that the creation of the Cato Institute as a think tank and the heavy funding contributed by major corporations is no real coincidence. Consequently, the reports which are produced by the Institute are frequently quoted and accepted within various News Corporation owned Media - such as the Wall Street Journal, the New York Post and Fox News - as being the real expert opinion of the day. [18].

Views on climate change and environmental policy

There is a wide range of policy areas where extensive research has been conducted by various scholars, such as: Education; Finance; Foreign Policy; Health; Tax, Trade and Immigration [19]. However, the controversial research produced by Cato’s scholars on the topic of Climate Change and Environmental Policy in particular is one of interest within the topic of today’s globalised world.


The Cato Institute has numerous scholars and research projects working on finding out more about climate change. Several articles from Cato scholars have been published on the topic of climate change and global warming, including Patrick J. Michaels, who has written numerous articles outlining in particular why global warming is not as big an issue as the government and global warming scientists assert that it is. In his article “The Global Warming Myth”, published in 2008, Michaels summarised several reasons why global warming is a “myth”. He challenges Al Gore and his supporters who say that the “science is settled” on global warming, saying that 1998 was the warmest year in modern record, and that there has been no additional global warming. Michaels bases his opinion on evidence from the work of Noah Keenlyside and his team from the Leipzig Institute of Marine Science. According to their paper, the Earth’s oceans have a natural variability which will “temporarily offset” global warming from carbon dioxide. The Earth’s surface is 70% oceanic, therefore significantly influences global temperature. “Both Atlantic and Pacific temperatures can get “stuck” for a decade or longer, in relatively warm or cool patterns.” The North Atlantic is predicted to be stuck in a cold stage for a decade, and Pacific temperature is predicted to not be warm enough – supposedly curbing global warming. Michaels also criticised legislative efforts to control climate change, stating, “Science no longer provides justification for any rush to pass drastic global warming legislation”. He described the Climate Security Act, which aimed to cut emissions of carbon dioxide by 66% over the next 42 years, sponsored by Joe Lieberman and John Warner as “impossible to achieve”, and he called the Interior Department’s intent on naming the polar bear an endangered species as a “political stunt” because they were, according to Michaels, near record-high population levels. Michaels also refers to the numerous computer-driven projections for 21st century warming, and how none of them show that Earth’s natural climate variability will shut down global warming from carbon dioxide for two decades (which is what has happened). Michaels basically points out that there is a possibility of an overestimation of the amount of global warming going on. [20].

Cato have also published a Handbook for Policy Makers, and section 45 outlines Global Warming and Climate Change. This section of the handbook provides more evidence in how global warming is less of a problem than suspected and then outlines suggestions for congress, including not passing laws restricting the emission of carbon dioxide and report to the public about how such legislative measures would not be beneficial. It states that the technologies needed to succeed in the legislations would not be sufficient, and that there is enough time to develop them, requiring investments. [21]. An example outlined is from 2005 when Congress allowed the accelerated production of ethanol, which, according to critics, would increase carbon dioxide emissions, rather than reduce them, particularly in corn-based ethanol, as well as increase the price of corn, soybeans, rice and wheat. Uses the United Nations’ Intergovernmental Panel on Climate Change records of planetary surface temperature.

Two graphs: (not sure how to put them in but can figure that out later!) 45.1 – this graph shows two different periods of warming, one from about 1910 to 1945 and another from around 1975 and ends in 1998. Statistically, the rates of warming for the two periods are indistinguishable, the warming in the early period is likely to be caused by solar activity, whereas the latter was likely to be caused by human activity as well as natural changes. [22].

The handbook reinforces what Patrick J Michaels said about the history of climate change, and how a large amount of the public are not aware that in the last 11 years there has been no net change in the average surface temperature – refer to the graph 45.2 (include this too???)

The handbook also mentions the event of the El Niño warming in 1998, which was the hottest year in the IPCC’s records of the earth’s temperature history of nearly 150 years. The relative temperature was cooled in 1999 and 2000, which is typical after a strong El Niño warming. [23].

As Michaels also covered, the only means of predicting climate change that scientists and policymakers have are computer models of how the increase of carbon dioxide in the atmosphere could affect the earth’s temperature. (also includes a graph, figure 45.3 of the individual climate models run by the United Nations’ IPCC). According to these computer models, there is no scientifically credible model showing future warming, as there has been a lack of warming since 1998, and there are predictions for little or no warming until the middle of the next decade. [24].

Funding And Support

On the website CATO puts across a very proud acceptance of funding from essentially anything bar the government. One can give to the CATO institute and become not just a supporter but "you become a part of Cato". This would mean that CATO is free to be a non partisan think tank which is entirely independent. Although this is given to be the case on the website it is not necessarily how it is perceived by others elsewhere.

An important case is one of Doug Bandow who was a senior scholar at CATO and who was found to be taking money from Jack Abramoff for writing articles which would favour him. Jack Abramoff was a lobbyist for a top lawyer and lobbying firm in America and is currently in prison for committing fraud against 4 American tribes for millions of dollars. This incident which can be further probed is just one example of discrepancies within a company with such ‘pride’ in independence [25] .

David Koch Foundation

The Cato Institute can be described as being "Libertarian"...In A Corporate Way [26]. In terms of funding, the Cato institute does not receive any government funding.. Data shows that the largest proportion of funding for the 2010 fiscal year came from individual contributions (77%), the next largest contribution came from foundations (14%).

Pie Chart

.

The Institute did receive funding from 2004 - 2006 by the David Koch Charitable Foundation [27] [28] [29]. In US law, charitable foundations such as the David Koch Foundation must perform entirely nonpartisan acts that endorse public welfare. However, a 2004 report by watchdog group National Committee for Responsive Philanthropy described the Kochs’ foundations as being self-serving: These foundations give money to organizations that research and promote anti-environmental regulations issues which potentially profit Koch Industries [30].

This is evident where in the past, the Koch brothers (David and Charles ) have funded organisations and lobby groups of environmental sceptics such as: The Independent Women’s Forum, which opposes the presentation of global warming as a scientific fact in American public schools and The Heritage Foundation [31]. In 2008, a similar incident occurred which highlights this biases in action: oil company ExxonMobil gave $50,000 to The Heritage Foundation to publish ‘inaccurate and misleading’ information about climate change. However, the foundation to this day still maintains that: "Growing scientific evidence casts doubt on whether global warming constitutes a threat” [32].

From the evidence provided, the Cato institute in essence, can be described as ‘a creature of corporations and foundations’ [33]. The criticisms and emerging pattern which can be found when referring to the Cato Institute is that their historic roots are libertarian in origin, yet this is not enough to make a stark differentiation from those of academic or government researchers. In addition to this: “No mention is made of the corporate money that is lavished on them–or the corporate agenda, which is, at heart, their raison d’être’” [34]. This quotation solidifies the argument over the Cato Institute’s impartiality when publishing work which goes against the grain of what mainstream and widely accepted research is saying. Cato claims that they are a non-partisan organisation, however it is evident that the amount of funding received from its benefactors alongside the beliefs of those who support the institute form the basis of their professional opinions as an institute [35] .


Patrick Micheals <nb - this could be a sub here)


Global warming is an issue which causes many debates between groups especially in America, at the fore front of these is the CATO institute which becomes less and less surprising when attention is brought to the main players within the institute. David. E. Koch in particular who is Vice President of Koch industries a large oil company in America. It is here questions are raised as to why the institute give such a focus on global warming and how this can affect the results which are found and displayed by them. In most if not all interviews with Patrick Michaels, a senior fellow in the CATO institute for environmental studies, will be seen to look at global warming as a very minor issue which is over blown by government. This is a man who is the most quoted academic sceptic in the U.S and is largely well known and highly regarded. When we look deeper into Michaels past corruption and deception becomes more apparent. In 2006 Michaels was found to be receiving hundreds of thousands of dollars of donations from Intermountain Rural Electric Association of Sedalia a power company dealing with thousands of customers in the Denver area[36]. At this time a Colorado utility company also organised a donation of one hundred and fifty thousand dollars. Reasons given by the IREA’s general manager was that "we cannot allow the discussion to be monopolized by the alarmists,” The alarmists it would appear to be are those who are showing concern of the increasing temperature of the world and the affect it is having all over, like the melting ice caps and instinction of animals to name but two. This is also the same man who is less interested in affects on global warming and more keeping happy customers by keeping rates low[37] This is just one example which will become one of many on this page but the effect of these financial deals from a falsely proclaimed non partisan group can have a damning affect on the greater picture and a countries opinion and attitude towards global warming.Patrick Michaels has the ability to reach a massive percentage of the population. Thus meaning that his ideas, especially when portrayed as non partisan findings, give an impression that this is dependable information to the masses. As shown however there is far more to the Cato institute and to Patrick Michaels than a strive for truth.

Suggestions for sub-pages

Just suggestions - feel free to change/add to this - although it is recommended that you create several main pages linked to from this main project page so group members can edit simultaneously.

Globalisation:Cato Institute: Ideology and aims

Globalisation:Cato Institute: Activities

Globalisation:Cato Institute: Funding and support

Globalisation:Cato Institute: Views on climate change and environmental policy

Contacts

website: http://www.cato.org/


Melvina Robbin Lauren Rodier Laura Robertson

Notes

  1. ↑ Cato Institute: Edward H. Crane Bibliography, "[1]", access 12.10.10
  2. ↑ Cato: About us, "[2]", access 12.10.10
  3. ↑ Cato: About Us, "[3]", access 12.10.10
  4. ↑ Cato Institute: About Us-Mission, "[4]", access 12.10.10
  5. ↑ Cato Institute: About Us, "[5]", access 12.10.10
  6. ↑ Cato: Edward H. Crane Bibliography, "[6]", access 12.10.10
  7. ↑ Cato Institute: David Boaz Bibliography, "[7]", access 12.10.10
  8. ↑ Cato Institute: Board of Directors, "[8]", access 12.10.10
  9. ↑ National Committee for Responsive Philanthropy: GEORGIA-PACIFIC DEAL: THE BUYER Koch knows its way around Washington, "[9]", access 17.10.10
  10. ↑ Cato, "[10]", access 12.10.10
  11. ↑ Cato, "[11]”, access 14.10.10
  12. ↑ Cato, "[12]", access 15.10.10
  13. ↑ Cato Rupert Murdoch, "[13]", access 1.11.10
  14. ↑ Cato, "[14]", access 1.11.10
  15. ↑ Cato, "[15]", access 1.11.10
  16. ↑ Cato, "[16]", access 1.11.10
  17. ↑ Cato Government Beneficiaries, "[17]", access 1.11.10
  18. ↑ Cato Koch and Murdoch, "[18]", access 1.11.10
  19. ↑ Cato, "[19]", access 12.10.10
  20. ↑ Cato, "[20]", access 12.10.10
  21. ↑ Cato, "[21]", access 12.10.10
  22. ↑ Cato, "[22]", access 12.10.10
  23. ↑ Cato, "[23]", access 12.10.10
  24. ↑ Cato, "[24]", access 12.10.10
  25. ↑ Cato,"[25]", access 13.10.10
  26. ↑ The Cato Institute: "Libertarian" In A Corporate Way, "[26]", access 1.11.10
  27. ↑ Cato, "[27]", access 15.10.10
  28. ↑ Cato, "[28]", access 15.10.10
  29. ↑ Cato, "[29]", access 15.10.10
  30. ↑ Cato, "[30]", access 15.10.10
  31. ↑ Cato, "[31]", access 12.10.10
  32. ↑ Cato, "[32]", access 12.10.10
  33. ↑ Cato, "[33]", access 19.10.10
  34. ↑ Cato, "[34]", access 19.10.10
  35. ↑ Cato, "[35]", access 19.10.10
  36. ↑ Seth Borenstein, ‘Utilities Paying Global Warming Skeptic’ Washington Dateline, July 27, 2006 Thurs 6:39 PM GMT, accessed 19.10.10
  37. ↑ Seth Borenstein, ‘Utilities Paying Global Warming Skeptic’ Washington Dateline, July 27, 2006 Thurs 6:39 PM GMT, accessed 19.10.10
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