The American Enterprise Institute (AEI)—which had been renamed in 1962—remained a marginal operation with little practical influence in the national politics until the 1970s. Baroody recruited a resident research faculty; Harvard economist Haberler was the first to join in 1972. In 1977, former president Gerald Ford joined AEI as its "distinguished fellow." Ford brought several of his administration's officials with him, including Arthur Burns, Robert Bork, David Gergen, James C. Miller III, Laurence Silberman, and Antonin Scalia. Ford also founded the AEI World Forum, which he hosted until 2005. Other resident scholars hired around this time included Herbert Stein and Walter Berns. Baroody's son, William J. Baroody Jr., had been an official in the Ford White House and now also joined AEI, taking over the presidency from his father in 1978.
The elder Baroody made a concerted effort to recruit neoconservatives (Democrats and urban liberals who had supported the New Deal and Great Society but had become disaffected by what they perceived as the failure of the welfare state, as articulated in the pages of journals like The Public Interest, and Cold War hawks who rejected George McGovern's peace agenda). He brought Irving Kristol, Jeane Kirkpatrick, Michael Novak, and Ben Wattenberg to AEI. While at AEI, Kirkpatrick authored "Dictatorships and Double Standards"; it brought her to the attention of Ronald Reagan, and she was later named U.S. permanent representative to the United Nations. AEI also became a home for supply-side economists during the late 1970s and early 1980s. By 1980, AEI had grown from a budget of $1 million and a staff of ten to a budget of $8 million and a staff of 125.
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