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Rest in Peace, Ed Crane

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Remembering Ed Crane: A Champion for Freedom

The past six months have brought a profound sense of loss to those who champion ideas and policy in Washington, D.C. We’ve said goodbye to two giants who shaped conservative and libertarian thought in our nation’s capital. First, Ed Feulner, the visionary co-founder of the Heritage Foundation, left us. And just last week, we mourned the passing of another titan: Ed Crane, co-founder of the Cato Institute.

Ed Crane wasn’t just a co-founder; he was the architect who built Cato into a major force, becoming the definitive voice for libertarian ideas and policy in Washington. His legacy is one of unwavering commitment to individual liberty and free markets.

My Journey with Cato and the Fight for Social Security Reform

My personal involvement with Cato began in 1996, a pivotal time when I was invited to join the national advisory board for a groundbreaking project: transforming Social Security. Cato envisioned a world where Social Security was no longer a government tax-and-spend program, but rather a system of individually owned personal retirement accounts. It was a revolutionary idea, and one that resonates deeply even today.

A friend once shared with me the wisdom of futurist John Naisbitt: “Don’t get so far ahead of the parade that no one knows you’re in it.” This perfectly encapsulates Ed Crane’s genius. He possessed a rare skill – bringing truly revolutionary ideas for change to the forefront, but doing so with a keen sense of timing and strategy. He knew how to introduce these concepts in a way that kept them relevant to the policy discussions of the day, ensuring they weren’t dismissed as mere theoretical musings.

Back then, Social Security was already fractured, much as it remains today. Cato’s vital contribution to the conversation was not merely to propose minor fixes, but to shift the perspective entirely. They argued that the program wasn’t suffering from technical glitches, but was conceptually flawed at its core. Without a fundamental change in its underlying principles, it could never truly be fixed.

The Conceptual Flaw: Undermining American Principles

Social Security, as Cato powerfully articulated, violated the most fundamental of American principles: the freedom of every individual to take responsibility for their own life, and to retain control of their own property and the fruits of their own labor. It was the insidious beginning of Americans buying into the premise that government could somehow do a better job of taking care of them than they could do for themselves.

Signed into law by President Franklin D. Roosevelt in 1935, Social Security opened the door to the modern welfare state in America. It was, in essence, a foreign import from Europe – an idea without American pedigree. Its constitutionality was, indeed, challenged, but Roosevelt’s Supreme Court ultimately upheld it, affirming the idea that taxes could be levied on one group of citizens and those funds transferred to others. This was a seismic shift, and America was changed forever.

Consider the scale of this change: when Social Security became law, the federal government consumed approximately 10% of the national economy. Today, that figure approaches 25%. This colossal growth in government was, in large part, enabled by a dramatically altered understanding of the U.S. Constitution that found Social Security to be constitutional. With the birth of the American welfare state, the core principles of our nation’s founding – that the role of government is to secure our personal freedom – were marginalized.

The Cost of Lost Freedom: A Tale of Two Economies

For those deeply confused Americans who still believe they are better off under government control, consider this striking comparison: at the beginning of 1996, when Cato was embarking on its project to transform Social Security to ownership, the Dow Jones Industrial Average stood at just over 5,000. Today, it flirts with 50,000. That immense wealth, generated by the marketplace, was largely forgone by those forced to pay Social Security taxes rather than being empowered to invest long-term in America’s vibrant capital markets.

Ed Crane dedicated his life’s work to restoring America’s founding principles, principles that have been incrementally lost over decades. He would often playfully nudge me, telling me I wasn’t a true libertarian. And I’d always agree. I told him I believed in freedom every bit as much as he did, but I was a Christian. So, while I deeply believe in the sacredness of private property and ownership, I also believe in the sanctity of life and marriage between a man and a woman.

A Legacy That Endures

The recent loss of both Eds – Ed Feulner and Ed Crane – is a profound loss for the nation. More than ever, we desperately need a restoration of the fight for America’s founding principles, the very principles that defined both of these remarkable men, my friends.

Star Parker is founder of the Center for Urban Renewal and Education. Her recent book, “What Is the CURE for America?” is available now.

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