i believe i'm the first elected official to be invited to give the opening symposium address, so i am really honored and your bailout check is in the mail. i am honored to be on the platform with such distinguished conservative movers and shakers, governor daniels, mitch lowery, good friends, and it is an honor to be here with you today. i also want to recognize my personal friend, mike griefy. as a wisconsin-ite it is an honor to be here. i just want to note a great pop ed by arthur c. brooks saying that the great war is on capitalism. actually, the ideas of many friends in this room contributed to these remarks so you are all to blame. i am not going to spend my time picking over the ashes of the

recent elections. republicans lost. conservatives and republicans are not exact -- are not exact equivalence. this is not to say americans have become liberals. more hurdles in on a per norse ship and appliance division of risktakers with a wall of -- hurdles in of entrepreneurship and division of risktakers. president bush himself admitted that when the meltdown began, he departed from capitalism in order to save it. let's just leave it at that for now. americans establish world standing as a people of exceptional character. in the 1830's, [unintelligible]

america put heroism in a manner of doing commerce. the french observer said that americans succeeded because of their character, personal energy, energy in action, creative energy. the greatness of the united states, ready for and the kind of enterprise. consider the five sullivan brothers who volunteered to serve our country in the navy and died together on the juneau torpedoed in 1922 with the hundreds of first responders that saved strangers that they did not know and then died when the world trade center's fell on september 11 or the millions of young and all that have offered their sweat, time, and money to the victims of hurricane katrina about four years ago. during a labor union dinner, the

nobel laureate assessed the american character this way. the united states has held europe to win the first and second world wars, twice raised europe from postwar destruction for 10, 20, 30 years it has dole -- it has stood as a shield protecting europe. to avoid paying for armaments, thinking how to leave nato, knowing that in any case, america would protect them. the united states has long shown themselves as being the most generous country in the world. wherever there is a flood, an earthquake, a natural disaster, an epidemic, who is the first to help prove the united states. -- the first to help? the united states. what does it mean to be people of character? people that uphold changes of

standards in good and practice great or virtues from household, to the economy, to culture, and the political order. conservatism defends the standards and qualities which the fine people of character. the original source of these standards is the western tradition of this civilization, rooted in reason and faith stretching back thousands of years. the tradition as a whole confirms the high dignity, the rights of the individual person. one of the glories of western civilization was to break out of the mythological past which saw only groups and classes rank and organized by collective governments. before the western tradition began, the individual person as a subject of rights was simply unknown. nowhere was the western tradition epitomized more

memorably but in our declaration of independence. all of human beings are created equal. not in height or skills or knowledge or color or other non essentials, but equal in certain unalienable rights, to live, to be free, and to fulfill the best individual potential, including the right to materials. each individual is unique and possesses rights and dignities. there are no group or collective rights in the declaration. nor does basic human equality employ equal result. it means equal opportunity. every person has a right not to be prevented from pursuing happiness, from developing his or her potential. the results should differ from one another. that is what fairness is.

the great conservative purpose of government is to secure these natural rights under a popular consent. protecting every person's life, liberty, and pursuit of happiness should be the great and only mission of legitimate government. whenever republicans lose an election, a fraction of dispute arises about economic issues versus moral or social issues. they blame each other, each climbing the republicans would do better. i remember this fight in the 1990's. we all try to keep it altogether. since november 2008, this fight and this argument has been rejoined. why anyone would think that a minority party can grow into a majority by splitting itself in half is a political and mathematical mystery to me. after gerald ford lost the white house, ronald reagan refused to read either group out of the

republican party. he wanted 1980 by uniting both groups by a coalition that held into the presidency of george w. bush. ronald reagan fought with the mind of the founding fathers. the founders believed that to a door, freedom and self- government demanded people of all outstanding character. president washington said, "the foundations of our national policy will be laid in the principles of private morality. there is no truth more thoroughly established then that there exist in the economy in course of major in the union between virtue and happiness. the smiles of heaven can never be expected on a nation that disregards the rules of order which have been itself has ordained." vice president john adams replied, "if individuals be not

influenced by moral principles, it is in vain to look for public virtue. state constitutions in trying public laws as well." no free government or the blessings of liberty can be preserved by any people by a firm adherence to justice, moderation, temperance, frugality and virtue and by frequent reference to recurrence fundamental principles. the american character was not a private matter. it was a central problem to the common good and it had to be cared for by those that represented the people. how we should do this is the problem. capitalism is a crucial part of the answer. the year 7076 would not only the declaration of independence but it was also the year adam smith's treaty on the nation's came available. smith expand that what he

called the system of national liberty or capitalism would vastly increase national wealth. the framers of our constitution knew smith not only as an economic thinker but as a moral philosopher. they were justice-committed to freedom as there were two american moral greatness. hamilton road, "the prosperity of commerce received by all enlightened statesmen to be the most useful in the most productive source of national wealth and has accordingly become a primary object of their political careers." the authors of t constitution surrounded economic freedom with a multitude of guarantees. freedom of contract against government interference. private property rights. standard weights, measures, and monetary values. punishment of counterfeits. enforcement of agreements in law

court, uniform bankruptcy laws, and various other protections. they produced resources for strong military defenses and to keep america free of dependency on other nations. they also expected commercial like to encourage certain moral qualities. say, create businesses, hire employees, pay off debts, kern and rewards, moderate appetites, self discipline, industriousness, timeliness, plus trust and confidence in other persons. the hope to succeed, grow wealthier, and leave a better life for your children is a very powerful incentive to work for and a free and open economy is a stimulus for that incentive. to transform that hope into reality, the habits that help make success possible must be practiced and honored. a free market will fail if

people lack basic moral character. at some level, people notice. in the current financial crisis, we hear complaints about widespread greed, dishonesty, fraud, and cheating. whether the charges are true or not, they show americans see that peril in prosperity and equality. please don suppose that i or the founders advocate that the federal government should make men and moral. washington cannot do this even if it wanted to. the authentic source of moral education is mediating institutions of a free society. thriving mediating institutions that create the moral predispositions for economic markets and choice. a conservative should insist on a free-market economy to supply

needs for families, schools, and churches. in a nutshell, the notion of separating the social from economic issues is a false choice because they stem from the same route. since america's first principles established a high but limited mission of securing national rights of all persons, conservatives should expect government to fulfil that entire mission by enforcing every human beings natural right to life. the first clause of the social compact that formed america -- the declaration of independence. it will also to seek legal status of marriage. the traditional marriage should be protected for developing the moral qualities of a free people. it a credible conservatism will resist the purging of faith from the public square and make public space for the practice of faith because believe is a

central pillar of a free and prosperous society. nor can government welfare programs substitute for the faith-based law that unites citizens. a credible conservatism will also be attended to the education of future generations of across a spectrum of our nation's schools and higher institutions of learning. the success of self government requires citizens having knowledge of truth and the prosperity of our economy depends on the advances of unbiased research and college libraries and university labs. a credible conservatism will recognize that the very culture of capitalism today is under assault. we must fight the new capitalism not because it won't work but because it destroys the moral foundation of human achievement. our nation's interest and perhaps our survival is at risk. a credible conservatism will

offer a viable alternative to each of these economic issues. we just passed the federal budget, and that is what i specialize in. this new budget that the present road doubles the federal debt in five years and triples it in 10 years. congress added new layers of entitlement spending on top of the over $60 a trillion of all unfunded liabilities we have today, threatening the collapse of the level of taxes and get better coming due. the course of this liberal congress has been imprudent and irresponsible, of violating moral and economic norms. we can't sustain our commitments or keep stacking up liabilities and varying ourselves and our children in debt. we can't expect our bonds one day given that many other governments around the world following the same reckless course of our own congress. course of our own congress. i have offered

-- i have offered to the lift the debt of spending and control. i have also offered a road map for america's future. rather than depending on government for your retirement health security, i propose to and how or more people to be self dependent. right now at this moment, while we debate, the key priority of the left, which they hope to enact by this fall, is a government run health care option which quickly becomes a government run health care monopoly. the most americans really want to nationalize 17% of our economy? the american people need to see and take up this debate. serving our nation's medical needs is no different than serving any other public need. public need. free market can provide affordable and effective services of every kind and conservatives must have better ways to achieve health care reform. this of all things that is

happening this year is probably the most important that will affect the future of our country. colleagues and i introduced a comprehensive health-care bill. americans can have universal access to quality, affordable health care without the government taking it over and without adding trillions of new taxes and spending. our bill start with and revolves around the individual, not the government. it reforms health care by strengthening the relationship between the patient and doctor and relies on choice and competition. conservatives must also expand opportunities for international trade to ensure a level playing field for american products and workers. 97% of american consumers are outside of this country. we want to have a good climate so we can achieve global competition, so we can lead and shape this economy. you have to start with our tax

code. it is a job killer. i propose to replace the entire corporate income tax which is the second highest in the industrialized world with a consumption tax. it would take the tax off of exports, put an equal tax on imports, and businesses and firms would be able to write off 100% of their investment immediately. another issue is monetary policy. it is going to be more and more important as time goes on. it is the root cause of our current financial crisis and it is a key for the recovery and sustained growth. for most of our history, the dollar was accepted everywhere. its stability was guaranteed by the federal reserve could. the humphrey-hawkins act require

the government to follow a man did. so often, these goals conflict with one another matter how knowledgeable are well intentioned, the fed can't meet either gold very well. i am not one to blame chairman ben bernanke for this because congress is hutu plan to set up these conflicting targets 30 years ago. it is imperative we get off of this inflationary-deflationary roller coaster such as the one that we are living to right now. when it comes to managing the national currency, virtue has a central role. at the end of the day, the central bank cannot cheat or paper over problems. sooner or later, such decisions will catch up with us and the victims will be the people. long-term economic growth and rising living standards are the major purposes of government and they require a currency that holds predictable value. it is time conservatives broke

through the wall of silence and started a national dialogue aimed atnding the cycle of instability and restoring the dollar standard of value. the course of our current course of leaders in congress is entirely different. they have been in the first principles that made america a free nation and inspired our people with a character for greatness. their alternative to the unchanging rights of persons is a culture of change or relativism. their alternative to individual freedom is the european collective the state. they claim the label " progressive," but nothing is more un-progressive than government ownership of banks or the means of production such as auto companies. the 20th century's most conspicuous failure was socialism everywhere it was tried. relativism clams that there are no objective or self-evident truths. every leading being has its own

truth. your freedom is someone else is slavery. the european and lead have almost succumbed. the american elite are quickly catching up. can anything be more dispiriting? why would anyone defend freedom when it has more value than personal taste like preferring the color pink or limburger cheese? laws shape the habit of the human soul. the government on limited by natural rights expands to eliminate every risk, meet every need, and satisfy every pleasure. it ends up destroying happen is, the natural end of the human soul. relativism leads to solicit government. freedom rooted in natural rights leads to a government that

honors and respects true human dignity. in other words, the struggle between market freedom and a european social welfare state is a moral struggle. my friends in this room, our only real problem is getting the people to hear the facts and explaining the consequences. you and i must engage ourselves in the saving of western civilization. the principles of human individuality and greatness. it falls on the honor of the american people to make this decision for mankind. recover human freedom or sink into centuries of darkness only made worse by the pretensions of progress. if you think the views expressed are pessimistic, you would be mistaken. this is an exciting time to be an american. we have the occasion and the opportunity to reignite the opportunity of america. they have taken a hard left

turn. they have revealed their disdain of the principles that have built america. the founders built the house on a solid rock to withstand such storms. whenever americans have been confronted, they have chosen freedom, prosperity, and national greatness. give the people a fair opportunity to make an informed choice however stark. i am more than an optimist. i am confident they will prefer god's noblest gift to man, the gift of individual freedom. thank you very much and enjoyed your afternoon. [applause] >> all the way from humphrey- hawkins to philosophical relativism.

when the american enterprise institute concluded its search for a new president after the long and distinguished career of the previous, it turned to a gentle man that made a name for himself in phalanger feet -- in a philanthrop. he argued that conservatives tend to give more to charity than liberals. in his next volume, he maintained that conservatives were happier than liberals. as we continue our search this morning for conservatives that are not only generous and happy but also credible, it seems only appropriate that we turn as well to arthur brooks, who will serve as our moderator this morning and who will introduce our other speaker and our panelists. >> thank you to all of you.

i am very grateful to have an opportunity to be with you this morning. my gratitude to the bradley foundation and to the hudson institute for making this possible and to all of you for your attention and your thinking on this important issue with us here today. what i am going to try to do in the next two minutes is try to frame the question a little bit. what can we do to make conservative credible again? furthermore, i am going to see if we can redirect that from an offensive question -- not offensive, but on the offense. offensive to some. how can we make conservatism successful again and not just credible? the question during this period, that i get all the time, what is the future of american

conservatism? for a researcher like me, we would say that is an empirical question. let's look at the data about what they say. if you ask americans, do you believe free markets are the best way to organize our economy despite severe ops and downs? 70% still say yes, 20% say now. the remaining 10% don't understand the question. that is very encouraging. 70%. point in fact, the core of the conservative movement polls at 70% in virtually every question. something has clearly gone wrong. there are some conflicting data that show us how things have gone wrong. if you ask americans, what system do you prefer?

only 13% of people over 40 say socialism, but 33% of americans under 30 say socialism. maybe, they will just grow up and like you and me start paying taxes. but maybe not. because what we know from the environment in which congressman ryan is working right now, if the obama administration and the democratic congress have their way, one year from now, 49% of all working americans will have zero american tax liability, which is to say the democratic government is working flat out to make free enterprise no longer a mainstream pocketbook issue. that is a threat to the principles of the culture of free enterprise and it is a threat. the question therefore is not whether or not there are

threats. the question is, what are we going to do about it? when we ask what we are going to do, it suggests that the culture of free enterprise is something that is in our hands. in my view, there are two things that we need to do. the first action item is recognizing that we can not only make the economic case for free enterprise. we have to make the moral case for free enterprise. if an already rich country, we cannot convince americans that money is not just about the money, that prosperity is not about character, if we cannot make that case, we are lost. we have to be able to make the moral case and make it well and make it again. the second is that we need policies that are not just no, but rather, what can americans

grasp on to prove how are conservatives going to show themselves to americans as being the authenticates for the future and the case for reform in the ways that americans really care about? those are the questions at hand. successfully answering those questions will take the nature of a panel like this to going strictly on the offense and saying how will we be successful again? for that, we turn to a distinguished panel. we will start with gov. mitch daniels, former ceo of the hudson institute, former board member of the bradley association. he is becoming better and better known to main street americans about the kind of conservative reform that i am talking about today.

the editor of the new it atlantic journal will give us his views finally, rich lowery. obviously, they are going to have a lot to say. [applause] >> i noticed in the bulletin announcing this the event that i am described as not shy of telling my party what it needs to do. well, i am shy. i think we all need to be a little self-effacing about problems as large and complex as the ones we are gathered here to discuss. i have a lot of opportunities to mouth off about a credit given my affection of the two