BOARD OF DIRECTORS

NCPA CHAIRMANThe Honorable Pete du PontFormer Governor of Delaware

NCPA POLICY CHAIRMANMr. Michael L. WhalenPresidentHeart of America Restaurants & Inns

NCPA PRESIDENTDr. John C. GoodmanPresident and CEOKellye Wright Fellow

Mr. W. Mike Baggett, Esq.Chairman EmeritusWinstead PC

Mr. Don BuchholzChairman of the BoardSWS Group, Inc.

Mr. Harlan CrowCEOCrow Holdings

Gen. Tommy R. FranksU.S. Army – Ret.

Mr. William J. GedwedVice ChairmanHealthMarkets®

Mr. John V. Lattimore, Jr.PresidentLattimore Properties, Inc.

Mr. Fred MeyerInvestments

Mr. Henry J. “Bud” SmithBud Smith Organization

Mr. Jere W. ThompsonPresidentThe Williamsburg Corporation

Mr. Raymond E. WooldridgeChairmanReeves Bancshares, Inc.

Mr. Robert J. WrightChairmanTWG, Inc.

2008 Third Quarter Report

Dear Friends:

In late September, the NCPA celebrated a very special milestone: our 25th anniversary. We started the celebration with a conference co-sponsored with the Atlas Foundation. The theme: “Risk in a Free Society,” an extremely timely topic given the current state of the economy. The pinnacle of the celebration was our 25th anniversary gala, where our long-time supporters were recognized, Gen. Tommy Franks was our keynote speaker, and President George Bush provided a video welcome. For those who were unable to attend, here is an excerpt from the President’s comments:

...“The National Center for Policy Analysis was founded to advance a clear philosophy. You believe in free enterprise, market-based solutions and limited government … over the past quarter century, this philosophy has helped transform NCPA from a small institute in Dallas into one of our nation’s mostinfluentialthinkthanks.Manyofyourideashavegonefromthepages ofpositionpaperstothehallsofCongress.Myadministrationhasworked with you … to cut taxes … to create Health Savings Accounts and give families more control over their health care decisions. Together we’ve called on Congress to confront the unsustainable growth of entitlement programs, like Social Security … As we celebrate this anniversary, we thank the men and women of the NCPA for your many contributions and insights. You have lived up to your motto by making ideas change the world. And thanks to your ideas, America is a more hopeful place. Laura and I congratulate you on 25 years of brilliant scholarship....”

President George W. Bush

Wealsocontinuedtomakeamazingstridesthroughourmanyotherhigh-profileactivities. For example:

Student Debate and Leadership Program: This summer, we expanded our commitment to educating tomorrow’s leaders by co-sponsoring iDebate: Developing Leaders with General Tommy Franks with the General Tommy Franks Leadership Institute and the Academy of Leadership & Liberty at Oklahoma Christian University. ThefirstannualiDebatecampwasattendedby48ofthebrightesthighschoolstudentsfrom across the nation. Former Cabinet Secretary Jack Kemp, Governor Bill Richardson andJudgeAndrewNapolitanoofFoxNewsjoinedGeneralFranksandmeforthisfive-

BOARD OF DIRECTORS

NCPA CHAIRMANThe Honorable Pete du PontFormer Governor of Delaware

NCPA POLICY CHAIRMANMr. Michael L. WhalenPresidentHeart of America Restaurants & Inns

NCPA PRESIDENTDr. John C. GoodmanPresident and CEOKellye Wright Fellow

Mr. W. Mike Baggett, Esq.Chairman EmeritusWinstead PC

Mr. Don BuchholzChairman of the BoardSWS Group, Inc.

Mr. Harlan CrowCEOCrow Holdings

Gen. Tommy R. FranksU.S. Army – Ret.

Mr. William J. GedwedVice ChairmanHealthMarkets®

Mr. John V. Lattimore, Jr.PresidentLattimore Properties, Inc.

Mr. Fred MeyerInvestments

Mr. Henry J. “Bud” SmithBud Smith Organization

Mr. Jere W. ThompsonPresidentThe Williamsburg Corporation

Mr. Raymond E. WooldridgeChairmanReeves Bancshares, Inc.

Mr. Robert J. WrightChairmanTWG, Inc.

day leadership development program. The students debated and discussed the same timely issues the presidential candidates are debating, including health care, Social Securityreformandtheflattax.

McTeer Response to the Economy in Turmoil: As the U.S. economy rode the roller-coasterofonecrisisafteranother,NCPADistinguishedFellowBobMcTeerwasrepeatedly called on for analysis by CNBC, Bloomberg TV, and Fox Business News as well as National Public Radio, Bloomberg Radio and several other radio stations. In fact, on one occasion Bob was interviewed by all three business television networks on the same day. At the request of the New York Times, he is now doing a regular blog posting for them each Wednesday at economix.blogs.nytimes.com. This is in addition to his NCPA blog which may be accessed from the NCPA’s home page. Forbes.com has also recently solicited several commentaries from Bob.

Innumerousspeechesandarticlesandinguest-hostspotsonCNBC,McTeerhasurgedthe government to suspend or alter mark-to-market accounting rules that are making the banking crises worse by forcing banks to write down illiquid (but recoverable) assets to practically zero and impair their capital by an equal amount. We believe Bob’s one-man campaign was at least partially responsible for the inclusion of the SEC authority to do that in the bail-out bill.

Retirement Reform: The number of people borrowing from their retirement accounts is increasing, a situation that does bode well for retirement savings. To help address this timelyissue,theNCPAhasdevelopeda401(k)BorrowingCalculator,locatedonourhome page at www.ncpa.org. The calculator helps Americans determine how much a 401(k)loanwillcostintermsoflostsavingsandinvestmentopportunities,illustratingthattheyarebetteroffinthelongruntoleavetheirmoneyintheir401(k)account.

Heath Care Debate: With the election only a month away, I believe my health care blogistheonlysitewhereviewerscanlearnhowtheMcCainandObamahealthcareplansactuallywork.Thesiteisvisitedbymorethan1,000visitorsperday.InJuly,Ialso debated Len Nicols of the New America Foundation on the best way to improve cost,qualityandaccesstohealthcareataCapitolHillbriefingsponsoredbyRep.Paul Ryan (R-WI). NCPA Senior Fellow Devon Herrick continued his extensive work onstateMedicaidreform.InSeptember,hewasinvitedtospeakataninternationalconference on “Corporate Health Care Systems, Problems and Solutions” in San Paolo, Brazil, where he discussed consumer-driven health care as an emerging solution to health policy problems.

BOARD OF DIRECTORS

NCPA CHAIRMANThe Honorable Pete du PontFormer Governor of Delaware

NCPA POLICY CHAIRMANMr. Michael L. WhalenPresidentHeart of America Restaurants & Inns

NCPA PRESIDENTDr. John C. GoodmanPresident and CEOKellye Wright Fellow

Mr. W. Mike Baggett, Esq.Chairman EmeritusWinstead PC

Mr. Don BuchholzChairman of the BoardSWS Group, Inc.

Mr. Harlan CrowCEOCrow Holdings

Gen. Tommy R. FranksU.S. Army – Ret.

Mr. William J. GedwedVice ChairmanHealthMarkets®

Mr. John V. Lattimore, Jr.PresidentLattimore Properties, Inc.

Mr. Fred MeyerInvestments

Mr. Henry J. “Bud” SmithBud Smith Organization

Mr. Jere W. ThompsonPresidentThe Williamsburg Corporation

Mr. Raymond E. WooldridgeChairmanReeves Bancshares, Inc.

Mr. Robert J. WrightChairmanTWG, Inc.

Neese takes Family Policy Center issues to Capitol Hill: NCPA Distinguished Fellow Terry Neese continues to bring the plight of families and small businesses totheattentionofpolicymakers.InSeptember,wehostedaCapitolHillbriefingwhereTerrytalkedaboutpersonalandportableemployeebenefits,amoreflexibleworkplace and a fairer tax system. Congressional staffers and a select group of women who are serving as the Advisory Council for the newly formed Family Policy Centerattendedthebriefing.TerryalsoappearedonFoxNewswhereshesaidthatpolicy debates in this election season need to focus on the struggles of families and small businesses.

Publications: In, A Framework for Medicare Reform, I show that if we act now and movequicklytosaveandinvesttofundpost-retirementhealthcarebenefits,wecanreachmid-centurywithaMedicaretaxburdennogreaterthantheburdenthatexiststoday. Gerald Scullly’s timely study Optimal Taxation, Economic Growth and Income Inequality in the United States found that excess government spending on income redistribution hinders economic growth, and that reducing this spending to allow the economy to grow would do much more than welfare programs to help the poor. Laurence Kotlikoff’s study on the pros and cons of the Roth IRA found that the Roth 401(k)canprovidethesameorhigherstandardoflivingasaregular401(k)andcanprotect households against future tax increases.

The enclosed report will give you a more detailed overview of the NCPA’s recent activities. Over the past 25 years, our important work has been made possible through the support of people like yourself. Thank you from all of us at the NCPA for your continued support.

Warm Regards,

John C. Goodman President

National Center For Policy Analysis

July–September, 2008

http://www.ncpa.org/abo/quarterly/

Quarterly ReportThird Quarter, 2008

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ACTIVITIESThird QuarTer highlighTs, 2008

NCPA 25th Anniversary: September 25-26

The NCPA celebrated 25 years of victory •and progress through leadership at a very special gala dinner on September 26, 2008 at the Fairmont Hotel in Dallas, Texas. Retired General Tommy Franks, former Commander-in-Chief of Central Command of the United States Armed Forces, was our keynote speaker. Additionally, the NCPA recognized those who have supported us through the years.

Prior to the NCPA gala dinner on September 26, the Atlas Economic Research Foundation held its International Conference in Dallas on September 24-26. Special keynote and expert speakers from all over the world discussed “Risk in a Free Society.”

In addition, several special activities took place, including a golf tournament at the prestigious TPC Craig Ranch Golf Course and an evening of Texas-style entertainment, food and fun at the world famous Eddie Deen’s Ranch in Dallas.

General Franks Guides Best and Brightest at iDebate Leadership Camp

Forty-eight of the brightest high •school students from across the nation attendedthefirstannualiDebatecamp— “Developing Leaders with General TommyFranks,”afive-dayleadershipdevelopment retreat — at Oklahoma Christian University in Edmond, Oklahoma. The General Tommy Franks Leadership Institute, the NCPA and the Academy of Leadership & Liberty at Oklahoma Christian University sponsored the camp. Students debated and discussed issues such as whether toadoptaflattaxandhowtoreformhealth care and Social Security.

General Tommy Franks at iDebate with Marianne and NCPA Board Member Victor Lattimore, along with NCPA Coordinator Lani Cohan.

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NCPA President John Goodman

AtaCapitolHillbriefing,“RoadmapforAmerica’s•Future,” on July 9, NCPA president John Goodman and Len Nichols of the New America Foundation debated health care reform. Goodman argued for reforms that would allow free market economic forces to improve quality, lower costs and increase access. Nichols argued for a bi-partisan approach, requiring compromise from Republicans and Democrats, including individual insurance mandates, guaranteed issue and universal coverage. ThebriefingwassponsoredbyRep.PaulRyan(R-WI), lead Republican on the House Budget Committee.

NCPA Distinguished Fellow Bob McTeer

Current economic conditions, residual •fallout from the housing crisis and a wary and nervous stock market were the topics of a spate of recent cable TV network interviews by NCPA Distinguished Fellow Bob McTeer. Several networks called upon Dr. McTeer for in-depth analysis, including CNBC, Bloomberg Information Television and Fox Business News.

McTeer’s prognosis for the U.S. economy is guarded but optimistic, especially taking into account how the dollar has strengthened since Federal Reserve Board Chairman Ben Bernanke addressed the Senate Banking Committee about the U.S. currency.

In addition, McTeer noted that the latest U.S. jobs report showed more stable productivity growth.

In the July 5 edition of The Wall Street Journal and later on CNBC, McTeer argued against government intervention in Fannie Mae and Freddie Mac. “If they are nationalized and the government runs them for two or three years, interest rates probably will be lower then than they are now and the public is going to love it. It’s going to become an entitlement and they will never be reprivatized. And I think it would be very dangerous for the government to go down that road.”

Rep.MichaelBurgess(R-TX)sponsoreda“MembersOnly”briefingonJuly31topresentananalysis of the health care plans of both presidential nominees, Sen. John McCain and Sen. Barack Obama.ThebriefingfeaturedGoodman,whoexplainedthedetailsanddifferencesofthetwoplans.

Networks Call on McTeer To Analyze Economic Climate, Fed’s Response

Goodman Debates Health Care Reform on Capitol Hill

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Neese Discusses Family Policies on “America’s Newsroom;” Holds D.C. Briefing

Burnett to CNN’s Glenn Beck: Why Do Environmentalists Oppose CO2 Scrubber?

• NCPA Senior Fellow H. Sterling Burnett told CNN’s Glenn Beck that a carbon dioxide (CO2) “scrubber” that removes one ton of CO2 from the air every day will work, but environmentalists oppose using scrubbers to reduce greenhouse gas emissions. “Environmentalists reject the carbon scrubber because they are not interested in solving a problem,” Burnett said. “It’s not about money, it’s about controlling other people’s lifestyles, especially those who are poorer and need access to affordable energy.”

Thescrubber,developedatColumbiaUniversity,isanefficientandeconomicalwaytoremovemore than one ton of carbon emissions from the atmosphere every day, according to Burnett.

NCPA Distinguished Fellow Terry •Neese told Fox News that public policy debate during this fall’s election season must focus on more flexibleworkplacesforAmericanfamilies and small business owners.

“Americanfamiliesdemand21stcenturylaborforcepoliciesfor21stcentury workplaces,” Neese said. “We need to scuttle outdated 20th century institutions and statutes thatnolongerreflectthestatureofwomen in the labor force and don’t adequately provide for their families in today’s economy.”

Neese,wholeadstheNCPA’sFamilyPolicyCenter,heldaCapitolHillbriefingonSeptember10 thatfocusedonhowtoprovidepersonalandportablebenefits,amoreflexibleworkplace,afairerU.S. tax system and new ways to help small businesses provide health care to their employees.

NCPA Senior Fellow H. Sterling Burnett

NCPA Distinguished Fellow Terry Neese

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Goodman Discusses Health Care Reform and Tax and Labor Proposals in D.C.

Goodman met with Jeff Schlagenhauf, the Republican staff director for the Congressional Joint •Economic Committee (JEC). The JEC is tasked with reporting the current economic condition of the United States and for making suggestions for improvement to the economy. Schlagenhauf said he believes the issues surrounding two-earner couples and families represent “the ultimate wedge issue” in Congress. He said the JEC is examining these issues closely and hopes to continue working with the NCPA as they develop policy solutions.

Goodman also met with Rep. Joe Barton (R-TX and Ranking •Republican on the House Energy & Commerce Committee) and Rep. Nathan Deal (R-GA and Ranking Republican ontheHealthSubcommittee)onSeptember17todiscusshealth care reform policy ideas that are currently under consideration. When he left, Rep. Barton said to Goodman, “Not many people can say they’ve moved the nation over the past10-15years,butyoucan.”

Insider’s Policy Briefing

• NCPA Advisory Board Member Douglas Newby recently hostedanNCPAInsider’sPolicyBriefinginhonorofSara Sue Potts. NCPA President John C. Goodman and Distnguished Fellow Bob McTeer provided an analysis of current policy events. Dr. Goodman focused on health care and Social Security reform, and Dr. McTeer broke down the housing and stock market crises, offering a guarded but brighter prognosis for the future of the U.S. economy.

Goodman, Mackey Debate the Costs of Single-Payer Insurance at FreedomFest

•FreedomFest 2008 boasted several debates about freedom, including a spirited discussion about “Single Payer Health Insurance: Yes or No?” NCPA President John C. Goodman and John Mackey, founder and CEO of Whole Foods Market took the negative while Michael Perelman, professor of economics at California State University at Chico and David Himmelstein, associate professorofmedicineatHarvardMedicalSchool,tooktheaffirmative.WholeFoodsMarketwasoneofthefirstcorporationstoadopthealthsavingsaccountsandDr.Goodmaniswidelyrecognized as the “Father of Health Savings Accounts.” Himmelstein is cofounder of Physicians for a National Health Program and Perelman is author of several texts questioning the stability and value of free markets. “Single-payer national health insurance would resolve virtually all of the major problems facing America’s health care system today,” Himmelstein argued. But Goodman pointed out that almost every European country with a national health care system has introduced market-oriented reforms to reduce costs and increase availability of health care.

John GoodmanPresident

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Mostofthewrite-downsofsecuritiescreatingcapitalshortagesinfinancialinstitutionsdon’t•result from actual losses, or even expected losses, says NCPA distinguished fellow Bob McTeer, in the July 5 issue of the Wall Street Journal.

NCPA senior fellow H. Sterling Burnett appeared on the “Investment Tracker• ”showJune10withGeorgeGamble(KCEO1000AM,SanDiego),discussingtheneedtorampupdomesticenergy production.

NCPAdistinguishedfellowTerryNeeseappearedonCNN’s“Issue#1”onJuly15todiscuss•important issues facing women, families, and small businesses.

McTeer was part of a panel discussion on CNBC’s “Power Lunch• ”July15todiscussFedPresident Ben Bernanke’s testimony to the Senate Banking Committee.

McTeerappearedonBloombergTVJuly16todiscussmajorfinancialdevelopments.•

Burnett weighed in on the ongoing CO• 2 emissions issue on “The Glenn Beck Program” on July 24.

BurnetttoldtheHeartlandInstituteonJuly21,“WhilethedefeatoftheLieberman-Warnerbill•was not unexpected, the margin of defeat was larger than expected.”

Fossil fuels — coal and natural gas — are still the cheapest forms of energy available, said •Burnett in an article in Medill Reports(Washington)onJuly23.

Burnett told the Heartland Institute on July 22 that the fact that environmentalists oppose the •

NCPA Chairman Pete du Pont

In his latest commentary for OpinionJournal.com, •The Wall Street Journal’s online editorial page, NCPA chairman Pete du Pont said that there is enough recoverable oil and gas on America’s outer continental shelf to replace our imported oil for some 25 years, and no doubt reduce the price of oil and gas.

NCPA senior fellow Devon Herrick told • OneNewsNow on July 5 that America’s health care system is unsustainable and the Obama health proposal would do nothing to take us off the path we are on.

NCPA president John Goodman, who believes that a •number of problems have surfaced with the current forms of consumer-driven plans, was quoted in the

IN THE NEWSThird QuarTer highlighTs, 2008

August 4 issue of Dallas Business Journal, “Ideally, people should be able to combine a health savings account with any plan, regardless of any deductible or co-payments.”

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new CO2 scrubber technology is just one more piece of evidence that environmentalists aren’t concerned about solving a problem.

The idea that insurance companies should have to insure everyone, even those with existing •health problems, is unrealistic, stated Herrick in a response to Dental Plans News on July 24.

Why is Congress so unpopular? Because it is often intent upon doing things that will make •life in America much worse, said NCPA Chairman Pete du Pont, in his July commentary for OpinionJournal.com, The Wall Street Journal’s online editorial page.

“Other states should follow Florida’s lead and allow insurers to sell innovative policies •consumersactuallywant,”saidHerricktoeMaxHealth.comonJuly27.

Herrick told “Off the Kufs” Blog on July 26 that the •Massachusetts mandatory health coverage program is “overregulated and largely unworkable.”

In a July 25 • Health Care News article, Herrick stated, in response to the growing list of organizations now offering consumers information on hospitals and healthcareefficiency,thattherearewidevariationsintreatment across regions. Herrick added, “I suspect the average person equates more care with better care.”

On July 24, NCPA Policy Analyst Pamela Villarreal •told WRVA Radio in Richmond, Virginia, that the federal minimum wage hurts the employment opportunities of teenagers and lower-skilled workers and does little to lift families out of poverty.

McTeer, substituting for James Whiddon, co-hosted •“Investing Revolution” on WBAP (Fort Worth), along with Lance Alston. They discussed a broad range of economic issues.

Neese appeared on the Fox News Channel’s “American Newsroom” program on July 28, •discussing families and NCPA’s Five Family Friendly Policies.

Only5percentofthe114millionAmericanscoveredatworkareoptingforHealthSavings•Accounts.“Tobesuccessful,anHSAmusthaveemployersupport,”saidGoodmanintheJuly31issue of the Dallas Morning News.

According to Villarreal in the August 4 issue of • Los Angeles Times, even a small loan from a 401(k)cancauseabiglossinretirementsecurity.

NCPASeniorFellowThomasR.SavingspokeonJuly31attheTexasPublicPolicyFoundation•Policy Primer Series, celebrating the Friedman Legacy for Freedom in partnership with the Friedman Foundation for Educational Choice.

Bob McTeerDistinguished Fellow

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Burnett told • eNews Park ForestAugust7thattheloftygoalsandpromisesofthe“green”schoolprogram are not being met.

In another response to the “green” school program, Burnett told • ClimateWire on August 6 that you can’t put energy above student education performance and still expect student performance to be there.

IntheAugust16issueof• The Dallas Morning News, Goodman stated that the tax credits included in McCain’s proposed health plan were intentionally set lower than the amount typically spent on employer-provided health plans in order to encourage individuals as well as employers to shop for less expensive policies.

Burnett told • Environmental ProtectionmagazineonAugust11thattheU.S.HouseofRepresentative’s “green school” program’s lofty goals and promises are not being met.

InaneMaxHealth.comarticleonAugust13,HerrickstatedthatMassachusetts’scurrent•government-based health plan is “destined to fail, because it has no cost control whatsoever.”

NCPA Senior Fellow Andrew J. Rettenmaier’s latest study, • Medicare Spending Across the Map, wasmentionedintheAugust10issueofThe Eagle(Bryan/CollegeStation)andintheAugust11issue of the East Bay Business Times.

In the August 25 issue of • The New York Sun, Goodman stated that the U.S. Census Bureau’s data on poverty, income, and the number of uninsured are “inaccurate and hugely exaggerated.”

In an article in • The American SpectatoronAugust23,Goodmanstatedthat“weneedamarket for sick people....In normal markets, entrepreneurs go after unmet needs. That’s how entrepreneursmakemoney,butinhealthcarewe’vemadeitverydifficultforpeopletomakeaprofitbymeetingtheneedsofsickpeople.”

Terry NeeseDistinguished Fellow

In the August 5 issue of the • Sydney Herald, Burnett statedthat,historically,oilrefininghasthelowestprofitmarginintheoilindustry.

BridgeHealth International CEO Victor Lazzaro, Jr., •in an article in the August issue of The Self-Insurer, cited Herrick’s study Medical Tourism: Global Competition in Health Care(NCPA,2007).

Herrick says in the August 9 issue of • Senior Market Advisor that, given that Health Savings Accounts and Health Reimbursement Accounts are still young, participation is good right now.

McTeer appeared on Bloomberg TV’s “Starting Bell• ” and on Jim Blasingame’s “Small Business Advocate” August 5 to discuss the Federal Reserve and the possibility of recession.

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“We are headed toward a two-tier health system. Unless •something changes, we will be rationing care to the elderly the way health care is rationed in Canada,” said Goodman intheAugust23issueoftheHeartlandInstitute’sHealth Care News and in an August 26 article on eMaxHealth.com.

Goodman’s comments to • The Dallas Morning News regarding the McCain tax credits were reported in the August19editionofMedical News Today.

Access to better schools can be aided by the availability •of vouchers, says NCPA Chairman Pete du Pont, in his September commentary for OpinionJournal.com, The Wall Street Journal’s online editorial page.

IntheAugust23issueofHeartlandInstitute’s•Environment and Climate News, Burnett stated, “For quite some time activists have told farmers that global warming legislationwillbenefitthemviaopportunitiessuchasthesitingofwindfarms,yetnowfarmersfindthemselvesintheactivists’crosshairs.”

In the August 22 issue of • Right Side News, Burnett stated that a federal appeals court ruling on pollution monitoring demonstrates a social justice view and not a constitutional view of government.

IntheAugust23issueofHeartlandInstitute’s• Health Care News, Herrick stated that Maine’s state government’s attempt at providing “universal” health care — which is being funded by newly imposed taxes on health insurance claims, as well as on goods such as beer and tobacco — is akin to taxing the poor to provide coverage to the poor.

H. Sterling BurnettSenior Fellow

Devon HerrickSenior Fellow

InanAugust21articlepublishedbyTheJohn•Birch Society, Burnett pointed out, “Two leading environmental groups, the Audubon Society and the Nature Conservancy, have allowed oil and gas production on several of their most important and unique nature preserves.”

In an August 20 report by CBSNews.com, originally •published by National Review Online in the Planet Goreblog,Burnettstatedthat13potentialKansaswind-farm projects are endangered as a direct result of the state’s rejection of the coal plants.

Burnett’s argument that global warming bills in •Congress would harm the economy but do nothing to prevent climate change appeared in the August 22 issue of the Dallas Business Journal.

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In an August 22 article on iHealthBeat.com, Herrick stated that physicians have been slow to •adoptonlinetelemedicinetechnologydespiteitsabilitytoincreaseefficiency.

In his latest commentary in the • Washington Times, NCPA Adjunct Scholar David Fleming stated thatmuchoftheadvertisingcopywehavebeensoldoncompactfluorescentlights(CFLs)contains exaggerated and misleading claims.

In an interview on CNN “Headline News” August 24, Neese stated that if presidential candidates •John McCain and Barack Obama want to win the female vote, they need to adopt family friendly policies.

Neese was interviewed on August 26 by Terry Lowry on KKHT’s “What’s Up” and discussed the •NCPA’s Five Family Friendly Policies.

Goodman’sproposalfora“universalhealthsavingsaccount”wascoveredintheSeptember3•online edition of AIS’s Health Business Daily.

Goodman’s response to Thomas Frank’s article “We’re Not All Friedmanites Now” appeared in •the August 25 issue of the Wall Street Journal.

IntheAugust31issueof• The Times Argus,Herricksaidgovernmentfiguresontheuninsuredwere‘somewhatoverblown’becausetheyincludedupto14millionpeoplewhoqualifiedforgovernmentcoveragebutweren’tenrolledandnearly18millionpeoplewhoearnedmorethan$50,000 and chose to forgo coverage.

IntheAugust27issueof• OneNewsNow, Herrick said that medical tourism stands to do to the U.S. healthcare industry what the Japanese automakers did to our U.S. auto making industry: inject some global competition.

In the August 22 issue of the • Connecticut Post and in the August 25 issue of The News-Times, Herrick stated that giving patients more access to health care is one reason doctors need to embrace technology and go online.

IntheSeptember1issueofthe• Washington Post, Villarreal stated, “With the increase in credit carddebt,withtheincreaseinplanholdersandtheavailabilityofborrowingagainsta401(k),Ithinkthatsocietyisstartingtoview[401(k)s]asanalternativewaytogetcash.”

McTeerappearedonCNBC’s“StreetSigns”September3todiscusstheFedandtheeconomy.•

NeesewasinterviewedonJimBlasingame’s“SmallBusinessAdvocate”September10.•

Adaptableandflexibleworkschedules,or“comptime,”willhelpindividualemployeesandtheir•families, and increase American productivity, said Neese in her article “For Comp Time, It’s Past Time,”whichranintheSeptember1issueoftheWashington Times.

Inanop-edintheSeptember15issueofthe• Fort Worth Star-Telegram, Goodman explained how we could solve the problem of the uninsured — without any new taxes or any new spending programs.

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AnarticleregardingGoodman’sstudyonreformingMedicareappearedintheSeptember15•issue of the San Antonio Business Journal.

Burnettappearedon“FoxBusinessMorning”onSeptember17todiscusswhyoilhaspulled•back so much and gasoline prices haven’t done the same.

Burnett argued in the September 9 issue of the • Washington Examiner that Congress should not fund green school initiatives, as they have not been proven to save money or energy or to improve student attendance or academic performance.

In the September issue of • ENToday, Herrick warned that insurance plans with costly mandates offered through Massachusetts’ Connector make premiums unaffordable and shift the cost burden to the taxpayer.

McTeerappearedonBloombergtelevisionandBloombergradioonSeptember15.Hethen•appearedonCNBC’s“SquawkBox”September16and“FoxBusinessMorning”September19.

OnSeptember18,McTeerwasoneofagroupassembledbyNYTimes.comtorespondto•questions emailed in by readers.

LarryKudlowinterviewedMcTeerabouttheAIGbailout,LehmanBrothersandotherfinancial•marketcrisesSeptember17onCNBC’s“KudlowandCompany.”

McTeer’scommentsregardingthegovernmentbailoutplanappearedintheSeptember19online•edition of the Houston Chronicle and online at National Public Radio.

McTeer appeared on CNBC’s “Wall Street Journal Report” and on CNN’s “In the Money” •onSeptember21,andagainonCNBC’s“Kudlow&Company”September23todiscussthegovernment bailout plan.

McTeer’sarticle“WhyMarktoMarket?”appearedonForbes.comonSeptember15.Thearticle•discussed the downward spiral of U.S. credit markets and the appropriateness of mark to market rules and strict ratings.

McTeer was interviewed by Neil Cavuto on Fox Business Network September 8, stating that, •even though the Fannie/Freddie bailout is necessary, he’s far from happy to see it come to this.

On ABC News’ “Federal News Today” on September 8, Neese discussed whether or not the ten •hour day, four day work week has the ability to withstand the time economically and what kind of hardships it will bear for ten hour days at child care facilities. Goodmanappearedonthe“MikeGallagherShow”onSeptember23todiscussthenation’s•uninsured.

“Evenifyou’reearninganegativerateofreturnrightnowonyour401(k)assetsbecauseofthe•stock market, that is just in the short run. So it’s really important to stay focused and use the 401(k)asalongtermvehicle,”saidVillarrealto1080KRLD-AMonSeptember24.

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McTeer appeared on Fox 4 News on September 26 and stated the reason the economy has taken a •downturn has a lot to do with the lack of accountability on the individual lender level.

In the second post to the • New York Times’ Daily new Economix Blog, McTeer rebuts the idea thatgovernmentinterventionsencouragebadbehavior.McTeerwasselectedtobeoneoffivecontributors to this new global economy blog.

McTeer was a guest on WHYY-FM (Philadelphia) and NPR’s “All Things Considered” on •September 22, and on KUOW-FM (Seattle) September 24 to discuss the government bailout plan.

InlateSeptember,NeesetraveledfromaWashington,D.C.congressionalbriefingtoCalifornia,•where she met with the Orange County News, was a guest on the “Frank Peters Show,” and interviewed with Entrepreneur Magazine and WomenEntrepreneur.com.

PUBLICATIONSThird QuarTer, 2008

In September 2008, the NCPA published a condensed version •of Gerald Frost’s 2002 biography, Antony Fisher: Champion of Liberty. Condensed by David Moller and with an introduction by Milton Friedman and a new preface by NCPA president and founder John C. Goodman, the book tells Fisher’s remarkable story. Among his many achievements, Fisher founded the Institute of Economic Affairs (IEA) in London, which later had aprofoundinfluenceonMargaretThatcher.HecofoundedtheManhattan Institute in New York, and played an instrumental role in setting up the Fraser Institute in Canada, the Institute for Liberty and Democracy in Peru and, later, the National Center for Policy Analysis. In all, Sir Antony helped start more than three dozen think tanks and the Atlas Economic Research Foundation, which helps create and develop think tanks around the world.

Themostsignificanteconomicandsociologicalchangeofthe•past half-century has been the entry of women into the labor market. Public policies that govern the workplace have not kept pace with this demographic shift, however. John Goodman, President oftheNCPA,andTerryNeese,DistinguishedFellow,presentfiveideastobringpublicpolicyinstitutionsintothe21stcentury.ReadtheirBriefAnalysis“FiveFamilyFriendlyPolicies”athttp://www.ncpa.org/pub/ba/ba620/.

Capitalism and democracy are both known to improve the well-being of women, according •to Michael D. Stroup. But which is more important? The evidence suggests that institutional reformsthatmoveaneconomyclosertocapitalismhaveagreaterpositiveinfluenceonthewell-

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being of women than political reforms that increase women's participation in decision-making. Read Stroup’s Brief Analysis “Which Is More Important for Women, Capitalism or Democracy?” at http://www.ncpa.org/pub/ba/ba621/.

Some observers have suggested that Medicare spending might be reduced if health care practices •common in low-cost areas were applied to regions where spending is higher. Reforms that allow market forces to address some of the higher cost areas are necessary, according to Amy Hopson and Andrew Rettenmaier in the NCPA’s latest study, as the country looks to the future and braces for the baby boomers’ retirement. Read “Medicare Spending Across the Map” at http://www.ncpa.org/pub/st/st313/st313.pdf.

As more insured patients begin to travel abroad for low-cost medical procedures, medical •tourism will result in sorely needed competition in the American health care industry, says NCPA Senior Fellow Devon Herrick, in his latest NCPA Brief Analysis. Read “Medical Tourism: Health Care Free Trade” at http://www.ncpa.org/pub/ba/ba623/ba623.pdf.

Before Congress spends billions to build public schools that meet "green" environmental •standards, it should review Washington state's experience, which shows that green buildings have higherthanexpectedcosts,andtheenergysavingsandotherprojectedbenefitsareeithersmallor nonexistent, says Todd Myers, director of the Center for the Environment at the Washington Policy Center and an National Center for Policy Analysis E-Team adjunct scholar. Read “Green Schools Don’t Make the Grade” at http://www.ncpa.org/pub/ba/ba622/ba622.pdf.

The use of information technology in diagnosing, treating and monitoring patients — known as •telemedicine — is adding a new dimension to modern health care, says NCPA Senior Fellow Devon Herrick, in his latest NCPA Brief Analysis. Read “Physician Care and Telemedicine” at http://www.ncpa.org/pub/ba/ba624/ba624.pdf.

Under Sen. John McCain’s health care plan, employers could no longer buy insurance with •pretax dollars; such payments would be taxable to the employee, just like wages, says NCPA president John Goodman in one of his latest Brief Analyses. Read “The John McCain Health Plan” at http://www.ncpa.org/pub/ba/ba629/ba629.pdf.

Sen. Barack Obama’s health plan would impose a “pay-or-play” mandate on all employers -- •taxing those who do not provide health insurance for their employees, says Goodman in a second Brief Analysis of the presidential health plans. Read “The Barack Obama Health Plan” at http://www.ncpa.org/pub/ba/ba628/ba628.pdf.

In the event of future tax increases to pay the burgeoning cost of elderly entitlements, the Roth •401(k)planissuperiortoaregular401(k)plansinceRothwithdrawalsaretaxfree,saysNCPASenior Fellow Laurence J. Kotlikoff in his latest NCPA Policy Report. Read “To Roth or Not?” at http://www.ncpa.org/pub/st/st314/st314.pdf.

American families face steep marginal tax increases if Congress fails to renew the Bush tax •cuts, says NCPA research assistant Daniel Wityk in his latest NCPA Brief Analysis. Read “Will Congress Penalize Marriage Again?” at http://www.ncpa.org/pub/ba/ba627/ba627.pdf.

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About32millionpeople,or70percentoftheuninsured,couldeasilyobtaincoveragebuthave•chosen to forgo insurance, says NCPA Senior Fellow Devon Herrick in a recent NCPA Brief Analysis. Read “Crisis of the Uninsured” at http://www.ncpa.org/pub/ba/ba626/ba626.pdf.

Youcanretireatage62,thenpaybackandreapplyforSocialSecuritybenefitsatage70ifyou•come to regret your earlier decision, says Kotlikoff in his latest NCPA Brief Analysis. Read “Double-Dipping Social Security” at http://www.ncpa.org/pub/ba/ba625/ba625.pdf.

To reform Medicare, three fundamental reforms need to occur, says NCPA president John C. •Goodman, in his latest NCPA Policy Report. Read “A Framework for Medicare Reform” at http://www.ncpa.org/pub/st/st315/st315.pdf.

Politicians need to be less concerned about income inequality and more concerned about the •prospects for economic growth, says NCPA senior fellow Gerald W. Scully in his latest NCPA Policy Report. Read “Optimal Taxation, Economic Growth and Income Inequality in the United States” at http://www.ncpa.org/pub/st/st316/st316.pdf.

FederalmismanagementofU.S.forestshasincreasedthenumber,sizeandcostofwildfiresover•the past decade, say NCPA research assistant Lani Cohan and NCPA senior fellow H. Sterling Burnett, in their latest Brief Analysis. Read “In Order to Extinguish Forest Fires, Don’t Let Logging Burn Out” at http://www.ncpa.org/pub/ba/ba631/ba631.pdf.

The United States should pass the Colombia Free Trade Agreement, say University of California, •Los Angeles, professor of economics Arnold C. Harberger and NCPA graduate student fellow D. SeanShurtleff,intheirlatestBriefAnalysis.Read“EconomicBenefitsoftheU.S.-ColombiaFree Trade Agreement” at http://www.ncpa.org/pub/ba/ba632/ba632.pdf.

At39.25percent,theU.S.corporatetaxrateisnotonlyhighbutalsoinefficientinproducing•revenue, says NCPA research assistant Mehreen Younis, in a recently published Brief Analysis. Read “The Case for Corporate Income Tax Cuts” at http://www.ncpa.org/pub/ba/ba633/ba633.pdf.

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