AnnualReport

2010

AnnualReport

2010

We are undertaking a concerted effort to reaffirm our align-ment with the original vision forged by Col. Harwood nearly 80 years ago. We are a membership organization that provides state-of-the-art research in economics and finance. Now, as during the Great Depression, we guide our members with objective, data-driven research, giving them the means to make smart, informed decisions. This is particularly important in challenging times such as these.

Thanks to David Michaels’ efforts, our finances are on track, and we have begun the hard work of rebuilding our teams, publications, and programs. We have recently hired several new economists. Julie Zhu has bachelor’s degrees in economics and statistics and has already contributed to our re-search. Two others are slated to come aboard full-time after the end of the current academic year. Zinnia Mukherjee has a PhD in economics and master’s degrees in economics and statistics. Lei Chen has a PhD in economics with a specialty in econo-metrics and master’s degrees in economics, physics, and optics. These scholars are bringing much needed strength and breadth to the research staff.

People are noticing the change. In recent months, our work has been cited in The Wall Street Journal, The New York Times, and other leading newspapers and magazines. Our op-ed pieces have been published in hundreds of newspapers, and we have

appeared on more than 100 radio and television talk shows. We have been widely quoted on sites such as MarketWatch about gold and securities markets.

We continue our teaching and outreach efforts with highly successful Knight-Bagehot and Summer Fellowship Programs. We are test-marketing our books in bookstores and have discussed distribution arrangements with national distributors. The website is under revision as part of a sweeping update of our digital delivery systems.

What remains unchanged is AIER’s essential sense of mission. First in our minds is always the privilege and respon-sibility of serving our members. We thank you for putting your trust in us. We won’t let you down.

Sincerely,

Steven R. Cunningham, PhDDirector of Research and Education

A Letter from

Steven Cunningham, director of Research & Education

Independent, Scientific, Economic Research

We began 2010 sharply focused on our mission and deeply committed to helping our members protect their interests in a difficult economic climate. As an organization, we dealt with many of the same issues that our members and other charitable organizations did, and we are pleased to report that we finished the year in good financial condition.

Net assets are an important indicator of financial strength. AIER’s net assets peaked in 2007 at $77.6 million and by March 2009, had dropped to $54.6 million, a decline of nearly 30 percent. Faced with a challenging economic environment and an uncertain financial future, we aggressively reduced our costs to ensure that we could deliver on our mission during a time of great need.

By the end of 2010, our net assets recovered much of the losses—mainly through investment gains and cost reductions. These were offset in part by declines in revenue from publica-tions, memberships, and donations. Our net assets at the end of 2010 were a healthier $71.2 million, of which 81.5 percent are subject to donor restrictions. These restricted assets are held in trust and are invested based on principles developed at AIER over its 78-year history. The income they generate is paid to beneficiaries designated by the donors. The assets of the trusts will be distributed to AIER when the restrictions lapse.

Unrestricted net assets were $13.2 million. These are avail-able for use in our programs.

With our financial strength restored, we are committed to rebuilding our resources and expanding our programs. First and foremost, we plan to expand our research capability by adding new researchers and upgrading our research software and data-analysis capabilities. We’ll also continue our transi-tion to digital platforms including web-based technologies and social media.

Thanks to the loyal support and confidence of our members, AIER is able to continue to pursue its mission of helping in-dividuals advance their interests in good times and bad.

Sincerely,

David MichaelsChief Financial Officer

A Letter from

david Michaels, Chief Financial Officer

2010 Annual Report

Independent, Scientific, Economic Research

2010 Financials

Revenues, Gains, and Other Support

Operating revenue

Contributions grants

and bequests

Investment income

Change in value of

split interest agreements

Expenses and Losses Operating expenses

Expense of Subsidiary

Management and general

45%

31%

8%

16%

24%

68%

8%

Condensed Consolidated Statement of Financial PositionDecember 31, 2010, (dollars in thousands)

Condensed Consolidated Statement of ActivitiesYear Ended December 31, 2010 (dollars in thousands)

Assets 2010 2009Cash and investments $10,289 $9,192

Receivables 381 356

Inventory 105 103

Property and equipment 3,182 3,387

Investments held

under split interest agreements 141,364 127,937

Other assets 51 61

Total Assets 155,372 141,036

Liabilities and Net AssetsLiabilities

Accounts payable and accrued expenses 443 329

Deferred Income 388 507

Liabilities under charitable trusts 83,325 71,290

Total Liabilities 84,156 72,126

Net Assets

Undesignated 7,066 3,367

Designated 6,111 8,896

Assets held under split interest agreements 58,039 56,647

Total Net Assets 71,216 68,910

Total Liabilities and Net Assets $155,372 $141,036

Revenues, Gains, and Other Support 2010 2009Operating revenue $2,363 $2,887

Contributions, grants, and bequests 579 640

Investment income 1,203 658

Change in the value

of split interest agreements 3,449 10,571

Total Revenues, Gains, and Other Support 7,594 14,756

Expenses and LossesOperating expenses 3,588 4,949

Expense of subsidiary 1,281 1,292

Management and general 419 486

Total Expenses and Losses 5,288 6,727

Change in net assets 2,306 8,029

Net Assets, Beginning of Year 68,909 60,880

Net Assets, End of Year $71,215 $68,909

OfficersDr. Steven R. Cunningham, Director of Research and Education Mr. David C. Michaels, Chief Financial Officer and Comptroller Mr. J. Eric Smith, Secretary of the Corporation

Officers and Trustees April 2011

Board of TrusteesMr. Edward H. Adolph, Chair Mr. Richard W. Brewer Mr. Richard M. Doncaster Dr. Harold F. Dvorak Mrs. Marjorie H. Greer Mr. Frederick C. Harwood Mr. Peter A. Lee Mr. Sidney Rose Mr. Edward Philip Welker Dr. John M. Wilson Jr., Trustee Emeritus Dr. William S. Peirce, Trustee Emeritus

Standing CommitteeMr. Roy Bouffard Mr. Andrew H. Davis Jr., Alternate Ms. Katherine H. Delay Dr. Harold F. Dvorak, Trustee Mr. Ronald A. Gilmore Mr. Keith A. Hocter, Chair Dr. Gerald LaMarsh Ms. Phebe Jane Moore Dr. Reed E. Phillips Mr. Edward Philip Welker, Trustee

Voting MembersDr. J. Scott Abercrombie Jr.Mr. Edward H. AdolphMr. John L. Barry Mr. Timothy J. Birney Mr. Roy Bouffard Dr. Anthony C. Breuer Mr. Richard W. Brewer Mr. Shaun Buckler Mrs. Karen T. Chin Mr. Saul Cohen Mr. Andrew H. Davis Jr. Ms. Katherine H. Delay Mr. Edward E. Donaldson Mr. Richard M. DoncasterDr. Harold F. Dvorak Mr. Latimer Eddy Mr. Paul S. Fabian Ms. Laura A. Fiske Mr. W. Blake Foster

Mr. John H. Foulke Mrs. Maureen Foulke Ms. Sarah B. Foulke Ms. Opal Gilmore Mr. Ronald A. Gilmore Mr. Donald R. GrantMr. James E. Greer Mr. James M. Greer Mrs. Marjorie H. GreerMr. Henry Hackel Mr. Douglas L. Harwood Mr. Frederick C. Harwood Mr. Kirk E. Harwood Mrs. Michelle L. Harwood Mr. W. Scott Harwood Mr. William F. Harwood Mr. Samuel N. Hibbard Mr. Keith A. HocterMr. Michael S. Hoffman

Mr. Todd H. Hoffman Mr. Neil D. Holden Mr. Howard Kent Mr. Roger G. Knudson Dr. Gerald LaMarsh Mr. Peter A. Lee Mr. Donald A. Lindley Ms. Kerry A. Lynch Mr. Henry J. Miller III Ms. Phebe Jane Moore Dr. Charles E. Murray Mr. Philip R. Murray Ms. Paula H. Palmer Dr. William S. Peirce Dr. Reed E. Phillips Mr. Lawrence Pratt Mr. Grant Randall Dr. Bruce M. Rodenberger Mrs. Gail Roger

Mr. Sidney Rose Mr. Lincoln R. Sander Mr. Joseph Schwaiger Mrs. Mary Schwaiger Mr. Richard A. Seeley Mr. J. Eric Smith Mr. Gerald E. Sohan Dr. William H. Southwick Mr. Edward W. Spurr Mr. Frank P. Statkus Mr. George Terwilliger Mr. Walker F. Todd Mr. Gregory M. van KipnisMr. John W. Ward Mr. Edward Philip Welker Dr. John M. Wilson Jr. Mr. James A. Yannes

Edward H. Adolph

Richard W. Brewer

Richard M. Doncaster

Harold F. Dvorak

Marjorie H. Greer

Frederick C. Harwood

Peter A. Lee

Sidney Rose

Edward Philip Welker

Notable in 2010

Independent, Scientific, Economic Research

Each year, AIER augments its pub-lications through a series of lectures by distinguished speakers on campus and at selected meet-and-greets across the country. One of the high-lights of the 2010 lecture series was a campus visit by longtime Forbes editor William Baldwin.

At a special event immediately following the October meeting of the board of trustees, he spoke to AIER members and invited guests. His topic: How to Make Money and Keep it from the IRS.

The talk on a classic AIER theme covered a variety of points

from the best way to buy gold to the outlook for corporate earn-ings. It was followed by a lively question-and-answer period and a reception that allowed for more informal discussions.

Baldwin joined Forbes’ Washington bureau in 1980. He served successively as bureau chief, assistant managing editor, and managing editor before becoming editor in January 1999. He ran the magazine until August 2010, when he returned to writing about investment strategies, one of his areas of ex-pertise. Mr. Baldwin was the second Forbes writer to speak at AIER in 2010. The first was the late Jerry Flint. In May, the legendary automotive writer gave a talk at AIER that was the last public presentation of his distinguished career.

William Baldwin will return to AIER sometime in 2011.

Lawrence S. Pratt, senior fellow, retired in 2010 after a long and dis-tinguished career at AIER.

Larry joined the institute in 1973 and went on to do nearly every job and hold nearly every title. He first worked on the research staff under the guidance of AIER’s founder, Col. E.C. Harwood. Eventually, he became director of research and edu-cation. In the 1990s, he also served as president of American Invest-ment Services (AIS), AIER’s wholly owned investment advisory and was the driving force behind much of the Institute’s investment research.

Larry’s name may not be as familiar to supporters as it should be. For most of the time he worked

here, we did not print bylines identifying the authors of articles. Suffice to say, his articles stood out for their sharp analysis, persuasiveness, timeliness, relevance, wit, and humor. (For example, he titled an article comparing the dollar to other fiat currencies “The World’s Tallest Dwarf”.) It’s not easy to write about economics for non-economists in an engaging way, but Larry viewed that as an essential part of the job. That he did so week after week for nearly four decades is astonishing.

In addition to countless articles, he wrote a number of books, including How to Invest Wisely. He also edited many ar-ticles and books for AIER, often taking the straw of early drafts and spinning it into gold. He taught a seminar in AIER’s Sum-mer Fellowship Program, on “Thinking Like an Economist,” aimed at encouraging the summer fellows (mostly graduate students in economics) to consider how they might help non-economists to better understand the world. AIER is grateful to have benefited from Larry Pratt’s talent and dedication for so long, and we wish him a much deserved happy retirement.

AIER Lecture Series Forbes Editor Highlights This Year’s Roster

Staff Highlight Lawrence S. Pratt Retires

William Baldwin

Lawrence S. Pratt

Our Generous donors

2010 Annual Report

Joseph AbbottRobert A. AdamsLucien AdamsRobert T. AdkinsEdward AdolphMercedes M. AgoginoKambiz M. AhyAlexander E. AideeWilliam d. AlbroWesley E. AllenJames P. AllenRichard & Jean Amable Charles O. AmesRobert A. AndersonThornton AndersonBob AndersonRene A. AngusRichard V. AnnableRobert A. AquadroRichard ArkwrightWilliam ArwadyArthur W. AubinNick AversaCharles Bacondaniel BakerAllen BakerHorace BakerRalph BalzacElizabeth BarnesJames BarnesMildred H. BartonRobert J. BartruffBradley BatesElliott M. BatesSaul BeckerClyde E. BeimfohrCal Beisswangerdenise M. BellWilliam BeltroneC. M. BendEdward L. BennettBeverley BensonEugene J. BensonJohn BilaferT. H. BilbreyJohn BlackettCarl E. BlockJohn d. BogdenJ. Neil BogerRobert A. BonacchiKarin BondingArthur J. BonnelRoy E. BouffardChris M. BoxellMary A. BoydTodd Bradley

Antonio BrancoW. H. BrandtRaymond BrautiganJohn E. BrayGeorge J. BreckenridgeRichard L. BrennanJohn T. BrennanAnthony C. BreuerRichard W. BrewerWalter BrewerJohn BridgeRobert d. BrigliaTom Broadbentdorothy A. BrockhoffClarence S. BromberekJames G. BrooksJames C. BrotenEd BrownTimothy BrownWilliam BrowneWallace G. BrownsonRichard G. BrunnerPaul d. BryanBruce BunchPrice B. BurgessJames P. BurkeWilliam H. Burnhamdouglas H. Buswelld. L. ButlerPierce CallahanMatthew CalvertWilliam Z. CannWilbur J. CannonJohn CarberryA. E. CardenRussell C. CarlsonRandolph C. CarrMike CarrollRobert CaseThomas CassidyJoe CasteelAlan M. CatalanoKenneth J. CavanaughJoseph CembrolaWayne F. ChalupaChuan ChangRobert CharnoffMichael ChernissJohn C. ChinnRobert F. CipolleWilliam H. ClaflinCameron S. ClarkJohn K. ClassCarl ClemensJohn P. CliffordCloverleaf Corp

Charles J. CobbettJay CochranJames P. CoffinGerard H. CohenPhilip CohenWilliam ColettiJames CollierW. d. CollingwoodRobert M. CollinsEdward ComanJohn CominoGail Conwaydorothy CooperRichard CoryM. F. CostantinoJohn J. CoupalGeorge CovertSamuel A. CraigJoseph H. CreeganRobert CrockerJerald CrumAlice CrumeE. CulhaneEd CullenEdward CummingsMike CunninghamHenry W. CurranSundaram CurtisJohn CushingFrank CutroneWayne C. dabbdorothy R. dalyJoseph damatoF. W. dauNeil dauler-Phinneydonald R. davenportAndrew H. davisdon Gordon davisRobert C. davisShethar davisRex M. davisJames dayH. C. dearnleyGary deboiseRey del RiosGeorge N. deloacheJohn M. denglerMaryanne desantisGerard desapioBill descherHank diambraWillard M. dillonBrian dillonMichael J. dixonJames E. dixonWilliam T. doherty

Edward E. donaldsonRichard M. doncasterCharles dorrancedan P. doughertyRobert C. draperEric M. dreyfussJames F. driscollR. Gerard du BoisJoel dumontFreeman dunnJoseph V. dunnFred L. dunnKatharine C. dunnHarold F. dvorakJan F. dykeFred G. EagertonThomas J. EarleyJohn W. Earleydavid EarnestGary EckhardtRodger EddyPhyliss EdmonsonGlen C. EdquistAlbert J. EisenbergAngela ElefanteGene EllisAnn J. EngleJack EricksonWalter EthFrank M. EvelhochRobert W. FabianMichael G. FaderJeffrey R. FalickRichard FalkensteinRaymond F. FarleyRobert FastTheodore Fay Gloria FazramosLarry M. FeatherJohn P. FeatherKenneth FedorockBarbara FeltPaul FenskeThomas d. FentonRobert FewellGary FeyNorman P. FitzgeraldJohn Flemingdiane E. FliegerJames FloodRobert B. FolsomWilliam F. FordE. A. ForemanJohn ForgosWilliam E. ForsytheW. Blake Foster

david FosterMaureen FoulkeRichard W. Foxdonald Francisdouglas C. FrankeJohn E. FrostW. H. FurgeRobert FurushoMary B. FusaroFrancis P. GalganoThomas GallagherJohn GarabedianKenneth Garrdavid GarvinWilliam R. GastonCharles F. GatesGeorge d. GattenyLeland GerwigThomas GibsonHenry GiffordHoughton Gifford MdRichard GiggeyJeffrey d. GilbertRobert E. GillmorNiko V. GjajaJonathan GoldsteinNicholas GonsalvesBernard GoodmanJason GoodmanGary T. GoodrichGraeme GoodsirThomas J. GoodwinSondra & Albert GordonBruce GoreThomas F. GormanFrank W. GormanHomer GossardErnestine GottPollyann M. GradyMartin GradyCarl F. GraesserLouis B. GratzerSamuel d. GrecoJames & Marjorie GreerJames E. GreerBradley L. GriffinJasper GrilliV. J. GrimaldiCarl GroeplerRobert W. GruenewaldMichael GuertlerRaymond A. GuilbertPaul J. GuyettJohn T. HagyJohn HallGerald Hall

Staff Highlight Lawrence S. Pratt Retires

Independent, Scientific, Economic Research

Our Generous donors (continued)

Stefan K. HallerHarry E. HalsteadWilliam d. HamiltonRichard C. HamiltonRichard d. HandrenWarren K. Hanscomdavid C. HansonHerbert W. HarlowJames HartMartin HartkopfJohn E. HartmanAnita M. HartmanWilliam E. HarveyW. Scott HarwoodFred HarwoodKirk & debbie HarwoodBert G. HasslerJack M. HastingsRichard Hatch

Timothy HayesThomas W. HayesJohn HaymakerPhilip HazenJoseph E. HeafyRaymond HeelanJoe H. HegeAlfred d. HeggiePeter HennesseyJames HerbstWilliam HerndlArthur HerndonJames HershEugene HerzogRonald M. HeymannSam HibbardM. Lamar HicksRobert A. HigginsMarshall Hilgendorf

Edward d. HillEdward HillierJane B. HillmanRobert A. HintermisterKeith Hocterdonald E. HoffmeisterJames T. HohmannChuck HollandEd HollyTimothy A. HolstHerbert HomanWilliam R. HornEdward HostetlerJeff HoughKen HowardTom HoyordIan O. HuebschW. W. HuffmanGordon A. Hughes

Lawrence HurvitzMasato IkedaJoseph IppolitoElwood N. IrwinHerrick JacksonMokarram Jafridaniel JagielloAlbert E. Jenkinsdale JenkinsRobert JenksKen JernstromEarl JohnsonKaren C. JohnsonRobert JohnsonW. F. JohnsonRicky JohnsonHarry JohnsonConrad H. JonesGary Jones

Richard H. JordanM. Jean KamperAlexander T. KamwellMilton M. Kaplandaryl A. KearnsKathy KehoeAlbert G. KeithWilliam K. KelloggJames J. KellyCandice KellyRobert KelseyJack d. KerstetterFrank KeryGeorge E. KientzyM. KingWilliam d. KirbyRaymond J. KlankEdward J. KleczynskiTimothy Kleczynski

A Stellar Collection Expands Its ReachAIER’S 15,000-volume library boasts a wide variety of books about economics and related topics and contains one of the best collections in the country on gold and land-value taxation. The library has always welcomed inquiries from members and readers and opens its doors to the general public. But in 2010, it made substantial steps toward expanding its services.

The dozens of member requests for reference statistics and AIER articles that Librarian Samantha Woodson answered was only the beginning. Improvements this year to the E.C. Harwood Library involve both the physical collection and the collection’s electronic presence.

Visitors to campus will notice that a small conference room now houses the papers of the late Lowell Harriss, distinguished

professor of economics at Columbia University and longtime AIER trustee. The cataloguing of hundreds of books, articles, unpublished manuscripts, and transcripts of speeches began in June 2010. By the end of year, it was almost halfway complete. An important part of the process is digitizing the collection so that AIER supporters, scholars, and other interested parties anywhere in the world some day will be able to access Dr. Har-riss’ collection.

Elsewhere, the library has undergone significant re-vamping in accordance with a five-year strategic plan aimed at improving accessibility. Government documents received a much-needed weeding and were moved to new shelving in the main library. The AIER publications aisle has been re-orga-nized for easier access.

Most importantly, Woodson nearly completed putting all AIER publications into electronic and searchable form by the end of 2010. She also made substantial strides to improving the online accessibility to the AIER archives. These changes are preliminary to the creation of a digital library that will be avail-able to members.

The move toward digitalization does not preclude the personal touch that has been a hallmark of AIER’s member services. Woodson’s goal is to increase the number of reference questions she gets from members and readers. You can reach her at (413) 528-1216, ext. 3118, or by e-mailing samantha.woodson@aier.org.

Librarian Samantha Woodson welcomes reference questions from members.

2010 Annual Report

James KloverstromRussell Knetzgerdexter M. KohnStanley H. KonefalKenneth C. KopplowWalter KorntheuerC. Andrew Kostrevaghdonna Kovalskydimitrios K. KritikosMichael KrizmanAlbert F. KropasRoy KrughoffEverett LaddHelen L. LairdGerald LamarshRoy LambPaul J. LambeckKenneth LamontagneRoderic C. LanceyVirginia LarsenW. Phil LaudenschlagerRobert LawrenceRobert A. LawsonIris G. Lazandavid J. Le RayFrank LeahyRobert A. LeblancNathan S. LeeJames LeedsRobert LefebvreWilliam E. LehrCol Henry A. LeightonSteven Leitzdavid Leraydavid A. LeveneJohn J. Leyden

david LindeThomas G. Linxweilerd. P. LitzenbergerChris M. LloydGeorge E. Lonergandavid M. LongGerald M. LongJames C. LordemanCharles W. Loufekdonald A. LovisGlenn C. LucasKenneth H. LudlumArthur LundebergArthur J. LupoBeatrice LushingtonKerry LynchMark LytleRalph W. MacdonaldTheresa MackJoseph E. MackeyAlex MacMurdoAlkis MakridesThomas C. ManningJohn ManolarosAugust G. ManzaBob MarschnerMichael Martindouglas G. MartzKenneth MastersM. MasudaVirginia MatousekGordon E. MattesonGeorge H. MatthiesRalph MayerFrank MazzaMurray A. McAndrew

J. S. McClellandCharles G. McClureSandra McCormickRichard W. McFallsRobert McFarlandJohn K. McGuirtWilliam McGurkWilma McKenzieJames McKittrickWilton McLeanPhilip McPheronMadeline McWhinney-daleSandra McCormickTimothy MeehanWilliam J. MetcalfJames MetzgerT. N. Meyerdavid C. MichaelsGeorge B. Micheldavid E. MiddletonLouis MillerJohn L. MillerJohn V. MingesMaryam MinterRoyce J. MitchellRobert J. MitchellWilliam M. MoeRobert E. MonahanJack E. Monettdon MontgomeryHarry J. MooreFrank J. MoorePatricia MoranEugene & Anny MorelLeonard W. MorganRobert F. Moriarty

don & Kathy MorrisWalter MorrisWilliam S. MoyerMichael MuellerKrish Mukhopadhyaydon MungerRobert B. MunroRichard M. MurdockFrederick P. MurdockMichael MurphyCharles E. MurrayPhilip R. MurrayJohn A. MurrayPaul MyersJoseph M. NappiJ. J. NarusHoward L. NaslundThomas C. NealAlbert F. NibbeRichard NicholsGeorge G. NimickNorman E. NitschkePaul S. NixElwood T. NoadMark H. NoeJuan NogueraBud NormanBarbara O’ConnellJohn R. O’ConnellVincent P. OgurekJohn J. OlenderJacob OliverRein OlvetJohn V. OndrejickaOrcas Bay FoundationCharles Ortmann

dieter OschatzAlbert H. OstienJean B. OswaldCharles PaddockPeter Pagazanidave PalentcharMichael & Paula PalmerLee W. Parkedarrell d. ParkerClarence S. Parkerdallas PascoRex Q. PassBilly M. PaulSuzanne M. PaulsenJ. L. PecoraRobert PenmanLucas F. PerezLynn T. PerryWilliam PeschkeStephen PetersFloyd PetersMichael PfeiferGary PhillipsReed E. PhillipsBetty PhillipsLloyd PickellJames R. PittardHenry PittardJohn d. PlowrightGeorge H. Pludedavid H. PondRichard PorotskyEleonore Portincasadon N. PowellAlexander PowerWilliam d. Power

In Memoriam V. George Castle 1920-2011Longtime AIER voting member, V. George Castle, died in his sleep January 30. He loved life and all the joys it had to give. When people would tell him to “Have a nice day,” his reply was always “You have a nice forever.” He loved his five children and his grandchildren, and was dedicated to his loving wife, Vir-ginia, also a longtime voting member until her death in 2007.

George Castle was associated with the Institute for 35 years. He became a voting member in 1976. He served on the stand-ing committee from 1978 to 1997 and as a trustee from 1988 to 2010.

A commercial pilot, he learned to fly in the Navy, which he joined at the beginning of WWII. After the war, he flew for a

small airline some of his friends were starting. He intended to stay just for the summer and then to begin medi-cal school. He never did, Instead, he clocked countless miles as a commer-cial pilot for Empire, West Coast, and Hughes Airwest Airlines.

He greatly will be missed at AIER.V. George Castle

Our Generous donors (continued)

Independent, Scientific, Economic Research

William F. PrebeRobert R. PrechterStephen d. PrewVictor PrietoPatricia ProbstLarry PullinJanet PushiesJoann PutnamGregory PyatigorskyLa Vern PylesMichael RadovMilt RadovichFlorence RainoneAnthony E. RappRichard A. RasmussenBrenda Rathjedaniel H. RaverFrank J. RegetRobert W. ReidBob & Joy Reinsteindonnell T. ReitherJames A. RemleyTed R. RestkoRobert Rheindavid RiceArthur P. RichRandolph E. RichardsonHerman E. RichardsonBruno A. Risattidonald R. RobertsRichard d. RobertsStephen RobinsonRichard W. RobinsonClayton S. RobinsonColin L. RobinsonBruce M. RodenbergerJames RodgersGail RogerLucy H. RoggeBruce RogoveR. A. RohrbacherL. F. RolsenAlbert M. RomanickAlvan RosenbergBernard RosenkrantzGregory C. RossBrian RothWalter W. RueggerJames RuitenbergAlan d. RussellEverett J. RyanJames W. Ryandavid C. SaalfrankPaul SalernoVictor SalgadoRoy L. Salter

Robert SanbornLincoln R. SanderFrank SantacanaWilmer J. E. SauerbreyPatricia J. SawvelJames F. ScanlonJoseph SchattemanFrancis R. SchmidJohn d. SchueleRobert E. SchulzHarry SchumacherMary SchwaigerCharles L. ScottEugene B. ScrogginsFloyd SeayJames M. SeerightFrank J. Sehndoris I. SekerkaRalph SelleKazuo SendaCharles K. SestokNorman ShaferGordon ShawEarl ShephardEarl P. Shepparddaniel R. ShoopEdward SichtermanHarvey SiegelAnthony SilvaAlvin SilveyHoward SimonGary P. SimsBill SkrochJ. Eric SmithS. Clarke SmithIrving SmithHugh SmithJ. Fort SmithStephen J. SnapBen A. SoldoFrank SorrelAndrew J. SoterWilliam H. SouthwickA. SpangRobert d. SpillerNicholas J. St GeorgeEdwin S. StaceyJohn J. StarrJulia A. Staufferdimitri R. SteinKlaus SteinerJames T. StentoTed StephensRobert StephensRobert StevensW. E. Stevenson

James StockhamWard d. StoepkerRobert StolteJerry A. StranskyColin StraubC. StreitwieserJohn StutzmanHarry StyerPeter G. SulzerPatrick SutherlandVirginia M. SuttonGaren SuzanPatrick SweeneyJoseph A. Swineydonald B. SykesRobert E. Taylordoyle TaylorNeil L. TaylorGilbert TerlicherM. S. TerrassGregory TerwilligerEldon A. TessmanSusan Thomasdon L. ThompsonWilliam ThompsonGeorge ThompsonWalker ToddGuillermo G. TolentinoTom TolmanThomas F. TolmanLaurence J. TooleAgnes TothAnthony TrapaneseAubrey J. Travitzdavid TrendJim TrowbridgePaul Twords

Thomas UllmanAlfred H. Underwooddaniel A. VaccaroRichard C. ValentineCharles Van BenschotenRobert d. Van BuitenRobert L. Van NestJames Van Valkenburghdon G. Vandegriffdean VanzandJohn VasilchinJames G. VelezRobert VillarealJean VincentOlaf VirroAllen VisMary W. VoelzJohn VolkhardtJohn WaldichukWilliam K. WalkerJames WalshSusanna WaltersPaul E. WankE. Jean WardStephen J. WarnerC. V. WarrenMark G. WashechekFaith P. WatersJames C. WatkinsRonnie K. Wattsdaniel WayburnHeinz K. WehnerRobert WehrleBernard WeidemanThomas E. WeidenkopfEdward P. WelkerFrank E. Wellersdieck

G. T. WenningWilliam R. WessellCharles B. WestJohn WestendorfRichard WhelanHarry H. WhippJohn M. WhiteRonald L. WhiteheadCharles E. WhitemanGary A. WhitneyBruce K. WillardStan WilliamsHarold WilliamsHugh W. WilsonRuth WilsonJim WilsonCharles E. WinnJohn M. WintersJames F. WittenRobert L. WolfeAlden WolfgramNorman d. WoodEthel d. WoodallG. WoodroffeCharles G. WoramEdwin WorthamJohn WorthingtonJ. V. WrightMarilyn WrightJames A. YannesRobert ZellerAnna ZipayEdgar W. ZobelJames P. ZubulakeRobert ZuleegLloyd J. Zwickerdirk A. Zylstra

Director of Research Steven Cunningham (left) confers with research staffers Keming Liang and Polina Vlasenko.

* Combined accounts for one of AIER’s popular planned giving programs. Results do not reflect the deduction of transaction and investment management fees, the incurrence of which would have the effect of decreasing historical performance results. The results portrayed reflect total return and the reinvestment of dividends and capital gains.

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions and/or withdrawals may materially alter the performance, strat-egy and results of your portfolio. different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio. Past performance may not be indicative of future results. Therefore, no client should assume that the future performance of any specific investment, investment strategy or product used by the advisor will be profitable or equal to past performance.

AIS Staff Board of directors

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Investment Advice with a Mission

Performance History for AIER’s Charitable Remainder Unitrust Program*

The American Institute for Economic Research is unique among economic think tanks. Unlike policy-oriented institu-tions, AIER speaks directly to the needs of ordinary citizens.

AIER’s ownership of American Investment Services, Inc., an SEC Registered Investment Adviser, serves the Institute’s mission by providing individuals and institutions with low-cost information and advice based on objective, empirical review of capital market data beginning as early as 1926.

AIS is unique among money managers. Unlike Wall Street firms, we are owned by an educational institution. While

others tout short-term results and push expensive products, we offer advice designed to meet each client’s needs and sensitiv-ity toward risk. As fiduciaries, we work exclusively in the best interest of our clients.

We currently manage $485 million on behalf of 283 clients, the highest levels attained since our founding in 1978. Our clients are focused on those factors within their control: cost, discipline, and diversification. Their faith in our ap-proach has been rewarded.

Visit us online at www.americaninvestment.com.

Growth of $100 January 1999 to February 2011

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Economic Bulletin Vol. LI, April 2011The Economic Bulletin is published once a month at Great Barrington, Mass., by the American Institute for Economic Research, a scientific and education-al organization with no stockholders, chartered under Chapter 180 of the General Laws of Massachusetts. Periodical postage paid at Great Barrington, Mass., and additional offices. Printed in the United States of America. Sustaining memberships: $59 per year. POSTMASTER: Send address changes to Economic Bulletin, American Institute for Economic Research, Great Barrington, Mass., 01230.

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01230-100Economic Bulletin (ISSN 0424-2769) (USPS 167-360)