On November 23, 2024, Fred L. Smith, Jr., founder of the Competitive Enterprise Institute (CEI), passed away at the age of 83. A towering figure in public policy, Smith left an indelible mark on the intellectual and political landscape by championing the principles of free markets, entrepreneurship, and individual liberty. His enduring legacy lives on through CEI, the think tank he founded 40 years ago, which continues to challenge the excesses of government regulation and promote market-based solutions.
Fred’s story is not just one of institutional success but of an unwavering belief in human potential. As CEI President Kent Lassman reflected in a recent interview, Smith’s life and work are a testament to the power of ideas and the necessity of defending them against government overreach.
A Visionary’s Path: From EPA to Founding CEI
Fred Smith’s career began in the corridors of Washington, D.C., where he worked at the Environmental Protection Agency (EPA). Initially optimistic about the power of government to improve lives, Fred became disillusioned by the inefficiency and unintended consequences of federal regulation. He saw how well-intentioned policies could stifle innovation, harm communities, and impede progress. This realization spurred his transformation from a government insider to a fierce advocate for free-market solutions.
In 1984, Fred founded CEI in a modest office above a bakery. His mission was simple but profound: to create an organization that not only critiqued bad policy but offered actionable, market-based alternatives. Fred envisioned CEI as a home for bold ideas, where intellectual rigor and innovative thinking would flourish. His belief in the power of entrepreneurship and individual initiative became the cornerstone of CEI’s philosophy.
Under Fred’s leadership, CEI grew from a scrappy start-up to a leading think tank with a reputation for intellectual courage and practical solutions. Fred’s management philosophy was unconventional but effective. As Lassman recounted, Fred’s approach was summed up in his favorite quip: “Don’t manage.” This ethos encouraged CEI scholars to explore emerging issues, follow their passions, and take intellectual risks without fear of failure.
Fred’s leadership style created a culture of innovation, allowing CEI to tackle critical issues ranging from environmental regulation to technology policy. Lassman noted that Fred’s ability to trust his team and give them space to experiment was key to CEI’s success. It also set the organization apart from other think tanks that often succumbed to mission drift or bureaucratic stagnation.
One of Fred’s enduring contributions was his ability to connect complex policy issues to everyday concerns. He often said, “People are stupid because they’re smart,” a humorous but insightful observation that people focus on their personal lives rather than policy details, trusting organizations like CEI to safeguard their freedoms. This understanding guided CEI’s efforts to make public policy relevant to ordinary Americans.
Expanding Freedom: CEI’s Role in Defending the Private Sphere
Fred Smith’s intellectual framework emphasized the distinction between the public and private spheres. He believed the public sphere—government institutions and regulations—should be limited to preventing harm and resolving disputes. The private sphere, encompassing family, community, and enterprise, was where human creativity and flourishing thrived. CEI’s mission, as Lassman described, was not only to defend the private sphere from government intrusion but to actively expand it.
This principle informed CEI’s approach to regulatory policy, where it consistently advocated for reducing government intervention and promoting market-driven solutions. CEI’s successes in these areas are a testament to Fred’s vision. From challenging costly environmental mandates to promoting innovation in technology, CEI’s work has helped shape a freer, more prosperous society.
This year marked CEI’s 40th anniversary, a milestone that celebrated the organization’s achievements and Fred Smith’s legacy. The gala, held at the National Cathedral, was a fitting tribute to a man whose life’s work transformed the policy landscape. The event featured the Julian Simon Award, named after another great defender of free markets, and a lifetime achievement award for columnist George F. Will. These honors reflected the intellectual and cultural values that Smith championed.
As Lassman noted, one of Fred’s greatest accomplishments was keeping CEI true to its mission. In an era when many institutions drift toward ideological compromise or bureaucratic expansion, CEI has remained steadfast in its commitment to liberty and entrepreneurship. Fred’s insistence on “not pre-negotiating against yourself”—pushing for ambitious goals without compromising core principles—continues to guide CEI’s strategy.
Fred’s passing is a moment of profound loss for the policy community and for all who value the principles of freedom and personal responsibility. Yet his legacy endures in the work of CEI and the countless individuals he inspired. Fred’s belief in the power of ideas, combined with his boundless energy and optimism, created an institution that will continue to influence public policy for generations.
As CEI looks to the future, it does so as a living embodiment of Fred’s vision. The think tank’s focus on advancing free enterprise, defending individual liberty, and promoting limited government remains as relevant today as it was in 1984. Fred’s legacy challenges us to remain vigilant in protecting these values and to continue the fight against government overreach.
Fred L. Smith, Jr., was more than the founder of CEI. He was a mentor, a visionary, and a relentless advocate for freedom. His life reminds us that a single individual, armed with conviction and courage, can create lasting change. Smith’s work has made the world freer, more innovative, and more prosperous. His voice may be gone, but his ideas and principles will continue to inspire those who believe in the transformative power of liberty.
Safe home, Fred. Your legacy lives on in the enduring spirit of CEI and the countless lives you touched. Godspeed.
Andrew Langer is the Director of the CPAC Foundation’s Center for Regulatory Freedom and a CEI Alumnus.
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