In an admonition evocative of Cato’s own mission, a young Abraham Lincoln cited our responsibility as U.S. citizens to pass on to future generations both the country we inherited and its “edifice of liberty and equal rights.” He famously suggested that the true threats to America would come not from the outside but from within: “If destruction be our lot, we must ourselves be its author and finisher.”

We live in a time when this warning feels prescient. Intense polarization and toxic partisanship have turned the focus of too many people away from the principles and policies they support and toward an obsession with what—and whom—they’re against. Liberty is challenged as Americans abandon principle in pursuit of state power, which they can then wield against political adversaries. In such an environment, the rule of law and constitutional limits—and long‐​standing norms critical to the functioning of both—are cast aside because the ends are always allowed to justify the means. Freedom is at risk.

Against this sobering backdrop, we see seeds of opportunity for transformational change—opportunity rooted in Cato’s consistent stance. First, Cato has an unshakeable adherence to our principles and a fierce commitment to independence and nonpartisanship. Second, Cato’s primary focus is not on what we oppose but on what we support: the opportunity for every individual and family to flourish when state power is limited and when a thriving civil society allows each of us to own our life, decisions, and destiny. This is the optimistic vision of the world that freedom and openness can create.

Within each of today’s threats are opportunities for Cato—and we’re poised to leverage them. Toxic partisanship is a threat to liberty and limited government but an opportunity to reach and persuade an exhausted (and growing) middle majority that is increasingly willing to listen to a unique voice based on principle, reason, analysis, and civility. Intense polarization is a threat to our country but an opportunity to use Cato’s reputation for independence and nonpartisanship to work across the ideological spectrum to advance shared objectives. Ever more reckless policy represents a threat to the well‐​being of future generations but is an opportunity for Cato—as it becomes clearer to all that misguided policy is not working—to advance what does work: markets and free enterprise, educational freedom, freedom of expression, and limited constitutional government.

Cato aspires to a higher level of performance every year so that we’re best able to take on these threats and exploit the attendant opportunities. Last year’s annual report captured our continuing plans to add intellectual firepower to defend free markets and free enterprise more strongly, to keep increasing Cato’s external engagement, to bring the ideas of liberty to life for new and expanding audiences through investments in technology and creative talent, and to inspire young people and students through innovative new programs. In 2022, we made substantial progress on all these fronts.

Of course, continuously reaching for higher performance is a serious responsibility we have to you, the generous partners whose voluntary contributions make our efforts possible. We’ll always endeavor to create the best ideas and largest influence and impact from the resources you entrust to us. And doing so is creating a stronger Cato—fueled by a sense of urgency—that is prepared to meet today’s challenges.