Insiders lamented a pursuit of prestige, evidenced by Baroody's hiring of Ford as a distinguished fellow, at the expense of more ideological conservative scholars. Some donors were concerned about AEI's centrist trend and perceived loss of conservative principle. With AEI on the verge of bankruptcy in June 1986, Baroody resigned and was replaced on an interim basis by the respected economist Paul McCracken. Baroody was born in Manchester, New Hampshire. He was a member of the Melkite Greek Catholic Church. He was educated at Holy Cross College, he later served in the U.S. Navy. He was divorced from his wife, Mary, at the time of his death, and he had nine children and thirteen grandchildren. Baroody's brothers include Michael Baroody, a corporate lobbyist, and Joseph Baroody, a former leader of the National Association of Arab Americans. Baroody died in 1996 in Alexandria, Virginia.