July 12, 2007
The NY Times has a slanted view of the economics profession's slant

Arrgh. It’s enough to make one suspect left-wing media bias on the part of the NY Times. The story by Patricia Cohen opens:

For many economists, questioning free-market orthodoxy is akin to expressing a belief in intelligent design at a Darwin convention: Those who doubt the naturally beneficial workings of the market are considered either deluded or crazy.

But in recent months, economists have engaged in an impassioned debate over the way their specialty is taught in universities around the country, and practiced in Washington, questioning the profession’s most cherished ideas about not interfering in the economy.

But none of this is true (except for the statement that economists have been debating). Here is how Daniel Klein and Charlotta Stern summarize the results of conducting an actual survey (rather than relying on highly selective anecdotes like Cohen does),

We find that about 8 percent of AEA members can be considered supporters of free-market principles, and that less than 3 percent may be called strong supporters. The data is broken down by voting behavior (Democratic or Republican). Even the average Republican AEA member is “middle-of-the-road,” not free-market.


So in fact, for better or worse, questioning free-market policies is very mainstream. Those who “doubt the naturally beneficial workings of the market” are not ipso facto considered deluded or crazy. The reverse is closer to the truth. Ideas “about not interfering in the economy” – later in Cohen’s articles such ideas are identified with Milton Friedman -- are not the profession's "most cherished ideas". (Much less are they practiced in Washington!)

So what is Cohen’s anecdotal evidence that criticism of the free market renders one an “apostate” (Blinder’s term)? (1) Alan Blinder is sore about the criticism he has received over his claim that outsourcing and trade may result in a loss of 30 to 40 million American jobs. (2) David Card is sore about the criticism he has received (and pointed questions his students have gotten on the job market) over his much-debated finding (with Alan Kreuger) that a hike in the minimum wage didn’t cost jobs in the New Jersey fast-food industry (described fawningly by Cohen as “groundbreaking research on the effect of the minimum wage”). Sorry, soreheads, but that’s no evidence that free-market ideology rules the roost. Everybody’s claims get criticized. Ask any free-market economist if he or she receives criticism.

Finally, Cohen notes that

In addition to Mr. Blinder, other eminent economists like Lawrence H. Summers and the Nobel Prize-winner George A. Akerlof have pointed out what they see as the failings of laissez-faire economics.

So this is evidence for the proposition that critics of the free market are treated like apostates? That the critics of the free market include Blinder, a Princeton professor and former Federal Reserve governor, Summers, a Harvard professor and former Treasury Secretary, and Akerlof, a Nobel laureate? Seems to me like evidence against that proposition.

Posted by Lawrence H. White at 12:24 AM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

Our Bloggers
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Craig Depken
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden
Noel Campbell

Blogroll

Search

Archives
By Author:
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Edward Bierhanzl
Craig Depken
Ralph R. Frasca
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden
Noel Campbell

By Month:
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004
September 2004
August 2004
July 2004

Powered by
Movable Type 2.661

Site design by
Sekimori

XML