I do have to take issue with the idea that the "institutionalists" opposed
Friedman's appointment at Wisconsin because they feared math coming in and
supplanting their own approach. Wisconsin had a long history of strength
in the teaching of statistics, first with Thomas S. Adams and then with
Harry Jerome. Wisconsin had close contacts with the NBER, Commons serving
on the Board, Jerome and Willford King being members of the early research
staff. Jerome died in 1938 and the teaching of stats in the economics
department passed to members of the math department who were nowhere near
as up to date as Jerome had been. Bringing Friedman to Wisconsin was the
idea of Harold Groves (himself one of the institutionalist group, and a
person heavily involved in the passage of Wisconsin's unemployment
insurance bill) who wanted him to work on an NBER project at
Wisconsin. Friedman was not seen at that time as particularly
non-institutionalist, he was seen as someone with strong empirical skills,
and trained in good part at the Bureau. He was an NBER man! Groves had
the idea that Friedman should review the statistics offerings at
Wisconsin. This, of course put Friedman, as a very junior (and visiting)
member of the faculty, in a very unenviable position. Friedman wrote his
report, a very critical one, as one might expect. Groves wanted Friedman
appointed as an assistant professor, despite his not having his PhD. The
vote on that was 5 to 4 against with Groves, Leschohier, Taylor, and
Perlman in favor. The matter then became heavily embroiled in university
politics.
There was some degree of anti-semitism at Wisconsin, but a great deal less
than at most ivy league schools. Perlman had experienced some of that, and
even among those who thought of themselves as "liberal" there was an
attitude of "see how liberal we are to accept these people." I have no
doubt that anti-semitism played its part, but it is quite inaccurate to
portray this event as institutionalists on one side against the math econ
types on the other. Witte was opposed, but probably motivated most by a
desire not to offend the existing instructors of the statistics
courses. The institutionalists were in fact on both sides of the issue,
and of course Friedman was being used by Groves to try to achieve his
desire to regenerate the former level of statistical expertise within the
Department.
Malcolm Rutherford.
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