Mason, you must be writing about the others and not me. I wrote
nothing that even implies anti-statism. I resent your insinuation
that I did. This thread started with a question about why modern
economists had not heard of great economists in the history of
economics like Knight. My suggested answer said that government
funding of universities and bureaucracy leads to standard setting and
teaching that is in the interests of the bureaucrats. Why, I asked,
would one expect government funding of universities and the
consequent bureaucratization lead to the study of Knight? Wouldn't
one expect the reverse?
Perhaps you did not realize that I was writing about bureaucracy.
Government funding over any length of time always leads to
bureaucracy because rules to protect against fraud and misuse must be
established to administer the funding. Private funding may or may not
lead to this.
As for a "fair and balanced" approach, government funding of
universities comes from taxpayers through legislators. Legislators
may be right, left, or center if such labels are meaningful. But they
tend to favor more spending on just about everything. Private funding
comes from a variety of people each of whom is likely to have some
political ideology. I suspect that because people in business tend to
earn more than those in other fields, more university funding comes
from people who favor free enterprise and private property rights
than from those who favor curbs on these and, implicitly, larger
government. I do not know of a study showing this, however; so, I
might be wrong. In any case, teachers at these universities are
still one step removed from the profit incentive. So, regardless of
the political persuasion of benefactors, they have some incentive to
set the publishing standards and create publishing opportunities in a
way that (1) minimizes the effort needed to administer them and (2)
best advance the careers of those who are likely to bring them the
most advantage. Example: Writing papers on Knight at the University
of Chicago or the University of Iowa would be a good career move. But
elsewhere, say Italy, it would make more sense to study Pareto or,
more to the point, some modern economist whose ideas can be
represented with a mathematical model.
Pat Gunning
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