I now agree with Warren and Malcolm and apologize to one
and all for my faulty memory on the mattter. I think it came from
the fact that the effort to hire Friedman was associated with his
report and an effort to improve the teaching of statistics at the UW.
However, there was no anti-math-econ aspect in the opposition
to his hiring. Those who had been teaching stats were in the School
of Commerce and this would have involved taking the course away
from them. There was a broader issue of whether econ would be
in the Commerce School or not, and those opposing Friedman were
those who most favored joining the Commerce School. A basic
fact is that pretty much everybody in the department then was an
institutionalist; 7 out of the 9 voting on Friedman's appointment
were students of either Ely or Commons (and the other two were
solid institutionalists). The swing vote was the Department Chair,
Edwin Witte, father of US social security and the Wagner Act,
founder of the IRRA, and one of the leading institutionalists of the
mid-20th-century.
I have before me _Economists at Wisconsin: 1892-1992_,
edited by Robert J. Lampman, 1993, published by the Economics
Department of the University of Wisconsin (Board of Regents holds
the copyright), not the UW Press. It was the last work of Bob
Lampman before he died of cancer. As near as I can tell, Lampman
himself, a student of Witte's, wrote the section "The Milton Friedman
Affair at Wisconsin, 1940-41" (pp. 118-121). After recounting the
general facts of what happened, it then provides six different perspectives
on it, several from letters sent to Lampman long after the fact, including
one from Friedman himself, and one from the leader of his opponents,
Walter A. Morton to Mark Perlman, who of course denied the charge
of anti-Semitism. I will quote from the letter Friedman sent to Lampman
on Dec. 5, 2000.
"I did not at the time regard anti-Semitism as the major factor
involved in the affair and I do not now. Unquestionably, the major
factor was the controversy between the School of Commerce and the
economics department, and the desire by the School of Commerce to
take over the economics department. However, a minor subtheme
was indeed anti-Semitism....[Walter Morton's] recollection years later
of the affair and his letter to Mark Perlman do not alter my view on the
matter."
The letter to Perlman (presumably reading this on this list), was
written on April 28, 1981 and is reproduced in the book. I shall not
reproduce it, however a peculiar tidbit is that Morton recalls a discussion
with then Dean George Sellery, taking credit for Sellery's support of
Friedman, and quoting Sellery (after the negative departmental vote)
as saying, "This is not the Third Reich."
As a further note on this, Morton was formally censured by the
department in 1957, although not specifically for his role in the Friedman
affair. A strong institutionalist, and the first to introduce Keynesian
ideas at Wisconsin, he was described as "iconoclastic," "maverick," "irascible,"
"unpredicable," "volatile," and more, and got into many vigorous fights
over many things with many of his colleagues, although most vigorously
with Harold Groves, who was Friedman's strongest advocate in 1941
(for details see pp. 83-85 of cited volume).
While I am at it I should also correct my account of the Ely affair
at Wisconsin, which is the ostensible link with Ross and got me on this
to begin with, as I was also sloppy with it. It is also covered in this book
Ely had founded the School of Economics, Political Science, and History
when he arrived from Johns Hopkins in 1982, brought in largely at the
behest of the historian of the American frontier closing, Frederick Jackson
Turner. In 1894, during a bad recession accompanied by radical labor
unrest, Ely was attacked in print in a journal called the Nation (unsure if
it has any link with the current periodical of that name, but it was quite
conservative) as an "anarchist" by Oliver E. Wells. Mr. Wells was the
state superintendent of schools in Wisconsin, a Democrat, and also a
member of the University of Wisconsin's governing Board of Regents.
The article truly fulminates in a way that shows where Joe McCarthy
came from, but specifically charged Ely with being a "socialist" (in fact,
Ely was associated with the Christian socialist movement), and made
more specific allegations of providing advice to an "agitator" who led
a printers' strike. It was Wells who instigated a formal hearing by the
Board of Regents to fire Ely. Crucial to the dismissal of the case was
the fact that the agitator in question apparently had spoken with a
student of Ely's and not Ely himself. Regarding the socialism charge,
based on selective quotations from Ely's voluminous writings, his
defenders produced quotations from the writings of Adam Smith
and other pro-market luminaries, taken out of context, which would
make them look like socialists also. Just to get this right I will quote
the very famous final two sentences of the Board of Regents report,
portions of which are now in the plaque on Bascom Hall, placed there
in 1915.
"In all lines of academic investigation it is of the utmost importance
that the investigator should be absolutely free to follow the indications
of the truth wherever they may lead. Whatever may be the limitations
which trammel inquiry elsewhere we believe the great state of Wisconsin
should ever encourage that continual sifting and winnowing by which alone
the truth can be found."
Ely's own recounting of this affair appears on pp. 59-66 of the book
cited above.
Finally, given the upcoming AEA meetings, let me note that Ely
founded the AEA in 1886 as a counterweight to the Political Economy Club, which
had been founded by Ely's longtime rival, James L. Laughlin with Simon
Newcomb. This club strongly supported laissez-faire and the emerging
neoclassical theoretical position. Laughlin would serve as longtime Head
of the economics department at the University of Chicago, retiring in 1916.
The account in this book (pp. 52-55) credits him with establishing the
"Chicago School" path that continues today. The Political Economy Club
dissolved in 1905, perhaps because its members perceived that they
would be successful in taking over the AEA (Witte would be the last
"old" institutionalist president of the AEA, in 1956, unless one counts
John Kenneth Galbraith). Although I do not know this for sure, I suspect
that the name of the Chicago-based Journal of Political Economy is the
last remnant of that group, now formally deceased for a full century.
Again, I apologize for shooting off my mouth based on half-baked
memories. Hopefully, the record is now straight and reasonably accurate.
Barkley Rosser
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