Reports from the Economic Front

a blog by Marty Hart-Landsberg

Where Do Our Ideas About The Economy Come From?

Where do our ideas about the economy come from?  Apparently, they are chosen for us by those with great wealth who want even more. 

As reported by the St. Petersburg Times:

A foundation bankrolled by Libertarian businessman Charles G. Koch has pledged $1.5 million for positions in Florida State University’s economics department. In return, his representatives get to screen and sign off on any hires for a new program promoting “political economy and free enterprise.” . . .

The contract specifies that an advisory committee appointed by Koch decides which candidates should be considered. The foundation can also withdraw its funding if it’s not happy with the faculty’s choice or if the hires don’t meet “objectives” set by Koch during annual evaluations. . . .

During the first round of hiring in 2009, Koch rejected nearly 60 percent of the faculty’s suggestions but ultimately agreed on two candidates. Although the deal was signed in 2008 with little public controversy, the issue revived last week when two FSU professors — one retired, one active — criticized the contract in the Tallahassee Democrat as an affront to academic freedom. . . .

The foundation partnering with FSU is one of several non-profits funded by Charles Koch (pronounced “coke”), 75, and his brother David, 71. The aim: To advance their belief, through think tanks, political organizations and academia, that government taxes and regulations impinge on prosperity. . . .

The Koch brothers own the second biggest private U.S. corporation, maker of such popular products as Brawny paper towels, Dixie cups and Stainmaster carpet. Koch Industries, which had $100 billion in sales last year, also owns thousands of miles of oil pipelines, refineries and Georgia-Pacific lumber. The Koch brothers are each worth $22 billion.

Charles, chairman and CEO of Koch Industries in Wichita, Kan., cofounded the Cato Institute, a policymaking group, in 1977. His brother serves on the board. David, who lives in Manhattan and is Koch Industries’ executive vice president, in 2004 started the Americans for Prosperity Foundation, which has worked closely with the tea party movement.

The Charles G. Koch Charitable Foundation, to which he has given as much as $80 million a year, has focused on “advancing social progress and well-being” through grants to about 150 universities. But in the past, most colleges, including Florida Gulf Coast University in Fort Myers, received just a few thousand dollars.

The big exception has been George Mason University, a public university in Virginia which has received more than $30 million from Koch over the past 20 years. At George Mason, Koch’s foundation has underwritten the Mercatus Center, whose faculty study “how institutions affect the freedom to prosper.”

When President George W. Bush identified 23 regulations he wanted to eliminate, 14 had been initially suggested by Mercatus scholars. In a New Yorker profile of the Koch brothers in August, Rob Stein, a Democratic strategist, called Mercatus “ground zero for deregulation policy in Washington.”

Now, rather than taking over entire academic departments, Koch is funding faculty who promote his agenda at universities where there are a variety of economic views. In addition to FSU, Koch has made similar arrangements at two other state schools, Clemson University in South Carolina and West Virginia University. . . .

In addition to funding two slots, Koch has also donated nearly $500,000 for graduate fellowships. So far only BB&T, the bank holding company, has joined the effort, with its foundation pledging $1.5 million over 10 years. The money is being used to hire an instructor who is not eligible for tenure; BB&T had no control over the hire, Rasmussen [Dean of the College of Arts and Sciences at Florida State University] said.

A separate grant from BB&T funds a course on ethics and economics in which Ayn Rand’s Atlas Shrugged is required reading. The novel, which depicts society’s collapse in the wake of government encroachment on free enterprise, was recently made into a movie marketed to tea party members.

“If somebody says, ‘We’re willing to help support your students and faculty by giving you money, but we’d like you to read this book,’ that doesn’t strike me as a big sin,” said Rasmussen  of the BB&T arrangement, which the bank has with about 60 schools. “What is a big sin is saying that certain ideas cannot be discussed.”

Nor does he fear that the agreements with Koch and BB&T will prompt future donors to demand control over hiring or curriculum.

Said Rasmussen, “I have no objections to people who want to help us fund excellence at our university. I’m happy to do it.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: