NYT Smears Craig Pirrong, Scott Irwin
| Peter Klein |
The NYT runs a hatchet-job on the brilliant financial economist (and former O&M guest blogger) Craig Pirrong. Apparently Craig not only does academic research on commodity markets and participates in public policy debates about commodity-market regulation but also — gasp! — is a paid consultant for commodity-trading firms. Without detailing any specific impropriety, the Times implies that Craig is little more than a shill for big evil corporations, or something. “Academics Who Defend Wall St. Reap Reward,” screams the Times headline.
Thousands of economists are paid consultants for the Federal Reserve System, World Bank, IMF, USDA, and virtually every government agency around the world, but you will never hear the Times suggest that their research or public advocacy could in the slightest way be compromised by these ties. As Larry White and E. C. Pasour have pointed out, the academic work funded by government agencies nearly always — surprise! — comes out in defense of those agencies, their missions, and their generous contributions to the public good. Did the prospect of heading the world’s most powerful economic planing agency influence Janet Yellen’s public testimony, her research, or her leadership at the San Francisco Fed? Can you imagine a Times headline, “Academics Who Defend Fed Reap Reward”?
Scott Irwin, a distinguished agricultural economist at the University of Illinois is also targeted. Again, the message is clear. If you oppose the Times’s editorial position on regulation (or any other issue), you are compromised by financial or other ties. If you support the Times’s position, you are a scholar or public figure of great integrity.
Update: See also Felix Salmon’s excellent summary of the “non-scandal.”