Front-page editorials, disguised as news stories, have become such familiar features of the New York Times that it should have been no surprise to discover in the December 28th issue a front-page story about a professor of finance at the University of Houston who has been a paid consultant to financial enterprises.
Since professors of all sorts have been paid consultants to organizations of all sorts, it is questionable why this was a story at all, much less one that covered an entire inside page, in addition to a central front-page opening, under the headline “Academics Who Defend Wall St. Reap Reward.”
Do academics who attack Wall Street, as consultants to government agencies or other organizations, not get paid?
Like the corrupt French official in the movie classic “Casablanca,” the New York Times is “shocked, shocked” to discover that consultants get paid defending the kinds of people that the New York Times attacks.
Where has the New York Times been all these years, as government agencies of all sorts spend the taxpayers’ money not only to hire consultants but also to hand out research grants to professors, institutions and programs that promote the kinds of policies that serve the institutional interests of these agencies?
Back when I was an economist at the U.S. Department of Labor, many years ago, officials there spoke in reverential tones about Professor Richard A. Lester, an economist at Princeton University who sometimes came down to Washington to advise the Department.
Although many other economists argued that minimum wage laws increased unemployment, especially among young unskilled workers, Professor Lester had questioned whether minimum wages had the bad effects that other economists said they had.
His view was very congenial to the institutional interests of the Department of Labor, a substantial part of whose appropriations and employment was based on its administration of the minimum wage law.
In fairness to Professor Lester, there is no reason whatever to think that his views were based on the money he got from the government. His views were undoubtedly what they were, well before they came to the attention of the Labor Department, which then decided that he was someone whose services they wanted. MORE