Austrian Economics Research Conference, Citation by Wall Street Journal Editorial Page

I spent Thursday through Sunday at the Austrian Economics Research Conference, which is sponsored by the Mises Institute. The Mises Institute is next door to Auburn University.  The conference is small but lively, and the speakers were excellent. I was delighted to meet Bob Luddy, the founder of CaptiveAire Corporation; Hans Herman Hoppe, who received an achievement award;  Sam Johnson, who is a retired Exxon executive who adjuncts at Auburn University; and the founder of the Mises Institute, Llewellyn H. Rockwell, Jr.

I gave a presentation on the historical evolution of political groupthink and intolerance in higher education. It went well, and I am looking forward to further exploring the data that I presented. 

While I was at the conference, someone from Boston emailed me to ask for links to the work I've done on faculty political affiliation because the Wall Street Journal (paid access) editorial page had cited my research on Friday.  I was thrilled to get the cite, but I disagree with the editorial.

According to the Journal,  President Trump's executive order has the right impulse, but the executive order is unclear.  It merely mandates that a list of federal agencies review incursions on free speech on campus.

The Journal argues that absent the executive order markets will correct for incursions on free speech, but the institutional history suggests otherwise.  Colleges have received enormous institutional support from government and from tax-exempt foundations, and much of this support has had ideological strings attached. Such support extends to tax-exempt endowments that shelter the leading colleges from market concerns.  As well, monopolistic media that collude with and ideologically support Antifa extremists on campus support the reputations of colleges that abuse free speech. The major media outlets take their cues from and collaborate with campus Antifa terrorists.

As it is written, the executive order merely encourages agencies that oversee funding to colleges to consider whether the colleges are violating federal laws, including the First Amendment.  One of the laws is Section 501(c)(3), which prohibits tax exemption for political or ideological advocacy.  Although when in power the Democrats may abuse these provisions, they have already abused their privileges to an unlimited extent, so that the current intolerance on college campuses can hardly be increased.  Hence, there are limited downside risks from the Democrats, who have shot their wad.  When Republican administrations are in power, they now have some impetus to enforce the law and at times to revoke tax exemptions of endowments.  Although the threat to colleges may be intermittent because it is limited to Republican administrations, colleges need to think long-term because it is difficult to change programs and policies.  Hence, an intermittent threat is almost as good as a permanent one.

An additional step that the Trump administration might take is to make explicit that all federal aid is contingent on compliance with the First Amendment and that when colleges violate First Amendment Rights affected individuals have a cause of action that includes punitive damages.