Economist Targeted By Elizabeth Warren Had Long History of Corporate-Sponsored Reports

[applegrove]

Economist Targeted By Elizabeth Warren Had Long History of Corporate-Sponsored Reports

By David Sirota at the ib Times

http://www.ibtimes.com/political-capital/economist-targeted-elizabeth-warren-had-long-history-corporate-sponsored-reports

"SNIP..............



U.S. Senator Elizabeth Warren generated headlines last week when she raised questions about whether a Brookings Institution economist’s Wall Street-friendly report was unduly influenced by the financial firm that helped fund it. It was not the first time the connection between an ostensibly disinterested think tank and its funders had become a political issue. It also wasn’t the first time the economist, Robert Litan, published reports sponsored by those with vested interests in the subject matter.

Last year, the Brookings Institution faced questions about its decision to accept funding from anti-pension billionaire John Arnold for the think tank’s pension-related work. That same year, the New York Times published a report showing that “more than a dozen prominent Washington research groups have received tens of millions of dollars from foreign governments in recent years while pushing U.S. government officials to adopt policies that often reflect the donors’ priorities.” In 2005, Businessweek reported that a Cato Institute official resigned from the libertarian think tank “after admitting that he had accepted payments from indicted Washington lobbyist Jack Abramoff for writing op-eds favorable to the positions of some of Abramoff's clients.”

In the most recent iteration of the story, Litan, a Brookings economist, co-authored a study criticizing a proposed Department of Labor rule -- opposed by the financial industry -- to more stringently regulate brokers and compel them to prioritize their clients' financial interests. Litan's report specifically said proponents of the rule were "ignoring significant costs to millions of small savers that the rule would impose."

In her letter criticizing Litan, Sen. Warren noted that his study had been funded by a financial firm. She also noted that Litan said he accepted “feedback on our initial outline and some editorial comments” from the firm, the Capital Group.


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[Warpy]

1. I regard everything coming out of either right wing or self identified

"non partisan" think tanks with the deepest suspicion.

Thanks for confirming it yet again.

[applegrove]

2. The problem is that there is not pushback on economists going rogue..... until Warren that is. Also

Paul Krugman. But really it is the role of a politician to call out immoral behaviour in an institution that seeks to influence them.