Something strange happened to me the other day. I attended a university seminar—and it actually promoted free markets.
I really wasn’t surprised, however. In its president’s words, the university—a business school, to be precise—is based on an “unapologetic advocacy of a free and competitive global economy.“
That is not the kind of philosophy espoused by most business schools. Most business schools craft broad, bland, deliberately inoffensive mission statements, ranging from the pursuit of excellence in “the technology-driven, global marketplace” (Wake Forest) to educating students “who value integrity, teamwork, community and a passion for learning” (UNC Kenan-Flagler).
But such mission statements don’t say anything about the system in which business operates or why protecting that system matters. Perhaps that is why business, and its underlying philosophy of capitalism, is so often under attack—few people, including business school graduates, can defend it on principle.
In contrast, Northwood University, headquartered in Midland, Michigan, and with two campuses in Texas and Florida, defends free enterprise and limited government as the cornerstone of economic growth. Founded in 1959 as the Northwood Institute, the school celebrates the “Northwood idea,” which combines solid preparation for a business career with an understanding of the principles of a free-enterprise economy, including commitment to ethical behavior.
The seminar I attended was the school’s Freedom Seminar, an annual event that started in 1978. Held in a downtown Detroit hotel, it was primarily for Northwood students (who received course credit for attending it and completing written assignments), but the public was also invited. About fifty people attended the seminar, which featured lectures about the dangers caused by the growing intrusion of federal government.
Speakers included well-known figures in the free-market community, such as Michael Tanner of the Cato Institute; John Blundell, former director general of the British Institute of Economic Affairs; Richard Stroup, a cofounder of the Property and Environment Research Center (PERC); and George Leef of the Pope Center (who taught at Northwood some years ago).
The participation of free-market think tanks at a Northwood seminar isn’t surprising because Northwood’s history is entwined with one of the first free-market think tanks, the Foundation for Economic Education (FEE), founded in 1946 by Leonard Read. Many of the articles that comprise the text of the required course in the philosophy of business, When We Are Free, come from the libertarian journal The Freeman, published by FEE. All freshmen are required to take the course, which defines business in the context of a free-market economy.
Also, one of Northwood’s first intellectual leaders was V. Orval Watts, who had been an adviser to Read at FEE. And in the late 1970s, the chairman of its economics department was Lawrence Reed, now the president of FEE. Today, Richard Ebeling, former president of FEE, teaches economics at Northwood.
Northwood’s economics department is what one professor called “Austrian sympathetic”—also similar to FEE’s approach. A lot of its teaching reflects the Austrian school of economics, which emphasizes the role of the entrepreneur and distrusts government intervention, including intervention by the central bank. (Friedrich Hayek and Ludwig von Mises are prominent Austrian-school economists.)
Northwood has some other distinctive characteristics besides being committed to the support of liberty. It is primarily a “teaching school”—instructors are evaluated on their teaching, not their research. And, in keeping with its emphasis on both freedom and responsibility, its faculty aren’t protected by tenure.
Northwood’s chief drawback is that it isn’t well known outside its local area; two business school professors I spoke to (one in North Carolina, one in Texas) hadn’t heard of it, even though they share a free-market orientation. That is partly because, as a teaching institution, Northwood doesn’t hire prominent figures known for their research in business issues. Today, such research seems to be de rigueur at highly ranked business schools, regardless of whether it increases students’ knowledge or not.
Nor does Northwood promote its free-market philosophy among the foundations, think tanks, and other components of the free-market movement. Two other schools, Hillsdale and Grove City College, have benefited enormously by seeking out students and supporters in that community. (They differ from Northwood in that they do not accept any federal funds, including federally guaranteed student loans.)
Northwood’s reluctance to promote itself to think tanks that share its philosophy could be changing, however. The school has received a grant from the Charles G. Koch Foundation to support the academic development of economics students. The Charles G. Koch Foundation is prominent for its support of free-market and Austrian economics programs at universities.
In fact, six Koch scholars from Northwood gave presentations at the seminar I attended, and theirs were among the best of the talks: short, cogent presentations on basic issues such as global warming, Social Security, K-12 education, and global competitiveness.
While some Koch scholars will go on to further academic work, most students at Northwood are focused on business careers. The interests of those who attended the seminar were varied; a few simply needed the credits in order to graduate. But all whom I spoke to seemed serious about their education. One I chatted with worked in property management and was getting her business degree while continuing her job. Another, a senior, was hoping to get a job in social network marketing at Dow Chemical, which is located near the Midland, Michigan, campus.
Northwood is known for distinctive undergraduate majors. In addition to traditional business majors such as economics, accounting, management, and marketing, students can specialize in fields such as automotive aftermarket management; entertainment, sport and promotion management; and fashion marketing and management.
More than anything, Northwood reminds me of Francisco Marroquin University in Guatemala, one of the few free-market universities (possibly the only one) in Latin America, a school admired by U. S. supporters of free enterprise but little known to others. The schools share a commitment to free enterprise, a philosophy stated in their founding documents; they hire only instructors who are willing to teach in the light of that philosophy; and they have no faculty tenure. Yet they also provide strong practical career education, which gives their students the tools for success.
All in all, I hope that in the years ahead Northwood will increase its reputation, especially among those who share its values. It would be especially nice if it would aggressively expand beyond the narrow boundaries of its business emphasis to promote its philosophy to a broader audience. And I hope that its graduates—starting with those I met—do well in this difficult job market.
Editor’s note: The original article incorrectly said that economics per se was a concentration, not a major. That has been changed (July 2, 2010).