As the Libertarian candidate for Arkansas state treasurer, Michael Pakko said his goals include providing Arkansans with more insight into the workings of the state treasury and conducting a comprehensive review of the state’s finances. He said that these plans are motivated not only by his career in economics and teaching but also by his party’s beliefs and its independence from the two-party system.
“When it comes to electing a state treasurer who will keep an eye on the people’s money, it just makes sense to choose a candidate who is not beholden to the two major political parties and the special interests that they represent,” he said. “The voters seem to find that message particularly relevant and appealing.”
Pakko is a noted Arkansas economist who worked for the Federal Reserve Bank of St. Louis for 16 years before assuming his current position as chief economist and state economic forecaster at the Arkansas Economic Development Institute in 2009. He said he is intent on providing the people of Arkansas with a clearer view of the state’s finances presented in a way that is easy to understand.
“As an economist tracking the Arkansas economy, I am often frustrated by the lack of quality data. Information about the state’s finances is scattered, with most of the available information from the Department of Finance and Administration,” he said. “The treasurer’s office has a wider purview than the DFA and could, therefore, bring a broader, independent perspective.
“It’s all about government transparency, which is an important value for Libertarians. If the people rule, regnat populus, then government institutions and officials should be as open and transparent about government operations as possible.”
In addition to working with the DFA and other state data providers to coordinate and present a more comprehensive view of the state’s finances, he said he plans to commission an independent outside review of the state’s investment policies, specifically by following up on a 2019 review by academic finance experts at the University of Arkansas at Little Rock.
“The need for a reexamination of the state’s investment strategies is particularly relevant today because we find ourselves in a new financial environment,” he said. “Years of operational surpluses have helped to build up reserve funds, and we are now in a higher interest rate environment. The paramount ranked goals of safety, liquidity and return are sacrosanct, but we should be open to periodically review the best strategy for satisfying those objectives.”
As state treasurer, Pakko said he would be a diligent steward of the people’s treasury and added: “That should go without saying. It’s a basic prerequisite of the job.” He does not propose making sweeping changes to the office, saying, “The office is staffed by diligent professionals who do not need a new politician to tell them how to do their jobs.”
“Instead, I intend to use the bully pulpit of a state constitutional officer — one from outside the mainstream political system — to bring unbiased information and analysis about the state’s finances directly to taxpayers,” Pakko said. “I intend to give the office a more public-facing role, reporting to and directly responsible to the people of Arkansas.”
He added that he also plans to embrace the treasurer’s role as chair of the Arkansas Financial Education Commission, a role that was established in 2021.
“As a lifelong teacher of economics, the advancement of economic and financial education has always been an important priority for me, and I intend to devote my utmost attention to expanding the effectiveness and reach of this initiative, building on the groundwork laid by my recent predecessors in the office,” he said.
When asked about principles that he felt passionate about, Pakko said he is dedicated to ensuring economic analysis is not exploited for propaganda.
“As much as some might like to say that ‘economics’ is on their side, I am exasperated when I see the misuse of data, methodology and the scientific method,” he said.
One example he cited was his research on the economic impact of smoking bans at bars, restaurants and casinos, for which he published, among other scholarly articles, a rebuttal in “Tobacco Control,” an anti-tobacco public health journal.
“It’s a complex, multi-dimensional issue,” he said, “but when I saw some examples of the publications that were being passed off as economic analysis, I launched into a research agenda to bring proper methodology to the subject.”
A long-time Libertarian who believes the U.S. is not adequately served by the two-party system, Pakko said the Libertarian Party champions the freedoms set forth by the Founding Fathers when it comes to individual liberty, personal responsibility, free-market economics and a foreign policy of nonintervention.
“I am passionate about supporting the growth and success of the Libertarian Party,” he said. “Properly understood, I believe the Libertarian message is optimistic toward the future: a world where peaceful individuals are free to live their lives as they see fit without interference from government.”
He added that the 2024 state treasurer race represents a unique opportunity for third-party candidates.
“This year, with treasurer being the only statewide race in Arkansas, the conditions seemed especially favorable for a well-qualified third-party candidate to break through the typical din of the election season and gain some traction,” he said. “Circumstances have aligned to make this campaign seem like something I was meant to pursue. It feels like a calling — a call to service.”
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