The classic “runaway higher education” story is about the vicious cycle in higher education prices spawned by government subsidies. However, yesterday a few essays in the Wall Street Journal warn of another runaway scenario: the most well endowed universities have reached a point at which they are no longer dependent on anyone for funding.
Fay Vincent warns that with such vast endowments universities will no longer be accountable to any outside entity. “In the present circumstances, the administration and boards of these schools now control the money because the endowment is managed by internally controlled entities.” The Dartmouth coup is just a preview of things to come.
To this point universities depended on students, alumni, and (except for Hillsdale and Grove City colleges) the government to sustain their operations. The most endowed universities have just recently reached a point at which they can readily afford not only to snub donors but also to stop charging tuition, should they so desire.
For what did the generations of alumni and donors who built these institutions hope? A majority probably donated so that their children could eventually enjoy the same college experience as their parents. “Legacy” admissions used to be an explicit mandate at these institutions, and only recently have life-long donors realized that competitive schools are no longer reciprocating the financial commitment of their alumni.
Other donors may have donated to the ideals for which an institution stood in the past. Depending on the era this might have included any of the following:
- Preservation of Western civilization
- Subversion of Western civilization
- Promotion of WASPs
- Promotion of colored minorities
- Promotion of conservative ideals
- Promotion of liberal ideals
Over the past century private higher education has given us a taste of each of these, indubitably to the consternation of large groups of preceding alumni and founders. One hopes that astute donors discerned the whimsical nature of academia and never gave substantial gifts without tight controls to ensure that their vision was honored.
The alarming fact is that, regardless of the original intent of the donors, the unrestricted endowments of top universities are now so large that they have essentially purchased their administrators independence from any oversight. For those who aren’t already appalled at the fact that private colleges have become bastions of anti-American, anti-capitalist liberalism, we could imagine any number of appalling scenarios engineered by faculty and administrators with vast resources and no accountability outside of their own ivory tower.
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