Glenn Reynolds presents a modest proposal to reduce inequality, abolish the Ivy League:
Because if you’re worried about inequality among Americans, I can think of no single institution that does more to contribute to the problem.
As former Labor secretary Robert Reich recently noted, Ivy League schools are government-subsidized playgrounds for the rich: “Imagine a system of college education supported by high and growing government spending on elite private universities that mainly educate children of the wealthy and upper-middle class, and low and declining government spending on public universities that educate large numbers of children from the working class and the poor.
“You can stop imagining,” Reich wrote. “That’s the American system right now. … Private university endowments are now around $550 billion, centered in a handful of prestigious institutions. Harvard’s endowment is over $32 billion, followed by Yale at $20.8 billion, Stanford at $18.6 billion, and Princeton at $18.2 billion. Each of these endowments increased last year by more than $1 billion, and these universities are actively seeking additional support. Last year, Harvard launched a capital campaign for another $6.5 billion. Because of the charitable tax deduction, the amount of government subsidy to these institutions in the form of tax deductions is about one out of every $3 contributed.”
The result? “The annual government subsidy to Princeton University, for example, is about $54,000 per student, according to an estimate by economist Richard Vedder,” Reich pointed out. “Other elite privates aren’t far behind. Public universities, by contrast, have little or no endowment income. They get almost all their funding from state governments. But these subsidies have been shrinking.”
Nor does all this money go to enhance opportunities for the non-elites. Ivy League admissions are mostly tilted toward the upper-middle class and the wealthy. As Ross Douthat wrote in The New York Times, there is “a truth that everyone who’s come up through Ivy League culture knows intuitively — that elite universities are about connecting more than learning, that the social world matters far more than the classroom to undergraduates, and that rather than an escalator elevating the best and brightest from every walk of life, the meritocracy as we know it mostly works to perpetuate the existing upper class.”
Nor does the problem end there. Once you’re out of college, your chances of making it to the top are much, much greater if you’re an Ivy League graduate. Take the Obama administration. A National Journal survey of 250 top decision-makers found that 40% of them were Ivy League graduates. Only a quarter had earned graduate degrees from a public university. In fact, more Obama administration officials had degrees from England’s Oxford University than from any American public university. Worse yet, more than 60 of them — roughly a fourth — had attended a single Ivy League school, Harvard.
See my post The Ivy League and American Society, with thoughts on this subject from Peter Drucker.