[FoRK] wealth disparity amongst institutions of higher learning

Gregory Alan Bolcer greg at bolcer.org
Tue Dec 8 12:22:48 PST 2015


Minus the payout rates which fluctuate between 4.2 and 5.1% on average 
from 1998 through 2014, so your numbers are high by 30%.

"Larger institutions also tended to have a larger share of assets 
invested in alternative strategies, including hedge funds and private 
equity."  That means they can take more risks with the money and thus 
more rewards, but you can't think that risky investments will be worth 
the risks for decades (plastics, man, plastics) or else they wouldn't be 
paying higher returns.

But...so what?  University endowments make too much money so we should 
tax them more?  That breaks the social contract where endowments are 
used to foster the universities for general economic benefit, but 
without having to fund them with scarce government tax dollars as hard 
budget item costs.  Even better they get the benefit of a 
public-private-partnership that creates trillions upon trillions of 
dollars of economic benefits that are taxed.

Greg

On 12/8/2015 12:12 PM, dan at geer.org wrote:
> which, at 15.5%, means that endowment earns, per undergraduate per year,
>
>      $682,155 Yale University
>
>      $611,475 Princeton University
>
>      $528,240 Harvard University
>
>      $454,460 Stanford University
>
>
> --dan
>
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-- 
greg at bolcer.org, http://bolcer.org, c: +1.714.928.5476


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