What are everyone’s opinion on school endowments?
Was listening to Malcolm Gladwell on this topic, and I was curious to see what the typical libertarian thinks about this.
Large institutions, like Yale and Harvard, have billions of dollars in endowment funds, and these funds make up the main source of income for these schools. Apparently, Yale even pays a hedge fund $480 million annually to manage their endowment. All the while, tuition typically ranges from $50,000-$100,000 at these schools, and while some are private institutions, they are largely subsidized and receive tax-exempt status.
Ultimately, I believe these places can do what they want with their money, and I don’t think they should be faulted for having more money than other colleges. However, all in, it seems that this is an unfair system that largely benefits the more prestigious schools.
Just curious on everyone’s thoughts on the whole endowment system and what could be changed.
Article from r/Libertarian: For a Free Society