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Does Wealth Inequality among Universities Pose a Threat to the American Economy? (Part 2)

May 14th, 2015 by dfarish

In Part 1 of this series, “It’s Good to Be the King,” I addressed a recent report from Moody’s Investors Services that predicted a growing separation of a relative handful of super-rich universities from the rest of higher education. I also considered the media coverage generated by the Moody’s report, and expressed my bewilderment that the report’s conclusions did not generate deeper analysis and greater concern.

Perhaps the reason that there was not more media attention and review was because Moody’s summation of the institutional wealth of the richest universities did not surprise many people. There is evidently a broad understanding – and perhaps even acceptance – that some universities have amassed significant wealth, and that the universities with the most recognizable names, and/or the strongest reputations, are often the wealthiest universities.

Does Wealth Inequality among Universities Pose a Threat to the American Economy? (Part 1)

May 6th, 2015 by dfarish

On April 16 of this year, Moody’s Investors Services published a report entitled “Wealth Concentration Will Widen for U.S. Universities.” This report was the subject of articles on the same day in such major media outlets as the Boston Globe, The Wall Street Journal and BloombergBusiness.

Higher Ed, Income Inequality & the American Economy (Part 3)

September 30th, 2014 by dfarish

In my last post, I considered the claim that more and better education is the answer to fixing our troubled economy. However, as I pointed out in the first post to this series (Sept. 8), there is a second explanation to the uneven nature of America’s economic recovery from the Great Recession: the game may be rigged to favor the very rich at the expense of everyone else. If this explanation has merit, then trying to repair the economy through more and better education will eventually prove to be not just futile but potentially very destructive to long-established institutions of higher learning.

Turning Grinches into Santas

January 7th, 2013 by dfarish

In my last post, I criticized wealthy campuses for focusing too much on the size of their endowments and the returns on their investments, and not enough on making their campuses financially accessible to more students. In this post, I will suggest why they strayed, and why it is important that they rediscover a more socially useful path.

It all begins with an analysis of mission and purpose. Private colleges were established in this country to meet the need of various religious denominations to prepare members of the clergy here in the colonies, rather than having to import them from Europe. A number of institutions still retain their religious affiliation, although very few of them limit their educational efforts to the preparation of clergy. However, most private colleges today have at best a distant relationship to a particular religious denomination, or have become entirely secular, and their educational programs have expanded dramatically to include all of the traditional arts and sciences, and very often professional programs as well.