Are you worried about inequality? I am not. You are not supposed to say it, but inequality is an important motor of progress, as James Piereson has shown in The Inequality Hoax. But if the thought of inequality keeps you up at night, you should get behind Glenn Reynolds’ suggestion that we abolish the Ivy League. Really, is there a greater engine for the perpetuation of inequality than those bastions of wealth and (mostly white) privilege?
But perhaps outright abolishing Yale, Harvard, Princeton, and the other top colleges is a step too far. Maybe, as Glenn has also suggested, we should just address the issue by a little redistributive justice. For any college or university with an endowment of more than, say, $1 billion we 1) stop all federal subsidies and 2) require that they send, say, 10% – 15% of their endowment to a college that caters primarily to poor students.
The exact numbers are not critical. Maybe the threshold should be a $500 million endowment. Maybe the required transfer should be set to the current personal income tax floor, which I believe is 28%. The exact numbers are negotiable, but the principle should be obvious. If we’re against inequality, here is a concrete step we can take not only to make a statement but also make a difference. Make a Statement! Make a Difference! It has a nice ring to it, don’t you think? Yale’s endowment, for example, is about $25 billion. I reckon Howard College could do quite a lot with $4 or $5 billion.