Most of us know folks who owe everything they have in life to education. That explains, I suspect, why we nod in agreement whenever we hear somebody describe education as the ultimate antidote to inequality.
Education certainly can serve as a brake on our widening divides. But education, if structured the wrong way, can also reinforce inequality — and perpetuate privilege.
We saw this unfortunate dynamic at work most blatantly back in the days of legal school segregation. “Separate but equal” kept children of color distinctly unequal.
Legally segregated schools no longer scar our nation. But our educational systems are still, in many different ways, perpetuating privilege. And the most powerful perpetuating of all may be taking place at the tippy top of America’s educational order, on the campuses of our nation’s most prestigious elite universities.
We tend to view these elite schools — places like Harvard, Yale, and Princeton — as national treasures. One thing’s for sure: These private universities certainly sit atop treasures. They all boast endowments that run into the many billions of dollars.
In 2012, Harvard, Yale, Princeton, and five other elite schools had endowments worth a combined $112 billion. For this enormous nest egg, elite private schools owe the American people a debt of gratitude. Without us, their endowments wouldn’t be anywhere near as large.
Elite universities, keep in mind, get the bulk of their contributions from wealthy alumni. These alumni — thanks to the generosity of the American taxpaying public — get to deduct charitable contributions off their taxes. This generous tax break gives the wealthy a mighty incentive to donate to dear old ivy. The more they give, the more they can deduct.
With this tax break in place, elite universities get to accumulate vast endowments, and the phenomenally rich get to pay taxes at bargain basement rates — and stay phenomenally rich.
But these same endowments are also creating fabulous wealth — for the money…